The global potato starch market was valued at approximately USD 3.49 billion in 2023 and is anticipated to reach USD 4.79 billion by 2030, representing a compound annual growth rate (CAGR) of 4.7% from 2024 to 2030. This market is witnessing substantial growth, driven by several key factors that are increasing product demand across diverse industries.
A significant driver of this growth is the rising consumer awareness and preference for clean-label and natural products. Potato starch, extracted from potatoes through a natural process, aligns with this trend as a minimally processed ingredient, appealing to consumers seeking healthier and more transparent food options. Additionally, the surge in gluten-free dietary preferences has notably increased demand for potato starch. As more consumers choose gluten-free alternatives for health reasons or dietary restrictions, potato starch has emerged as a versatile and effective substitute in various gluten-free products, including baked goods, snacks, and processed foods.
The product's functional properties also play a crucial role in its expansion. With excellent thickening, binding, and stabilizing qualities, potato starch enhances the texture and quality of numerous food items, making it a favored choice among food manufacturers. Its ability to improve viscosity and moisture retention makes it a valuable ingredient in sauces, soups, and other processed foods. Moreover, the diversification of potato starch applications beyond the food sector is essential for market growth. The product is utilized in non-food industries such as textiles, pharmaceuticals, and paper manufacturing, highlighting its versatility and broadening market scope.'
Key Market Trends & Insights
North America represented the largest revenue share of over 42.6% in 2023, reflecting robust demand for potato starch across various sectors. The region benefits from a well-established potato industry, with the U.S. and Canada ensuring a steady supply of raw materials for potato starch production.
The U.S. potato starch market is projected to grow at a CAGR of 4.4% from 2024 to 2030, driven by the rising trend of clean labels and natural ingredients, which has increased product demand.
In 2023, the food and beverage segment accounted for the largest revenue share of 59.4%. Potato starch is applied in a wide array of food products, including baked goods, soups, sauces, and snacks, enhancing texture, consistency, and stability.
The modified potato starch segment held a market share of 72.3% in 2023 and is expected to maintain its dominance in the coming years. Its improved stability, texture enhancement, and superior thickening properties have led to its widespread adoption in various manufacturing processes.
The conventional potato starch segment captured 87.8% of the market share in 2023, with the geographical distribution of potato cultivation and processing facilities in regions with well-established potato industries expected to significantly contribute to market growth in the forecast period.
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Market Size & Forecast
2023 Market Size: USD 3.49 Billion
2030 Projected Market Size: USD 4.79 Billion
CAGR (2024-2030): 4.7%
North America: Largest market in 2023