Potato Starch Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Modified, Native), By Nature (Conventional, Organic), By End-use Industry (Food & Beverages, Paper, Pharmaceutical & Chemical, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	3389.21 Thousand Tonnes
CAGR (2026-2031)	1.82%
Fastest Growing Segment	Modified
Largest Market	Europe
Market Size (2031)	3776.57 Thousand Tonnes

Market Overview

The Global Potato Starch Market will grow from 3389.21 Thousand Tonnes in 2025 to 3776.57 Thousand Tonnes by 2031 at a 1.82% CAGR. Potato starch is a refined carbohydrate extracted from the root tubers of the potato plant, serving as a versatile thickener, binder, and texturizer across the food, paper, and chemical industries. The market’s growth is fundamentally supported by the expanding processed food sector which relies on the ingredient’s superior viscosity and neutral taste, as well as its essential function in industrial adhesives and textile sizing. These structural drivers provide a stable foundation for demand that exists independently of shifting consumer dietary fads or temporary lifestyle trends.

However, a critical challenge hindering broad market expansion is the instability of raw material supply caused by fluctuating weather patterns and crop diseases, which creates production bottlenecks and pricing uncertainty. This agricultural dependency poses a risk to the consistency required by large-scale industrial buyers. Demonstrating the substantial output volume subject to these agricultural variances, according to the China Starch Industry Association, in 2024, China's actual total potato starch production surpassed the one-million-ton mark for the first time.

Key Market Drivers

Surging Demand for Processed and Convenience Foods acts as a primary catalyst for the global potato starch market, driven by the ingredient's indispensable role as a thickener and texturizer in soups, sauces, bakery products, and ready-to-eat meals. As urbanization accelerates and consumer lifestyles become faster-paced, the industrial requirement for stable, neutral-tasting binding agents in mass-produced food items has escalated. This trend is particularly evident in emerging economies where food manufacturing infrastructure is rapidly expanding to meet domestic consumption needs. Demonstrating this macroeconomic shift, according to the USDA, April 2025, in the 'Food Processing Ingredients Annual' report, China's food processing sector grew by 2.2 percent to reach a value of $1.26 trillion in 2024, signaling a massive, sustained appetite for essential processing ingredients like potato starch.

Concurrently, the Expansion of the Plant-Based and Vegan Food Sector is reshaping high-value application areas, pushing manufacturers to innovate with potato starch as a clean-label replacement for gelatin and animal-derived fats. The ingredient's unique gelling properties allow for the creation of plant-based cheeses and confectionery that mimic the texture of traditional products without compromising on dietary requirements. Major industry players are responding to this shift with significant capital expenditure dedicated to sustainable production and new product development. For instance, according to Royal Avebe, December 2025, in the 'Integrated Annual Report 2024/2025', the cooperative invested €60 million during the financial year, focusing heavily on innovation to develop plant-based solutions such as vegan gelatin alternatives. This strategic pivot is occurring amidst a broader complex market environment where, according to Agrana, October 2025, in the 'Group results for the first half of 2025|26', revenue in the Starch segment saw a slight reduction to €506.5 million, highlighting the competitive pricing pressures persisting alongside these growth avenues.

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Key Market Challenges

The instability of raw material supply severely impedes the Global Potato Starch Market by introducing volume volatility and cost unpredictability that discourage industrial reliance. Unlike synthetic competitors, potato starch production is inextricably linked to agricultural variables, making the supply chain highly vulnerable to climatic shifts and crop pathologies. When adverse weather or disease outbreaks compromise the harvest, starch processors face immediate feedstock shortages. This scarcity prevents manufacturers from operating at full capacity and forces them to pass increased costs onto buyers. Such unreliability disrupts the strict procurement schedules of large-scale food and textile sectors, causing potential clients to limit their exposure to this ingredient and thereby restricting overall market volume.

This agricultural volatility is substantiated by recent yield data from major production zones. According to the North-Western European Potato Growers (NEPG), in 2024, the average potato yield across the NEPG zone dropped to 43.8 tonnes per hectare as a result of difficult weather conditions and high disease pressure. When key regions experience such yield fluctuations, the resulting irregularity in starch availability hampers the ability of suppliers to guarantee long-term contracts, directly constraining the market's growth potential.

Key Market Trends

The Development of Biodegradable and Compostable Packaging Films is emerging as a transformative trend, fundamentally distinct from food sector drivers, as manufacturers seek renewable alternatives to petroleum-based plastics. Potato starch is increasingly valorized in the production of bioplastic blends, particularly for flexible packaging films where it provides essential barrier properties and biodegradability. This shift is driven by stringent environmental regulations and corporate sustainability mandates that prioritize compostable materials for logistics and retail applications. The momentum behind this non-food application is substantial; according to European Bioplastics, December 2025, in the 'Bioplastics Market Development Update 2025', global biobased plastics production capacity is projected to double from 2.31 million tonnes in 2025 to approximately 4.69 million tonnes by 2030, with packaging remaining the largest market segment.

Simultaneously, the Commercialization of Functional Native Potato Starches is reshaping ingredient portfolios by addressing the consumer aversion to chemically modified additives. Unlike the plant-based substitution of animal products, this trend focuses on replacing chemically modified starches (E-numbers) with physically modified potato starches that deliver identical heat and shear stability while permitting a "native" label claim. This technical evolution allows food processors to clean up ingredient lists without sacrificing the textural performance required in demanding industrial lines. Reflecting the industrial commitment to this high-value category, according to KMC, November 2025, in the 'Sustainability Report 2024/25', the cooperative approved an investment of DKK 300 million to expand its factory in Brande, explicitly aiming to capture a larger share of this growing market for advanced food ingredients.

Segmental Insights

The Modified segment is positioned as the fastest-growing category in the Global Potato Starch Market, primarily driven by its superior functional attributes in industrial applications. Food manufacturers increasingly utilize modified potato starch for its exceptional ability to withstand high temperatures, acidity, and shear stress, ensuring stability in processed foods like sauces and ready meals. This segment also benefits from rising demand in the pharmaceutical and paper industries, where it serves as an effective binder and thickener. Continued compliance with safety standards set by organizations such as the U.S. FDA further supports its widespread adoption across diverse sectors.

Regional Insights

Europe holds the leading position in the global potato starch market due to its established agricultural infrastructure and substantial processing capacities, particularly in Germany and the Netherlands. The region benefits from favorable climatic conditions that support the cultivation of high-yield starch potato varieties. This dominance is reinforced by the European Starch Industry Association, which maintains rigorous safety and quality standards for the sector. Furthermore, the rising demand for clean-label and plant-based ingredients within the food and beverage industry continues to drive strong market performance across the region.

Recent Developments

• In July 2025, Royal Avebe collaborated with TNO and Wageningen University & Research to advance the application of potato starch in the field of 3D food printing. The research partnership highlighted the development of a renewable, potato-based printing filament capable of creating plant-based meat substitutes with improved texture and structure. This breakthrough explored the potential of potato starch derivatives to function as versatile, biodegradable materials in additive manufacturing. The project aimed to open new market segments for starch ingredients by demonstrating their viability in cutting-edge food technology applications.
• In November 2024, Royal Avebe entered into a strategic partnership with the biotechnology company ChainCraft to enhance the circularity of its potato starch production process. The collaboration focused on utilizing fermentation technology to convert potato juice, a residual stream from starch manufacturing, into high-value circular fatty acids and fertilizers. By valorizing this byproduct, the companies aimed to produce sustainable alternatives to fossil-fuel and palm-oil-based chemicals. This initiative underscored the cooperative's commitment to reducing its environmental footprint and optimizing the resource efficiency of its starch operations.
• In August 2024, the Emsland Group announced a strategic investment to expand its modified starch production capabilities at its main facility in Emlichheim, Germany. The company commenced the construction of a new technical building featuring a specialized reaction tank, a project internally named "ROxy," with an investment volume of approximately EUR 15 million. This expansion was designed to meet the increasing global demand for high-quality specialty starches in both the food and technical sectors. The new facility was projected to enhance the company's manufacturing flexibility and sustainability upon its completion.
• In July 2024, KMC launched a new potato-starch-based gelling agent named Gelamyl 625, specifically developed for the gummy and sugar confectionery market. The ingredient was introduced to provide manufacturers with a plant-based alternative to gelatin that allows for a drying temperature of 25°C, significantly lower than traditional methods. This innovation aimed to improve energy efficiency in production while delivering a stable, chewy texture in confectionery products. The launch addressed the growing consumer demand for vegetarian and sustainable ingredients without compromising on the sensory qualities of the final product.

Key Market Players

• Emsland Group
• Cargill Inc.
• Ingredion Incorporated
• Novidon B.V.
• Ettlinger Corporation
• Archer Daniels Midland
• Royal Ingredients Group B.V.
• PEPEES Group
• KMC
• Roquette Frères

By Type	By Nature	By End-use Industry	By Region
Modified Native	Conventional Organic	Food & Beverages Paper Pharmaceutical & Chemical Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Potato Starch Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Potato Starch Market, By Type:

• Modified
• Native

• Potato Starch Market, By Nature:

• Conventional
• Organic

• Potato Starch Market, By End-use Industry:

• Food & Beverages
• Paper
• Pharmaceutical & Chemical
• Others

• Potato Starch Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE