Modified Potato Starch Market Size was estimated at 3.89 (USD Billion) in 2022. The Modified Potato Starch Industry is expected to grow from 4.07(USD Billion) in 2023 to 6.1 (USD Billion) by 2032. The Modified Potato Starch Market CAGR (growth rate) is expected to be around 4.6% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Modified Potato Starch Market Trends Highlighted
The Modified Potato Starch Market is rapidly growing due to the increasing popularity of clean-label and natural food products. Most customers today prefer the use of ingredients that have been minimally processed and the modified potato starch can provide that. The food and beverage industry also holds promises for future growth areas due to its application as a thickener, stabilizer and texture enhancer.
Recent trends in the Modified Potato Starch market include the uptake of non-GMO varieties, which are in line with consumer demand for transparency. The increasing adoption of gluten-free and vegan diets also brings business opportunities for modified potato starch as a replacement for wheat and milk-based products. In addition, the growing popularity of modified potato starch with additional properties such as high heat and shear strength results in more areas of application in different industries.
The food and beverage industry is one of the key drivers of the modified potato starch market. This is due to the fact that modified potato starch works as a thickener, stabilizer, and gelling agent in a broad spectrum of food and beverage products, including soups, sauces, gravies, dairy products, and baked goods. With the growing demand for processed and convenience foods and the increasing popularity of plant-based diets, the demand for modified potato starch in the food and beverage sector is expected to continue growing.Additionally, the product is used to produce bioplastics, paper, and adhesives, not to mention other sectors.
The key driver of the modified potato starch market is the advancement of technology and innovation. The development of products possessing a variety of novel and useful properties also contributes to the growth of the market. Specifically, starch products that are more functional and have better properties can be classified in this category. They are developed using extrusion, enzymatic treatment, or other advanced technology and offer improved stability, texture, and shelf life.These types of research and development activities drive the growth of the market.
The development of the health and wellness trend is anticipated to be the main driver responsible for the rising demand for modified potato starch. It is a completely natural and gluten-free product, which makes it a preferable solution for numerous customers who are trying to make healthier choices concerning their diets. Another important factor is the growing awareness of the characteristics of modified potato starch and the fact that it is more beneficial for customers.For example, it has a low glycemic index and increased fiber content, which makes it readily usable in the production of functional foods and nutraceuticals.
The Form segment of the Modified Potato Starch Market is categorized into Powder, Paste, and Flakes. Among these, the Powder form accounts for the largest market share due to its ease of handling, storage, and transportation. Powdered modified potato starch is commonly used in various food applications, including bakery, confectionery, and sauces, owing to its ability to enhance texture and stability. The Paste form, on the other hand, finds application in the food industry as a thickening agent and stabilizer in products such as soups, gravies, and sauces.It provides a smooth and creamy texture and helps prevent syneresis. Flakes, which are produced by drying the paste form, offer advantages in terms of rehydration and dispersion properties. They are commonly used in instant food products, such as soups, sauces, and baby food, where rapid hydration is desired. The Modified Potato Starch Market is anticipated to grow significantly in the coming years. The increasing demand for processed and convenience foods, along with the rising awareness of the health benefits of potato starch, is driving the market growth.Modified potato starch offers several functional properties, including thickening, gelling, and stabilizing, which make it a valuable ingredient in a wide range of food applications. In terms of regional distribution, the Asia-Pacific region is expected to witness the fastest growth in the Modified Potato Starch Market. The growing population and increasing disposable income in countries like China and India are major factors contributing to the market expansion. North America and Europe are also significant markets for modified potato starch, with a strong demand from the food and beverage industry.Overall, the Form segment of the Modified Potato Starch Market is expected to continue to grow steadily in the coming years, driven by the increasing demand for processed foods and the functional properties of modified potato starch.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Modified Potato Starch Market is segmented into various applications, including Food and Beverages, Paper and Paperboard, Adhesives, Construction, and Pharmaceuticals. Among these applications, the Food and Beverages segment is expected to dominate the market in 2023, with a market share of around 40%. The demand for modified potato starch in the food and beverages industry is driven by its thickening, gelling, and stabilizing properties, which are essential in the production of processed foods, soups, sauces, and bakery products. The market for modified potato starch in the Paper and Paperboard segment is also significant, with a market share of around 25%.Modified potato starch is used in the paper industry as a coating and sizing agent, improving the strength, smoothness, and printability of paper products. The Adhesives segment is another major application of modified potato starch, with a market share of around 15%. Modified potato starch is used in adhesives due to its high adhesive strength and ability to form strong bonds between various materials. The Construction segment is also a growing application for modified potato starch, with a market share of around 10%. Modified potato starch is used in construction materials such as drywall, plaster, and joint compounds, providing improved strength, durability, and workability.The Pharmaceuticals segment is a niche application for modified potato starch, with a market share of around 5%. Modified potato starch is used in the production of pharmaceutical excipients, binders, and disintegrants, improving the stability, efficacy, and release characteristics of drugs. Overall, the Modified Potato Starch Market is expected to witness steady growth in the coming years, driven by increasing demand from various end-use industries and the development of new applications for modified potato starch.
The Modified Potato Starch Market is segmented based on Grade into Food Grade and Industrial Grade. The Food Grade segment is estimated to hold a market share of around 60% in 2023 and is projected to grow at a CAGR of 4.8% during the forecast period. The growth of this segment can be attributed to the increasing demand for modified potato starch in the food and beverage industry, particularly in bakery and confectionery products. On the other hand, the Industrial Grade segment is anticipated to expand at a CAGR of 4.4% over the forecast period.This segment is driven by the rising demand for modified potato starch in the paper and packaging industry due to its excellent adhesive properties.
The source segment of the Modified Potato Starch Market is bifurcated into organic and conventional. The conventional source segment held a dominant market share in 2023 and is projected to continue its dominance over the forecast period. The Modified Potato Starch Market revenue from the conventional source segment is estimated to reach USD 3.4 billion by 2032, growing at a CAGR of 4.2% during the forecast period. Potato starch is extracted from conventional potatoes grown using traditional farming techniques that involve the use of chemical fertilizers, pesticides, and herbicides.Its cost-effectiveness, wide availability, and ease of cultivation have contributed to the dominance of the conventional source segment. However, the increasing demand for organic and sustainable products is expected to drive the growth of the organic source segment in the coming years. The organic source segment is projected to register a CAGR of 5.6% during the forecast period as consumers become more aware of the benefits of organic products and their positive impact on health and the environment.
The regional segmentation of the Modified Potato Starch Market offers insights into the diverse market dynamics across key geographic regions. North America is projected to dominate the market with a significant share, driven by the presence of established food and beverage industries and growing consumer demand for convenience and processed foods. Europe is another major regional market with a strong focus on health and wellness, leading to increased demand for modified potato starch in various food applications. The APAC region is expected to witness substantial growth, attributed to the rising population, urbanization, and changing dietary patterns.South America and MEA are emerging markets with untapped potential, presenting opportunities for market expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Modified Potato Starch Market industry is highly competitive, with a wide range of both established and emerging players. As of now, the leading market players in this segment include such companies as Cargill, Avebe, Ingredion, Tereos, and Emsland Group. These companies have a strong market presence, vast product portfolios, and well-developed distribution networks. They invest significantly in research and development to expand their range of products. The dynamic development and technological progress of this segment are associated with these investments.There is a growing demand for modified starch and an emphasis on the development of starches suited for particular applications. To achieve that, the leading companies engage in acquisitions, partnerships, and collaborations. Notably, the Modified Potato Starch Market is expected to be more concentrated and consolidated in the future than it is now. These central tendencies of the market development define the competitive landscape and influence the overall growth of the Market. Below, we will expand upon an overview of a leading and major actor in the Potato starch market – Cargill and Ingredion.CargillCargill is a widely known leader in the food industry worldwide and one of the largest players in the Modified Potato Starch Market. The company offers a wide selection of modified potato starches under the NOVATION brand to its client base in the food, beverage, and paper segments. Cargill has a strong position in the world market due to its well-developed production and distribution network. The company is recognized for its commitment to quality, innovation, and sustainability. As such, it invests in research and development regularly. Cargill is capable of producing a wide range of modified potato starches and satisfies the growing demand for these products. For this reason, it remains a strong and central player in the Modified Potato Starch Market in the long run.
EmslandStärke GmbH
Ulrick Short
Tate Lyle PLC
Lyckeby Starch AB
Gulshan Polyols Ltd.
Ingredion Incorporated
AGRANA BeteiligungsAG
Cargill, Incorporated
KMC
Avebe U.A.
National Starch Chemical Corporation
Emsland Group
Modified Potato Starch Market Industry Developments
The modified potato starch market is anticipated to grow from USD 4.07 billion in 2023 to USD 6.1 billion by 2032, exhibiting a CAGR of 4.6% during the forecast period. Rising demand for clean-label and natural ingredients in food and beverage applications is driving market growth. Modified potato starch is gaining popularity as a gluten-free alternative to wheat starch, further fueling market expansion. Additionally, the growing adoption of modified potato starch in personal care and industrial applications is creating new avenues for market growth. Recent developments include the launch of new modified potato starch products with improved functionality and the expansion of production capacities by major manufacturers to meet increasing demand.
Powder
Paste
Flakes
Food and Beverages
Paper and Paperboard
Adhesives
Construction
Pharmaceuticals
North America
Europe
South America
Asia Pacific
Middle East and Africa
| Report Attribute/Metric | Details |
| Market Size 2022 | 3.89(USD Billion) |
| Market Size 2023 | 4.07(USD Billion) |
| Market Size 2032 | 6.1(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 4.6% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Penford Corporation, EmslandStärke GmbH, Ulrick Short, Tate Lyle PLC, Lyckeby Starch AB, Gulshan Polyols Ltd., Ingredion Incorporated, AGRANA BeteiligungsAG, Cargill, Incorporated, KMC, Avebe U.A., National Starch Chemical Corporation, Emsland Group |
| Segments Covered | Form, Application, Grade, Source, Regional |
| Key Market Opportunities | Bioplastics Food amp Beverages Paper amp Paperboard Construction |
| Key Market Dynamics | Rising demand from food and beverage pharmaceutical and paper industries Growing health consciousness among consumers Technological advancements Increasing disposable income Expansion of retail and distribution channels |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Modified Potato Starch Market is expected to reach USD 6.1 billion by 2032, exhibiting a CAGR of 4.6% during the forecast period (2024-2032).
Asia Pacific is anticipated to lead the Modified Potato Starch Market, owing to the rising demand for modified potato starch in the food and beverage industries in the region.
Modified potato starch finds extensive applications in the food and beverage industry, particularly in bakery, confectionery, and dairy products.
Major players in the Modified Potato Starch Market include Cargill, Ingredion Incorporated, Emsland Group, and Avebe.
Increasing demand for gluten-free and clean-label food products, coupled with the growing awareness of the health benefits of modified potato starch, is primarily driving market growth.
Fluctuating raw material prices, stringent regulatory norms, and intense competition from alternative starches pose challenges to market growth.
The Modified Potato Starch Market is projected to grow at a CAGR of 4.6% during the forecast period (2024-2032).
The food and beverage segment is expected to dominate the Modified Potato Starch Market, driven by its wide usage in processed foods, sauces, and beverages.
Shifting consumer preferences towards healthier and more sustainable food options are expected to drive demand for modified potato starch as a natural and gluten-free ingredient.
Advancements in extraction and modification techniques are enhancing the quality and functionality of modified potato starch, expanding its applications in various industries.
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