Market Dynamics
The United Kingdom is one of the largest producers and consumers of potato starch in the world. For 2018, it is estimated that the United Kingdom will produce 2.884 million tonnes of potatoes, which will be enough to meet the country’s needs. Over the next 15 years, this demand for potato starch is expected to increase significantly due to the increasing demand for convenience and convenience-enabled foods. The predicted rise in the popularity of convenience and convenience-enabled foods will create opportunities for domestic potatoes starch producers. These producers will be able to capitalize on the increased demand for potato starch and create products that are in high demand. Additionally, with the rise in the popularity of convenience-enabled foods, potato starch is increasingly being used to thicken and bind sauces and soups. This currently is a niche market, and as such, capturing market share for those looking to innovate in this sector is relatively easy. The rise in the popularity of convenience and convenience-enabled foods also has led to potato starch being used as a gluten-free alternative to wheat starch in the bakery, confectionery, and restaurant sectors.
In the coming years, the gluten-free market is expected to experience exponential growth, and potato starch producers in the United Kingdom will benefit from this trend. Furthermore, due to the increasing demand, companies are expected to invest in state-of-the-art manufacturing equipment and processes to produce potato starch products of superior quality. However, the potato starch market is expected to face certain setbacks as well. The potato starch market in the United Kingdom faces competition from other sources of starches such as corn, which is a cheaper alternative to potato starch. Additionally, potato starch is increasingly becoming a low-margin business due to the presence of too many producers and the absence of any cost advantages. To conclude, it is expected that the demand for potato starch in the United Kingdom will grow over the next fifteen years in line with the growth of the convenience and convenience-enabled food industry. However, in order to remain competitive, potato starch producers must continue to innovate and invest in their production capacities. Additionally, producers must find ways to differentiate their products from those of their competitors, such as producing gluten-free variants of their potato starches.
This, in turn, might help them stay profitable and competitive in the market.
