Potato Starch Market

The global potato starch market is projected to witness significant growth during the forecast period, exhibiting a CAGR of 5.65% during the forecast period. The key factors driving the growth of the potato starch market are the growing paper industry coupled with the wide usage of potato starch in it as well as the booming food and beverage industry. However, the availability of a wide range of alternatives to potato starch is expected to restrict the market's growth during the forecast period. Furthermore, growing expansion policies adopted by key players are anticipated to create growth opportunities for the market.

The growing paper industry coupled with the wide usage of potato starch in it is set to boost its market growth. For example, native and cationic important ingredients in the manufacture of paper and board are potato starches. The wet end, the size press, or the coating operation are the three stages of the industrial process where starches can be employed. Since potato starch has the maximum whiteness of any starch, it is particularly suitable for use in office paper. In addition, due to its low gelling temperature and high gelling strength, potato starch is utilised as an adhesive in the corrugated board industry. In addition to its use in paper and board, potato starch is also utilised in a variety of other products, including bioplastics, textiles, gypsum board, oil drilling, and many more.

Furthermore, the increasing government investment to strengthen the paper sector is set to positively influence its market growth. For example, Senator Peter Cook, Minister of Industry, Science, and Technology, and Minister of Resources David Beddall unveiled the Federal Government's four-year strategy to advance the wood and paper industry while preserving forests for future generations. A USD 38 million package for industry development is part of the strategy. It acknowledges that this sector of the economy is undergoing change and is preparing for increased value addition and increased productivity. A USD 107 million structural adjustment aid program for businesses and employees complements the strategy. The creation of Regional Forest Agreements (RFAs), which will give the industry more resource certainty, has already cost an additional USD 53 million. This is at a time when the sector is thinking about spending between USD 4 billion and USD 6 billion, and it anticipates a possible increase in new positions of between 15,000 and 25,000 over the next 10 years. The strategy, which builds on the RFAs, establishes a stable policy environment that allows the industry to plan and invest with the least amount of risk and the most amount of assurance. Substantial public feedback and consultations with the business community, environmental groups, unions, and community organizations. Hence, the growing paper industry would increase the usage of potato starch which in turn would boost its market growth in the upcoming years.

The potato starch market is almost fragmented with the presence of established players, who compete against each other intensely to secure a larger customer base. Furthermore, various expansion policies adopted by key players are gaining traction in the field of the potato starch market. In the last few years, the potato starch market has witnessed quite a few expansion policies which assist in driving the market growth. For instance, in October 2022, AKV Langholt AmbA, a Danish farmer-owned cooperative, acquired over Cargill's 50% ownership position in its joint venture, Cargill-AKV I/S. The joint venture was created in 1987 with the intention of producing and selling cationic potato starches for the global paper industry. 2018 saw the addition of a working clean-label starch mill to the company's activities. With the acquisition, AKV has increased the number of products it offers, adding 90,000 tonnes of native and modified potato starches as well as proteins and starches from the potato for the feed and pet food businesses. Furthermore, in June 2020, The Emsland Group, the largest potato starch manufacturer in Germany, entered a partnership with Just in America. Just uses state-of-the-art science and technology to produce foods that are healthier and more sustainable, such as the plant-based product sold as Just Egg in the US. The wide activities of the Emsland Group are the ideal match for the strategy. In total, across its seven facilities in Germany, Emsland Group processes more than two million tons of these crops annually. Proteins and fibres are equally important, in addition to starches and starch derivatives, as well as potato flakes and granules. Peas and potatoes serve as the foundation. The processing of mung bean protein is the primary objective of the collaboration with Just. The primary component of Just Egg is protein, which will help to ensure that the company has a dependable, effective, and scalable production infrastructure. The Emsland Group views the partnership with Just as a promising relationship that will help it diversify its product offerings and open new avenues for sales in the food sector. Thus, the constant expansion policies taking place in the potato starch industry among the giants across the globe have created lucrative opportunities for players in the global potato starch market.

The availability of a wide range of alternatives of potato starch such as cornstarch, tapioca starch, mochiko flour, wheat flour, coconut flour and many more may serve as a restraint for its market growth in the upcoming years. For example, a carbohydrate obtained from the corn endosperm is known as corn flour. This white powder has a variety of functions in industry, the home, and the kitchen. It was created in New Jersey in 1844, and today it is manufactured there as well as in China, Brazil, India, and other nations that cultivate maize. Most of the time, corn flour is used in the kitchen to thicken marinades, sauces, gravies, glazes, soups, casseroles, pies, and other desserts. It appears in food preparation all throughout the world, with North America and Asia dominating its production and consumption.

Tapioca starch, commonly referred to as tapioca flour, is a tuberous root vegetable that is indigenous to South America. Cassava starch, also known as tapioca flour, is derived from the root of this plant. The cassava root is washed, made into a pulpy paste, and then squeezed to release the juice. Tapioca flour is the extra-fine, white powder that is left over after the liquid evaporates and is made entirely of pure starch. A neutral-tasting flour that is also naturally gluten- and vegan-free is tapioca starch. As a result, it serves as a suitable replacement and gluten-free alternative to many other flours. It's a frequent component in gluten-free flour blends, which commonly incorporate brown rice flour, xanthan gum, rice flour, potato starch and corn flour.

Mochiko Flour is a kind of flour produced from mochi rice, a short-grained sticky rice that is popular in Asia. It provides a strong binding that can resist freezing and refrigeration temperatures without separating and is frequently used to thicken sauces and food mixtures. It is frequently used to bread things before frying them and to make traditional delicacies that call for flour, like baked goods and desserts or the rice dumplings known as Japanese mochi. Sweet glutinous rice flour, sweet rice flour, and mochi flour are further names for mochiko flour.

Wheat flour is usually a powder made by grinding wheat, making it suitable for human consumption. The amount of gluten, color, sections of the grain used, and variety of wheat are used to categorize the many forms of wheat flour. Most baked items, including bread, cakes, and cookies, must contain wheat flour. Moreover, the growing consumption of wheat flour across various regions may hamper its market growth. For example, according to MRFR analysis, China, the European Union, and India were the top three wheat consumers in the world during the 2021–2022 marketing year. That year, China consumed close to 150 million metric tons of wheat. The world's consumption of wheat is progressively rising, at about 7% since 2018/2019.

Coconut flour is a gluten-free flour substitute that is created by powdering dried coconut. It can either be blended with other gluten-free flours to create a gluten-free flour blend or used to replace some of the wheat flour in a recipe. Hence, the presence of a wide range of substitutes for potato starch may serve as a restraining factor for its market growth in the upcoming years.

The side effects associated with the excess consumption of potato starch may serve as a challenge for its market growth in the upcoming years. For instance, consumers may experience temporary changes to the digestive system when they consume resistant starch recipes that contain potato starch, such as bloating and gas.

This is since gas-producing bacteria in consumers large intestine ferment potato starch. However, this depends on the type of resistant starch and the amount consumed. Adding significant amounts of any meal high in resistant starch may cause digestive problems. As they are thought to be low in specific kinds of carbohydrates known as FODMAPs, resistant starches from sources including potato, corn, and tapioca are thought to be less likely to induce digestive adverse effects than other types of fibre.Particularly if consumers consume them in significant quantities, foods and supplements high in FODMAPs may produce digestive symptoms like bloating, gas, and diarrhoea.However, there is always a potential that some people may experience digestive adverse effects from potato starch, which is why it is typically advised to gradually increase dose over time.

According to the National Institute of Diabetes and Digestive and Kidney Diseases, in the digestive tract, everyone has gas, and many individuals struggle with the symptoms of gas. For instance, research indicates that 16% to 31% of adults report having bloating, or an abdominal feeling of swelling or fullness. About 20% of participants in a big U.S. survey stated they had bloating in the previous week. Some individuals are more susceptible to experiencing issues with gas symptoms if they suffer from certain medical disorders. More gas symptoms may also occur in those who swallow more air or consume more particular meals. Hence, the side effects associated with the excess consumption of potato starch may serve as a challenge for its market growth.