The global potato starch market is projected to reach approximately US$ 6.70 billion by 2032, with a compound annual growth rate (CAGR) of 4.47% from 2024 to 2032. In 2023, the market was valued at US$ 4.52 billion, according to recent reports.
The increasing demand for convenience and processed foods is a key driver of this growth. Globally, there has been a notable 3% rise in the consumption of convenience foods, particularly in developing nations, as reported by Innova Market Insights. Notably, the United States continues to show strong sales in the convenience food sector. Furthermore, the diversification of potato starch into non-food industries such as paper manufacturing, textiles, and pharmaceuticals is crucial for expanding its market reach and versatility.
Consumer preferences for clean-label and gluten-free products are significantly shaping the global potato starch industry. There is a notable shift away from highly processed, low-calorie foods towards whole-food balanced diets. This shift is driving demand for gluten-free options, reflecting a broader trend towards healthier lifestyles.
According to an ATLAS poll, 78% of consumers are willing to pay more for all-natural products, with 56% willing to pay an additional 10-30% and 33% willing to pay 20-30% more. This trend underscores the growing demand for clean-label products, which include attributes like all-natural and no artificial ingredients.
Asia-Pacific Potato Starch Market
The Asia-Pacific region is a significant growth driver in the potato starch market, propelled by the expanding food industry in countries like China and India. Changing dietary preferences and a growing population are further boosting demand for potato starch in processed and convenience foods.
In China, for instance, the prepared food market witnessed a 24.1% year-over-year growth in 2021, with expectations to sustain over 20% annual growth through 2025, according to the China Chain Store & Franchise Association (CCFA). Rising disposable incomes are also driving consumer willingness to invest in functional foods and beverages containing potato starch.
The Asia-Pacific region is poised for continued growth, with the International Monetary Fund predicting a 4.2% expansion in 2024 and 4.6% in 2023, making it a key contributor to global economic growth.
In conclusion, the global potato starch market is evolving with a strong emphasis on convenience, health-conscious choices, and expanding industrial applications, particularly in the Asia-Pacific region. These factors collectively underscore a promising future for potato starch as a versatile and sought-after ingredient across various sectors worldwide.
