The global market for potato starch witnessed incremental growth in the past five years, and reached US$ 8.4 billion in 2018, finds a recent market study published by Persistence Market Research (PMR). The study analyzes changing growth parameters of the potato starch market with its improving sales potential in the pharmaceuticals industry. It finds that the demand for potato starch is growing at a CAGR faster than that in food and other industrial segments including paper and textile industries.
PMR study has tracked thoroughly the increasing popularity of potato starch as a pharmaceutical ingredient, which is mainly triggered by its excellent binding and disintegrating properties. Its growing demand in the pharmaceuticals industry as one of the as the most used excipients is expected to influence the growth prospects of the global market for potato starch. Leading market players are aiming at capitalizing on increasing awareness about the functional properties of potato starch which are favorable for pharmaceutical applications, and adopting strategies to promote its utilization in pharmaceutical technology.
Bakery Products Gobble 25% Share in Food Applications of Potato Starch
Notwithstanding the assertion about the unexplored sales potential of potato starch in the pharmaceuticals industry, the study still attributes the substantially high demand from the food industry and a wide range of food applications of potato starch for the positive growth of the market. In 2018, more than half revenue share of the potato starch market was accounted by the food industry, and this trend is unlikely to change in the coming years, opines the study.
With the changing lifestyle of consumers, the demand for convenience food has increased significantly, in turn, triggering the adoption of potato starch as an important ingredient in most processed food products, especially in baked food. The PMR study finds that the nearly one-fourth of the total sales of potato starch in the food applications is accounted by bakery products, which was valued at around US$ 325 million in 2018.
As baking companies are inclined towards using gluten-free, organic, and non-GMO ingredients in their products to maintain an edge in a highly competitive baked goods market, the demand for potato starch will continue to remain high among baking companies in the coming years, opines the study.
Availability of Substitutes and High Cost of Native Potato Starch to Hinder the Market Growth
Despite the burgeoning demand for potato starch in versatile industrial areas, including food, paper, and textile industries, high availability of low-cost alternatives continues to remain the Gordian knot for stakeholders in the potato starch market. In addition, consumers are becoming aware about the health benefits of potato starch substitutes such as corn starch, maize starch, and arrowroot starch, which is likely to have a significant impact on the demand for potato starch, amid the rise of healthy eating trends.
In addition, the study also finds that native starch accounts for more than 90% revenue share of the global potato starch market. However, the demand for native starch is likely to decline owing to its high cost, which is mainly attributed to the lengthy and costly extraction process. In the coming years, the demand for modified starch is expected to grow significantly as food manufacturers are aiming to replace high-cost ingredients with their low-cost substitutes to ultimately reduce their manufacturing expenses, finds that PMR study.
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