Global Modified Potato Starch Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In June 2023, Brenntag Specialties forged a strategic partnership with the renowned potato starch manufacturer, Royal Avebe, marking a significant development in supply collaborations within the nutrition sector. The collaboration aimed to capitalize on the strengths of both entities, combining Brenntag Specialties' distribution expertise with Royal Avebe's excellence in potato starch production.

• In October 2022, AKV Langholt AmbA completed the acquisition of Cargill's 50% stake in their shared joint venture, Cargill-AKV I/S. Originating in 1987, this joint venture initially focused on the production and sale of cationic potato starches to the worldwide paper industry.

The Global Modified Potato Starch Market is segmented by Form, Grade, Source, and Application, offering a comprehensive view of the market's diverse dynamics. By Form, the market is divided into Powder, Paste, and Flakes, each catering to specific industries and consumer needs. Powdered modified potato starch is widely used across various industries due to its versatility and ease of handling, especially in food & beverage applications where it serves as a thickener and stabilizer in products like soups, sauces, and bakery items. The Paste form is more viscous and finds applications in food items requiring smoother textures, such as puddings, sauces, and some processed meats, as well as in paper and textile industries for sizing and enhancing the strength of materials. Flakes, known for their ease of reconstitution, are primarily used in instant food products like instant mashed potatoes, soups, and meal kits, as well as in the packaging and cosmetic industries for their thickening and stabilizing properties.

In terms of Grade, the market is segmented into Food Grade and Industrial Grade, with each grade tailored to its respective industry requirements. Food Grade modified potato starch is rigorously processed to meet food safety standards and is widely used in the food and beverage industry for its functionality in emulsifying, thickening, and stabilizing food products. Its use is prominent in clean-label and premium food items, where purity and safety are critical. On the other hand, Industrial Grade modified potato starch is more commonly used in non-food industries like paper & paperboard, pharmaceuticals, and textiles. This grade offers cost-effective solutions for applications such as paper coatings, adhesives, and fabric finishing, where purity levels are less stringent compared to food applications.

The segmentation by Source into Conventional and Organic modified potato starch caters to growing consumer preferences for sustainability and health-conscious products. Conventional modified potato starch remains the dominant segment due to its affordability and widespread availability, serving a broad range of industries. However, the Organic segment is gaining traction, particularly in the food & beverage and pharmaceutical industries, as more consumers seek natural and environmentally friendly products. In terms of Application, the market is broad, with significant demand in Food & Beverages, where modified potato starch is used for texture and stability; Paper & Paperboard, where it serves as a sizing and coating agent; and Pharmaceuticals, where it is used in drug formulations as a binder or stabilizer. Other applications, including cosmetics and textiles, also contribute to the growing demand for modified potato starch, reflecting its versatility across various industries.

Global Modified Potato Starch Segment Analysis

In this report, the Global Modified Potato Starch Market has been segmented by Form, Grade, Source, Application, and Geography.

Global Modified Potato Starch Market, Segmentation by Form

The Global Modified Potato Starch Market has been segmented by Form into Powder, Paste, and Flakes.

The Global Modified Potato Starch Market is segmented by Form into Powder, Paste, and Flakes, each serving distinct applications and requirements across various industries. Powdered modified potato starch is the most widely used form due to its versatility, ease of handling, and ability to dissolve quickly in water. It is commonly employed in the food and beverage industry as a thickening agent, stabilizer, and emulsifier, especially in products like sauces, gravies, soups, and processed meats. The powder form also finds significant use in the pharmaceutical industry, where it serves as a binding agent for tablets and capsules, offering excellent flow properties and stability.

The Paste form of modified potato starch is often used in applications where a more viscous consistency is required. It is typically utilized in food products such as puddings, custards, and bakery fillings, where it provides smooth texture and enhanced consistency. Additionally, the paste form is important in the paper and textile industries, where it acts as a sizing agent and helps improve the strength and finish of the materials. Modified potato starch paste offers better viscosity control and is preferred in manufacturing processes that require specific rheological properties for enhanced performance.

Flakes of modified potato starch are generally used in applications where ease of reconstitution and long shelf life are essential. They are often favored in the food industry, particularly in instant food products like soups, mashed potatoes, and meal kits, where they dissolve easily in water and provide a convenient and quick preparation process. Modified potato starch flakes are also employed in the textile industry for sizing purposes, where they ensure smooth processing of fabrics. This form of starch is beneficial in the cosmetic industry as well, offering textural benefits in formulations for creams and lotions. Overall, the segmentation by form highlights the adaptability of modified potato starch in various industries, with each form meeting the specific functional needs of diverse applications.

Global Modified Potato Starch Market, Segmentation by Grade

The Global Modified Potato Starch Market has been segmented by Grade into Food Grade and Industrial Grade.

The Global Modified Potato Starch Market is segmented by Grade into Food Grade and Industrial Grade, each catering to distinct market demands and applications. Food Grade modified potato starch is primarily used in the food and beverage industry due to its high purity and food safety standards. It plays a crucial role as a thickening agent, stabilizer, and emulsifier in a variety of food products, including soups, sauces, gravies, bakery items, and processed meats. The food-grade starch is designed to meet strict regulatory requirements, ensuring that it is safe for consumption and free from harmful contaminants, making it ideal for products that come in direct contact with consumers.

In contrast, Industrial Grade modified potato starch is tailored for non-food applications and is less stringent in terms of purity compared to food-grade starch. This grade of starch is widely used in industries such as paper, textiles, adhesives, and pharmaceuticals. In the paper industry, industrial-grade modified potato starch is used as a sizing agent to improve the quality and durability of paper products. In textiles, it is applied in fabric finishing and as a stiffening agent. Additionally, industrial-grade starch is also used in the production of biodegradable plastics, where its biocompatibility and renewable nature provide a sustainable alternative to conventional synthetic polymers.

The differentiation between Food Grade and Industrial Grade modified potato starch underscores the versatility of this natural product across various sectors. While food-grade starch focuses on purity, functionality, and safety for human consumption, industrial-grade starch emphasizes cost-effectiveness and performance for non-food applications. As consumer demand for healthier and sustainable products rises, the food-grade segment is likely to see growth, while the industrial-grade market will continue to expand in sectors such as packaging and textiles, driven by the need for eco-friendly alternatives.

Global Modified Potato Starch Market, Segmentation by Source

The Global Modified Potato Starch Market has been segmented by Source into Conventional and Organic.

The Global Modified Potato Starch Market is segmented by Source into Conventional and Organic categories, each addressing different consumer demands and market preferences. Conventional modified potato starch is derived from traditionally grown potatoes, and it dominates the market due to its cost-effectiveness and widespread availability. This starch is used across various industries, including food, beverages, paper, textiles, and adhesives, due to its consistent quality and well-established processing methods. Conventional modified potato starch is favored in mass production settings where efficiency and large-scale supply are critical, offering excellent performance in applications like thickening agents in soups, sauces, and processed foods.

On the other hand, the Organic modified potato starch market is experiencing growth, driven by increasing consumer preference for natural and environmentally sustainable products. Organic modified potato starch is sourced from potatoes that are grown without the use of synthetic pesticides, fertilizers, or genetically modified organisms (GMOs). This makes it a more environmentally friendly and healthier option, appealing to the growing number of health-conscious and eco-aware consumers. The demand for organic starch is particularly strong in the food and beverage industry, where it is used in premium, organic, and clean-label products, as well as in the cosmetic and pharmaceutical industries, where product purity and sustainability are increasingly prioritized.

The segmentation between Conventional and Organic modified potato starch highlights the shift towards more sustainable and health-conscious product offerings in the market. While conventional starch remains the backbone of many industries due to its affordability and availability, the growing trend towards organic and eco-friendly products is expected to push the demand for organic modified potato starch. This shift reflects the broader consumer demand for transparency in sourcing, sustainability in production, and the health benefits associated with organic ingredients. Consequently, manufacturers are increasingly investing in organic potato starch production to meet these consumer expectations and expand their market share in the growing organic segment.

Global Modified Potato Starch Market, Segmentation by Application

The Global Modified Potato Starch Market has been segmented by Application into Food & beverages, Paper & paperboard, Pharmaceuticals and Others.

The food & beverages sector, modified potato starch is a vital ingredient used for its thickening, stabilizing, and texturizing properties. It is prominently used in sauces, soups, bakery products, and dairy alternatives to enhance consistency and extend shelf life. Additionally, it plays a significant role in gluten-free and allergen-free food products, providing a suitable alternative to traditional flours and starches while maintaining desired taste and texture.

In the paper & paperboard industry, modified potato starch serves as a crucial component for improving the quality and performance of paper products. It is used as a sizing agent to enhance paper strength, surface quality, and printability. By providing better adhesion and coating, modified potato starch helps produce high-quality paper and packaging materials that meet industry standards. This application is particularly important in regions with robust paper and packaging sectors, driving demand for modified starch solutions that enhance product characteristics and manufacturing efficiency.

The pharmaceutical application of modified potato starch involves its use as a disintegrant and binder in tablet formulations. It ensures proper dissolution and bioavailability of active ingredients, which is essential for the effectiveness of medications. Beyond pharmaceuticals, modified potato starch finds applications in other industries such as textiles, where it is used to strengthen yarns and improve fabric quality, and in adhesives and building materials, where its binding properties are leveraged. These diverse applications across multiple industries underscore the versatility and growing importance of modified potato starch in the global market, driven by its functional benefits and ability to enhance product performance.

Global Modified Potato Starch Market, Segmentation by Geography

In this report, the Global Modified Potato Starch Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Modified Potato Starch Market Share (%), by Geographical Region, 2024

North America holds a significant share of the market, driven by the high demand for processed foods and the presence of major food and beverage manufacturers. The region's advanced food processing industry and increasing consumer preference for clean-label ingredients contribute to the growth of the modified potato starch market. Additionally, the pharmaceutical and paper industries in North America are substantial consumers of modified potato starch, utilizing its functional properties for various applications.

Europe is another prominent market for modified potato starch, owing to its well-established food and beverage industry and stringent regulatory standards for food additives. Countries like Germany, France, and the United Kingdom are key players in this region, with a strong emphasis on sustainable and natural food ingredients. The European market also benefits from the growing trend towards gluten-free and allergen-free products, where modified potato starch serves as an excellent alternative to traditional starches. Moreover, the textile and paper industries in Europe leverage the unique properties of modified potato starch to enhance product quality and performance.

The Asia Pacific region is experiencing rapid growth in the modified potato starch market, fueled by increasing industrialization, urbanization, and changing dietary habits. Countries such as China, India, and Japan are major contributors to this growth, driven by the expanding food processing sector and rising demand for convenience foods. The region's burgeoning pharmaceutical and textile industries also utilize modified potato starch for its functional benefits. Latin America and the Middle East and Africa regions are witnessing steady market growth, supported by improving economic conditions and increasing investments in food processing and manufacturing infrastructure. The diverse applications and growing awareness of the benefits of modified potato starch continue to drive its demand across these regions.

This report provides an in depth analysis of various factors that impact the dynamics of Global Modified Potato Starch Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Functional Ingredients
• Clean Label

• Convenience Foods : The Global Modified Potato Starch Market plays a pivotal role in the convenience foods sector, addressing the increasing consumer demand for quick, easy-to-prepare, and high-quality food products. Modified potato starch is extensively used as a thickener, stabilizer, and texture enhancer in various convenience foods such as ready-to-eat meals, instant soups, sauces, and frozen foods. Its unique properties, such as excellent water-binding capacity and heat stability, make it an ideal ingredient for maintaining the desired consistency and quality of convenience foods throughout processing, storage, and reheating.

  In the ready-to-eat meals segment, modified potato starch helps improve the texture and mouthfeel of products, ensuring they remain appetizing and palatable even after prolonged storage. It also plays a crucial role in instant soups and sauces, providing the necessary viscosity and preventing phase separation, which is essential for maintaining the product's quality and consumer appeal. Additionally, in frozen foods, modified potato starch aids in moisture retention, preventing ice crystal formation and ensuring that the food retains its texture and flavor upon thawing and reheating.

  The demand for convenience foods is expected to continue rising globally, driven by busy lifestyles, urbanization, and increasing disposable incomes. This trend is particularly pronounced in regions such as Asia Pacific and Latin America, where rapid urbanization and changing dietary habits are fueling the growth of the convenience foods market. As a result, the use of modified potato starch in these products is anticipated to grow, supported by ongoing innovations aimed at enhancing its functionality and performance. Manufacturers are increasingly focusing on developing modified potato starches that meet specific needs of the convenience foods industry, such as clean-label formulations and improved nutritional profiles, to cater to the evolving consumer preferences and regulatory requirements.

Restraints

• High cost
• Limited availability

• Raw material : Raw materials used in the production of modified potato starch primarily involve sourcing potatoes as the main ingredient. Potatoes are selected based on their starch content and quality, with varieties like Russet Burbank and Shepody commonly preferred due to their high starch content and suitability for processing. The sourcing of potatoes for starch production is influenced by factors such as crop yields, seasonality, and regional availability. Manufacturers often maintain relationships with potato farmers or agricultural cooperatives to ensure a consistent and reliable supply of raw materials.

  The process of extracting starch from potatoes involves several steps, including washing, peeling, grinding, and separating starch from the potato pulp. Water is a critical raw material used extensively throughout these stages to facilitate washing and separation processes. The quality and purity of water used in starch extraction are essential to ensure the final product meets industry standards and regulatory requirements.

  Some modified potato starch products may undergo additional modifications using chemical treatments or enzymatic processes to enhance their functional properties. These modifications can include altering the starch's viscosity, stability, or gelatinization characteristics to better suit specific end-use applications in food, paper, pharmaceuticals, and other industries. Raw material sourcing strategies thus focus not only on potato quality and availability but also on maintaining sustainable practices and minimizing environmental impact throughout the production chain. This includes considerations such as waste management and energy efficiency to support responsible sourcing practices in the global modified potato starch market.

Opportunities

• Health-Conscious Trends
• Clean-Label Demand

• Functional Ingredients : Functional ingredients play a crucial role in driving the Global Modified Potato Starch Market, enhancing its utility across various industries. Modified potato starch is valued for its functional properties such as improved stability, viscosity, and gel formation, which make it a versatile ingredient in food and beverage applications. As a thickening agent and stabilizer, it enhances the texture and consistency of products like soups, sauces, and dairy alternatives, ensuring desirable mouthfeel and shelf stability. Its ability to withstand varying processing conditions and provide excellent freeze-thaw stability makes it indispensable in frozen foods as well.

  In the paper industry, modified potato starch serves as a sizing agent and binder, improving paper strength, surface smoothness, and printability. This application underscores its role in enhancing the quality and performance of paper products across printing and packaging sectors. In textiles, modified starches contribute to yarn and fabric quality by imparting strength and flexibility, thereby improving the overall durability and appearance of textile products. These functional attributes are essential for meeting the stringent quality standards and operational efficiency requirements in manufacturing processes.

  In pharmaceutical formulations, modified potato starch acts as a disintegrant and binder in tablet production, ensuring uniform drug release and effective absorption of active pharmaceutical ingredients (APIs). Its inert nature and compatibility with various pharmaceutical compounds make it a preferred choice for formulating tablets and capsules. As global industries continue to prioritize efficiency, sustainability, and product innovation, the demand for functional ingredients like modified potato starch is expected to grow, driven by its ability to enhance product performance, quality, and consumer satisfaction across diverse applications.

Key players in Global Modified Potato Starch Market include:

• Emsland Group
• Cargill Inc.
• Ingredion Incorporated
• Novidon B.V.
• Ettlinger Corporation
• ADM
• Royal Ingredients Group B.V.
• PEPEES Group
• KMC
• Roquette Frères

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis