Albany, NY -- (SBWIRE) -- 04/20/2017 -- Starch is a carbohydrate that is produced and used as an energy source by most plants. Potato starches are derived from potatoes through a process that leaves potato pulp and juices as by-products. The use of potatoes as a source of starch, other than from being a food crop, is a well-documented process that is rapidly gaining importance. Potato starches find a wide array of applications in various food and beverage, and industrial products due to several favorable functional properties.

Potatoes usually contain two different types of starch: amylose and amylopectin. Amylopectin, which occupies over 80% of the potato starch content, is the majorly used component in several applications in food and industrial products.

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Market Dynamics of Potato Starch Market

The potato starch market is influenced by several factors such as the demand for the end-product, functional properties of potato starch, substitute products, the relative price of potato starch and regulatory aspects.

The use of potato starches in several common food products, such as bakery and meat products, is an important driver for the market. The increasing consumption and purchasing power in several Asian countries are cited as the main factors driving the rise in food and beverage market. Several of the industrial applications of potato starch are also witnessing considerable growth.

At a functional level potato starch offers several beneficial properties. Since the starch is flavorless, it can be used in various food products without impacting the flavor of the base material. Potato starch is also being increasingly used in gluten-free material as the major starch products are cereal-based and contain gluten. Apart from these uses potato starch is also used as a thickener, water binder, anti-caking ingredient and bulking agent. The other important factor that is crucial to the market growth is the increasing competition from substitute products such as corn starch, rice starch, and tapioca starch. Due to identical properties, potato starch is also considered an ideal candidate to replace cornstarch in most bakery products.

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Genetic modification of the potato plant is a key aspect of the potato starch market. The development of potatoes that contain only amylopectin, which is the majorly used ingredient, is an active area of research and is touted to greatly increase efficiency and profitability for the starch manufacturers. The 2010 EU ruling against BASF's GM potato, Amflora, is a drawback for the market in this context. Amflora is a modified potato that is devoid of amylase and only contains amylopectin. This ruling is reflective of the growing consumer resentment against GM crops.

Market Segmentation of Potato Starch Market

The potato starch market is segmented on the basis of type and application.

On the basis of application, the market is segmented into food, industrial and others. The food segment is further divided into dairy, confectionery, soups and sauces, bakery products, meat and others. The use of potato starch is expected to be on an increasing trend in almost all the segments and perform particularly well in the dairy, bakery and meat segments. The industrial segment is further divided into paper, adhesive, textile and others segments. The several beneficial functional properties of potato starch are driving the industrial segment.

On the basis of type, the market is segmented into GMO and non-GMO segments. The GMO segment offers several advantages to the suppliers but is plagued by increasing public and regulatory resistance. The non-GMO segment is expected to increase at a considerably higher rate owing to increasing preference for organic and natural products that are processed to a minimal extent. This growth of non-GMO based potato starch is an extension of the healthy food trend.

Regional Outlook of Potato Starch Market

The potato starch market in North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and MEA is covered in the report.

The consumption of potato starch-based products is relatively higher in North America and Europe. This high consumption is a result of the high consumption of the end-use products. The market is expected to witness significant growth in Asia Pacific and Latin America due to increasing consumption in the emerging countries. From a production standpoint, Asia and Europe dominate the market.

Key Market Players in Potato Starch Market

Avebe, Agrana Staerke GmbH, AKV Langholt AmbA, Changhong Potato Starch Co., Ltd., Emsland Group, Finnamyl Oy, Manitoba Starch Products, Ingredion Incorporated, Cargill Incorporated, etc.