US Potato Starch Market Report 2025-2035 – Growth Analysis and Forecast
The US potato starch market is witnessing robust growth driven by increased demand from the food and beverage sector, rising consumer preference for clean label ingredients, and expanding applications in industries such as pharmaceuticals, textiles, and paper. The market is expected to grow at a CAGR of 5.7% from 2025 to 2035, with revenue projected to reach USD 890 Million by 2035 from USD 530 Million in 2025. Key players are investing in advanced extraction technologies and functional starch product innovation to maintain their market leadership and cater to evolving end-user needs.
Latest Market Dynamics
Key Drivers
- Rising demand for clean label, gluten-free products and natural thickeners in the food & beverage sector, with Cargill promoting non-GMO potato starch lines in 2024.
- Growth in application across non-food industries such as paper manufacturing and textiles, where Roquette introduced eco-friendly potato starch-based adhesives in early 2025.
Key Trends
- Surge in organic and non-GMO potato starch production led by companies like Ingredion, responding to consumer health and wellness trends.
- Technological advancements such as enzymatic and advanced extraction techniques, with Avebe deploying greener processing methods for improved yields.
Key Opportunities
- Expansion in the functional food category, supported by Cargill's recent launch of functional potato starch blends that impart added health benefits.
- Emerging demand from pharmaceutical and biodegradable packaging sectors, with Sudstarke developing bio-based film solutions using potato starch.
Key Challenges
- Volatility in raw potato prices due to climate and supply fluctuations, impacting profitability for suppliers like AGRANA.
- Competition from alternative starch sources, such as corn and tapioca, as identified in Lyckeby’s market analysis for 2024.
Key Restraints
- Stringent regulatory compliance for food safety and labeling, with Ingredion navigating updated FDA regulations in mid-2024.
- High costs for transitioning to modern and advanced extraction technologies, affecting smaller manufacturers identified by PEPEES Group.
US Potato Starch Market Share by Type, 2025
In 2025, native potato starch holds the largest market share in the US, accounting for 38% of total revenue. Modified potato starch follows with 31%, driven by its robust applications in processed foods and the industrial sector. Organic variants are gaining traction due to consumer demand for clean ingredients; however, conventional and pre-gelatinized types maintain notable presence. The diversification in product types enables manufacturers to address a broad spectrum of food, industrial, and pharmaceutical applications. Waxy potato starch, though niche, is seen increasingly in specialized formulations, contributing to ongoing innovation within the sector.
US Potato Starch Market Share by Applications, 2025
Food & beverages dominate potato starch consumption in the US, representing 46% of the application market share in 2025, propelled by demand for thickeners in gluten-free and clean-label foods. The paper industry stands as the second largest segment at 21% due to starch's functional properties in paper sizing and coating. Pharmaceutical uses account for 12%, with application in excipients and capsules. Textile, animal feed, and other sectors cumulatively represent 21%, underscoring potato starch's importance across diverse industrial and commercial applications.
US Potato Starch Market Revenue (USD Million), 2020-2035
The US potato starch market has shown consistent annual growth, fueled by expanding applications across various industries. In 2020, market revenue stood at USD 410 Million, which increased to USD 530 Million by 2025. With an estimated CAGR of 5.7%, the market is projected to reach approximately USD 890 Million by 2035. Notable revenue growth is attributed to rising clean label ingredient adoption, product innovation, and escalating demand from both the food and non-food sectors.
US Potato Starch Market Year-on-Year Growth (%), 2020-2035
Year-on-year (YOY) growth analysis reflects a gradual acceleration in market expansion, with the highest surge observed between 2024 and 2026 due to increased demand for gluten-free products and industrial innovations. Growth rates are projected at 5.6% for 2023-2024, 7.5% for 2024-2025, before stabilizing around 5.2% through 2035. The trend underscores the sector's responsiveness to evolving consumer needs and investment in new starch processing technologies.
US Potato Starch Market Share by Region, 2025
The Midwest leads the US potato starch market in 2025, holding a commanding 47% share, attributed to large-scale potato cultivation and strong processing industry presence. The Northeast follows at 23%, supported by thriving food manufacturing ecosystems. The West and South represent 19% and 11%, respectively, benefitting from increasing specialty product demand and robust distribution networks across these geographies.
US Potato Starch Market Players Share (%), 2025
Cargill continues to lead the competitive landscape in 2025 with a 19% share, closely followed by Ingredion at 15% and Avebe at 12%. Emsland Group and Roquette hold 10% and 8%, respectively, while the remaining share is distributed among a range of international and domestic manufacturers. Market share rankings reflect a combination of innovation, large-scale production, and expansive distribution, with leading companies investing in R&D to develop specialty and high-performance starch products. US Potato Starch Market Buyers Share by Sector, 2025
Processed food manufacturers command the largest buyer share in the US potato starch market at 41% in 2025, owing to widespread adoption in bakery, snacks, and ready meals. Industrial users (e.g., paper and textiles) account for 27%, followed by pharmaceutical and personal care industries at 18%. The animal feed and specialty product segments make up 14%, collectively illustrating broad-based demand for potato starch across the supply chain.
Study Coverage
| Metrics | Details |
|---|
| Years | 2020-2035 |
| Base Year | 2025 |
| Market Size | Revenue (USD Million) |
| Regions | Midwest, Northeast, West, South |
| Segments | By Type (Native, Modified, Organic, Conventional, Pre-Gelatinized, Waxy), By Application (Food & Beverages, Paper Industry, Pharmaceutical, Textile Industry, Animal Feed, Others), By Distribution Channel (Online, Offline, Direct Sales, Distributors, Retail Stores, Wholesalers), By Technology (Conventional, Modern, Enzymatic Processing, Chemical Processing, Mechanical Processing, Advanced Extraction Techniques), By Organization Size (Small, Medium, Large) |
| Players | Cargill, Ingredion, Avebe, Emsland Group, Roquette, AGRANA, KMC, Sudstarke, PEPEES Group, Tereos Group, Novidon, Royal Ingredients Group, Tate & Lyle, Lyckeby, Starpro |
Key Recent Developments
- June 2024: Cargill announced a new line of functional potato starches aimed at clean label processed foods for the US market.
- July 2024: Avebe completed the upgrade of their Minnesota plant with state-of-the-art enzymatic extraction technology for higher yield.
- August 2024: Roquette introduced biodegradable potato starch-based eco-friendly adhesive solutions for packaging industries.
- September 2024: Sudstarke launched a new potato starch grade for pharmaceutical applications with improved binding performance.
- October 2024: Ingredion released a study showcasing the improved shelf life and textural benefits of their latest pre-gelatinized potato starch in bakery applications.
