Middle East and Africa Potato Starch Market (2024-2030)

The Middle East and Africa Potato Starch Market was valued at USD 31.84 billion in 2023. Over the forecast period of 2024-2030 it is projected to reach USD 40.02 billion by 2030, growing at a CAGR of 3.32%.

Potato starch constitutes a variety of starch derived from potatoes. Leucoplasts starch granules are present within the cellular structure of potato root tubers. The process involves crushing the potatoes to extract the starch, and subsequently, the starch granules are released from the disrupted cells. Following this, the arrowroot undergoes erosion and drying to facilitate precipitation. Potato starch, characterized by its minimal protein and fat content, undergoes refinement. Consequently, the resultant powder exhibits a distinctive bright white hue, while the cooked starch manifests a neutral taste, excellent clarity, elevated binding strength, extended texture, and an absence of proclivity to generate foam or cause yellowing in the solution.

Key Market Insights:

Derived from potatoes, potato starch finds extensive applications in the food and beverage industry. The burgeoning demand for processed and convenient food, the escalating requirement for potato starch within the paper industry, the increasing prevalence of celiac disease and other food allergies, and the surging need for functional food products collectively contribute to the significant growth observed in the potato starch market. Nevertheless, the availability of alternative starches in the market is anticipated to impede the market's growth to a considerable degree.

Starch grains are present in the cells of root tubers, and the extraction process involves crushing the potatoes to eliminate these grains. Subsequently, the extracted grains undergo cleaning and drying processes, culminating in the formation of a powder. Potato starch serves as a crucial component in the production of various food items, including potato chips, noodles, wine gums, cocktail nuts, hot dog sausages, bakery cream, instant soups, and sauces. Its versatile utility encompasses roles as a binder, additive, thickening agent, and stabilizer in these food products.

Middle East And Africa Potato Starch Market Drivers:

Increasing Demand for Functional Food Products Fueling Market Growth.

In recent times, the surge in the popularity of functional foods and dietary supplements has played a pivotal role in fostering healthy habits, prompted by increasing concerns about health and the belief that diet directly influences well-being. The demand for functional food is primarily propelled by heightened consumer awareness regarding micronutrient deficiencies, escalating health apprehensions, a rising incidence of diseases, and an upswing in disposable income. Furthermore, the increasing prevalence of chronic diseases worldwide contributes significantly to the escalating demand for nutritional food.

As per a study funded by the National Institutes of Health (NIH), there exists a direct correlation between a healthy diet and overall health enhancement, leading to a reduction in heart disease, stroke, and type 2 diabetes. The trend towards adopting a healthy eating regimen is gaining momentum, sparking significant interest and driving the formulation of healthful food. Potato starch is emerging as a noteworthy ingredient in the creation of functional foods and dietary supplements, owing to its distinctive functional properties and associated health benefits. Notably, it offers advantages such as glycemic control, regulation of fasting plasma triglyceride and cholesterol levels, and enhanced mineral absorption. Consequently, the increasing demand for functional food products is anticipated to propel the growth of the potato starch market.

Middle East and Africa Potato Starch Market Restraints and Challenges:

Potato starch exhibits versatility across various applications, albeit at a comparatively higher cost compared to alternative starches, signifying that the South African potato starch market is still in its early developmental stage. This suggests significant potential for growth and enhancement. Furthermore, a notable portion of the country's wheat starches is imported, and their elevated cost relative to other starches adds to the market dynamics.

The industry faces a substantial challenge with the introduction of nutrient-deficient substitutes:

Potato starch lacks essential nutrients, yet it boasts lower calorie and carbohydrate content than cornstarch. This characteristic positions it as a sustainable choice for consumers seeking to maintain a low-calorie or low-carbohydrate diet. The optimal time to introduce potato starch to dishes is toward the end of the cooking process.

Health concerns related to carbohydrate consumption impede market expansion:

The increasing consumer awareness of the health risks associated with excessive carbohydrate intake acts as a significant constraint to market growth. Individuals are shifting towards low-carb diets to mitigate the risk of lifestyle-related health conditions such as obesity, cardiovascular disease, and diabetes. Given that potato starch is high in carbs and low in lipids, conflicting with the macronutrient ratios recommended for the ketogenic diet (70% fat, 20-25% protein, and 5-10% carbs), its adoption is hindered. This underscores the challenge faced by the potato starch market, as a substantial portion of meals on a ketogenic diet should be rich in fat and low in carbs.

Middle East and Africa Potato Starch Market Opportunities:

The heightened demand stemming from the adhesive properties of potato starch presents a substantial opportunity for market growth:

The textile industry is experiencing a significant upswing, contributing to an increased consumption of potato starch. Notably, potato starch is employed in textile sizing applications, particularly in cotton clothing, thus further bolstering its demand in the global market.

Moreover, starch, recognized for its adhesive qualities, plays a pivotal role in the size mix process for various reasons, including the ability to tailor its characteristics to specific requirements. In addition to its versatility, potato starch is cost-effective compared to alternative options, contributing to its growing popularity. The rising demand for potato starch in textile sizing activities is emerging as a favorable factor influencing the potato starch market.

MIDDLE EAST AND AFRICA POTATO STARCH MARKET REPORT COVERAGE:

Middle East and Africa Potato Starch Market Segmentation:

Middle East and Africa Potato Starch Market By Nature:                       

• Conventional Potato Starch
• Organic Potato Starch

The organic segment is poised to hold the most dominant position during the forecast period. This accelerated growth is primarily attributed to the increasing preference for sustainable and natural food choices, coupled with a heightened awareness of clean-label products. Furthermore, organic foods are perceived as safer and healthier due to their absence of chemicals and pesticides, further fostering the expansion of this segment.

In contrast, the Conventional segment is anticipated to grow at a CAGR of 4.3% throughout the forecast period. Conventional Potato starch finds extensive use in canned soups and blends, where its thickening properties are harnessed, especially for achieving desired viscosity. Additionally, it serves as a foundational element for confectioner’s gelling agents, acts as thickeners in pastry and pie fillings, and plays a role in the preparation of instant puddings.

Middle East and Africa Potato Starch Market By Type:

• Modified Potato starch
• Native Potato Starch          

The modified potato starch segment is anticipated to constitute the largest share of revenue in the potato starch market. This predominant position is driven by key factors, including the increasing utilization of modified potato starch across diverse industries such as food and beverages, pharmaceuticals, and the paper industry. The heightened demand for modified potato starch can be attributed to its enhanced functional properties in these applications.

Middle East and Africa Potato Starch Market By Function:

• Thickener
• Binder
• Stabilizer
• Disintegrant
• Other Functions   

The thickener segment is projected to capture the largest share of the potato starch market. The substantial market dominance of this segment is primarily driven by the increasing utilization of potato starch as a thickening agent across diverse industries, including food and beverages, pharmaceuticals, and the paper industry. This preference is rooted in the enhanced functional properties of potato starch, which plays a crucial role in providing thickness and texture in various products within the food and beverage sector. Moreover, its application in pharmaceuticals and the paper industry further contributes to its significant market share, as it helps maintain stable textures in different conditions to meet consumer preferences.

Middle East and Africa Potato Starch Market By Application:

• Food & Beverages
  • Bakery & Confectionery Products
  • Dairy Products
  • Soups & Sauces
  • Meat & Seafood Products
  • Other Food and Beverage Products
• Paper Industry
• Pharmaceuticals and Chemicals
• Animal Feed
• Other Applications

The food & beverage segment is poised to exhibit the fastest growth rate during the forecast period. The heightened demand and utilization of potato starch in industries such as food & beverage, animal feed, and pharmaceuticals are driven by an increased awareness of health and wellbeing. The pandemic further amplified the demand for ready-to-eat food products, with the younger generation showing a preference for ready-to-cook or ready-to-eat items. The robust demand in pharmaceuticals, food & beverage, and home care sectors contributes significantly to the growth of the potato starch market.

In the pharmaceutical industry, starch serves a predominant role as a pharmaceutical excipient, particularly in the manufacturing of tablets and other solid dosage forms, functioning as a binder and disintegrant. Its behavior in the presence of water is deemed crucial from the perspective of the pharmaceutical sector.

Middle East and Africa Potato Starch Market Segmentation- By Region:

• United Arab Emirates
• Saudi Arabia
• Qatar
• Israel
• South Africa
• Nigeria
• Kenya
• Egypt
• Rest of MEA

South Africa is the dominating region in the Middle East and Africa Potato Starch Market in 2023. The regional dominance is due to various factors such as the popularity of potato in the region and the climatic conditions suitable for the agriculture of the crop. Together they result in the dominance and hence constitute for the majority of the market shares in the entire Middle East and Africa Potato Starch Market.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic has had a profound impact on human health and overall well-being. In an effort to curb the spread of the virus, governments worldwide implemented partial or complete lockdowns, leading to substantial disruptions across various industries. The effects of the pandemic on the potato starch market have been both adverse and favorable.

The global outbreak of COVID-19 prompted a severe public health emergency, rapidly spreading across more than 150 countries. In response, many nations implemented comprehensive nationwide, state-wide, or citywide lockdowns, resulting in the cessation of travel, transportation, manufacturing, educational activities, and non-essential trade. These measures significantly impacted numerous industries on a global scale.

Latest Trends/ Developments:

• In May 2022, Kerry Group inaugurated a new manufacturing plant in Africa, representing a significant investment of EUR 38 million. Spanning 10,000 square meters, this facility is designed to produce nutrition products, including food starches, catering to the consumption needs across the African continent. The establishment of this plant is expected to bolster Kerry's Food and Beverage (F&B) production capacity by 40%, reaching an annual output of 40,000 tons.
• In February 2022, Archer Daniels Midland Company successfully concluded its acquisition of Comhan, a prominent South African flavor distributor. Having collaborated with the local business for several years, the formal acquisition now provides new and existing customers with more direct access to ADM's extensive portfolio and a network of experts.

Key Players:

These are top players in the Middle East and Africa Potato Starch Market: -

1. Agrana Staerke GmbH
2. Avebe
3. Finnamyl Oy
4. AKV Langholt AmbA
5. Emsland Group
6. Cargill Incorporation
7. Ingredion Incorporated
8. Changhong Potato Starch CO., Ltd