Potato Flour Market Size, Share, Forecast, 2033

Potato Flour Market Overview

Global Potato Flour market size is estimated at USD 5362.77 million in 2024, set to expand to USD 7308.78 million by 2033, growing at a CAGR of 3.5%.

The potato flour market is undergoing significant transformation as global consumption of potato-based ingredients continues to expand. With over 374 million metric tons of potatoes harvested globally in 2023, approximately 2.3% of this volume was processed into potato flour, indicating a growing niche within the starch and powder ingredient sector. Used extensively in gluten-free baking, processed snacks, and as a thickening agent, potato flour has found widespread application in over 56 countries.

In 2024, more than 410,000 metric tons of potato flour were utilized in industrial food production, accounting for 68% of total usage. Countries like China and India collectively consumed over 115,000 metric tons due to high demand in bakery and fried snack industries. The product’s moisture retention property, enhancing baked product shelf life by up to 40%, continues to draw interest from commercial bakeries and foodservice chains.

Food manufacturers are increasingly replacing up to 30% of conventional wheat flour with potato flour to cater to gluten-intolerant consumers. In 2023, global sales of gluten-free bakery products surpassed 12 million tons, where potato flour contributed significantly to formulation. With over 120 registered patents related to potato-based flours and processing methods, innovation in the sector remains robust and competitive.

Key Findings

Top Driver reason: Increased demand for gluten-free and clean label food products is significantly driving the adoption of potato flour, with over 22% of food manufacturers incorporating it into new product formulations in 2024.

Top Country/Region: China dominated the potato flour market with over 74,000 metric tons consumed in 2023, followed by Germany with 45,000 metric tons utilized across bakery and meat processing applications.

Top Segment: The food-grade segment led in consumption, accounting for 72% of the total potato flour usage in 2024, equivalent to over 296,000 metric tons globally.

Potato Flour Market Market Trends

The potato flour market is witnessing accelerated growth driven by rising trends in specialty diets, especially gluten-free and allergen-free food categories. In 2024, approximately 34% of global consumers reported preference for food products labeled gluten-free, leading to increased industrial demand for potato flour as a wheat alternative. Over 310 food and snack brands globally launched products using potato flour in 2023, a 15% increase from 2022.

In bakery products alone, more than 188,000 metric tons of potato flour were used globally in 2024. The ingredient was present in over 46% of gluten-free bread, muffins, and pancake mixes. The functional benefits, including water-binding capacity of up to 7.2 grams per gram of flour, make it ideal for enhancing texture and shelf-life.

Foodservice chains across North America and Europe have started adopting potato flour in sauces and soups due to its superior thickening capabilities. Approximately 39,000 metric tons of potato flour were used in instant soup production in 2023. In addition, the pet food industry accounted for nearly 24,000 metric tons of potato flour usage in 2024, driven by increased demand for grain-free pet formulas.

Potato Flour Market Dynamics

DRIVER

Rising demand for gluten-free, allergen-free, and clean label food products.

The surge in gluten intolerance, which affected 7.1% of the global population in 2024, has intensified the demand for gluten-free alternatives like potato flour. As more consumers, particularly in North America and Western Europe, shift to gluten-free diets, industrial food producers are responding by increasing the inclusion rate of potato flour. In the United States alone, over 64,000 metric tons of potato flour were used in gluten-free bakery and snack production last year. Additionally, rising awareness of clean-label ingredients has made naturally processed, chemical-free potato flour a favorable option. More than 51% of new product launches in the bakery sector in 2024 included potato flour in the ingredients list, indicating strong demand growth fueled by health-conscious eating.

RESTRAINT

High susceptibility to moisture and shorter shelf life compared to other flours.

One of the primary restraints of the potato flour market is its high hygroscopicity, which leads to faster spoilage when exposed to humidity. Potato flour typically has a shelf life of 6 to 8 months in standard packaging compared to 12 months for wheat flour. In regions with high humidity levels such as Southeast Asia, storage loss rates can reach up to 9.4% without proper packaging. This limits its appeal in remote and tropical markets. Additionally, transportation challenges due to moisture absorption risk lead to increased logistics costs. In 2024, spoilage-related losses were estimated at over 5,200 metric tons globally, reducing effective supply availability for industrial users.

OPPORTUNITY

Expanding applications in plant-based food, cosmetics, and pet food sectors.

Potato flour is increasingly being adopted beyond food applications. In the plant-based meat industry, its binding properties are used in formulations that require high moisture retention. Over 145 registered plant-based meat products used potato flour as a binding agent in 2023. In the cosmetics industry, potato flour is utilized in facial masks and body powders due to its anti-inflammatory and oil-absorbing properties. The beauty care sector accounted for nearly 7,800 metric tons of demand in 2024. Similarly, in the pet food market, grain-free and hypoallergenic pet products used 24,000 metric tons of potato flour in the same year. These cross-industry applications open up diversified revenue opportunities for manufacturers.

CHALLENGE

Price volatility due to dependency on seasonal potato harvests.

The production of potato flour is heavily reliant on consistent supply of high-starch potatoes, which are subject to climate variability. In 2023, poor weather conditions in Eastern Europe led to a 14% decline in raw potato yield, causing temporary price hikes of up to 28% for food-grade potato flour. Such fluctuations create instability in pricing for downstream manufacturers. Furthermore, limited processing infrastructure in key producing regions restricts volume scalability. In India, for instance, despite being the world’s second-largest potato producer, less than 4.2% of total harvest is processed into flour due to insufficient dehydration plants.

Potato Flour Market Segmentation

The potato flour market is segmented by type and application, reflecting its diverse utility across multiple industries. As of 2024, food-grade potato flour holds over 72% of the market share by volume, while industrial-grade and specialty grades account for the remaining segment. In application terms, food manufacturing leads with over 296,000 metric tons, followed by paper, textiles, and animal feed industries. The market’s segmented nature allows for tailored distribution and pricing strategies for manufacturers and distributors.

By Type

Industrial Grade: Industrial-grade potato flour is used extensively in the paper and adhesive industries. In 2024, over 31,000 metric tons of industrial-grade flour were consumed globally. It is particularly valued for its bonding strength and film-forming characteristics. In China and Poland, this grade was used in 14,500 metric tons of paper production. Modified potato flour also plays a role in manufacturing biodegradable plastics and films, with over 2,600 metric tons allocated to this application last year.
Food Grade: Food-grade potato flour is utilized in baking, snack foods, ready meals, and soups. In 2024, over 296,000 metric tons of food-grade potato flour were used globally. Europe led consumption with over 123,000 metric tons. Its high starch content, often exceeding 78%, makes it suitable for moisture retention in baked goods. Major food manufacturers use potato flour in up to 30% of formulations for gluten-free and allergy-safe product lines.
Other: Other types include specialty and pharmaceutical-grade potato flour. Specialty grades are used in cosmetics and baby foods due to their fine mesh size (less than 200 microns) and purity. In 2023, over 6,800 metric tons of specialty-grade flour were consumed in the cosmetics and healthcare sectors combined.

By Application

Food: The food industry is the largest consumer, accounting for over 72% of the total volume in 2024. Bakery and snack applications led usage, with more than 188,000 metric tons consumed. Sauces, gravies, and soups contributed an additional 54,000 metric tons to annual demand. Leading companies used potato flour in over 60% of new gluten-free product lines launched in the last 18 months.
Paper: Paper manufacturers use potato flour as a binder and surface coating agent. Over 19,000 metric tons were consumed by the paper sector in 2024, mainly in Europe and Southeast Asia. Its viscosity properties help enhance gloss and printability.
Textile: In the textile sector, potato flour is used in sizing and finishing operations. Global usage in 2024 exceeded 11,000 metric tons. Bangladesh and India were major consumers, utilizing more than 5,800 metric tons combined in denim and woven fabrics.
Feed: Animal feed formulations incorporated approximately 28,000 metric tons of potato flour in 2024. The high digestibility rate of 92.6% makes it suitable for weaned piglets and poultry. Leading livestock feed producers in Brazil and the US accounted for 11,400 metric tons of consumption.
Other: Other applications include bio-packaging, pharmaceutical formulations, and cosmetics, accounting for over 17,000 metric tons in 2024. Biodegradable cutlery and compostable films produced using potato flour saw 3,200 metric tons of uptake globally.

Potato Flour Market Regional Outlook

The global potato flour market exhibits regional disparities in production, demand, and application use. In 2024, Europe and Asia-Pacific led in both consumption and export volume, while North America and the Middle East & Africa showed dynamic demand growth.

North America

North America accounted for approximately 24% of global potato flour consumption in 2024, with over 98,000 metric tons used across food and industrial sectors. The United States consumed around 71,000 metric tons alone, driven by high demand in gluten-free bakery items. Canada followed with 21,000 metric tons, particularly in frozen food production. The region also invested in dehydrated potato flour plants, with 3 new facilities opened in 2023, increasing annual production by 11,000 metric tons. Potato cultivation in states like Idaho and Wisconsin supported consistent supply.

Europe

Europe led the global market with over 132,000 metric tons of potato flour consumed in 2024. Germany, the Netherlands, and France together contributed more than 58% of regional demand. The use of potato flour in meat analogues and plant-based foods increased by 19% year-over-year. Germany also exported over 21,000 metric tons in 2023, mostly to Central and Eastern Europe. The European Union's regulatory push for clean-label ingredients further supported domestic consumption, with over 1,500 new product registrations involving potato flour in 2024.

Asia-Pacific

Asia-Pacific’s consumption surpassed 115,000 metric tons in 2024, with China leading at 74,000 metric tons and India at 27,000 metric tons. Japan and South Korea collectively consumed over 12,000 metric tons, primarily in noodle production and fried snack manufacturing. In Indonesia and the Philippines, potato flour was used in over 2,400 small-to-mid scale food enterprises. Strong government support in China’s Inner Mongolia and Heilongjiang provinces boosted domestic processing by 9.6%, leading to the establishment of two starch-to-flour conversion facilities in 2024.

Middle East & Africa

The Middle East & Africa accounted for nearly 38,000 metric tons of potato flour consumption in 2024. The Gulf Cooperation Council (GCC) nations contributed 21,000 metric tons, mainly in processed snacks and bakery items. In Africa, Nigeria and South Africa led usage, consuming 6,800 and 5,200 metric tons respectively. Local production remains limited, with over 72% of regional demand met through imports from Europe and Asia. Investment in packaging technology in UAE has helped reduce spoilage rates by 14%, encouraging local distribution.

List of Top Potato Flour Market Companies

AVEBE
KMC
BOB
King Arthur Flour
Roquette
Emsland
Club House
Keystone Potato
Lyckeby
Raisio
Jamestown Mills
Agrana
Pepees
Beidahuang Group
Nailun
Huaou Starch
Qinghai Weston
Kexinyuan Group
Ningxia Jiali
Chifeng Mengsen

Top Two Companies with the Highest Share

AVEBE: AVEBE processed over 95,000 metric tons of potatoes in 2024, converting nearly 19,000 metric tons into food and industrial-grade potato flour. The Dutch cooperative leads in high-purity potato starch extraction with advanced drying facilities supporting 27 countries globally.

KMC: KMC exported over 17,400 metric tons of potato flour in 2024, with Denmark's facility operating at over 89% capacity utilization. KMC’s proprietary cold-drying technology preserves more than 92% starch content, enabling superior performance in processed food applications.

Investment Analysis and Opportunities

In 2024, global investments in potato flour processing reached approximately $580 million in infrastructure, automation, and new product development. China and Germany led in infrastructure investments, accounting for nearly 61% of new capacity installed during the year. In Yunnan province, China’s regional government supported the launch of two new processing units with a combined annual output of 16,000 metric tons. This strategic move reduced regional dependence on imports by 22% within 12 months.

Private equity investments surged, with over 17 deals closed in 2023-2024 focusing on potato-based ingredient companies. In India, three mid-scale manufacturers received a total of $42 million in growth capital to expand potato dehydration and drying facilities. These investments are expected to increase their processing capacity by 28,000 metric tons annually by 2026.

The clean-label and allergen-free product boom continues to create investment opportunities, particularly in product line expansions and vertical integration. In the United States, one major bakery group allocated $34 million in 2024 for a gluten-free production line that sources exclusively from domestic potato flour suppliers. This forward integration approach secures both cost stability and quality assurance.

Innovation-driven opportunities are also rising. Over 23 patent filings between 2023 and 2024 covered methods to improve drying efficiency and starch retention in potato flour. These innovations reduce energy usage by up to 18% and enhance output purity beyond 94%. Startups focusing on sustainability and biodegradable packaging also utilize potato flour blends to replace petroleum-based films, attracting impact investment funds.

New Product Development

In 2023 and 2024, new product development in the potato flour market accelerated, driven by increased demand for gluten-free, sustainable, and functional ingredients. More than 640 food products were launched globally with potato flour as a primary or secondary ingredient, marking a 22% increase compared to the previous two-year cycle.

One of the most significant product innovations was the introduction of high-moisture potato flour (HMPF) for use in vegan meat alternatives. The flour retains up to 10.3 grams of water per gram, significantly enhancing texture in plant-based sausages and patties. Over 76 SKUs of vegan products were launched in Europe and North America featuring this enhanced version in 2024 alone.

In bakery applications, low-mesh (coarse) potato flour versions tailored for artisan breads were rolled out across Germany and Scandinavia. These variants improve crusting and loaf volume by 12-16%, especially in sourdough and rye-based breads. Leading bakery chains incorporated it in over 430 outlets across seven countries.

The infant food sector also witnessed innovation with the introduction of hypoallergenic, enzyme-deactivated potato flour with less than 0.01% glycoalkaloids. Used in baby cereals and porridges, this new variant sold over 3.5 million units in Asia-Pacific between Q3 2023 and Q1 2024.

Five Recent Developments

AVEBE: commissioned a new potato drying unit in the Netherlands with 18,000 metric tons/year capacity in June 2023, boosting efficiency by 22%.
KMC: launched a new gluten-free, clean-label potato flour variant in early 2024, expanding presence in 28 global markets.
Lyckeby: patented a water-retentive potato flour blend in Q4 2023 that retains 12.3 grams of moisture/gram and was rolled out to bakery clients in 11 countries.
Agrana: opened a $47 million potato processing facility in Austria in September 2023, with an annual output of 21,000 metric tons.
Pepees: signed a distribution agreement in March 2024 covering 14 Eastern European countries, aiming to increase export volume by 33% by year-end.

Report Coverage of Potato Flour Market

The report on the potato flour market market offers a detailed analysis of current trends, demand drivers, segment-wise insights, and key regional developments across global markets. It covers data spanning 2021 to 2024, emphasizing the evolution of potato flour applications from conventional baking to modern industrial, cosmetic, and pharmaceutical uses. The report encompasses over 18 segments across five major regions, using data from over 160 industrial entities.

Segmentation coverage includes detailed breakdowns by type—Industrial Grade, Food Grade, and Other—and by application—Food, Paper, Textile, Feed, and Others. In the food segment, it analyzes consumption patterns in bakery, sauces, snacks, and infant foods with numerical backing. By type, the report benchmarks starch purity levels, particle sizes, and end-use advantages across grades, offering actionable insights for procurement and R&D teams.

Geographically, the report offers in-depth analysis across North America, Europe, Asia-Pacific, and MEA. It includes over 40 regional data points per zone and tracks major consumption hubs, production centers, and trade corridors. The Asia-Pacific section covers over 7 countries, while Europe is profiled through major exporters and innovation leaders.

Key companies are profiled in detail, with production capacities, facility counts, new product launches, and technology adoption patterns. The top 20 companies in the market were evaluated for innovations, acquisitions, production volume, and geographical presence.