Potato starch market in Northern Europe

Earlier Report Observations

The potato starch market in Northern Europe saw notable fluctuations in volume from 2018 to 2023. After starting at 350.7 thousand tons in 2018, it reached a peak of 423.1 thousand tons in 2021. This growth was initially fueled by heightened consumer interest in potato products during the COVID-19 pandemic in 2020, which boosted demand for starch. Support from the EU in 2021, aimed at maintaining price levels and competitiveness for industrial potato growers in Sweden, further sustained the expansion. The market then contracted to 346.6 thousand tons in 2022, a period that coincided with shifting consumer preferences in Sweden, including a decline in boiled potato consumption, which affected demand for certain starch-based products. Recovery followed in 2023, with volume rising to 388.4 thousand tons.

Supply-side developments were crucial throughout the period. In Finland, state-influenced companies such as Finnamyl and Lapuan Peruna invested in product development and environmental adaptation. Sweden approved new potato varieties in 2022 to improve production efficiency and starch quality. By 2023, increased profitability for starch potato cultivation led to a shift in crop area, with more land dedicated to starch potatoes and record harvests, enhancing raw material availability. Looking ahead, Denmark significantly expanded its potato cultivation area to 65 000 hectares in 2024, particularly for starch potatoes, while Norway implemented a tariff change from a fixed to a percentage-based duty on potato products, affecting import costs and market access.

Demand factors evolved alongside these supply changes. Potato starch has a stable industrial base, being widely used in Finland's food and paper manufacturing sectors. The pandemic accelerated digitalization, influencing marketing and distribution strategies for starch products. Globally, demand for potato starch grew at about 10% annually, creating export opportunities for Nordic producers. Companies like KMC in Denmark invested in new applications, such as vegan and allergy-friendly products, to tap into emerging segments. However, consumer trends in Sweden, including a move away from traditional potato preparations, introduced some volatility in demand for specific starch product categories.

Production potato starch in Northern Europe

In kind, 2017-2020, K t

Top producers of potato starch, 2017-2020

World map of production of potato starch, 2017-2020

In Northern Europe, potato starch production reached 280.6 thousand tonnes in 2020, marking a 15.9% increase compared to the previous year. The lowest production level was recorded in 2019 at 242.1 thousand tonnes, which represented a 5.8% decline from the prior year. Over the period from 2017 to 2020, production grew by 14.1%, translating to an average annual growth rate of 4.5%.

Annual dynamics of production in Northern Europe in kind, 2017-2020, K t

Exports potato starch from Northern Europe

Exports in kind, K t

Potato starch exports from Northern Europe increased in 2020 after two consecutive years of decline. In 2020, exports totaled 9.5 thousand tonnes, reflecting a significant 64.5% rise from the previous year. The lowest export volume was recorded in 2019 at 5.8 thousand tonnes. Over the 2017-2020 period, exports decreased by 31.5%, with an average annual decline of 11.9%. The sharpest drop occurred in 2018, when exports fell by 50.8%.

Annual dynamics of product's exports from Northern Europe in kind, 2017-2020, K t

From 2017 to 2020, Northern Europe's potato starch export market featured a diverse range of trading partners. The United States accounted for 12.4% of exports in volume, Kazakhstan for 7.1%, and the Netherlands for 6.4%. Together, these three countries represented 25.9% of total export flows, indicating a relatively broad distribution rather than heavy concentration.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Northern Europe in kind, 2017-2020

Exports in value, K $ US

Northern Europe's potato starch export value increased in 2020 following a two-year decline. In 2020, exports amounted to 8 346 thousand US dollars, showing a 37.2% year-over-year increase. The lowest value was recorded in 2019 at 6 082 thousand US dollars. Over the 2017-2020 period, export value decreased by 15.1%, with an average annual decline of 5.3%. The most substantial drop occurred in 2018, when export value fell by 31.0%.

Annual dynamics of product's exports from Northern Europe in value, 2017-2020, K $ US

Between 2017 and 2020, Northern Europe's potato starch export value was distributed across multiple partners rather than being concentrated in a few markets. The United States accounted for 13.8% of export value, the Netherlands for 6.3%, and Kazakhstan for 4.6%. Collectively, these three countries represented 24.7% of total export flows, while numerous other countries accounted for the remaining 75.3%.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Northern Europe in value, 2017-2020

Imports potato starch to Northern Europe

Imports in kind, K t

Potato starch imports into Northern Europe grew for the second consecutive year in 2020. Import volume reached 115.0 thousand tonnes in 2020, representing an 11.6% increase from 2019. The lowest import volume was recorded in 2018 at 100.6 thousand tonnes, which saw a slight 0.3% decline from the previous year. Over the 2017-2020 period, imports increased by 14%, with an average annual growth rate of 4.5%.

Annual dynamics of product's imports to Northern Europe in kind, 2017-2020, K t

From 2017 to 2020, the Netherlands, Germany, and France were the primary sources of potato starch imports into Northern Europe. The Netherlands accounted for 38.3% of import volume, Germany for 14.4%, and France for 9.9%. Together, these three countries represented 62.7% of total import flows, forming the core group of suppliers.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Northern Europe in kind, 2017-2020

Imports in value, K $ US

Potato starch import value into Northern Europe increased for the third consecutive year in 2020. Import value reached 95 533 thousand US dollars in 2020, reflecting a modest 1.8% increase from the previous year. Over the 2017-2020 period, import value grew by 29.3%, with an average annual growth rate of 8.9%.

Annual dynamics of product's imports to Northern Europe in value, 2017-2020, K $ US

Between 2017 and 2020, the Netherlands, Germany, and France were the largest suppliers of potato starch to Northern Europe in value terms. The Netherlands accounted for 36.1% of import value, Germany for 16.9%, and France for 9.6%. Together, these three countries represented 62.7% of total import value, highlighting their dominant role in the market.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Northern Europe in value, 2017-2020