The Potato Peel Powder Market is estimated to be valued at USD 3.7 billion in 2025 and is projected to reach USD 6.9 billion by 2035, registering a compound annual growth rate (CAGR) of 6.3% over the forecast period. From 2025 to 2030, the market is expected to witness consistent growth, driven by demand in food fortification, animal feed, and biodegradable product applications. Countries such as China (USD 8.5), India (USD 7.9), and Germany (USD 7.2) represent major consumption hubs, followed by the UK and the USA This indicates a strong regional market presence across Asia and Europe.
Market share gains are likely for producers that maintain robust supply chains, offer value-added processing, and meet safety and purity certifications required for food and feed use. Producers relying on low-grade raw material or limited end-use diversification may lose market share due to performance or safety concerns. Limited awareness and underdeveloped marketing strategies could reduce competitiveness in export-heavy regions. Between 2025 and 2030, market leadership will depend on quality control, cost efficiency, and the ability to meet evolving regulatory and end-user needs. Partnerships with large-scale processors and food manufacturers will further enhance positioning for sustained share gain.
| Metric | Value |
|---|---|
| Potato Peel Powder Market Estimated Value in (2025 E) | USD 3.7 billion |
| Potato Peel Powder Market Forecast Value in (2035 F) | USD 6.9 billion |
| Forecast CAGR (2025 to 2035) | 6.3% |
The potato peel powder market is anchored within several data-driven parent industries that prioritize waste valorization and functional ingredient development. A key parent segment is the functional food ingredients market, which is projected to surpass USD 120 billion by 2030, with dietary fibers constituting around 15–18 % of this value. Potato peel powder, rich in fiber (up to 52 % by dry weight), contributes notably capturing an estimated 35–38 % of its total demand from the food and nutraceutical sectors.
It is widely incorporated into bakery goods, meat extenders, and health supplements for its fiber, polyphenol, and antioxidant content (e.g., chlorogenic acid up to 400 mg/100 g in dried form). Another parent market is animal feed additives, valued at over USD 40 billion in 2025, where carbohydrate-rich peel powder acts as a cost-effective filler. This segment drives approximately 25–30 % of the powder’s global use. The bioplastics market, forecasted to reach USD 30–35 billion by 2030, is an emerging parent sector, leveraging the starch content (up to 70 %) in potato peels for developing biodegradable films and packaging materials.
Additionally, the natural personal care ingredients market, growing at 8–10 % CAGR, sources potato peel derivatives for exfoliating scrubs and antioxidant skin formulations. These overlapping domains establish a diverse, data-supported foundation for the expansion of the potato peel powder market.
Potato peel, once regarded as waste, is being repurposed into a nutrient-rich ingredient that serves both functional and nutritional roles across a variety of end-use sectors. The market is being driven by rising consumer awareness of food waste reduction and clean-label product demands.
Additionally, the inclusion of potato peel powder in formulations for fiber enrichment, natural preservatives, and cost-effective fillers has strengthened its appeal across processed food categories. The future outlook appears promising due to growing interest in circular food economy practices and government initiatives promoting the utilization of agricultural byproducts.
Advances in processing technologies and drying methods are further ensuring the preservation of nutrients, making potato peel powder a reliable and stable ingredient. As food producers aim to align with health trends and environmental goals, the demand for potato peel powder is anticipated to increase significantly across both developed and emerging economies..
The potato peel powder market is segmented by product type, application, distribution channel, and geographic regions. The potato peel powder market is divided by product type into Conventional potato peel powder and Organic potato peel powder. In terms of application, the potato peel powder market is classified into the Food & beverage Industry, Nutraceuticals, Cosmetics & personal care, Animal feed, Fertilizers & soil conditioners, Textiles, and Others (biofuel production and biodegradable packaging. The distribution channel of the potato peel powder market is segmented into Direct sales, Supermarkets/Hypermarkets, Specialty stores, Online retail, and Others (wholesalers and distributors). Regionally, the potato peel powder industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The conventional potato peel powder subsegment is projected to account for 63% of the Potato Peel Powder market revenue share in 2025, making it the leading product type. This segment has seen robust adoption due to its cost-effective production process and wide availability through established supply chains.
Manufacturers have continued to favor conventional potato peel powder as it meets the functional requirements for thickening, emulsifying, and stabilizing in processed foods without the need for organic certification. The abundance of raw material from large-scale potato processing operations has ensured a consistent supply, enabling bulk production at competitive prices.
In addition, the food industry has responded positively to the nutritional properties of conventional peel powder, particularly its fiber content and polyphenolic compounds, which contribute to extended shelf life and improved texture. The combination of economic viability, proven utility, and ease of formulation has positioned conventional potato peel powder as the most widely used category in the current market landscape..
The food and beverage industry subsegment is anticipated to capture 41% of the Potato Peel Powder market revenue share in 2025, establishing itself as the dominant application. Growth in this segment has been influenced by the rising incorporation of potato peel powder into bakery goods, snacks, soups, and meat substitutes due to its functional benefits and natural origin. The demand for clean-label ingredients has prompted manufacturers to explore peel powder as a natural fiber enhancer and antioxidant source.
Its ability to improve product texture, water retention, and shelf stability has proven particularly valuable in processed food categories. Moreover, the increasing preference for plant-based and upcycled ingredients among consumers has aligned with the food and beverage sector's innovation strategies.
The economic feasibility of potato peel powder, coupled with its compatibility with high-volume production lines, has ensured its extensive use in this segment. Regulatory support for food waste valorization has further encouraged producers to integrate peel-based ingredients into mainstream food applications..
The direct sales subsegment is expected to hold 38% of the Potato Peel Powder market revenue share in 2025, emerging as the leading distribution channel. Growth in this channel has been supported by the strong relationships developed between manufacturers and food processing companies seeking customized supply arrangements. Direct sales have provided greater control over pricing, inventory, and product specifications, allowing buyers to tailor raw ingredient procurement to precise formulation needs.
The segment's dominance has also been reinforced by the growing trend of long-term procurement contracts and private labeling agreements. Reduced dependency on third-party distributors has enabled faster delivery cycles and improved margins for both suppliers and buyers.
Furthermore, the direct sales approach has proven especially effective in reaching commercial-scale users, such as bakery chains, snack manufacturers, and meat processors, who require consistent volume and quality. As demand for transparency and traceability increases in ingredient sourcing, the direct sales model is expected to maintain its leading position in the overall distribution strategy..
The potato peel powder market is expanding rapidly as manufacturers and consumers embrace sustainable, value-added food ingredients. This powder, produced from dehydrated potato peels, offers a source of dietary fiber, antioxidants, and natural color compounds. It is gaining traction in functional foods, animal feed, bakery items, and cosmetic formulations. Demand is driven by circular economy initiatives, food waste reduction policies, and growing interest in upcycling agricultural byproducts. Suppliers are collaborating with food and beverage brands to integrate potato peel powder in clean-label and nutrient-rich product lines. Regions with large potato production are leading adoption, while rising health awareness further spurs uptake in diverse end-use sectors.
Global emphasis on reducing food waste and promoting circular economy principles is a major growth driver for potato peel powder. Producers generate significant volumes of peel byproducts during processing, and converting these into powder reduces disposal costs while creating functional ingredient value. Manufacturers supplying ingredients are collaborating with processing plants to collect peels, dry and mill them, and deliver repeatable quality. This approach supports sustainability goals and aligns with regulatory incentives encouraging waste valorisation. As brands seek to showcase eco-friendly sourcing, incorporating potato peel powder offers visible environmental credentials. Retail and foodservice operators that adopt upcycled ingredients can differentiate their products on sustainability platforms. These waste-conscious strategies strengthen demand and support a scalable supply chain for potato peel powder.
Potato peel powder is valued for its dietary fiber content, micronutrients, antioxidant compounds, and potential prebiotic functionality. Formulators use it to enhance nutritional profiles in baked goods, snack bars, soups, seasoning blends, and fortified feeds. Its natural pigmentation and fiber also support cleaner label claims compared to synthetic additives. Brands targeting health-conscious consumers incorporate it under claims of gut-health support and plant-based nutrition. Color stability through processing and flavor neutrality are key features supporting broad usage. As demand grows for functional and minimally processed foods, potato peel powder fits into food manufacturers strategies aimed at nutrient enrichment. Its compatibility with gluten-free, vegan, and organic positioning further widens appeal. Nutritional advantages thus fuel integration into better-for-you product lines and wellness-focused applications.
Building reliable supply chains for potato peel powder requires coordination between potato processors, dehydration plants, and packagers. Variability in peel moisture, microbial load, and residual starch content can affect powder color, flavor, and shelf life. Suppliers must standardize processing parameters such as drying temperature, milling fineness, and pre‑treatment hygiene to deliver consistent product quality. Quality assurance measures, including microbial testing, moisture analysis, and nutrient profiling, are essential. Heat-treatment or blanching steps may be needed to stabilize enzyme activity and minimize browning. Traceability across batches supports food safety certification when targeting human food ingredients. For animal feed applications, nutritional consistency and digestibility metrics must be validated. Suppliers that offer certified quality specifications and scalable processing platforms gain acceptance from food and feed manufacturers seeking dependable ingredient supply.
Wider adoption of potato peel powder is restrained by limited awareness and acceptance among food manufacturers and consumers. Many formulators are unfamiliar with its functional properties or may perceive it as a lower-quality waste derivative. Ingredient suppliers must provide technical support, recipe guidance, and performance data to demonstrate utility and acceptability. Educating consumers about upcycled ingredients and their benefits is important to counter skepticism. Misconceptions around color change, taste impact, or allergen status may delay adoption. Small brands and startups require assistance in regulatory labeling, nutrient claims, and supply formatting (for example, clean-label vs. flour blend). Broader promotional efforts through pilot programs, co-development with food technologists, and in-market demonstrations can help shift perception. Until these educational and marketing efforts scale, market growth may remain concentrated among sustainability-savvy innovators and niche wellness brands.
| Country | CAGR |
|---|---|
| China | 8.5% |
| India | 7.9% |
| Germany | 7.2% |
| France | 6.6% |
| UK | 6.0% |
| USA | 5.4% |
| Brazil | 4.7% |
The potato peel powder market is expected to grow at a CAGR of 6.3% through 2035, driven by increasing demand for sustainable, functional food ingredients. China is developing its market leadership with a robust 8.5% growth rate, supported by investments in food waste valorization and natural additives. India follows closely at 7.9%, with manufacturers commercializing potato peel powder in animal feed, snacks, and nutraceuticals. Germany, expanding at 7.2%, is regulating food-grade applications of agri-waste through stringent quality controls and sustainable packaging initiatives. The UK, growing at 6.0%, is embracing clean-label and plant-based trends, incorporating potato peel powder in bakery and meat alternatives. The USA, with a 5.4% growth rate, is enhancing product formulations and expanding R&D in upcycled food tech. This report includes insights on 40+ countries; the top five markets are shown here for reference.
China has experienced a robust CAGR of 8.5% in the potato peel powder market, driven by innovations in eco-efficient food ingredients and the circular economy. The country’s food processing sector has adopted advanced drying and milling techniques to convert potato waste into value-added powder rich in fiber and antioxidants. Government support for zero-waste food production and high demand from animal feed manufacturers further stimulate market expansion. Research institutions and agri-tech startups collaborated to optimize extraction processes and reduce microbial risks. End-use applications are diversifying into cosmetic formulations and biodegradable packaging. Strategic partnerships with European biotech firms have accelerated quality standards and export capabilities.
Potato peel powder market in India has witnessed a CAGR of 7.9%, propelled by rising interest in affordable, nutrient-rich ingredients for animal nutrition and human consumption. With abundant potato cultivation, domestic processors focused on low-cost dehydration and grinding units suitable for rural deployment. Demand from poultry and dairy feed industries has strengthened as awareness of fiber benefits increases. Regulatory relaxation on upcycled food ingredients and rising sustainability awareness among FMCG brands contributed to the trend. Additionally, startups have piloted micro-scale drying units that operate on renewable energy, enhancing feasibility for small farmers. India’s export potential is growing, targeting the Middle East and Southeast Asia.
Germany has recorded a CAGR of 7.2% in the potato peel powder market, fueled by regulatory alignment with EU sustainability goals and consumer interest in clean-label products. Large food companies repurposed byproducts from fries and snack production into powdered ingredients suitable for bakery, pet food, and dietary supplements. R&D initiatives funded by government sustainability grants advanced shelf-life extension and nutrient retention techniques. Germany’s stringent safety standards pushed manufacturers to implement high-end quality controls, enabling exports to premium markets. The pharmaceutical and cosmetic industries have begun exploring bioactive compounds in potato peel extracts, further diversifying applications.
The United Kingdom has reported a CAGR of 6.0% in the potato peel powder market, supported by food waste reduction policies and rising interest in circular economy solutions. Local producers repurpose potato processing waste into fine powders used in fiber-rich breads, pet food, and soil conditioners. Retailers and food brands collaborated with suppliers to integrate upcycled ingredients into value-added product lines. Grant-funded pilot programs tested community-based drying units to promote local food sustainability. Stringent food safety and traceability systems added credibility to emerging producers. Despite Brexit challenges, the UK has maintained access to select European markets for specialized exports.
The United States has observed a CAGR of 5.4% in the Potato Peel Powder Market, propelled by innovations in upcycled food certification and a growing appetite for sustainable animal feed alternatives. The USA Department of Agriculture supported pilot programs aimed at turning food processing waste into shelf-stable feed ingredients. Mid-sized food processors and agricultural cooperatives explored value recovery through mobile processing equipment. Dietary supplement manufacturers are also incorporating potato peel extracts for fiber fortification. However, scalability remains a challenge due to high regulatory compliance costs and fragmented supply chains. Market interest is highest in states with strong agri-food infrastructure.
The potato peel powder market is gaining traction as industries seek to repurpose food waste into value-added, sustainable ingredients. Derived from dehydrated potato skins, potato peel powder is increasingly used in food formulations, animal feed, and bio-based packaging, owing to its high dietary fiber, antioxidant content, and functional starches. The market is driven by circular economy initiatives, cost-effective raw material sourcing, and rising demand for clean-label, upcycled food ingredients. The Kraft Heinz Company, a major player in the processed food industry, is leveraging byproduct innovation to extend its sustainability footprint, with potato peel powder being explored for both food and packaging solutions. Liven S.A., a key European snack manufacturer, integrates potato derivatives, including peel-based powders, into healthier snack formulations and extruded products.
McCain Foods Limited, a global potato processing leader, is investing in full-plant utilization strategies, turning potato peels into functional powders for secondary uses. Simplot Company and Royal Ingredients Group play significant roles in processing and supplying plant-based ingredients, including potato peel powders tailored for feed, food, and industrial applications. These companies focus on moisture control, microbiological safety, and customized granulation to meet diverse end-user needs. As sustainability, cost efficiency, and functional nutrition continue to influence purchasing decisions, suppliers who can scale up production of high-quality, traceable, and multi-use potato peel powder will lead this emerging segment of agri-waste valorization.
As mentioned in AGRANA’s press release and accompanying regulatory approvals (March–June 2025), the joint venture received clearance from applicable competition authorities and will involve a €35 million investment to expand production at the Țăndărei site, with construction starting in June 2025 and phased production launch over 2.5 years As mentioned in AGRANA’s press release dated December 2, 2024, AGRANA Stärke GmbH and INGREDION Germany GmbH entered a joint venture agreement under which Ingredion will acquire a 49% stake in AGFD Țăndărei s.r.l. in Romania to expand starch production capacity.
| Item | Value |
|---|---|
| Quantitative Units | USD 3.7 Billion |
| Product Type | Conventional potato peel powder and Organic potato peel powder |
| Application | Food & beverage Industry, Nutraceuticals, Cosmetics & personal care, Animal feed, Fertilizers & soil conditioners, Textiles, and Others (biofuel production and biodegradable packaging |
| Distribution Channel | Direct sales, Supermarkets/Hypermarkets, Specialty stores, Online retail, and Others (wholesalers and distributors) |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | The Kraft Heinz Company, Liven S.A., McCain Foods Limited, Simplot Company, Royal Ingredients Group, and Others |
| Additional Attributes | Dollar sales by grade including food-grade and feed-grade, and by application in functional foods, animal nutrition, nutraceuticals, cosmetics, and pharmaceuticals; technological innovations in enzymatic extraction, micronization, and bioactive compound retention; regional demand insights highlight North America and Asia-Pacific as key growth hubs; sustainability trends focus on upcycling agri-waste into value-added powders; formulation compatibility spans emulsifiers, thickeners, and antioxidants across multiple industries; and price-performance dynamics shaped by raw material availability, processing cost, and functional yield. |
The global potato peel powder market is estimated to be valued at USD 3.7 billion in 2025.
The market size for the potato peel powder market is projected to reach USD 6.9 billion by 2035.
The potato peel powder market is expected to grow at a 6.3% CAGR between 2025 and 2035.
The key product types in potato peel powder market are conventional potato peel powder and organic potato peel powder.
In terms of application, food & beverage industry segment to command 41.0% share in the potato peel powder market in 2025.
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