Denmark’s Potato Starch Market Faces Supply-Demand Imbalance Amid Trade Shifts and Weak Consumption

Denmark’s Potato Starch Market Faces Supply-Demand Imbalance Amid Trade Shifts and Weak Consumption

Gabreilla Figueroa 05-Sep-2025

In August 2025, Denmark’s Potato Starch market remained on a downward trend that had begun in May. The prices remain under pressure from oversupply, lower potato prices, and weak domestic and export demand. Production and logistics continue to run smooth, but the sentiment remains bearish despite some optimism that global interest would experience a rebound.

Key Highlights

  • Potato Starch demand stayed soft in August, with pharma and food sectors pulling back on purchases.
  • Exports took a hit, as the ongoing US-EU tariff made Danish Potato Starch less attractive overseas.
  • Oversupply kept prices low, thanks to cheaper potatoes and expanded EU cultivation.
  • Buyers played it safe, sticking to spot deals and avoiding long-term commitments for Potato Starch.
  • September may offer a lift, as seasonal trends hint at a possible rebound in Potato Starch interest.

On the demand side, Potato Starch saw subdued demand for the month of August xxxx, with weakened consumption in downstream industries such as pharmaceutical and food processing. This culminated in a notable weakening of domestic offtake and a larger reduction in international orders due to a high inventory level. Procurement has also decreased as suppliers established considerably high inventory levels relative to normal levels, which required purchasers to slowdown new orders. Moreover, the lack...

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