In July 2025, the Dutch Potato Starch market saw a sharp decline, driven by a significant expansion in EU potato cultivation and weaker demand from food processing and pharmaceutical sectors. Ample raw material supply, high inventories, and reduced export sales reinforced bearish sentiment. However, experts anticipate a modest price rebound in early August as procurement activity resumes and logistics normalize, supporting a more balanced market outlook.
As per the recent assessment, prices of Potato Starch in the Dutch market dropped drastically in July 2025, continuing the bearish trend recorded in June 2025. The main force reducing this was the high growth of potato cultivation in the EU, up 77,000 hectares, the biggest annual growth in recent years. This growth was the precursor to a bigger crop and an early harvest in the north-western Europe, increasing pressure in the downward direction of the raw potato values.
This downward trend was evident in the Dutch processing potato prices, which dropped 36 percent month-on-month and a whopping 62 percent year-on-year. This influx of raw materials meant that Potato Starch producers enjoyed a sizeable decrease in the cost of production, and operations were able to occur at sustained levels without supply restrictions. Nonetheless, high inventory positions at the starch processing plants and subdued buying behaviour kept the market well supplied.
On the supply side, the availability of large quantities of raw materials and relatively unchanged production of Potato Starch resulted in Potato Starch supply exceeding market demand. Buyer’s procurement activity was stagnant partly in the expectation of further price declines and partly due to abundant inventories that both manufacturers and end-users possessed. These conditions strengthened bearish sentiment in the Dutch Potato Starch market.
On the demand side, July 2025 did not bring any relief to Potato Starch exporters. End-use sectors like food processing and pharmaceuticals, whereby Potato Starch used as a stabilizer, thickener, cut their purchasing volumes. This was to a great extent occasioned by lower domestic industrial performance and a reduction in new orders. Exports sales also declined significantly, with certain international buyers postponing purchases due to the softness of prices across the world.
The contraction in international demand was particularly significant, given that the Dutch Potato Starch market traditionally benefits from strong European and global export activity. With buyers abroad hesitant to commit and domestic demand insufficient to offset the decline, overall market sentiment remained weak for Potato Starch. The combination of an abundant supply pipeline, reduced costs, and sluggish demand sustained heavy downward price pressure throughout the month.
Moreover, wider macroeconomic conditions such as depressed consumer spending, weaker retail sales in processed food commodities and continued changes in supply chain planning also impacted the economy into buying behaviour. The prices of Potato Starch had affected many buyers who were now interested in using up old inventories and avoiding taking new contracts but rather waiting to see how the favourable supply conditions would continue in the near future.
Market analysts predict that Potato Starch prices in the Netherlands will rise slightly in the early weeks of August 2025. The commencement of the procurement activity is expected to strengthen spot demand consequently leading to a slight price increase in Potato Starch. Customers will tend to rely on their past large-scale orders and restart replenishment cautiously following market dynamics. A gradual shift toward normalised logistics and seasonal ordering planning will assist in maintaining stable prices, which will mean a more balanced outlook to the Dutch Potato Starch market as summer draws toward the end.
