Market overview

Hydroxypropyl starch ether is a starch reacted with propylene oxide, sold as a cold-water-soluble powder. In dry-mix mortars, construction HPS is a co-additive to cellulose ethers that gives anti-sag, slip resistance and longer open time in tile adhesives, gypsum plasters, renders and skim coats; food (E1440) and paper grades share the CAS number but sit outside this scope. Supply depends on a few European potato starch processors and a growing group of Chinese producers, so the starch potato harvest and propylene oxide cost drive availability.

The question this report answers
How large is demand for construction HPS in tile adhesives and dry-mix mortars, who supplies it, and where can new suppliers or formulators win share to 2035?

1. Demand: who uses construction HPS and where it is growing

Tile adhesives are the largest use, followed by gypsum plasters; Asia-Pacific is the largest consuming region (Credence Research).

Demand by application (share of 2025 consumption, Market Krystal analysis)
– Cementitious tile adhesives (C1T, C2T, C2TE, S1): 38%
– Gypsum plasters and gypsum-based mortars: 27%
– Cement renders, machine plasters and ETICS/EIFS mortars: 20%
– Skim coats, wall putties and smoothing compounds: 10%
– Grouts, jointing mortars and other dry-mix: 5%
No publisher gives a construction split by mortar type, so application shares are a Market Krystal estimate based on producer application lists (Avebe, Agrana, Emsland Group) and the relative size of tile adhesive and plaster markets; regional shares are Credence Research's split for all HPS grades.

Demand by region (share of 2025 consumption)
– Asia-Pacific: 42.1% (Credence Research (all HPS grades))
– Europe: 27.8% (Credence Research (all HPS grades))
– North America: 18.5% (Credence Research (all HPS grades))
– Latin America: 6.3% (Credence Research (all HPS grades))
– Middle East and Africa: 5.3% (Credence Research (all HPS grades))

Where demand grows fastest to 2035
– Tile adhesives for large-format tiles (C2TE/S1): Demand rises with large-format porcelain tiles, where starch ethers lift adhesives from T to TE class without loss of slip resistance (Avebe)
– Asia-Pacific dry-mix mortars: Asia-Pacific HPS demand grows at 4.4% a year to 2032, the fastest of any region (Credence Research)
– Machine-applied gypsum and spray renders: Spray application needs instant thickening at the nozzle with pumpability, which favours HPS co-additives (Avebe)

2. Supply: who makes construction HPS and how much

Avebe, Agrana and Emsland Group lead, holding over 70% between them (Intel Market Research); Shandong-based Chinese producers supply the volume end. Global capacity is not published; Agrana alone is adding a third to its technical starch capacity at Gmu00fcnd, and Avebe, Agrana and Emsland Group hold over 70% of HPS supply (Agrana; Intel Market Research).

Main producers and capacity
– Royal Avebe (Netherlands): Potato starch plants incl. Gasselternijveen; starch ether dry-mortar additives; EUR 60 mn invested in 2024/2025 (Avebe)
– AGRANA (Austria): Gmu00fcnd potato starch mill; extra drum-drying plant adds one-third to technical starch capacity (AMITROLIT, AMITROPRO)
– Emsland Group (Germany): Emset starch ethers; modified starch facility commissioned 2022 and innovation centre at Emlichheim

Production by region (share of 2025 output, Market Krystal analysis)
– Europe: 70%
– China: 25%
– Rest of world: 5%

Trade and supply-demand balance
Europe and China are the main production regions and export HPS to dry-mix producers in the Middle East, Asia and the Americas, which import most of their needs (Intel Market Research).

3. Value chain: from feedstock to end market

Potato starch (amylopectin-rich) + Propylene oxide + Corn, tapioca and waxy starches → construction HPS → Cementitious tile adhesives (C1T, C2T, C2TE, S1), Gypsum plasters and gypsum-based mortars, Cement renders, machine plasters and ETICS/EIFS mortars

Raw materials
– Potato starch (amylopectin-rich): Potato starch's phosphate groups give the flocculating behaviour valued in mortars; Avebe paid members EUR 136.79 per tonne of starch potatoes in 2024/2025 (Avebe; Glatthor, MixBuild 2016)
– Propylene oxide: The etherifying agent; sets the hydroxypropyl substitution level and is a petrochemical cost line (Market Krystal estimate)
– Corn, tapioca and waxy starches: Lower-cost bases used mainly by Asian producers (Market Krystal estimate)

Production route
Native starch is etherified with propylene oxide under alkaline conditions, often with cross-linking, then drum- or roller-dried and milled to a cold-water-soluble powder (Emsland Group; AGRANA).

Downstream
HPS is sold directly or via distributors to dry-mix mortar formulators, who dose it at about 0.01-0.05% alongside HPMC/MHEC and redispersible polymer powder (Glatthor, MixBuild 2016).

Price, cost and margin
Potato-based HPS carries a premium for performance; margins are squeezed by starch potato costs and price pressure from Chinese supply. No price reporter publishes an HPS benchmark. Cost sits in starch potatoes, propylene oxide and drying energy; margin sits with the European specialists that sell application know-how, while AGRANA's starch segment EBIT margin fell to 2.4% in 2025|26 (AGRANA).

Where the chain is tightest
Drum-drying capacity at a few European potato starch sites, which depend on one annual potato campaign, is the most constrained step.

Who sits where in the chain
– Hps producer: Royal Avebe, AGRANA, Emsland Group
– Distribution: Biesterfeld

4. Market size: what demand, supply and price add up to

Market Krystal preliminary estimate (2025)
Intel Market Research puts HPS at USD 152-160 mn in 2024-2025, with construction above 80% of demand. Credence Research publishes USD 680 mn for 2024 on a wider scope that includes food and pharma hydroxypropyl starches. Market Krystal applies Intel Market Research's 82-87% construction share to its USD 160 mn 2025 figure and widens the band for Chinese volumes sold at lower prices. The range is checked against producer signals, including Agrana's one-third rise in technical starch capacity at Gmu00fcnd, rather than against trade or price data. On this basis we use USD 115-155 mn. Confidence grade B: published estimates exist; the volume or price cross-check is partial.

How published estimates compare
Intel Market Research sizes HPS at about USD 160 mn with a construction-led scope, while Credence Research's USD 680 mn covers all hydroxypropyl starch uses including food. Market Krystal sizes only the construction grade by applying the published construction share and checking it against producer capacity signals.

Key figures at a glance (third-party, cited)
– HPS market valued at USD 152 mn in 2024 and USD 160 mn in 2025, growing 5.5% a year to USD 219 mn by 2032 (Intel Market Research)
– Construction accounts for over 80% of HPS demand; Avebe holds about 32% share and Avebe, AGRANA and Emsland together over 70% (Intel Market Research)
– AGRANA invested EUR 23 mn in a drum-drying plant at Gmu00fcnd to raise technical starch capacity for construction and adhesives by one-third (AGRANA)
– AGRANA starch segment revenue was EUR 982.4 mn in 2025|26 with EBIT of EUR 23.5 mn (AGRANA)
– Starch ethers are dosed at about 0.01-0.05% of the mortar (Glatthor, MixBuild 2016)

5. Outlook to 2035 and scenarios to 2047

Regulation and substitution
Bio-based content supports HPS against synthetic thickeners; the substitution risk is cheaper corn- or tapioca-based ethers and formulators cutting additive packages.

Recent developments among key stakeholders
– May 2026: AGRANA reported 2025|26 starch segment revenue of EUR 982.4 mn and EBIT of EUR 23.5 mn, down 26.6%, citing lower starch prices and a specialities strategy to stabilise margins (AGRANA)
– Dec 2025: Royal Avebe published its 2024/2025 annual report with a performance price of EUR 136.79 per tonne of starch potatoes and EUR 60 mn invested, and flagged a larger European starch potato supply (Royal Avebe)
– May 2023: AGRANA announced a EUR 23 mn drum-drying plant at Gmu00fcnd, Austria, raising technical speciality starch capacity for the construction and adhesive sectors by one-third, with completion planned for July 2025 (AGRANA)

What this means for the market
Tile adhesive and plaster makers buy from a concentrated European supply base, so they should qualify a second source, including Chinese grades, for standard C1T and gypsum work. AGRANA's added drying capacity and weaker starch prices give buyers more leverage in 2026-2027 contracts. Producers win where they pair HPS with formulation support for C2TE and S1 adhesives and machine plasters.

Strategic scenarios to 2047
– Base: Construction HPS grows about 4-5% a year with dry-mix penetration in Asia, the Middle East and Africa, and Europe keeps the premium grades.
– Constrained supply: Poor potato harvests or drying bottlenecks at European sites tighten premium grades and push formulators toward Chinese corn- or tapioca-based HPS.
– Technology transition: Bio-based content rules and lower-carbon mortars raise starch ether loadings as partial replacements for synthetic thickeners and some cellulose ether.
The swing factor for construction HPS is Chinese HPS quality and export pricing. Signposts: European starch potato harvests, AGRANA and Avebe speciality volumes, Chinese HPS capacity additions, HPMC prices, large-format tile adoption, EN 12004 class mix.

What this report delivers
Annual volume (tonnes) and value (USD) for 2026-2035, segmented by application: Tile adhesives, Gypsum plasters, Cement renders and ETICS mortars, Skim coats and putties, Grouts and jointing mortars; end use: Residential construction, Non-residential construction, Renovation and refurbishment, Infrastructure; region: Asia-Pacific, Europe, North America, Latin America, Middle East and Africa. Each segment is backed by a producer capacity map, trade data and the Market Krystal estimate log, with scenarios to 2047 and strategic recommendations.