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Potato Powder Foodchem International Corporation Potato Powder is starch extracted from potatoes. This product is often used in noodles, wine, gums, cocktail, nuts, potato chips, hot dogs, bakery cream, instant soups and sauces. It is also used in sponge cake keeping the cake moist and giving it a soft ...view more Potato Powder is starch extracted from potatoes. This product is often used in noodles, wine, gums, cocktail, nuts, potato chips, hot dogs, bakery cream, instant soups and sauces. It is also used in sponge cake keeping the cake moist and giving it a soft texture, and in the preparation of pre-packed grated cheese to reduce sweating and binding. view less