The global modified starch market is projected to witness a CAGR of 4.62% during the forecast period (2022-2027).
The COVID-19 pandemic placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, logistics, as well as momentous shifts in demand. Food supply chains demonstrated remarkable resilience in the face of these stresses. The effect on the agricultural sectors, including corn, potato, tapioca, and wheat, followed by its intermediate product, such as starches, is marginal due to the government support that ensured the supply chain functioned smoothly in the face of the crisis by stabilizing the food systems, thereby supporting both food security and nutrition.
Over the long term, with the global economy gradually improving and resulting in an increased intake of processed and convenience foods, the market for modified starch, which finds substantial usage in these food applications, is finding increased demand, thereby driving the overall market.
The demand for modified starches is helping the rapid development of the food industry. Modified starches offer a tremendous number of functional benefits to a variety of foods, such as bakeries, snacks, beverages, as well as nutritional foods. While convenience remains a key driver in the market’s future, growing consumer calls for healthy alternatives are redefining what it takes to stand out in the category. Manufacturers have also been readily inculcating the clean label trend in their products to gain market share.
Ingredient suppliers have been diversifying their starch sources, while starch innovations are centered on elements within baked foods, including sauces in frozen food meals and fruit filling in desserts. According to the European Starch Industry Association, in 2018, the total starch production in Europe, which included wheat, maize, and potatoes, stood at 10.7 million metric tons. Wheat had been the primary feedstock for starch production, followed by corn and potato. Specialties, like green pea, rice, or chickpea, are minimal and only account for less than 0.5% in the European market. More importantly, a growing number of starch manufacturers have been investing in the starch and sweeteners market in Europe to support the local economy and community while positioning the business for long-term growth. Therefore, the rising investment in modified starch production to cater to the surging demand is expected to bolster the growth of the market studied during the forecast period.
The application of modified starch in varied applications is widely contributing to the growth in the Asia-Pacific region. It aids in thickening or stabilizing food products, especially sauces. Thus, with the rising market for sauces and condiments, the industrial starches market is also growing at a faster pace. The booming manufacturing sectors, ranging from textiles to the cosmetics industry, have been pushing the demand for starch in the region. The rapidly growing processed food industry and the consumer shift toward snacking has been acting as a driver for the modified starch market in countries like China and India. The food industry is the most lucrative segment considering liberalized regulations toward the use of modified starch in food production. The evolving retail landscape, along with the involvement of numerous global and local players producing prepared food, is also projected to boost the demand in the modified starches market in the region.
The global modified starch market is fragmented. However, few international players are focusing on increasing their market share in developed economies. The leading participants, including ADM, Cargill Inc., Ingredion, and Tate & Lyle, are the most active companies in the modified starch market. New product launches and innovations are the major strategies adopted by companies to strengthen their business. The strategy of forming new agreements and partnerships with local players has helped the companies increase their footprint in foreign countries and release new products according to the consumers’ changing preferences, and leverage the expertise of these small regional companies.
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The COVID-19 pandemic placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, logistics, as well as momentous shifts in demand. Food supply chains demonstrated remarkable resilience in the face of these stresses. The effect on the agricultural sectors, including corn, potato, tapioca, and wheat, followed by its intermediate product, such as starches, is marginal due to the government support that ensured the supply chain functioned smoothly in the face of the crisis by stabilizing the food systems, thereby supporting both food security and nutrition.
Over the long term, with the global economy gradually improving and resulting in an increased intake of processed and convenience foods, the market for modified starch, which finds substantial usage in these food applications, is finding increased demand, thereby driving the overall market.
The demand for modified starches is helping the rapid development of the food industry. Modified starches offer a tremendous number of functional benefits to a variety of foods, such as bakeries, snacks, beverages, as well as nutritional foods. While convenience remains a key driver in the market’s future, growing consumer calls for healthy alternatives are redefining what it takes to stand out in the category. Manufacturers have also been readily inculcating the clean label trend in their products to gain market share.
Key Market Trends
Increasing Investments in the Starch Market to Strengthen the Growth
Ingredient suppliers have been diversifying their starch sources, while starch innovations are centered on elements within baked foods, including sauces in frozen food meals and fruit filling in desserts. According to the European Starch Industry Association, in 2018, the total starch production in Europe, which included wheat, maize, and potatoes, stood at 10.7 million metric tons. Wheat had been the primary feedstock for starch production, followed by corn and potato. Specialties, like green pea, rice, or chickpea, are minimal and only account for less than 0.5% in the European market. More importantly, a growing number of starch manufacturers have been investing in the starch and sweeteners market in Europe to support the local economy and community while positioning the business for long-term growth. Therefore, the rising investment in modified starch production to cater to the surging demand is expected to bolster the growth of the market studied during the forecast period.
Asia-Pacific Remains the Fastest Growing Region
The application of modified starch in varied applications is widely contributing to the growth in the Asia-Pacific region. It aids in thickening or stabilizing food products, especially sauces. Thus, with the rising market for sauces and condiments, the industrial starches market is also growing at a faster pace. The booming manufacturing sectors, ranging from textiles to the cosmetics industry, have been pushing the demand for starch in the region. The rapidly growing processed food industry and the consumer shift toward snacking has been acting as a driver for the modified starch market in countries like China and India. The food industry is the most lucrative segment considering liberalized regulations toward the use of modified starch in food production. The evolving retail landscape, along with the involvement of numerous global and local players producing prepared food, is also projected to boost the demand in the modified starches market in the region.
Competitive Landscape
The global modified starch market is fragmented. However, few international players are focusing on increasing their market share in developed economies. The leading participants, including ADM, Cargill Inc., Ingredion, and Tate & Lyle, are the most active companies in the modified starch market. New product launches and innovations are the major strategies adopted by companies to strengthen their business. The strategy of forming new agreements and partnerships with local players has helped the companies increase their footprint in foreign countries and release new products according to the consumers’ changing preferences, and leverage the expertise of these small regional companies.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Cargill Incorporated
- Tate & Lyle PLC
- Ingredion Incorporated
- Archer Daniels Midland Company
- Roquette Freres
- Sdzucker AG
- EMSLAND-STRKE GmbH
- Agrana Beteiligungs AG
- Japan Corn Starch Co. Ltd
- Grain Processing Corporation
Methodology
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