Starch Market Outlook, 2028

Starch, a carbohydrate found in numerous plants, serves as the backbone for countless applications, from food and pharmaceuticals to textiles and biofuels. Starch, the most abundant carbohydrate in the world, is derived from various crops, with corn (maize), wheat, potatoes, cassava, and rice being the primary sources. Each of these crops undergoes a specific extraction process, resulting in starch with unique properties tailored for different applications. The starch industry encompasses the production, processing, and utilization of starch and its derivatives. Starch is primarily derived from crops such as corn (maize), wheat, potato, cassava, and rice. Corn starch is one of the most common sources, particularly in the United States, while potato starch is more prevalent in Europe. Starch is extracted from these crops through various processes, including wet milling (common for corn), dry milling (common for wheat), and direct extraction (common for potatoes and cassava). These processes involve grinding, separation, and purification to obtain starch. The global starch market is significant and continues to grow. Starch has been modified to improve stability, resistance to heat, freezing, excessive heat and to control viscosity. It is produced by other green plants as energy storage. It is part of several important foods and is the main carbohydrate in the diet. Food starch is extracted from various natural sources such as rice, wheat, potatoes, tapioca, and corn. Wheat, corn, and potatoes are most commonly used for food starch. The food industry has a significant part of consumption in the world market for food starch. They are used to make a variety of products in the food industry, such as baked goods, confectionery, canned fruit and jams, commercial candy, and monosodium glutamate (MSG). Food starch is used in non-food industries includes mining, textile, paper, construction materials, and consumer goods industries. Industrial starch is widely used in the paper industry during manufacturing and coating. In the textile industry, it is used to print and finish fabrics. Well used in the drilling process in the mining industry, starch mixes with clay and this mix provides adequate water retention and viscosity for drilling oil wells.

According to the research report, “Global Starch Market Outlook, 2028” the market is anticipated to cross USD 65 Billion by 2028, increasing from USD 52.59 Billion in 2022. The market is expected to grow with 4.7% CAGR by 2023-28. Factors driving this growth include the increasing demand for processed and convenience foods, as well as the expansion of industries like pharmaceuticals and bio-plastics. Some emerging trends in the starch industry include the development of modified starches for specific applications, the use of starch as a renewable and biodegradable material in packaging, and the exploration of starch as a potential ingredient in alternative protein products. Market players involved in the starch market are expected to focus on procuring starch from non-conventional sources, such as potato tubers and tuber roots to improve added-value food product development. Furthermore, a number of players involved in the current starch market landscape are increasingly focusing on improving the functional properties of starch including texture, thermal stability, viscosity, and solubility to enhance the quality of their products. The expanding applicability of starch has paved the way for additional research and development to gain knowledge on non-conventional sources of starch. Research and development activities pertaining to the linkage between functional and structural properties of starch are likely to open up new potential industrial applications. In more mature markets premiumization and growing number of young urbanized professionals interested in global food trends and brands are expected to shape the starch market. Leading applications of starch in the food industry are as a thickening or stabilizing agent for the preparation of breads, soups, puddings, pies, soy, meat products, and sauces. Manufacturing of vermicelli, ice cream biscuits, instant noodles, sago, and chocolates also involves addition of starches. The demand for starch is increasing with altering consumer preference from fresh roots to nonperishable, processed, and value-added products. Companies are mainly focusing on providing neutral-flavored, gluten-free, non-GMO, and nutritious ancient grain starches. They are been engaged in activities to provide ‘clean label’ tapioca starches. Companies such as Archer Daniels Midland Company are focusing on offering best products to consumers. They are collaborating with other firms for widening base of operations and adding new products to their product portfolio.

Based on the regions, Asia-Pacific is expected to lead the market with over 5% CAGR by 2023-28 in global starch market.

The Asia-Pacific region is home to some of the world's most populous countries, including China and India. As these countries experience continued population growth and rising income levels, there is a corresponding increase in demand for various consumer goods, including processed foods, pharmaceuticals, and industrial products that rely on starch as an ingredient. As income levels rise in the Asia-Pacific region, dietary habits are also evolving. There is a growing preference for convenience foods and processed products, many of which use starch as a key ingredient for texture, stability, and other functional properties. Rapid urbanization in Asia-Pacific countries is leading to busier lifestyles and a greater reliance on packaged and processed foods. Starch is commonly used in these foods to improve taste, texture, and shelf life. Some governments in the Asia-Pacific region are actively promoting the growth of industries that use starch. This includes initiatives to support the production of biofuels, biodegradable plastics, and other sustainable products derived from starch. Many countries in Asia-Pacific, such as China and Thailand, are major producers of starch crops like corn and cassava. Increased agricultural production of these crops contributes to the availability of starch for various industries within the region. With growing awareness of sustainability issues, some Asia-Pacific countries are exploring starch-based materials as eco-friendly alternatives to conventional plastics. This trend aligns with global efforts to reduce plastic waste and promote sustainability.

According to the report, starch derivatives are projected to dominate the global starch market during the forecast period with higher revenue generation.

There are majorly two types of starches - native starches which are pure forms of starch obtained from corn, wheat, potato, rice, cassava, and tapioca. Modified starch or starch derivatives are an altered form of starches with a high degree of processability. The global marketplace has exhibited solid demand for gluten-free products; this has increased the utilization of starch and its derivatives for sensory and nutritional roles. Due to the weak structural properties of starch, modified starch or starch derivatives has garnered immense popularity in the global market. In addition, the increasing focus on upgrading food manufacturing technologies coupled with the growing awareness pertaining to the benefits of modified starch has led to a rise in the demand for modified starch. Evolving consumer preferences is expected to have a strong impact on the growth prospects of the starch market. The increasing demand for clean label food products is anticipated to have a direct impact on the starch market. As consumers in several nations across the globe are increasingly inclining toward a healthier lifestyle, the demand for starch as well as modified starch is anticipated to decline toward the second half of the forecast period. The modification of starch involves various processes that can change its molecular structure, size, solubility, viscosity, gelatinization properties, or other characteristics. These modifications are typically done to overcome limitations of native starch and to meet the specific requirements of different industries such as food, pharmaceuticals, textiles, and paper manufacturing. The food and beverage industry has experienced significant growth due to factors such as change in consumer preferences, increase in urbanization, and rise in disposable incomes.

Modified starch is widely used in the food and beverage industry as stabilizer, thickener, emulsifier, and texture enhancer. It improves the overall quality and sensory attributes of food products, leading to increased demand for these ingredients. Moreover, modified starch finds applications beyond the food and beverage industry. It is used in industries such as paper & packaging, textiles, pharmaceuticals, cosmetics, and animal feed. For instance, in the paper industry, modified starch improves the strength, smoothness, and printability of paper products. In textiles, t is used as sizing agents and thickeners. The wide range of applications and versatility of modified starch makes them valuable ingredients in these industries, driving its demand. Furthermore, modified starch offers a wide range of functional properties that make it desirable in various applications. These properties include improved texture, stability, viscosity, and enhanced heat resistance compared to native starch. For example, modified starch can prevent syneresis (liquid separation) in frozen foods, enhance the creaminess of dairy products, and provide better water-holding capacity in meat products. The unique functionalities of modified starch drive its adoption in the food, pharmaceutical, and personal care industries.

Based on the source, corn starch has witnessed major market growth during the historic period and is expected to dominate the market by the end of the forecast period as well.

Corn (maize) is one of the most widely cultivated crops in the world. It is grown in many countries and regions, making corn starch readily available and cost-effective in various parts of the world. This abundance of corn serves as a consistent source of raw material for corn starch production. Corn starch is an incredibly versatile ingredient with a wide range of applications. It can be used in the food industry as a thickening agent, stabilizer, and texturizer in various products such as soups, sauces, gravies, and baked goods. Its neutral flavor and color make it suitable for a broad spectrum of culinary uses. Corn starch has excellent thickening properties. It can transform liquids into smooth, lump-free sauces and fillings. Its ability to create a consistent texture is highly valued in food preparation, contributing to the quality and palatability of many dishes. Corn starch is naturally gluten-free, making it a valuable ingredient for individuals with celiac disease or gluten sensitivities. It serves as a common alternative to wheat-based thickeners like flour. Corn starch is generally considered non-allergenic, which means it is less likely to cause allergic reactions compared to some other ingredients. This makes it suitable for a broad consumer base. Corn starch has a long shelf life when stored properly. It does not spoil or deteriorate easily, making it a convenient ingredient for both consumers and food manufacturers. Besides its extensive use in the food industry, corn starch finds applications in various non-food industries, including pharmaceuticals, textiles, paper manufacturing, and the production of adhesives and glues. Corn starch is a key ingredient in the production of biodegradable plastics and sustainable materials. This is in line with global efforts to reduce plastic waste and promote eco-friendly alternatives.

According to the report, food & beverages segment is expected to lead the market during the forecast period with over 35% market share.

The rapid growth of the food and food processing industry is a major driver for the growth of the global food starch market. They are used in the food industry in the manufacturing process of a wide range of products. The demand for high-quality food and beverages is increasing worldwide in terms of taste and nutritional content. Consumers are shifting their preferences from regular staples to premium foods to stimulate demand for starch in the food and beverage industry. The market is competitive as the health and wellness trend increases and consumer demand for all-natural ingredients increases. Starch intake is much higher in countries that depend on starch staples, such as China and Japan. The increase in biofuels and biomaterials and starch consumption in this industry is expected to drive the growth of the global food starch market. The growth of the global food starch market is expected to accelerate as consumption of industrial starch in the consumer goods and packaging industry increases with adhesives. The wide expansion of the food processing industry has had a positive impact on the demand for food starch. Also, the food processing industry has expanded in recent years. Besides, consumer preferences for low-cost foods and profitable foods have increased the demand for high-performance foods many times over. The global food and beverage (F&B) market has witnessed strong growth in recent years due to innovations in food systems, improved logistics, increased economy, increased world trade, and increased of consumer spending.

Based on the function, starch is majorly used as thickening agent with higher revenue generation in global starch market.

Starch has exceptional thickening capabilities when mixed with water and heated. As it heats, the starch granules absorb water and swell, resulting in a thickened, gel-like consistency. This property makes it highly effective for achieving the desired thickness and texture in various food and non-food products. Starch has a neutral taste and color, which means it does not significantly alter the flavor or appearance of the products it is added to. This makes it a versatile choice as a thickening agent, allowing the natural flavors and colors of other ingredients to shine through. Starch can be used to create a wide range of viscosities, from thin liquids to thick pastes, depending on the type of starch, the concentration used, and the cooking method. This versatility makes it suitable for a variety of applications, from soups and sauces to gravies and puddings. Starch-thickened products maintain their texture and consistency even when exposed to various temperatures. This is especially important in the food industry, where products may be subjected to cooking, cooling, and reheating without significant textural changes. Starch is naturally gluten-free, making it an excellent thickening agent for individuals with celiac disease or gluten sensitivities. It is also considered non-allergenic, meaning it is less likely to cause allergic reactions compared to some other thickeners. Starch is generally recognized as safe (GRAS) by regulatory agencies in many countries, including the U.S. Food and Drug Administration (FDA). This status reinforces its widespread use in the food industry.

Market Drivers

• Changing Dietary Preferences and Population Growth: The global population is steadily increasing, and dietary preferences are evolving. Consumers are seeking convenience and processed foods, which often rely on starch as a key ingredient for texture, stability, and consistency. As more people shift to urban living and adopt busier lifestyles, there is a growing demand for packaged and processed foods, driving the need for starch-based products. The increasing global population and changing consumer habits fuel the demand for starch, especially in the food industry. This driver is expected to persist as urbanization continues and as emerging markets see rising incomes and a desire for convenient food options.
• Sustainability and Green Initiatives: Sustainability concerns and environmental consciousness are becoming paramount in various industries, including the starch industry. Starch is being recognized as a renewable resource with potential applications in biodegradable plastics, sustainable packaging, and biofuels. As governments and consumers prioritize eco-friendly products, the starch industry is under pressure to develop sustainable alternatives. The focus on sustainability is driving innovation within the starch industry, resulting in the development of starch-based bio-plastics, which can reduce plastic waste. Additionally, it opens up opportunities in biofuel production, aligning with the global push for greener energy sources.

Market Challenges

• Competition with Alternative Ingredients: The starch industry faces competition from alternative thickeners and texturizers, such as modified starches, gums (e.g., xanthan gum), and hydrocolloids. These alternatives may offer specific functional advantages or cater to dietary restrictions (e.g., gluten-free). Competition requires the starch industry to innovate and adapt to changing consumer demands. The challenge of competition necessitates ongoing research and development efforts within the starch industry to maintain its position as the preferred thickening agent.
• Raw Material Supply and Price Volatility: The starch industry heavily relies on agricultural crops like corn and wheat. Fluctuations in crop yields due to factors like weather, pests, and disease can lead to supply disruptions and price volatility. Climate change and global economic factors can exacerbate these challenges. Unpredictable raw material costs and availability can affect the profitability and stability of starch manufacturers. Strategies like diversifying sourcing regions and developing crop resilience are essential to mitigate these challenges.

Market Trends

• Clean Label and Natural Ingredients: Consumers are increasingly seeking clean label products with natural and recognizable ingredients. This trend is driving demand for starches that are minimally processed and free from additives or chemical modifications. Manufacturers are responding by offering native or unmodified starches. The clean label trend influences product formulation and labeling, leading to greater transparency and simpler ingredient lists. Manufacturers who adapt to this trend can meet consumer preferences and gain a competitive edge.
• Functional and Specialty Starches: There is a growing demand for specialty starches that offer specific functional properties, such as improved stability, freeze-thaw resistance, or enhanced texture. These specialty starches find applications in industries like the food, pharmaceutical, and industrial sectors. The development and commercialization of functional starches cater to diverse industry needs, expanding the range of applications and increasing the value proposition of starch as a versatile ingredient.

Covid-19 Impacts

The pandemic disrupted supply chains worldwide, affecting the starch industry's sourcing of raw materials and distribution of finished products. Lockdowns, transportation restrictions, and labor shortages hindered the movement of goods, leading to delays and disruptions in production and distribution. Changes in consumer behavior and priorities during the pandemic led to shifts in demand for starch products. With restaurants and foodservice establishments closing or operating at reduced capacity, there was a decrease in demand for certain starch products used in the foodservice sector. Conversely, there was an increase in demand for consumer-packaged foods and convenience foods, which led to greater demand for starches used in these products. International trade in starch products faced challenges due to the pandemic. Export restrictions, changes in demand from importing countries, and logistical challenges impacted the global starch trade. Some countries imposed export bans or restrictions on certain food products, including starches, to ensure domestic food security. The starch industry experienced price volatility for raw materials and finished products. Fluctuations in commodity prices, currency exchange rates, and supply and demand imbalances affected pricing strategies and profit margins for starch manufacturers and producers. Ensuring the safety of workers in starch processing facilities became a top priority. Manufacturers had to implement new safety protocols, social distancing measures, and remote work arrangements, which could impact production efficiency and costs. The pandemic increased consumer awareness of health and nutrition, leading to a shift in research and development efforts in the starch industry. Companies began exploring ways to incorporate starches into healthier and functional food products, such as those with added vitamins, minerals, or fiber. The pandemic heightened awareness of plastic waste and environmental concerns. As a result, there was an increased interest in starch-based biodegradable packaging materials, potentially opening up new market opportunities for the starch industry. Governments implemented various support measures for businesses affected by the pandemic, including those in the starch industry. These measures ranged from financial aid to regulatory adjustments to help maintain production and supply chain stability.

Competitive Landscape

Major companies mentioned in the report include The Archer-Daniels-Midland Company, Tate & Lyle PLC, Cargill, Incorporated, Ingredion Incorporated, Associated British Foods plc, The Agrana Group, Croda International plc, Roquette, Südzucker AG, Tereos S.A., Anora Group Plc, Batory Foods, Inc., Spac Starch Products (India) Limited, The Scoular Company, Bob's Red Mil, Royal Avebe U.A., Royal Ingredients Group B.V., The Emsland Group, Manildra Group, Gujarat Ambuja Exports Limited.

Key Industry Developments

• Henan Doing Mechanical Equipment Co., Ltd displayed their Corn processing machines at the China Commodities Expo-Global 2019 in Lagos, Global in November 2019. The company introduced new production technology, Corn processing machines with new designs, and other product offerings. The company is expanding its operations in Global as a result of increased demand for Corn starch in the Globaln market.
• In March 2018, Archer Daniels Midland Company acquired 50 percent equity stake in the sweeteners and starches business of Russia-based Aston Foods and Food Ingredients, this investment marked an important addition to the expansion efforts of the global corn business of ADM.
• In July 2018, Ingredient supplier Ingredion Inc. launched two new organic-certified corn starch ingredients to its existing line of functional, clean-label starches. These starches are designed to withstand harsh processing conditions and cold temperature in organic savoury foods, alternative-dairy products, refrigerated soups, sauces, and baby foods, among other applications.
• ADM partnered with Vedan International Limited in July 2018 to introduce new tapioca starches and tapioca maltodextrin ingredients. Tapioca starches are derived from Corn starches, which are produced to meet the demand of customers who prefer plant-based starches. The company expanded their product portfolio, which enabled them to expand their customer base that required plant-based starches.
• In October 2017, Tate & Lyle PLC announced to double the capacity of its non-GMO MALTOSWEET maltodextrin product line at its facility Slovakia, over the next two years in order to meet the increasing demand from baby foods sector..

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Starch with its value and forecast along with its segments
• Regional and Country-wise Starch market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Type

• Starch Derivatives
• Native

By Source

• Corn
• Cassava/Tapioca
• Wheat
• Potatoes
• Waxy Maize
• Others (Waxy Maize, Pre-gelatinized Starch, Rice Bran, Sweet potato, Pea etc)

By Application

• Food and Beverage
• Industrial
• Weaving & textile
• Animal Feed
• Paper Industry
• Pharmaceuticals & cosmetics
• Others (adhesives, foundry)

By Function

• Thickening Agent
• Stabilizing Agent
• Binding Agent
• Gelling Agent
• Film-Forming Agent
• Emulsifying Agent

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations and organizations related to the Starch industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.