Starch and Starch Derivatives Market Size (2024 - 2029)

The starch and starch derivatives market is experiencing growth driven by the increasing demand for modified starches, particularly in the food industry, where they provide functional benefits for various products. Naturally derived rice starches are gaining traction due to their stability in packaged sauces and frozen products, as well as their role as a natural fat replacer in low-fat food options. Despite challenges posed by the COVID-19 pandemic, which disrupted supply chains and affected agricultural sectors, government support helped maintain food system stability, thereby safeguarding food security and nutrition. These dynamics are influencing the market size and share of starch and its derivatives.

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Market Size of Starch and Starch Derivatives Industry

starch and starch derivatives market
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 5.40 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration High

Major Players

starch and starch derivatives market share

*Disclaimer: Major Players sorted in no particular order

Starch & Starch Derivatives Market Analysis

The global starch and starch derivatives market is projected to register a CAGR of 5.40% during the forecast period, 2022-2027.

The demand for modified starches has been increasing in parallel to 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.

Also, naturally derived rice starches have strong freeze-thaw, acid, and process stability, making them ideal for use in packaged sauces, as well as frozen products. As a natural fat replacer, rice starch brings creaminess to low-fat versions of dairy desserts, ready meals, soups, and sauces, as well as fillings.

The COVID-19 pandemic placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, and logistics, as well as momentous shifts in demand. The effect on the agricultural sectors, including corn, potato, tapioca, and wheat, followed by its intermediate product, such as starches, is marginal, owing to the support of the government that ensured that the supply chain function smoothly in the face of the crisis by stabilizing the food systems, thereby supporting both food security and nutrition. According to the World Bank, the import of legumes (including peas) and pulses from January 2019 to February 2020 declined by 6%, owing to supply chain disruptions, followed by export restrictions. The export restrictions have a direct impact on the prices of the agricultural commodities, comprising all the raw materials, which is expected to automictically have a negative price effect on its processed ingredients, including industrial starches.

Starch & Starch Derivatives Industry Segmentation

Starch is a carbohydrate extracted from agricultural raw materials, which finds applications in literally thousands of everyday food and non-food products. The global starch and starch derivatives market is segmented based on type, application, source, and geography. By type, the market is segmented into native starch and modified starch. By source, the market studied is segmented into corn, wheat, potato, cassava, and other sources. By application, the market studied is segmented into food and beverages, feed, paper industry, pharmaceutical industry, and other applications. The food and beverage segment is further segmented into confectionary, bakery, dairy, beverages, and other food and beverages applications. Also, the report provides insights into the global starch and starch derivatives market in the major economies across regions, including North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).

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Starch and Starch Derivatives Market Size Summary

The starch and starch derivatives market is experiencing significant growth, driven by the increasing demand for modified starches in the food industry. These starches offer numerous functional benefits, making them ideal for use in a variety of food products such as baked goods, snacks, and beverages. The market is also seeing a rise in the use of naturally derived rice starches, which provide stability in packaged sauces and frozen products. The COVID-19 pandemic highlighted the resilience of the agricultural sector, with government support ensuring the smooth functioning of supply chains. This stability has been crucial in maintaining food security and nutrition, despite challenges such as supply chain disruptions and export restrictions affecting agricultural commodities.

The market is characterized by a growing trend towards health and wellness, prompting demand for clean label and functional food products. This trend is further fueled by the rising incidence of obesity, leading to increased consumer interest in healthy foods and beverages. Manufacturers are investing in developing clean label solutions to meet this demand, with companies like Tate & Lyle expanding their product lines to address formulation challenges in various food categories. The Asia-Pacific region is witnessing rapid expansion due to the demand for non-GMO and organic ingredients, with significant growth in the food processing industry. The market is highly fragmented, with key players focusing on research, development, and strategic partnerships to maintain their competitive edge and expand their production capabilities.

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Starch and Starch Derivatives Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Native Starch

      2. 2.1.2 Modified Starch

    2. 2.2 By Source

      1. 2.2.1 Corn

      2. 2.2.2 Wheat

      3. 2.2.3 Potato

      4. 2.2.4 Cassava

      5. 2.2.5 Other Sources

    3. 2.3 By Application

      1. 2.3.1 Food and Beverages

        1. 2.3.1.1 Confectionery

        2. 2.3.1.2 Bakery

        3. 2.3.1.3 Dairy

        4. 2.3.1.4 Beverages

        5. 2.3.1.5 Other Food and Beverage Applications

      2. 2.3.2 Pharmaceuticals

      3. 2.3.3 Personal Care

      4. 2.3.4 Animal Feed

      5. 2.3.5 Paper and Corrugating

      6. 2.3.6 Other Applications

    4. 2.4 By Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Mexico

        4. 2.4.1.4 Rest of North America

      2. 2.4.2 Europe

        1. 2.4.2.1 United Kingdom

        2. 2.4.2.2 Germany

        3. 2.4.2.3 Spain

        4. 2.4.2.4 France

        5. 2.4.2.5 Italy

        6. 2.4.2.6 Russia

        7. 2.4.2.7 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 China

        2. 2.4.3.2 Japan

        3. 2.4.3.3 India

        4. 2.4.3.4 Australia

        5. 2.4.3.5 Rest of Asia-Pacific

      4. 2.4.4 South America

        1. 2.4.4.1 Brazil

        2. 2.4.4.2 Argentina

        3. 2.4.4.3 Rest of South America

      5. 2.4.5 Middle East & Africa

        1. 2.4.5.1 Saudi Arabia

        2. 2.4.5.2 South Africa

        3. 2.4.5.3 Rest of Middle East & Africa

Starch and Starch Derivatives Market Size FAQs

The Starch and Starch Derivatives Market is projected to register a CAGR of 5.40% during the forecast period (2024-2029)

Cargill Incorporated, Archer Daniels Midland Company, Tate & Lyle PLC, Ingredion Inc. and Roquette Frères  are the major companies operating in the Starch and Starch Derivatives Market.

Starch and Starch Derivatives Report Snapshots

Starch and Starch Derivatives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)