The growth is primarily stimulated by the increased consumer demand for pea fiber and protein, which has resulted in a surplus of pea starch. The product is considered as one of the new starch-based ingredients in the feed and food industries. It offers many nutritional benefits and is useful for preparing lactose-free and gluten-free allergen-free solutions. Pea starch also helps provide clean labels for processed food products, such as baked goods and meat products owing to its organic origins.
Source: DataM Intelligence Analysis (2021)
High demand for pea starch in industrial applications
Pea starch is becoming increasingly popular in gluten-free baking, as baked goods containing pea starch perform remarkably well in terms of texture and structure. Owing to these characteristics, it is proving to be a replacement for the potato, corn, tapioca starch without deteriorating the quality. Gluten-free demand is rapidly increasing in the global food and beverage industry, and more consumers are switching to a gluten-free diet. Celiac disease affects 11 million people, and wheat intolerance affects more than 70 million, according to data from Ingredion Inc. The buzz of gluten-free is at the peak among health-conscious customers and gluten susceptible populations, which is a key reason escalating the demand of pea starch in baked products.
Additionally, the ingredient has been found to play a different role in every segment of the food & beverage industry in terms of its functionality such as film-forming property, neutral taste profile, naturally gluten-free, stability under high temperature, shear, and acid. For example, it accounts for the highest usage in meat and meat products as it provides strong, firm, and sliceable gel upon cooling in products such as sliced turkey, chicken breast and others. Within the pharmaceuticals industry, Roquette has launched a non-GMO pre-gelatinized hydroxypropyl pea starch with an optimum amount of amylose, named LYCOAT RS780 as a soft capsule gelatin replacement.
However, a lack of awareness among consumers about the product's superior properties and benefits will be a major factor hindering the market outlook. Low product demand owing to a lack of awareness has been compounded by the prevalence of other products in the market, such as those obtained from potatoes, maize, and corn. These factors may hamper the pea starch industry growth during the forecast timeframe.
Industrial grade pea starch is expected to hold the highest market revenue share of XX% in the year 2020, owing to increasing usage in industrial applications
Industrial grade is anticipated to expand at a nearly XX% CAGR over the forecast period due to the increasing applications for pea starch in industrial applications such as adhesives, paper cosmetics, and textile as a stiffening and bonding agent. Hence, the increasing demand in industrial applications is expected to further drive the segment growth during the forecast period. Moreover, recent expansions in the cosmetics industry coupled with the increasing popularity of starch-based adhesives in the packaging business will augment the segment growth soon. In April 2019, Beaute by Rouquette ST 720, 'a modern pea starch for the cosmetics market, was introduced by Roquette Frères. Pea starch is also an excellent source of bio-plastic because it is organic and can biodegrade safely under the proper conditions.
By source, the organic segment is projected to be the fastest-growing segment. The changing preferences and rising awareness about the overall health of individuals have led to an increase in the number of people opting for organic products over inorganic ones. The trend of using clean label products will further encourage the use of organic pea starch in the pea starch market. In October 2019, Puris has unveiled new carbohydrate ingredients that can function as a gummy binder as well as a constituent in sports nutrition formulations. The ingredient attracted the attention of Cargill, which has invested USD 100 million to help Puris increase its production capacity. Puris offers both non-GMO and organic options on its ingredients.
North America is expected to dominate the global pea starch market, due to increased consumption of processed foods
The United States is estimated to account for the largest market share by 2028 on account of being the largest manufacturer and exporter of pea starch across the globe. The United States pea starch market is expected to grow with a CAGR of YY% during the forecast period, reaching USD xx million in 2028. Due to the rising consumption of processed foods and the demand for adhesives in a wide range of industrial applications, the country is expected to remain a major consumer in the market. Over the forecast period, a significant increase in the production of the food processing sector in the United States, owing primarily to an increase in the number of machinery imports, is expected to drive the growth of the baked goods and processed meats industry segments, resulting in a robust demand for pea starch as texturizing agents in baked goods and meat products. In May 2020, The Brenntag Food & Nutrition business unit in North America, part of the Brenntag Group, announced a new partnership with Axiom Foods, Inc. for the distribution of plant proteins in the United States and Canada.
Source: DataM Intelligence Analysis (2021)
The market is fragmented with companies undertaking some activities including strategic alliances, capital extension, regular mergers, and acquisitions. Major players such as Roquette Freres, Cosucra-Groupe, Emsland-Starke, Vestkorn Milling, and Parrheim Foods are concentrating on expanding their total market share coupled with productivity through technological innovation. For instance, in April 2020, The Emsland Group announced its strategic partnership with Brenntag Food & Nutrition in Russia. The distribution of Emsland’s product portfolio will be handed over to Brenntag, for the food industry and technical specialties. These include modified starches, native starches, proteins, and fibers made from peas and potatoes.
The outbreak of Covid-19 has had a huge impact on both supply and demand for processed foods. People's access to adequate and nutritious food has been hampered by border closures, quarantines, market supply chains, and trade disruptions, especially in countries hit hard by the virus. Businesses, on the other hand, had significant impacts on their foreign trades as governments across the world shut down borders and economies to prevent the spread of the coronavirus. Many markets are concentrating on domestic companies to meet their needs for pea starch. However, this has resulted in an imbalance in demand and supply quantities. Some countries, on the other hand, are entirely reliant on imports and are in tough situations. Both of these factors hindered the market's future growth at the start of 2020.
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