Starch Derivatives Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Starch Derivatives Market is segmented By Type (Maltodextrin, Cyclodextrin, Glucose Syrups, Hydrolysates, Modified Starch, Others), By Source (Corn, Wheat, Cassava, Potato, Others), By Application (Food and Beverage, Feed, Paper Industry, Pharmaceutical Industry, Bioethanol, Cosmetics, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Starch Derivatives Market Overview

A Report by DataM Intelligence estimates the Global Starch Derivatives market to grow at a high CAGR during the forecast period 2024- 2031. The market is expected to grow because it becomes important in different industries like Food and Beverage, Feed, Paper Industry, Pharmaceutical Industry etc. The competitive rivalry intensifies with Archer Daniels Midland Company, Beneo., Roquette Frères, and others operating in the market.

Starches are polymeric carbohydrates playing a vital role in the human diet. It is a renewable and biodegradable material primarily extracted from agricultural commodities. Starch derivatives are used as stabilizers and thickeners in the food and drink sector, as tablet binders in the pharmaceutical sector, as an emulsifier in the cosmetic industry and as a fiber additive in animal feed. Besides these, some more important applications of starch derivatives are in adhesiveness, flocculation, film-forming, shear stability, pH stability improvement, process tolerance enhancement, and acid stability. Ever-increasing regulatory requirements toward low-emission adhesives are expected to fuel the demand for bio-based and biodegradable adhesives, which in turn, is expected to drive the market for starch and its derivatives.

Starch Derivatives Market Scope

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Starch Derivatives Market Dynamics

 Functional properties of starch derivatives and their ease of incorporation in a wide range of food applications

Starch derivatives possess enhanced functional properties which are suitable for a wide range of food and non-food applications. It has a variety of functions; it is used as a thickener, texture agent, fat replacer, and emulsifier. Starch derivatives, because of their characteristic of absorbing water and bulking up, render the essential mouthfeel to the food products they are used in. This makes them an excellent substitute for fat. Starch is also used as a thickener or as a gelling agent in food products, as the texture is one of the important factors for the consumers to accept the food products. Moreover, companies are investing large amounts of their capital in research and development. These advances are improving world market opportunities for starch derivative products. For instance, companies like Nestle have launched low-fat Greek yoghurt, NESTLÉ a+ GREKYO, to promote functional / low-calorie dairy products on the market. Tine, another dairy business, introduced low-fat, rich-protein yogurt to meet the increasing demand for low-fat products. Hain Celestial released a product, kefir, which was low in fat.

However, the rise in the cost of raw materials is expected to hamper the growth of the starch derivatives market. Natural sources such as wheat, cassava, corn, and rice are used as raw materials for manufacturing starch and its derivatives. These raw materials are widely used for the production of starch derivatives are also used in the production of bio-ethanol products. Increasing consumption of starch derivatives in segments such as food & beverages, feed, pharmaceuticals, cosmetics, and paper leads to higher demand for this starch, thereby resulting in rising in the prices of raw materials. For instance, the price of corn increased by more than 50% in 2021, to USD 7.50 a bushel, which was the highest in the past ten years. The increase in raw material prices is expected to be a restraint in the starch derivatives market. The starch derivatives industry is heavily dependent on raw materials—conventional and organic raw corn, wheat, potato, and rice. The raw material prices depend on the crop plantation area and harvest from which the raw materials are obtained.

Starch Derivatives Market Segmentation Analysis

The modified starch segment is expected to dominate the global starch derivatives market in the year 2020

The modified starch segment is expected to grow with a CAGR of % during the forecast period. This is primarily due to the rising demand for low-calorie food products owing to the rising number of obese and diabetic people, and growing awareness toward health. The number of obese people in the world total is approximately 2.1 billion, which makes up about 30% of the total population. Over 3 million people each year die from obesity. According to WHO, 39 million children under the age of 5 were overweight or obese in 2020. Hence, rising obesity across the world is expected to drive the demand for modified starch as it has various health benefits.

Starch Derivatives Market Geographical Share

The Asia Pacific evolved as the fastest growing market for starch derivatives

By geography, Asia Pacific is expected to grow with a CAGR of % during the forecast period. It will witness significant growth on account of the expansion of the food and beverages and pharmaceutical sectors in China, India, South Korea, Thailand, the Philippines, and Indonesia. India is one of the major markets for starch derivatives due to the wide availability of raw materials. The major raw material for the starch derivative market is maize. Other raw materials used are potato and tapioca but, the volume of starch production using these raw materials is small as compared to that from maize In 2020, maize yield for India was 3.03 tons per ha. The maize yield of India increased from 0.9 tons per ha in 1971 to 3.03 tons per ha in 2020 growing at an average annual rate of 3.26%. Of the total maize produced in India, nearly 10% - 12% is being consumed by the starch and its derivatives industry.

On the other hand, North America is expected to hold a significant market revenue share of % in the year 2020. Owing to the wide supply of corn, North America is leading the global starch derivatives market, with a broad variety of food, non-food, and feed applications. The acceptance and understanding of the functionalities of starch and its derivatives in the food and non-food industries in the countries have led to rapid demand for the ingredients for a variety of applications primarily in countries such as the United States, Canada and Mexico.

Starch Derivatives Companies and Competitive Landscape

The global starch derivatives market is highly competitive with the presence of many formulators. The presence of major players operating in the country, such as Cargill incorporated, Archer Daniels Midland Company, and Ingredion Incorporated, have strengthened the market through their product offerings. Continuous innovation to introduce new products, with functional benefits is the key competitive factor in the market.

• For instance, in March 2020, Tate & Lyle, a UK-based provider of food and beverage ingredients and solutions, announced the addition of CLARIA Clean Label Starches to its line with the launch of Claria Everlast.
• In March 2019, Ingredion Incorporated, a USA based ingredient provider acquired Western Polymer for an undisclosed amount. In July 2018, Ingredient supplier Ingredion Inc. launched two new organic-certified corn starch ingredients to its existing line of functional, clean-label starches.

COVID-19 Impact on Starch Derivatives Market

The global starch derivatives market has had a significant downtrend in 2020, owing to the COVID-19 pandemic. The demand for starch derivatives declined from most of the end-use industries, including food and non-food. The food service industry has been the largest constituent of starch derivatives with its extensive use as thickeners and stabilizers. The closure of HoReCa’s and lowered out-of-home food consumption led to lower demand for these food ingredients. The downstream pharmaceutical and animal feed industries, which are largely resilient to the pandemic witnessed demand growth in 2020. However, other non-food customers such as cosmetics, ethanol and paper producers lowered their production activities, thereby declining starch derivative consumption. Thus, the overall volume consumption of starch derivatives declined in 2020, reversing the growth trend of market value. The uncertain price of corn, particularly in the U.S. market led to highly volatile business margins in the starch and starch derivatives market.

Why Purchase the Report?

• Understand the current market scenario and viability of global starch derivatives over the forecast period.
• Visualize the composition of the global starch derivatives market in terms of type, form, source and application to identify major players, growth potential, and market strategies
• Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
• Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining to the market

What we offer?

• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Excel data sheet with valuable data points of the global starch derivatives market – Regional and Country level segmentation
• Product mapping in excel for the key products of all major market players
• Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

Target Audience:

• Starch and Derivatives Manufacturers
• Food and Beverage Industries
• Corn Grower Associations
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals