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Home Business & Finance The Modified Starch Market in Numbers

The Modified Starch Market in Numbers

Starch can be obtained from various sources such as corn, cassava, and wheat. The starch benefits include its wide range of applications that it can be used in. For example, it can be used for its textural properties, film formation property, and additives. There are many industrial applications of starch such as for encapsulation, as viscosifiers, sizing agent, binding agent, thickening agent, and defoaming agent. The starch market can be divided into modified starch, starch derivatives & sweeteners, and native starch. According to the application, the global market can be segmented into paper, food &beverage, feed, and textile industry among others.

The industrial starch market is expected to grow in the future due to the steady increase in demand in various sectors. Beroe, the market intelligence experts, suggests that the modified starch market will be valued at more than $11 billion by the end of 2020 due to constant demand growth. The total starch production is about 85 MMT. 53% of this production is for sweeteners while 11% is for the modified starch and the rest of the 36% goes into native starch. The starch market can be divided into geographical segments. These are North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

North America holds the largest starch market share with 40%, while the Asia Pacific has the second largest market of 30% and Europe has a 21.5% market share. The other regions account for the rest of the market share. The key consuming countries depend on the type of starch. There are three types of major starch known as corn starch, wheat starch, and tapioca starch. Corn starch accounts for over 70%, wheat starch accounts for over 5.5%, and tapioca starch accounts for over 8%. Corn start is consumed most in the Asia-Pacific region and the US. Wheat starch is most consumed in North America and Europe. Tapioca starch is consumed in the US the most.

The US produces the most corn starch since it produces 30% of the total corn starch production. Europe produces 20% of wheat starch and Thailand produces over 35% of tapioca starch. The leading suppliers of starch are segmented according to type. ADM and RoquetteFreres are the leading suppliers of wheat starch. ADM and Cargill are leading corn starch suppliers. Siam Quality Starch and General Starch are leading suppliers of tapioca starch. There are various cost factors that contribute to starch production. 60% of the cost is due to raw materials used and so any changes in this will cause changes in the product prices.

The starch industry is expected to grow at a CAGR of 4% in the coming years. The Asia-Pacific market for corn starch will see an increase of over 6% in the coming few years. Sweeteners lead the market globally since they have a share of 50% in the entire market. Since there is likely to be an increase in demand for HFCS or High Fructose Corn Syrups in the future, the corn starch demand will increase further. China is one of the significant markets for corn starch because it is one of the largest consumers of corn starch. The food sector will lead to the growth of the modified starch market as there is likely to be high demand, especially from the packaged food industry.

The increase in demand from the food industry will result in better and improved margins for the industry. In Europe, Germany will play a crucial role in driving demand. This is because there is already a base for manufacturing in Europe for the food processing industry. As economies are improving, especially India and China, there is likely to be a growth in demand from these countries. There is likely to be an increase in production in these countries according to Beroe’s market intelligence report because of the increase in demand from various sectors including the textile industry, food industry, and paper industry. Investments will boost production too.

The industrial starch market suppliers are working on strategies for growth to grab the largest market share. For example, those companies that are in the corn starch market are working on ways to provide solutions for dairy and frozen food products. Technologies are being used for starch modification and for improving the quality of production. The Roquette Group has acquired a few Indian companies to get a grip on the Asia-Pacific market. While the market is likely to grow rapidly, a few constraints must be kept in mind. For example, investing in R&D is not everyone’s cup of tea. Another major restraint is how many alternative solutions are available which can impact the growth of the market.

Sarah Williams
Sarah Williams is a blogger and writer who expresses her ideas and thoughts through her writings. She loves to get engaged with the readers who are seeking for informative contents on various niches over the internet. She is a featured blogger at various high authority blogs and magazines in which she shared her research and experience with the vast online community.

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