Modified Starch Global Market Report 2024

The modified starch market size has grown strongly in recent years. It will grow from $12.12 billion in 2023 to $12.86 billion in 2024 at a compound annual growth rate (CAGR) of 6.1%. The growth observed during the historical period can be attributed to factors such as globalization and trade, regulatory changes and standards, industrialization and urbanization, increasing demands in the gluten-free market, and expansions in non-food sectors.

The modified starch market size is expected to see strong growth in the next few years. It will grow to $16.34 billion in 2028 at a compound annual growth rate (CAGR) of 6.2%. The forecasted growth is driven by increased demand for convenience foods, expansion in the functional foods market, utilization in the pharmaceutical industry, adoption of sustainable packaging, and trends in gluten-free products. Key trends include a surge in clean label demands, growing interest in functional foods, heightened health consciousness, industry expansion, and the popularity of gluten-free and allergen-free products.

The augmented investment within the modified starch industry is anticipated to significantly drive the market's expansion. Leading industry players are directing substantial investments towards this sector to cater to the burgeoning demand observed across various applications such as food and beverage, paper, pharmaceuticals, textiles, and others. As an illustration, in June 2023, BENEO GmbH, a German functional ingredients company, allocated $6.4 million (€6 million) towards expanding the drying capacity at its Wijgmaal facility. This expansion involved the incorporation of a new drum dryer within a 1,000m2 facility, specifically aimed at meeting the escalating demand for its specialized rice starch ingredients. The initiative was undertaken to ensure the sustained growth of its pre-cooked rice starch portfolio. As such, the escalating investments within the modified starch industry are poised to drive robust growth within the market.

The burgeoning demand for processed foods is poised to be a significant driver propelling the growth of the modified starch market in the foreseeable future. Processed foods undergo various mechanical, physical, or chemical alterations from their original state to become suitable for consumption. Modified starch serves a pivotal role in these processed foods, enhancing texture, stability, and consistency, and fulfilling functions such as thickening, binding, and improving freeze-thaw stability. For instance, in 2022, as per data from the United States Department of Agriculture, the total value of processed food products exported from the US amounted to $38 billion, marking a notable increase of 10.96% from $34.24 billion in 2021. Similarly, Canada exported processed food products valued at $11.43 billion, while Mexico's processed food exports amounted to $5.65 billion in the same year. These figures underscore the significant demand for processed food products in various global markets. As the demand for such processed foods continues to rise, the utilization of modified starch for enhancing their quality and properties is expected to drive the growth trajectory of the modified starch market.

Prominent entities within the modified starch market are strategically introducing novel products such as organic pea protein starch to gain a competitive advantage in the industry. Organic pea starch denotes a starch derived from organic yellow peas (Pisum sativum) cultivated and processed adhering to organic farming standards. An exemplar of this strategy is the October 2022 initiative by Roquette Frères, a France-based food company, which unveiled a new range of organic pea ingredients under the Nutralys brand. This line featured organic pea starch and organic pea protein isolates sourced from Canadian peas. This launch resonates with the escalating consumer demand for organic offerings, driven by a preference for natural and nutritious choices. The four distinct grades of organic pea protein isolates and organic starch boast complete traceability to their origin farms. This assures consumers of safe, top-tier quality products with trusted sourcing. Moreover, the production adheres to certification by the Canada Organic regime, enabling export to lucrative markets such as the EU and US, reinforcing the products' credibility and reliability.

Prominent entities within the modified starch market are strategically forging collaborations to bolster their ability to provide dependable services to their clientele. Strategic collaboration denotes a mutually advantageous alliance between independent entities, wherein they pool their strengths to achieve shared objectives that align with their individual strategic goals. For instance, in April 2021, Cargill Incorporated, a prominent US-based food company, entered into a partnership with Starpro Starch (Thailand) Co. Ltd., a distinguished Thailand-based producer of food-grade modified starch. This strategic alliance enables Cargill to elevate its offerings of specialty tapioca starch in the Asia Pacific region. The collaboration is purposefully designed to address the evolving requirements of food manufacturers in product processing while aligning with consumer preferences for sensory attributes. Through this partnership, Cargill leverages its profound expertise in the domain of modified starches to foster innovation and growth, catering specifically to the escalating demands within the convenience and foodservice sectors. The agreement encompasses a diversified portfolio of locally manufactured modified tapioca starches tailored for the food industry across the Asia Pacific and global markets. This initiative underscores Cargill's steadfast commitment to serving as the preferred partner for customers within the region, solidifying its position as an industry leader.

In February 2021, Tate & Lyle PLC, a prominent UK-based global provider of food and beverage ingredients and solutions, successfully concluded the acquisition of an 85% stake in Chaodee Modified Starch Co., Ltd. (CMS) for an undisclosed sum. This strategic move allowed Tate & Lyle to expand its footprint in the specialty tapioca-based sector and establish a dedicated production facility in Eastern Thailand, a key region for tapioca production. CMS, a well-established manufacturer of tapioca-modified food starch based in Thailand, now operates under the majority ownership of Tate & Lyle, enhancing the company's presence and capabilities in this important market segment.

Major companies operating in the modified starch market report are Cargill Inc., Archer Daniels Midland Company, Ingredion Incorporated, AAK Group, AGRANA, Tate & Lyle Ingredients Americas LLC, SMS Corporation, Manildra Group, Roquette Frères, Avebe U.A., MGP Ingredients Inc., Penford Corporation, PT. Budi Starch & Sweetener Tbk, Beneo GmbH, Grain Processing Corporation, Qindao CBH Co. Ltd., Global Bio-Chem Technology Group Company Limited, Advanced Biochemical (Thailand) Co. Ltd., Everest Starch (India) Pvt. Ltd., Emsland Inc., SPAC Starch Products (India) Ltd., Lipoid Kosmetik AG, Royal Ingredients Group, Shandong Fuyang Biotechnology Co. Ltd., Shree Ambika Agro Processing Industries Pvt. Ltd., Starch Asia Co. Ltd., Rich Grains International LLC, Shanghai Riken Technology Co.Ltd.

Asia-Pacific was the largest region in the modified starch market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the modified starch market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the modified starch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Modified starch encompasses various types such as cationic starch, etherified starch, resistant starch, and pre-gelatinized starch. Cationic starch is manufactured through the treatment of a starch slurry comprising partially swollen granules with a reactive compound. Primarily utilized as wet-end additives in paper manufacturing, cationic starches offer specific functionalities in the papermaking process. These modified starches derive from diverse raw materials such as potato, corn, cassava, wheat, among others, finding extensive application across sectors such as food and beverages, animal feed, papermaking, textiles, pharmaceuticals, and various other industrial domains.

The modified starch market research report is one of a series of new reports that provides modified starch market statistics, including modified starch industry global market size, regional shares, competitors with a modified starch market share, detailed modified starch market segments, market trends and opportunities, and any further data you may need to thrive in the modified starch industry. This modified starch market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The modified starch market consists of sales of distarch phosphate, phosphated distarch phosphate, acetylated distarch phosphate, acetylated starch, acetylated distarch adipate. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.