Industrial Starch Market Overview, 2025-30

Industrial starch is extensively used in convenient foods as a functional ingredient owing to its desirable attributes such as it can improve crispiness, reduce oil absorption, and can improve the overall quality of the food product. The market is gaining momentum from the rise of bioplastics, where starch serves as a sustainable raw material for producing biodegradable films and packaging, aligning with global sustainability goals. Technological advancements such as enzymatic extraction, nanotechnology integration, and genetic crop improvement are also reshaping production efficiency and product quality.

Cargill Incorporated provides a wide range of starch products derived from corn, wheat, and tapioca, catering to various industries such as food and beverage, pharmaceuticals, and paper. The increasing scrutiny over carbon emissions and agricultural practices is also pushing companies toward circular economy models that emphasize water reuse, energy-efficient operations, and responsible sourcing. Despite this progress, the industry faces challenges such as fluctuating raw material prices, climate-related agricultural disruptions, and competition from synthetic and other bio-based polymers. The increasing investment by prominent market players on innovating and commercializing non-GMO starches in the global industrial starch industry will further boost the growth of the global industrial starch market. For instance, in May 2018, Tate and Lyle PLC, the global provider of food ingredients, introduced 17 new non-GMO starches which offer the same functionality as their traditional equivalents. The prominent companies are focused on research and development and on new product development and launches to increase their footprints in the global industrial starch market. For instance, in April 2017, Ingredion Inc. launched new texturizers Presica Crisp 31 (native corn starch) and Presica Crisp 151 (modified tapioca starch) for baked chips.

According to the research report, "Global Industrial Starch Market Overview, 2030,", the Global Industrial Starch market was valued at more than USD 119.37 Billion in 2024, with the CAGR of 6.86% from 2025-2030. With growing middle-class populations, rising disposable incomes, and changing lifestyles, the consumption of ready-to-eat and packaged foods is increasing substantially. Starch is widely used in these products as a thickener, stabilizer, and texture enhancer, making it a critical ingredient for food manufacturers.

Moreover, the increasing consumer awareness regarding clean-label and natural ingredients has prompted food companies to shift towards native and resistant starches that meet "no additive" and "non-GMO" requirements. Clean-label trends are especially strong in North America and Europe, where consumers demand transparency in food production, thus pushing companies to invest in product reformulations using naturally derived starches. Another significant growth factor is the expanding paper and packaging industry, where starch is essential as a binder, coating agent, and adhesive. The global rise of e-commerce and environmentally friendly packaging solutions has intensified the need for biodegradable, compostable materials industries in which starch-based products are playing an increasingly central role. For example, modified starch is now frequently used in corrugated board manufacturing and paper coating due to its cost-efficiency and biodegradable nature. For instance, according to the International Trade Administration, global B2B e-commerce sales have shown consistent year-over-year growth over the past decade, with the market expected to reach a valuation of USD 36 trillion by 2026. Thus, the trend, particularly in packaging for e-commerce, has further accelerated the market for industrial starch. The rise of bioplastics and biofuels is also emerging as a transformative growth avenue, especially under the pressure of reducing fossil fuel dependence and plastic pollution. For instance, in March 2020, Tate & Lyle expanded its line of Claria clean-label starches with the launch of Claria Everlast, designed specifically to solve formulation challenges related to refrigerated and freeze-thaw stability in categories such as frozen meals, sauces, and yogurts.

Market Drivers

• Rising Demand from the Processed Food and Beverage Industry: A key driver of the global industrial starch market is the surging demand for processed and convenience food products worldwide. As lifestyles become increasingly fast-paced, especially in urban regions across Asia Pacific, North America, and Europe, consumers are turning to ready-to-eat meals, baked goods, confectionery, and dairy-based snacks. Industrial starch, particularly modified and specialty variants, plays a vital role in improving texture, stability, and shelf life of these products. The clean-label trend is also prompting food manufacturers to seek starch-based thickeners and binders as natural alternatives to synthetic additives, further boosting global consumption.
• Expansion of Non-Food Industrial Applications: Beyond the food sector, industrial starch is widely used in paper manufacturing, textiles, adhesives, construction, pharmaceuticals, and biodegradable plastics. Growth in these industries, especially in developing regions, is driving global starch demand. Starch functions as a coating, adhesive, and binder, and is increasingly preferred due to its biodegradability and renewability. With the global shift toward eco-friendly materials, starch is being adopted in the production of bio-based packaging, personal care items, and sustainable construction products, reinforcing its role as a key industrial raw material.

Market Challenges

• Volatility in Raw Material Supply and Pricing: The production of industrial starch is heavily reliant on agricultural crops such as corn, wheat, cassava, and potatoes. Fluctuations in crop yields due to climate change, droughts, pest outbreaks, and geopolitical instability can impact the availability and cost of raw materials. In particular, competition between food, feed, and industrial use (e.g., bioethanol) can strain supply. Price volatility in commodities like corn driven by market speculation, trade tariffs, or shifting policies affects manufacturers’ margins and overall supply chain efficiency across the globe.
• Regulatory Hurdles and Compliance Pressures: Global starch producers must navigate a complex web of food safety, environmental, and quality standards across multiple regions. Regulatory bodies such as the U.S. FDA, EFSA in Europe, and local agencies in Asia enforce strict controls over GMO usage, food-grade starch quality, labeling requirements, and environmental emissions. Adhering to diverse and evolving compliance frameworks adds costs and operational complexity, particularly for exporters and multinational suppliers. Additionally, increasing pressure to meet sustainability benchmarks is pushing companies to invest in clean technologies and reformulate products, which can be both time-consuming and expensive.

Market Trends

• Growing Demand for Modified and Specialty Starches: There is a strong global trend toward the use of modified and specialty starches that offer enhanced performance in challenging processing environments such as extreme temperatures, acidic conditions, or high shear stress. These starches are being increasingly adopted in dairy, meat processing, pharmaceuticals, paper, and packaging applications. The rise in consumer demand for texture-rich and long-lasting food products is also contributing to the growth of starch modifications. Moreover, manufacturers are investing in R&D to create functional starches tailored to specific industries, improving efficiency and product quality.
• Shift Toward Sustainable and Bio-based Products: Sustainability is becoming a global imperative, and starch-based solutions are gaining traction as eco-friendly alternatives to petroleum-derived products. Starch is being used to produce biodegradable plastics, compostable packaging, and bio-adhesives as part of the global movement to reduce carbon footprints and plastic pollution. This trend is supported by stricter environmental policies in Europe and North America, as well as increasing awareness and regulatory support in emerging markets. As consumer and corporate preferences shift toward green materials, starch is expected to play a central role in the development of sustainable industrial ecosystems.

Cassava-based starch is growing in the global industrial starch industry due to its cost-effectiveness, abundant availability in tropical regions, and versatile application across diverse industries.

The increasing prominence of cassava as a key source in the global industrial starch industry is primarily driven by its economic and agronomic advantages, especially for developing countries where cassava is a major crop. Cassava, also known as manioc or yuca, thrives in poor soils and drought-prone regions, making it a reliable and sustainable crop in tropical and subtropical climates. Countries in Asia, Africa, and South America, particularly Thailand, Nigeria, Brazil, and Indonesia, are major producers of cassava, contributing to a stable and abundant global supply.

From an industrial perspective, cassava starch stands out for its high purity, excellent paste clarity, and relatively low gelatinization temperature, which makes it suitable for a wide range of applications from food and beverages to paper, textiles, pharmaceuticals, and bioethanol production. In the food industry, cassava starch is widely used as a thickener, stabilizer, and texture enhancer in soups, sauces, noodles, and confectioneries, particularly in gluten-free products, which are experiencing growing demand globally. Moreover, as clean-label and non-GMO preferences rise, cassava starch’s natural origin and allergen-free properties provide an edge over other starch types like corn or wheat. In non-food sectors, the paper and textile industries benefit from cassava starch’s strong binding and sizing properties, while the pharmaceutical sector utilizes it for its excellent compressibility in tablet formulations. The bioethanol and biodegradable plastics industries are also increasingly incorporating cassava starch due to the global push toward sustainable and renewable alternatives to fossil fuels and synthetic polymers. Additionally, cassava processing requires relatively low investment and energy consumption, making it a favorable choice for small and medium enterprises in emerging economies.

Modified starch is growing in the global industrial starch industry due to its enhanced functional properties that cater to diverse industrial needs, especially in processed food, paper, textiles, and pharmaceuticals.

The rising demand for modified starch in the global industrial starch industry is largely attributed to its superior performance and adaptability compared to native starch. Modified starch undergoes physical, chemical, or enzymatic processing to improve characteristics like solubility, viscosity, stability, gel strength, and resistance to heat, acid, or shear, making it suitable for a broader range of industrial applications. In the food and beverage sector, which represents a significant share of global starch consumption, modified starch is widely used as a thickening agent, emulsifier, stabilizer, and fat replacer in products like soups, sauces, baked goods, dairy items, and snacks.

Its ability to enhance texture, improve shelf life, and tolerate extreme processing conditions is critical in meeting the needs of modern food manufacturing. Moreover, with the increasing consumption of convenience and ready-to-eat foods, particularly in urbanizing economies, food manufacturers are relying more on modified starches for consistent product quality and extended shelf stability. Beyond food, the paper and packaging industries extensively use modified starch as a surface sizing and coating agent, as it improves paper strength, printability, and binding properties. In the textile sector, modified starch is applied in warp sizing and fabric finishing, where its adhesive strength and film-forming abilities play a vital role. The pharmaceutical industry leverages modified starch for tablet disintegration, drug delivery systems, and binding agents, while the personal care sector uses it in cosmetics for its smooth texture and absorbent qualities. Modified starch is also increasingly being used in biodegradable plastics and adhesives as industries move toward eco-friendly and renewable raw materials.

Pharmaceuticals application type is growing in the global industrial starch industry due to starch's essential role as a safe, versatile, and cost-effective excipient in drug formulation and delivery systems.

The pharmaceutical application of industrial starch is expanding rapidly across the global market, largely because starch serves as a critical excipient an inactive substance used in drug formulations to aid processing, stability, and bioavailability. Starch, especially in its modified forms, is widely used in the manufacture of tablets, capsules, powders, and granules due to its excellent binding, disintegrating, and absorbent properties. As the global pharmaceutical industry continues to grow, driven by rising healthcare awareness, aging populations, increasing chronic diseases, and advancements in medical treatments, the demand for reliable, safe, and multifunctional excipients like starch is correspondingly rising.

Starch-based ingredients are preferred in pharmaceutical formulations because they are non-toxic, biodegradable, hypoallergenic, and derived from renewable plant sources such as corn, potato, and cassava. This aligns well with the current industry trends favoring natural and sustainable inputs. Moreover, modified starches offer improved functional characteristics such as enhanced compressibility, flowability, and stability under various processing conditions, making them ideal for modern high-speed manufacturing processes. These functional benefits directly support the production of consistent, high-quality oral dosage forms, which remain the dominant drug delivery method globally. Starch also plays a key role in controlled-release formulations and coating systems, allowing precise drug release profiles crucial for improving therapeutic outcomes. Furthermore, the pharmaceutical industry's regulatory framework, which emphasizes safety, quality, and consistency, favors well-researched and widely accepted excipients like starch, which are included in major pharmacopeias.

The Asia Pacific industrial starch market is growing rapidly due to the region’s booming food and beverage industry driven by rising population, urbanization, and evolving consumer preferences.

The rapid growth of the industrial starch market in the Asia Pacific region can be primarily attributed to the explosive expansion of the food and beverage sector, which is being propelled by a combination of demographic and economic factors. As countries like China, India, Indonesia, and Vietnam experience robust population growth and urbanization, the demand for processed and convenience food has surged significantly. Industrial starch, particularly modified and sweeteners-based starch, plays a crucial role in the production of baked goods, confectionery, dairy products, sauces, and snacks, serving as a thickening, stabilizing, and texturizing agent.

This rise in consumption patterns is directly fueling the regional demand for starch products. Moreover, changing consumer preferences toward healthier and organic food ingredients have also pushed food manufacturers to incorporate starches derived from natural sources like corn, tapioca, and potato, which are abundant in Asia Pacific countries. In addition, the cost-effective production capabilities in countries like Thailand, China, and India, the easy availability of raw materials, labor, and government support have attracted major international manufacturers to invest and expand their operations in the region. The versatility of industrial starch in non-food applications such as in textiles, paper, packaging, adhesives, and bioplastics is another catalyst for market growth, particularly in rapidly industrializing economies like China and Southeast Asia. Additionally, government policies encouraging agricultural productivity and value-added processing industries are also helping strengthen the starch manufacturing base in the region. Technological advancements and increased R&D investments by regional players have improved the quality, functional performance, and application scope of starch derivatives, making them more attractive for both domestic use and exports

• In July 2024, Cryopak invested in its Atlanta facility, adding a high-volume, low-cost starch manufacturing department. This expansion enables Cryopak to offer starch as a new, sustainable insulation substrate alongside its existing PUR, paper, cotton, fiber, and EPS options. This innovative starch technology is the first to rival traditional materials such as EPS in terms of cost, performance, and scalability, while significantly improving sustainability.
• In August 2024, Al Ghurair Foods initiated the construction of an advanced corn starch manufacturing plant within the Khalifa Economic Zones Abu Dhabi. This state-of-the-art facility marks a regional milestone and plays a crucial role in enhancing local food production capacities. It aligns strategically with the UAE's National Strategy for Food Security, emphasizing the importance of self-sufficiency in the agricultural sector and the development of sustainable food supply chains.
• In June 2023, Cargill announced a partnership with BASF, a global chemical company, to develop bio-based, high-performance plastics using renewable feedstocks, including starch-derived materials.
• In April 2023, Archer Daniels Midland (ADM) acquired a controlling stake in Harvest Innovations, a leading manufacturer of organic and gluten-free ingredients, expanding its portfolio of specialty starches and proteins.