Asia-Pacific Industrial Starch Market Outlook, 2030

The Asia Pacific industrial starch market is witnessing remarkable growth, driven by increasing demand across a wide range of industries such as food and beverage, paper and packaging, pharmaceuticals, textiles, adhesives, and the emerging bio-plastics sector. As one of the fastest-growing markets globally, the region benefits from a strong agricultural base, particularly in countries like China, India, Thailand, Vietnam, and Indonesia, which offer abundant sources of raw materials like corn, cassava, wheat, and potatoes. The market is characterized by a growing preference for modified starches that offer enhanced properties such as improved texture, stability, and resistance to heat and acids.

Modified starches are especially in demand in processed foods, where they serve as thickeners, stabilizers, and fat replacers, aligning with consumer trends toward convenience foods and functional ingredients. Simultaneously, the rise in eco-conscious consumers is pushing the market towards bio-degradable starch-based packaging and bio-plastic production, spurred further by government regulations limiting plastic use. Innovation is another key market driver, with companies investing in enzyme and chemical modification techniques, as well as nano-technology applications that enable starches to be tailored for advanced uses, including biomedical fields and passive cooling materials. In countries like China and India, the government’s support for sustainable agriculture, food security programs, and the bio-economy through subsidies and research funding is fueling local starch production and innovation. However, the market is not without its challenges. Price volatility in raw materials due to weather conditions, supply chain disruptions, and limited access to advanced processing technologies in some emerging nations can hinder growth. The expanding packaging sector, combined with increasing environmental awareness, is pushing the demand for starch-based, biodegradable materials to replace synthetic alternatives. For instance, according to the Pacific Environment, China has implemented crucial measures to address food and beverage packaging waste, including the 2018 ban on importing plastic recyclables to strengthen domestic recycling.

According to the research report "Asia Pacific Industrial Starch Market Outlook, 2030,", the Asia Pacific Industrial Starch market is anticipated to grow at more than 8.26% CAGR from 2025 to 2030. With rapid urbanization, rising disposable incomes, and a growing middle-class population in countries like China, India, Indonesia, and Vietnam, there is an increasing preference for processed, ready-to-eat, and convenience foods. This surge in demand has led to the widespread use of starch as a thickener, stabilizer, and texture enhancer in products ranging from dairy and bakery goods to sauces and confectioneries.

In September 2023, The Chinese Ministry of Commerce (MOFCOM) announced that it would continue to impose anti-subsidy tariffs on imports of potato starch from the EU for another five years, saying that a review found that ending the tariffs might continue to hurt Chinese industry. Additionally, the growing emphasis on sustainability and the reduction of plastic waste is encouraging manufacturers to adopt biodegradable starch-based alternatives in packaging solutions. Governments in countries like Thailand and Malaysia are supporting these transitions through environmental regulations and incentives for bio-based product development. In June 2023, the new Customer Innovation and Collaboration Center of Tate & Lyle PLC (Tate & Lyle), a global pioneer in ingredient solutions for healthier food and beverages, will be in Jakarta, Indonesia. In textiles, for example, starches are used for warp sizing and fabric finishing, and demand is rising in garment-exporting countries like Bangladesh and Vietnam. Asia Pacific countries possess favorable agro-climatic conditions for the cultivation of starch-rich crops such as cassava, corn, and potatoes. Thailand, for example, is a global leader in cassava production and export, contributing significantly to the supply of starch in both domestic and international markets.

Market Drivers

• Rapid Expansion of the Food and Beverage Industry: The Asia Pacific region has witnessed significant growth in the food and beverage industry due to rising urbanization, population growth, and increasing disposable incomes. Countries such as China, India, Indonesia, and Vietnam are experiencing a surge in demand for processed, convenience, and ready-to-eat foods. Industrial starch is widely used in this sector for its thickening, stabilizing, and texturizing properties. As consumers seek enhanced product quality and shelf life, food manufacturers are increasingly incorporating both native and modified starches to improve the sensory appeal and functionality of their products.
• Growth in Paper, Packaging, and Textile Industries: Asia Pacific is a global hub for paper manufacturing, textile production, and packaging, all of which are major consumers of industrial starch. Starch is used in paper coatings, corrugated board production, and textile sizing and finishing. As e-commerce booms across Asia and sustainable packaging solutions gain traction, the demand for starch-based adhesives and biodegradable materials is accelerating. Additionally, government initiatives promoting local manufacturing under policies like “Make in India” and China’s industrial modernization are further fueling starch consumption in these sectors.

Market Challenges

• Inconsistent Quality and Supply of Raw Materials: Despite being a major producer of starch raw materials like corn, cassava, and potato, the Asia Pacific region faces supply chain inconsistencies. Factors such as monsoon variability, natural disasters, and fragmented agricultural infrastructure can affect crop yield and quality, disrupting the starch supply chain. These fluctuations result in unpredictable pricing and challenges in maintaining consistent product standards, especially for industries requiring high-purity starch.
• Technological Gaps in Processing and Innovation: Compared to North America and Europe, several developing nations in Asia Pacific still lag in adopting advanced starch processing technologies. Many small and mid-sized starch producers rely on traditional methods, which can limit their ability to produce high-quality modified or specialty starches that meet the evolving requirements of modern industrial applications. Additionally, limited R&D investment and lack of skilled labor in rural areas hinder technological progress and product diversification.

Market Trends

• Rising Demand for Modified and Specialty Starches: The demand for modified starches is rapidly growing in Asia Pacific, driven by their enhanced functional properties suitable for applications in food processing, pharmaceuticals, textiles, and construction. Consumers are increasingly seeking foods with better texture, shelf life, and nutritional profiles, leading to the adoption of starches modified for specific functionalities. Moreover, industries such as adhesives, paper, and bioplastics are using specialty starches to improve performance and sustainability. This trend is pushing companies to invest in developing customized starch solutions for diverse industrial needs.
• Increasing Focus on Bio-based and Sustainable Products: Environmental concerns and regulatory initiatives are leading to a growing focus on bio-based products across Asia Pacific. As governments and consumers push for sustainable alternatives to synthetic materials, starch is emerging as a key ingredient in biodegradable plastics, eco-friendly packaging, and green chemicals. Countries like China, Japan, and South Korea are promoting low-carbon economies, which is encouraging industries to adopt renewable raw materials like starch. This has led to collaborations between starch producers, packaging firms, and biopolymer manufacturers to develop new eco-friendly applications.

The growth of cassava as a starch source in the Asia Pacific industrial starch industry is primarily driven by its high yield, cost-effectiveness, and suitability for diverse agro-climatic conditions across the region.

Cassava is witnessing significant growth as a source type in the Asia Pacific industrial starch industry due to its high adaptability, cost-efficiency, and rising demand across multiple end-use sectors. Cassava’s agronomic flexibility allows it to thrive in varied climatic and soil conditions, making it an ideal crop for countries such as Thailand, Vietnam, Indonesia, and India. Its ability to grow in marginal lands with minimal inputs and still produce high starch yields per hectare offers a distinct advantage over other starch sources like corn or wheat. In the Asia Pacific region, where smallholder farming is prevalent, cassava’s low input requirement and resilience to drought make it particularly attractive.

The industrial starch extracted from cassava is highly versatile and increasingly used in food processing, textiles, adhesives, paper production, pharmaceuticals, and biodegradable packaging sectors that are all growing rapidly across the region due to urbanization, rising incomes, and export-driven manufacturing economies. In particular, cassava starch is preferred in food and beverage industries for its neutral taste, excellent thickening properties, and gluten-free nature, catering to evolving consumer preferences and health trends. Moreover, Asia Pacific countries have been actively investing in processing infrastructure, value chain integration, and research initiatives to enhance cassava productivity and improve extraction technology, leading to better quality and more competitive pricing of cassava starch in both domestic and global markets. Thailand, for instance, is one of the world’s leading exporters of cassava-based starch products and has built a strong ecosystem of cassava farming, processing, and logistics.

Native starch holds the largest share in the Asia Pacific industrial starch industry due to its widespread availability, low processing cost, and extensive use in traditional and cost-sensitive industrial applications.

Native starch dominates the Asia Pacific industrial starch industry primarily because of its economic feasibility, abundant availability from various regional crops, and longstanding utility across multiple traditional and industrial sectors. Derived directly from plant sources such as corn, cassava, potato, and wheat without chemical or physical modification, native starch is widely used in industries where basic thickening, gelling, binding, and moisture-retention properties are sufficient. Its cost-effectiveness makes it a preferred choice for manufacturers in price-sensitive markets, especially in densely populated and rapidly industrializing countries like India, China, Indonesia, and Vietnam.

In the Asia Pacific region, many small and medium-scale enterprises (SMEs) dominate food processing, paper, textile, and adhesive production, and these sectors rely heavily on native starch for routine applications due to its affordability and availability. Additionally, the strong presence of cassava and corn cultivation across Southeast Asia and South Asia ensures a steady and competitive supply of native starch, reducing reliance on imports and promoting local sourcing. In food processing, native starch is widely used in noodles, confectionery, snacks, and dairy products for its basic functional characteristics, which align with traditional consumption patterns in Asian cuisines. The region’s booming population and growing demand for processed and packaged foods further reinforce the high consumption of native starch. Moreover, while modified starches offer specialized functionalities, their higher cost and regulatory complexities often limit their adoption in comparison to native starch in developing economies within the region.

Feed application is moderately growing in the Asia Pacific industrial starch industry due to the steady expansion of the livestock and aquaculture sectors alongside rising demand for cost-effective, energy-rich feed ingredients.

The moderate growth of feed applications in the Asia Pacific industrial starch industry is primarily driven by the gradual yet consistent expansion of the region's livestock, poultry, and aquaculture sectors, which require affordable, energy-dense feed ingredients to meet increasing demand for animal protein. Industrial starch, particularly from corn, cassava, and other locally available sources, is increasingly being used in animal feed formulations due to its high carbohydrate content, digestibility, and ability to enhance the energy value of feeds.

Countries like China, India, Vietnam, Indonesia, and Thailand are witnessing rising consumption of meat, dairy, eggs, and seafood as a result of urbanization, population growth, and rising middle-class incomes. This trend is encouraging greater investment in animal husbandry and intensive farming systems, thereby creating a sustained, though moderate, demand for feed starch. However, the growth is not as rapid as in other application segments like food or paper due to several factors such as fluctuating raw material prices, competition from alternative energy sources like grains and oilseeds, and regulatory limitations concerning feed additives. Moreover, feed-grade starch often competes with biofuel and food-grade starch for raw materials, which can limit availability or increase costs. Nonetheless, feed manufacturers are increasingly incorporating industrial starch as a functional binder, energy source, and pelletizer in compound feeds, particularly in aquaculture and poultry industries where digestibility and palatability are key. In aquaculture, for instance, native and modified starches are used to improve water stability and texture of feed pellets.

India is growing in the Asia Pacific industrial starch industry due to its abundant availability of raw materials like maize and tapioca, combined with increasing demand from food, textile, paper, and pharmaceutical sectors.

India's growth in the Asia Pacific industrial starch industry is primarily fueled by its rich agricultural base, particularly the widespread cultivation of maize, cassava (tapioca), and potatoes, which provide a consistent and cost-effective supply of raw materials for starch production. The country’s favorable climate, large-scale farming, and government initiatives to support agro-based industries have made it one of the top producers of starch in the region. The food and beverage industry, in particular, has witnessed a significant upsurge due to India’s expanding middle class, changing dietary habits, and the popularity of processed and convenience foods, where starch is widely used as a thickener, binder, and stabilizer.

Additionally, India’s large textile sector relies on starch in sizing and finishing processes, while the growing paper and packaging industry uses it as a coating and binding agent. The pharmaceutical industry, another key driver, uses starch for tablet binding, disintegration, and as a filler. The shift toward sustainable, biodegradable, and bio-based products has also led to increased interest in starch-based alternatives for plastics and adhesives. Technological advancements and increased investment by both domestic companies and global players in modernizing starch production plants have enhanced the quality, efficiency, and variety of starch derivatives available in the Indian market. Key Indian starch producers such as Gujarat Ambuja, Roquette India, and Universal Starch-Chem Allied Ltd. are expanding their capacities and product portfolios to meet both domestic and export demands. Moreover, India’s competitive labor costs, improving infrastructure, and government policies promoting the “Make in India” initiative are encouraging the growth of starch manufacturing and exports. Rising health awareness among consumers has also led to higher demand for organic, non-GMO, and clean-label starch products, prompting further innovations in the industry.