Europe Industrial Starch Market Outlook, 2030

The Europe industrial starch market is witnessing substantial growth, driven by increasing demand across diverse industries such as food and beverage, pharmaceuticals, paper, textiles, and biodegradable materials. Countries like Germany, France, and the Netherlands are major producers, with Italy emerging as a high-growth region due to its strong food processing industry. A notable driver is the expanding pharmaceutical industry in Europe, where starch derivatives are used in drug formulations for controlled release and binding. Technological advancements and innovations are playing a vital role in shaping the market.

Companies are increasingly focusing on enzymatic and nanotechnology-based modifications to improve starch functionality, enhance solubility, and increase shelf life. The development of thermoplastic starch for eco-friendly packaging solutions is also gaining traction in line with the European Union’s sustainability directives. Leading players such as Cargill, Roquette, Ingredion, Tate & Lyle, AGRANA, AVEBE, and Tereos are heavily investing in R&D and capacity expansion to cater to both domestic and export demands. In March 2021, Ingredion Germany GmbH introduced this modified potato starch, which can cut cooking time and energy consumption. It is also appropriate for low-fat and keto-friendly products. Regulatory frameworks in Europe are stringent, especially concerning food safety, sustainability, and traceability. The EU’s Single-Use Plastics Directive and the push for compostable materials under EN 13432 standards are accelerating the demand for starch-based biodegradable alternatives. Environmental regulations are also prompting manufacturers to adopt cleaner production methods, optimize resource use, and reduce carbon footprints. However, challenges such as raw material price volatility, high production costs, and complex logistics remain significant. Additionally, the reliance on agricultural inputs exposes the market to climate and geopolitical risks, making supply chain resilience a critical factor.

According to the research report "Europe Industrial Starch Market Outlook, 2030,", the Europe Industrial Starch market was valued at more than USD 22.92 Billion in 2024. The growing preference for clean-label and organic products has increased the demand for native starches, which are seen as more natural and less processed compared to modified starches. This shift is prompting manufacturers to develop starches with minimal chemical alteration while maintaining functional efficiency thus encouraging innovation in enzyme-treated and physically modified starches.

In March 2018, Archer Daniels Midland Company and Aston Foods (Russia) launched their 50-50 joint venture to provide starches and sweeteners to customers in Russia. For instance, according to the European Commission, the European Union has taken an initiative, namely the European Green Deal, which seeks to eliminate wasteful packaging by promoting reuse and recycling methods. The initiative is being promoted to encourage the adoption of sustainable, biodegradable materials such as starch-based solutions across industries. Europe benefits from abundant sources of starch-producing crops, with France and the Netherlands being among the top producers of potatoes and wheat, while corn remains dominant in Southern and Eastern Europe. This local availability of raw materials reduces import dependence and strengthens the regional supply chain. Furthermore, the European starch industry is supported by advanced manufacturing technologies, enabling improved extraction methods, waste reduction, and energy-efficient processes. Sustainability initiatives, including water recycling systems and biomass energy integration, are becoming standard across production facilities. According to the European Starch Industry Association, in 2020, the total starch production in Europe, which included wheat, maize, and potatoes, stood at 11.5 million metric tons in comparison to 10.7 million metric tons in 2018. The European Starch Industry Association is the trade association, and its membership comprises 28 EU starch-producing companies, representing more than 95% of the EU starch industry.

Market Drivers

• Rising Demand from the Paper and Packaging Industry: The primary drivers in the European industrial starch market is the increasing demand for starch in the paper and packaging industry. Starch acts as a binder, coating agent, and strength enhancer in paper manufacturing. With Europe actively shifting toward sustainable packaging solutions due to regulatory pressure and consumer awareness, starch-based adhesives and coatings are being widely adopted as eco-friendly alternatives to synthetic chemicals. The European Union's push for a circular economy and reduction in plastic waste is further stimulating the use of biodegradable, starch-based materials in packaging.
• Expanding Use in Bio-based Products and Green Chemistry: Europe has been at the forefront of adopting green technologies and bio-based products, and industrial starch plays a central role in this transition. Starch is increasingly used as a renewable feedstock in bio-refineries to produce biodegradable plastics, bioethanol, and other green chemicals. Government incentives, stringent carbon emission norms, and industry-wide efforts to replace fossil-based raw materials with renewable alternatives are driving greater integration of starch in sectors such as automotive, construction, and agriculture.

Market Challenges

• Competition from Alternative Raw Materials and Imports: The European starch market faces significant competition from alternative thickeners and fillers such as guar gum, cellulose derivatives, and synthetic polymers. These alternatives sometimes offer better performance or cost-effectiveness in certain applications. Additionally, starch imports from non-European countries, where production costs are lower (especially in Asia or South America), pose a challenge to local producers, potentially affecting their pricing power and market share.
• Regulatory Complexities and Sustainability Pressure: Although sustainability is a growth driver, it also presents challenges. Compliance with EU environmental directives, such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and EFSA (European Food Safety Authority) food safety standards, increases operational burdens. Starch producers must invest in eco-friendly processes, non-GMO sourcing, and clean-label certifications. These requirements can lead to increased production costs, especially for small- and mid-sized enterprises that may lack the resources to adapt quickly.

Market Trends

• Shift Toward Clean-label and Organic Starches: European consumers are increasingly seeking clean-label and organic food products, pushing manufacturers to adopt native and minimally processed starches without chemical modifications or additives. This trend is encouraging starch producers to innovate with naturally sourced, non-GMO, and organic variants, especially from potatoes, wheat, and maize. The food and beverage industry in Europe is now reformulating products to include starches that align with transparent labeling and sustainability values.
• Investment in R&D for Specialty Starch Derivatives: There is a growing trend of research and innovation in specialty starches across Europe. Companies are focusing on developing customized starch derivatives that can meet specific industrial needs such as improved emulsification, water-binding capacity, and thermal stability. Applications in pharmaceuticals, textiles, personal care, and biodegradable composites are driving demand for these high-performance starches. Collaborations between biotech firms, academic institutions, and starch manufacturers are accelerating the pace of technological advancement in the industry.

Wheat is the largest source type in the Europe industrial starch industry due to its abundant regional availability, established processing infrastructure, and versatile functional properties suited for diverse industrial applications.

Wheat stands as the dominant source type in the European industrial starch industry primarily because of the continent’s longstanding agricultural tradition and favorable climate that supports widespread wheat cultivation. Europe, particularly countries like France, Germany, and the United Kingdom, is one of the largest producers of wheat globally, ensuring a steady and cost-effective supply of raw material for starch extraction. The regional availability reduces dependency on imports, minimizes supply chain disruptions, and enhances price stability, all of which are crucial for industrial applications where consistent quality and supply are key.

Moreover, Europe has developed an advanced starch processing infrastructure that is well-integrated with wheat milling operations, allowing efficient extraction of native, modified, and specialty starches from wheat. Technological investments in wheat starch processing facilities across the continent have enabled manufacturers to produce high-purity starches that meet the specific demands of various industries, including paper, textile, food and beverages, pharmaceuticals, and bio-plastics. Wheat starch offers excellent functional properties such as viscosity, gelling, binding, and film-forming abilities, making it highly desirable across these sectors. Its by-products, including wheat gluten and bran, also add to the economic feasibility of wheat-based starch production by providing additional revenue streams. Furthermore, Europe’s stringent regulations on genetically modified organisms (GMOs) favor wheat over corn (which is often genetically modified), further pushing demand toward wheat-derived starches in applications requiring clean-label, non-GMO ingredients.

Native starch is the largest product type in the Europe industrial starch industry due to its widespread utility in traditional applications, clean-label appeal, and cost-effectiveness across diverse end-use sectors.

Native starch holds the largest share in the Europe industrial starch industry primarily because of its fundamental role in a wide range of traditional and industrial applications, coupled with the region's growing preference for clean-label, and minimally processed ingredients. Derived from abundant crops like wheat, potato, and maize, native starch is unmodified and used in its original form, making it highly suitable for industries that prioritize simplicity, natural origin, and low processing costs.

In the food and beverage sector which is a significant consumer of industrial starch in Europe native starch is widely utilized as a thickening, gelling, and stabilizing agent in products such as dairy, bakery items, soups, sauces, and ready-to-eat meals. The increasing consumer demand for clean-label products in Europe has reinforced the use of native starches, as they are perceived as healthier and more natural alternatives to chemically modified ingredients. Moreover, native starch is favored in many non-food industries like paper, textiles, adhesives, and construction, where its basic functional properties such as binding strength, viscosity control, and film-forming capability are sufficient for operational needs. These industries often seek economical, sustainable raw materials that can be used without complex chemical treatments, and native starch meets this requirement perfectly. Additionally, the regulatory landscape in Europe, which emphasizes safety, sustainability, and environmental responsibility, supports the usage of native starches that require minimal chemical intervention and generate fewer processing by-products. This not only aligns with the European Green Deal objectives but also aids manufacturers in achieving eco-friendly certifications and sustainability targets.

The pharmaceuticals application type is the fastest-growing segment in the Europe industrial starch industry due to the rising demand for plant-based excipients, clean-label formulations, and sustainable drug delivery systems.

Pharmaceuticals have emerged as the fastest-growing application segment in the Europe industrial starch industry, primarily driven by the region’s expanding healthcare needs, regulatory push toward safer and plant-based excipients, and the rising consumer preference for clean-label and sustainable products. Industrial starch, particularly in its pharmaceutical-grade form, plays a critical role as an excipient in drug formulation processes serving as a binder, disintegrant, filler, and coating agent in tablets and capsules.

The increasing demand for over-the-counter (OTC) medications, generics, and dietary supplements across Europe has significantly raised the need for starch-based excipients due to their natural origin, compatibility with active pharmaceutical ingredients (APIs), and excellent biodegradability. European pharmaceutical companies are increasingly adopting starches derived from wheat, corn, and potatoes, owing to their non-toxic, hypoallergenic, and gluten-free characteristics, which align with the safety and regulatory requirements laid out by the European Medicines Agency (EMA). Furthermore, the shift toward green chemistry and sustainable pharmaceutical practices across Europe is prompting manufacturers to reduce reliance on synthetic ingredients and explore biodegradable, renewable materials like native and modified starches. The clean-label movement has also penetrated the pharmaceutical and nutraceutical industries, with consumers seeking products that contain minimal artificial additives. Starch-based excipients fulfill these demands effectively, supporting formulation transparency and improving marketability. Advances in drug delivery systems, including controlled-release and encapsulated formats, have also contributed to starch’s increasing importance, as modified starches offer functional advantages such as improved solubility and targeted delivery.

France is growing in the European industrial starch industry due to its strong agricultural base, especially in wheat and maize, combined with advanced processing technology and a focus on sustainable, bio-based products.

France’s growth in the European industrial starch industry is largely driven by its rich agricultural heritage, particularly in the cultivation of wheat and maize, which serve as primary raw materials for starch production. As one of the largest agricultural producers in the EU, France benefits from a steady and high-quality supply of grains, enabling efficient and scalable starch manufacturing. This agricultural strength is well-supported by a modern and technologically advanced agro-processing sector, which allows French starch producers to innovate and refine production processes for a wide variety of applications.

Industrial starch in France is not only used in food processing for thickening, gelling, stabilizing, and binding in bakery, dairy, and convenience food products but also sees increasing demand from non-food sectors such as paper, textiles, pharmaceuticals, adhesives, and biodegradable packaging. France’s strong environmental policy framework and alignment with the European Green Deal have further fueled the push for sustainable and bio-based alternatives to petrochemical products, positioning starch as a key component in the country’s transition toward a circular economy. French manufacturers are investing heavily in R&D to develop modified starches and starch-based bioplastics that cater to eco-conscious markets across Europe. Moreover, leading starch-producing companies in France, such as Roquette and Tereos, play a pivotal role in driving innovation and global competitiveness by developing customized starch solutions for industries ranging from nutrition to cosmetics and industrial manufacturing. Government support through subsidies, research incentives, and favorable EU trade policies also enables French producers to strengthen their capabilities and expand exports within the region.