Industrial Starch Market Outlook, 2030

Industrial starch is a refined carbohydrate extracted from crops like corn, wheat, cassava, and potatoes, processed for use across manufacturing sectors rather than direct consumption. It serves as a core input in applications requiring thickening, binding, or film-forming properties. Corn dominates as the primary raw material due to high yield and cost efficiency, especially in the U.S., China, and Brazil. Wheat is more common in Europe, while cassava starch leads in Southeast Asia, with major exports from Thailand and Vietnam. Over time, industrial starch evolved from a simple food ingredient into a large-volume commodity, especially after the Industrial Revolution increased demand for starch in textiles, paper, and processed food.

Today, starch is available in three main types: native starch (untreated), modified starch (chemically or physically altered), and resistant starch (used for dietary or functional benefits). It finds widespread use in paper manufacturing, textiles, adhesives, pharmaceuticals, construction materials, and growing bio-based segments. 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. In wet milling, starch is separated alongside by-products like gluten and fiber, which are repurposed for animal feed or ethanol production. Countries like the U.S., China, Germany, and Thailand lead global starch production due to strong raw material availability, integrated processing infrastructure, and export-ready supply chains. Regional crop dominance shapes market structures, such as corn in North America or cassava in Asia. Manufacturers maintain product quality through moisture control, viscosity testing, and standardized particle sizing.

According to the research report "Global Industrial Starch Market Outlook, 2030,", the Global Industrial Starch market was valued at more than USD 119.37 Billion in 2024. The market is driven by strong demand from food processing, paper packaging, and emerging bio-based sectors. Asia-Pacific leads growth, with rapid consumption in India, China, and Southeast Asia. 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.Industrial starches can manage texture, control moisture, and stabilize the products such as yogurt, bakery items, and convenience foods and help manufacturers to reach their desired product quality. Increasing consumer awareness and concerns about food ingredients used in food products and rising preference to bio-based ingredients is expected to leverage the global industrial starch market positively. 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. Biodegradable plastics have become a major growth driver, as starch blends are used in compostable cutlery, films, and molded products. Sustainability efforts focus on energy-efficient processing, enzymatic extraction, and closed-loop systems to reduce water and chemical use. New developments in biotechnology are enabling high-functionality starches with targeted properties for specific applications. Artificial intelligence and automation tools are being used to improve yield, moisture control, and predictive maintenance in production. However, the market faces risks from crop failures, weather disruptions, and commodity price fluctuations, particularly in corn- and cassava-producing regions.

Market Drivers

• Rising Processed Food Consumption:The increasing demand for processed and convenience foods globally is a major growth driver. Starch is widely used in bakery, confectionery, dairy, snacks, and ready-to-eat meals for thickening, stabilizing, and moisture retention. Fast-paced lifestyles, urbanization, and growing middle-class income levels in Asia-Pacific and Latin America are fueling this trend. Global food processors rely heavily on native and modified starches to meet texture and shelf-life requirements.
• Expansion of Paper and Packaging Industry: The surge in e-commerce and growing demand for sustainable packaging have increased starch use in paper and corrugated board manufacturing. Industrial starch is used in coating, binding, and improving printability in paper products. As environmental regulations push for recyclable and biodegradable materials, starch-based adhesives and coatings are gaining traction, especially in Asia, Europe, and North America.

Market Challenges

• Volatility in Raw Material Prices: Corn, cassava, potato, and wheat key sources for industrial starch are subject to seasonal availability and global commodity price fluctuations. Droughts, floods, export bans, and rising biofuel demand can all disrupt raw material supply. This volatility affects production costs and pricing consistency for manufacturers and end users.
• Competition from Synthetic Substitutes: In industrial applications like adhesives, textiles, and construction, synthetic chemicals often provide better durability, water resistance, or performance under extreme conditions. This limits starch’s usage in some sectors. Additionally, in cost-sensitive markets, some manufacturers still prefer lower-priced synthetic alternatives despite environmental concerns.

Market Trends

• Shift Toward Clean-Label and Organic Starches:There is a rising demand for clean-label, GMO-free, and organic ingredients in food and beverage sectors, especially across Europe and North America. Consumers are actively avoiding chemically modified starches in favor of native or physically processed alternatives. This trend is reshaping product formulations across sauces, soups, baby food, and gluten-free items.
• Growth in Bioplastics and Eco-Friendly Materials:Industrial starch is emerging as a key raw material in producing biodegradable plastics, compostable cutlery, and water-soluble packaging films. With increasing bans on single-use plastics and stronger focus on sustainability, starch-based biopolymers are gaining market share. Startups and chemical firms are investing in starch blends to offer viable alternatives to petroleum-based packaging.

Corn is the largest and most widely used raw material in the global industrial starch market due to its abundant availability, high starch yield, and versatile processing characteristics.

Corn starch accounts for a major share of global production, especially in countries like the United States, China, Brazil, and Argentina, where corn cultivation is widespread and cost-efficient. A single bushel of corn yields more starch compared to other raw materials such as wheat, cassava, or potato, making it the preferred choice for large-scale processing. Industrial processors extract corn starch through wet milling, which also allows co-production of valuable by-products like corn gluten meal, corn oil, and ethanol adding commercial value and reducing overall production costs.

Corn starch finds widespread applications in the food and beverage sector for thickening, texturizing, and stabilizing processed products such as sauces, soups, bakery fillings, and dairy items. In non-food applications, it is used extensively in the paper and packaging industries for improving paper strength, in textiles as a warp sizing agent, and in adhesives and biodegradable plastics due to its film-forming and binding properties. Modified corn starches, which are chemically or physically altered, offer functional benefits in pharmaceuticals, construction materials, and oil drilling fluids. As demand grows for bio-based and compostable materials, corn starch is gaining more traction in sustainable packaging and single-use product manufacturing. Its wide adaptability, ease of processing, and strong global supply chain infrastructure make corn the most economical and scalable option for industrial starch production.

Native starch holds the largest share in the global industrial starch market because of its widespread use across various industries, low processing costs, and direct extraction from natural sources like corn, wheat, cassava, and potato.

This is the purest form of starch, physically extracted without chemical or enzymatic modification, making it suitable for a wide range of applications that do not require functional alterations. In the food industry, native starch is used as a thickener, stabilizer, and moisture-retaining agent in bakery, dairy, meat products, and ready-to-eat meals. Its clean-label appeal and GRAS (Generally Recognized as Safe) status make it highly preferred by food processors, especially in regions like North America and Europe where demand for minimally processed ingredients is growing. Outside the food sector, native starch is used extensively in the paper industry to improve sheet strength, surface properties, and print quality.

In textiles, it acts as a sizing agent for fabric finishing, and in adhesives, it functions as a binder and viscosity enhancer. Its affordability and compatibility with other ingredients make it an ideal raw material in cost-sensitive industries. Countries with high agricultural output like the U.S., China, and India produce native starch at scale, ensuring steady availability and competitive pricing in global markets. While modified starches offer enhanced performance, many applications still rely on native starch due to its simplicity, lower environmental footprint, and ease of formulation.

The food and beverage sector is the largest application segment in the global industrial starch market due to its extensive use of starch as a core functional ingredient in a wide variety of processed and packaged products.

Starch plays a key role in improving texture, viscosity, stability, and shelf life in items such as bakery goods, dairy products, confectionery, sauces, soups, snacks, and meat-based foods. In baking, it provides structure and moisture retention, while in dairy and desserts, it helps in thickening and preventing separation. Modified starches, such as pregelatinized and cross-linked varieties, are commonly used in instant foods and frozen meals due to their quick solubility and heat stability. The rising global consumption of convenience and ready-to-eat foods is fueling steady demand for starch ingredients.

In beverages, starch derivatives like maltodextrin and glucose syrup are used as energy sources, bulking agents, and sweeteners in sports drinks and flavored waters. Additionally, the clean-label movement is pushing manufacturers to replace synthetic additives with natural starch-based alternatives, especially in regions like North America and Europe. Developing economies in Asia-Pacific and Latin America are also showing increased demand for starch in food as processed food penetration rises. Industrial starch sourced from corn, potato, cassava, and wheat is easily adaptable to food-grade standards, and global starch producers like Cargill, Tate & Lyle, and Ingredion offer a broad portfolio tailored for the food industry.

North America leads the global industrial starch market due to its massive corn production, strong agro-processing infrastructure, and deep integration of starch across food, paper, and chemical industries.

The United States is the world’s largest producer of corn, and nearly 90% of industrial starch in the region is derived from corn, giving domestic manufacturers a consistent and cost-effective raw material supply. Major global starch producers like Cargill, Ingredion, and Archer Daniels Midland (ADM) operate large-scale processing plants across the Midwest, benefiting from proximity to grain belts and established transport networks. Industrial starch is widely used in North America’s packaged food and beverage sectors for texture, stability, and shelf-life enhancement.

In the paper industry, starch plays a critical role in surface sizing, coating, and improving paper strength especially in packaging materials, which saw a demand boost after the e-commerce boom. Moreover, starch derivatives like modified starch, glucose syrup, and maltodextrin are heavily used in North American pharmaceuticals, personal care, and biodegradable plastic applications. Regulatory backing for bio-based and compostable materials is also helping the starch industry expand beyond food and paper. North America’s mature R&D environment and advanced chemical processing capabilities support innovations in modified starches tailored for adhesives, textiles, and oil drilling fluids. Canada’s food processing sector and Mexico’s growing paper and corrugated board industries further strengthen regional consumption.

• 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, 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 May 2022, Best Agrolife Ltd gets registration for the indigenous manufacturing of crucial corn herbicide. The company has a pivotal positioning in Rice and Soybean crops and this registration will help it in consolidating its portfolio in the herbicides segment further.
• In November 2021, Ingredion introduced FILMKOTE 2030, a sustainable barrier starch designed for high-performing oil and grease resistance in food service packaging across the U.S. and Canada. This innovation enables manufacturers to replace fluorochemicals with an eco-friendly alternative, aligning with the growing demand for sustainable packaging solutions.
• In April 2021, Cargill Inc. announced its plans to expand its specialty tapioca starch offerings for the Asia Pacific region. Cargill partnered with Starpro, the food-grade tapioca starch producer in Thailand.