Industrial Starches Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Industrial Starches Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global industrial starches market was valued at USD 51,496.8 million in 2021, and it is projected to reach USD 70,469 million in 2027, registering a CAGR of 5.40% during the forecast period (2022-2027).

The COVID-19 pandemic placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, and logistics, as well as momentous shifts in demand. The effect on the agricultural sectors, including corn, potato, tapioca, and wheat, followed by its intermediate product, such as starches, is marginal, owing to the support of the government that ensured that the supply chain function smoothly in the face of the crisis by stabilizing the food systems, thereby supporting both food security and nutrition.

Starch is a carbohydrate extracted from agricultural raw materials, which finds applications in many of the everyday food and non-food products. Industrial starches are derived from various sources, including corn, potato, wheat, and other sources. With the global economy gradually improving and resulting in an increased intake of processed and convenience foods, the market for industrial starch, which finds substantial usage in these food applications, is finding increased demand, thereby driving the overall market.

The demand for modified starches is increasing in parallel to the rapid development of the food industry. Modified starches offer a tremendous number of functional benefits to various foods, such as bakeries, snacks, beverages, and nutritional foods.

Key Market TrendsCorn is the Leading Source of Industrial Starch

• Starch derived from corn is in high demand because of its textural properties, especially as a thickening agent in industries such as dairy and beverages. The ingredient also gains an edge in the development of gluten-free products, which is a challenge for starch sourced from wheat, considering the potential remains of traces during extraction.
• The trend of clean-label ingredients and products is drastically impacting the global food and beverage industry. Moreover, the rapid expansion of the food processing industry offers a significant opportunity for the ingredient manufacturers to adopt strategic measures to cater to the growing demand.
• When it comes to non-food applications, the paper industry utilizes corn starch as a filler and sizing material. It also finds applications in the textile, laundry, foundry, air flotation, and adhesive industries.

North America Holds a Major Share in the Industrial Starches Market

• With a highly developed food industry utilizing all ingredients, North America occupies the pole position in the Industrial Starches Market, by region.
• Globally, the United States is the largest producer of corn with a production of 383.94 million metric ton in 2021-2022, which is utilized in various application areas, including the production of starch. The market is significantly inclined toward the consumption of gluten-free food, supported by the government of the country with its stringent regulations regarding product labeling of gluten-free ingredients. Thus, the majority of modified food starches in the United States are gluten-free, which are derived from corn, waxy maize, and potatoes. Consequently, the wheat-sourced starches amount to a lower share of the market.
• The Canadian industrial starches market is growing at a rapid pace, owing to rising consumer demand for healthy and cleaner ingredients. The demand for native starches in the country is especially driven by light-colored applications with subtle flavors. The local manufacturers are using it in processed food products, aiding in maintaining the appeal of the product.

Competitive Landscape

The industrial starch market is highly fragmented, with many local and international players competing for the market share. Some of the major players in the market are Archer Daniels Midland Company, Cargill, Incorporated, Tate & Lyle PLC, The Tereos Group, and others. New product launches and innovations are a major strategy adopted by companies to strengthen their business. The strategy of forming new agreements and partnerships with local players helped the companies increase their footprint in foreign countries and release new products according to the consumers’ changing preferences and leverage on the expertise of these small regional companies.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Cargill Incorporated
Archer Daniels Midland Company
Ingredion Incorporated
Tate & Lyle PLC
Agrana Beteiligungs AG
Kent Nutrition Group Inc. (Grain Processing Corp.)
Roquette Frères
The Tereos Group
Cooperatie Koninklijke Cosun UA
Altia PLC
Angel Starch and Food Pvt. Ltd
Manildra Group
Japan Corn Starch Co. Ltd​