North America Food Starch Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Food Starch Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American food starch market is projected to register a CAGR of 5.6% during the forecast period, 2022-2027.

Food starch has a significant part in the food industry that is widely used in the production of various food products including convenience food products, bakery, and confectionery products owing to its stabilizing property and nutritional benefits. With growing consumer demand for all-natural ingredients in food products, the demand for food starch is increasing rapidly and the market is highly competitive. Moreover, the abundance of raw supplies integrated into the supply chain and diversified usage of starch across the end-use industries are the factors boosting the demand for food starch in the North American region. However, the COVID-19 pandemic has negatively impacted starch production due to the lack of resources and disruption in the supply chain of raw materials.

In recent years, consumers' demand for ready-to-eat food products has increased due to changing lifestyles and high disposable income. Several RTE and packed foods contain starch; hence, the demand for food starch is expected to drive market growth in the next few years. In addition, the growing trend for clean label products is further promoting the growth of clean label starch in the market as it is Non-GMO and chemical free. This has created an opportunity for the players to produce new products in the market. For instance, in April 2022, Ingredion Inc., launched NOVATION Lumina 8300 functional rice starch specially for the consumer who prefer the clean label products.

Key Market TrendsIncreasing Demand for Clean-label Ingredients

The trend of clean-label ingredients and products is drastically impacting food and beverage as well as other industries operating across the globe. The rising health consciousness among consumers and the high demand for natural, pure, and high-quality products have generated the demand for clean label starches. Also, with the regional economy gradually improving and resulting in an increased intake of processed and convenience foods, the market for modified starch, which finds substantial usage in these food applications, is finding increased demand, thereby driving the overall food starch market. Companies have understood this rising demand for clean label food starch, owing to the increasing demand for clean and simple ingredients, and are thus creating products to satisfy customer demands. For instance, in March 2020, Tate & Lyle, a global provider of food and beverage ingredients and solutions launched clean label starch named CLARIA EVERLAST which is designed to deliver high shelf stability and preserve food quality at extreme storage conditions.

Modified Starch is Dominating the Market

The application of modified starch in varied food products is widely contributing to the growth in the NorAmericanica region. It aids in thickening or stabilizing food products, especially sauces. Thus, with the rising market for sauces and condiments, the industrial starches market is also growing at a faster pace and encourages manufacturers to launch new products in the market. In March 2021, Ingredion Inc introduced ULTRA-TEX 1311 modified potato starch that was formulated to create indulgent textures and improve the stability of the product. The ideal application for the ingredients includes dairy desserts, bakery/fruit fillings, sauces, and other savory applications. Modified pregelatinized food starch provides improved functional properties and texture as a result, it is widely used in instant food products.

The rapidly growing processed food industry and the consumer shift toward snacking have been acting as a driver for the modified starch market in countries including the United States and Canada. The food industry is the most lucrative segment considering liberalized regulations toward the use of modified starch in food production. ​Thus the evolving retail landscape, along with the involvement of numerous global and local players producing prepared food, is also projected to boost the demand in the modified starches market in the region.

Competitive Landscape

The North America food starch market is highly fragmented owing to the presence of global and regional players. The major competitive factors in the native and modified starches market are price, product customization, and customer service. Key players in the market studied include Cargill Incorporated, Agarna, Ingredion Inc, National Starch Food Innovation, and Archer-Daniels-Midland among others. Major players are focusing on product innovation in the market to expand their presence, enhance their brand portfolio, and cater to various preferences of product manufacturers.

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