The Global Industrial Starch Market was valued at USD 99.34 Bn in 2020 and is expected to reach USD 169.24 Bn by 2027, with a growing CAGR of 7.7% during the forecast period.
Starch is a polymeric carbohydrate composed of many glucose units linked together by glycosidic linkages. Most green plants such as grains, legumes generate this polysaccharide for energy storage. Globally, it is believed to be the most common carbohydrate in human diets and is contained in large amounts in staple foods like wheat, potatoes, maize (corn), rice, and cassava. The starch used in industrial applications such as pharmaceutical, food & beverage is known as industrial starch.
The rising demand for industrial starch from the food & beverage manufacturing sector is anticipated to drive the industrial starch market growth in the near future. Starch is used as an additive for thickening, preservation and quality enhancer in baked foods, confectioneries, pastas, soups and sauces, and mayonnaise. For instance, in 2020 the global bread & bakery consumption reached 105 million tonnes. Thus, the increase in consumption of bakery foods is expected to foster the demand for industrial starch during the forecast period.
Additionally, the growing demand for paper boards in the e-commerce sector is anticipated to support the industrial starch market throughout the forecast period. For instance, the global e-commerce sales nearly reached to 4.3 USD trillion in 2020. Moreover, the use of chemically modified starch in packaged foods is expected to increase the sales for industrial starch in the coming years. Food grade starches are chemically modified mainly to increase paste consistency, smoothness, and clarity, and to improve cold storage stabilities. The use of food grade starch in food industry is expected to increase the industrial starch market demand. Nevertheless, high manufacturing costs and decline in the use of corrugated boards may hinder the industrial starch market growth in the near future.
By Source
By Starch Type
By End-user Industry
By Region
The unique insights provided by this report also include the following:
Based on source, corn segment is expected to bolster the market demand during the forecast period as corn starch is majorly used in processed foods
Based on source, the market has been segmented into wheat, potato, corn, cassava, and others. The corn segment in industrial starch accounted for the largest market share in 2020 and is expected to grow significantly during the forecast period. Corn is used as a thickening agent in sauces, gravies & others. Additionally, it is also used in bakery products manufacturing. For instance, Europe is a region where breads are a part of staple food. Corn starch is majorly utilized in processing of breads, and mayonnaise. For example, every year, Europe consumes 9.1 million tonnes of starch. Native starches account for 31% of the 9.1 million tonnes of starch and starch derivatives consumed in Europe, whereas modified starches account for 18% and starch sweeteners account for 51%.
Based on the end-user industry, the food & beverages segment in the industrial starch market is growing at the highest CAGR during the forecast period owing to increasing adoption of ready to eat foods
Based on the end-user Industry, the market has been segmented into pharmaceuticals, animal feed, food & beverages, others. The food & beverages segment growing at the highest CAGR during the forecast period. The growth is mainly attributed to adoption of ready to eat foods. Additionally, it is used as a binder in pharmaceutical applications. For instance, starch is majorly used as a binder in the wet granulation process of screening, and massing which is a crucial stage in the production of tablets, capsules, and other solid dosage forms. Baked foods such as, wafers, biscuits, pies, bread, cakes, and sausages require heat resistant starch for their shelf-life. As a result, crosslinked starches are utilized as they are more resistant to oven baking temperatures ranging from 120 to 230°C. Gelatinized starches are also included in ready-to-eat cereals such as corn flakes. The texture and quality of the product are determined by the temperature, humidity, and degree of stirring.
Based on region, North America held the largest market share during the forecast period owing to the presence of several food manufacturing and processing companies
Based on region, the global industrial starch market is bifurcated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America holds the largest market share in the industrial starch market due to the presence of top industry players such as Cargill, Ingredion, and others. In the US, potato starch is mainly used in manufacturing of canned soups mainly due to its high viscosity. For instance, the major brands for soup manufacturers are present in the U.S. It is estimated that more than 1.18 billion wet soup packs are manufactured and sold each year in the US. Potato starch is also used as a base for thickening agents in products like pie fillings, puddings, and pastry and in this region.
The report also provides an in-depth analysis of Industrial Starch market dynamics such as drivers, restraints, opportunities, and challenges
Drivers
Restraints
Opportunities
Challenges
The supply chain for the raw materials was severely affected during the lockdown situation. However, processed & packed foods made by using industrial starch such as corn & potato starch were constantly on the verge of growth. Due to the presence of e-commerce giants such as Amazon, Walmart the demand for packaged foods was in high. Moreover, China was the largest in terms of global corn trade. For instance, according to China Custom, China exported 623,095 tonnes of corn starch in 2020. In March, 2020 China exported corn starch volume of 110,031 tonnes. Nevertheless, the export volume of corn starch started to decline since April due to the pandemic COVID-19, and April witnessed a MoM decline of 20.82% or 22,904 tonnes. Since April, the price of corn had increased swiftly, boosting domestic price of corn starch to go up, which reduced the export advantage of domestic corn.
Note: A detailed analysis is specific to the Industrial Starch market will be provided in the report
The report also provides an in-depth analysis of key trends in the industrial starch market
The report also provides an in-depth analysis of recent news developments and investments
The key players operating in the industrial starch market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
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