Starch Derivatives Market

[450 Pages Report] According to MarketsandMarkets, the global starch derivatives market size is estimated to be valued at USD 57.9 billion in 2023 and is projected to reach USD 68.4 billion by 2028, recording a CAGR of 3.4%. This growth is primarily attributed to the rising demand in the food and beverage industry for ingredients that improve texture, stability, and shelf life has driven market expansion. Furthermore, their versatile applications across various industries, including pharmaceuticals, textiles, and paper production, have contributed to market growth. The cost-effectiveness and functional benefits of starch derivatives continue to make them a preferred choice, fostering the market's expansion.

The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in April 2022, Avebe introduced Etenia ES, a versatile potato-based texturizing solution tailored for creamy dairy products. Designed to meet the demand for clean-label, delicious, and guilt-free dairy items, it serves as a process-tolerant alternative to milk protein, fat, and less label-friendly hydrocolloids. Other key players like Emsland Group have capitalized on this by making strategic partnerships. For instance, Emsland Group unveils a strategic partnership with IMPAG Group in Poland. IMPAG Poland will assume distributorship of Emsland's food industry product range, encompassing native starches, modified starch, and sustainable pea and potato-based fibers, along with potato flakes and granules. This collaboration strengthens our commitment to delivering top-tier ingredients to the Polish market.

The overall Starch derivatives market is classified as a competitive market, with the key players, namely ADM (US), Ingredion Incorporated (US), Tate & Lyle PLC (UK), AGRANA Beteiligungs-AG (Austria), and Sukhjit Starch & Chemicals Ltd. (India) occupying 30-35% of the market share.

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The Starch Derivatives Market Ecosystem

Drivers: Functional properties of starch derivatives and their incorporation in a wide range of food applications

Starch derivatives have various functions; it is used as a thickener, texture agent, fat replacer, and emulsifier. The advanced technology used for processing these starches develops several highly functional ingredients that can be customized to meet the demand for most formulating challenges. Recently, health-conscious consumers have raised concerns about reducing the dietary caloric intake to avoid complications of obesity. Some modified starches are increasingly being used as fat replacers and substitutes. They provide the requisite mouthfeel; lend a glossy, fat-like appearance; and allow less fat pickup in fried foods. They are used in the formulation of dietary foods, such as vegetable soups and snacks. With these functional properties, the usage of starch derivatives in a wide range of applications is expected to drive the overall market.

Restraints: Limited raw material availability and price fluctuations

Starch derivatives are obtained from natural ingredients that are in limited supply and are dependent on the quality of the crops and good climatic conditions. For the past few years, the climatic conditions have changed drastically. Additionally, their production depends on the availability of raw materials. However, production is uncertain due to damage caused by sudden frost, typhoons, and other unexpected climatic conditions. Therefore, the slowly declining availability of raw materials intensifies the demand for these ingredients, thus creating a supply-demand imbalance.

Opportunities: Sustainable and eco-friendly practices in textile and paper industry

Starch derivatives are used in the textile and paper industries for sizing, coating, and binding purposes. Innovations in these industries, such as sustainable and eco-friendly production processes, offer opportunities for starch derivatives manufacturers to provide greener alternatives. Starch derivatives can serve as natural thickeners and sizing agents, reducing the need for synthetic chemicals in the textile and paper manufacturing process. This not only makes the products more environmentally friendly but also addresses concerns about chemical pollution. Starch-based derivatives, such as biodegradable plastics made from starch (bioplastics), are also gaining popularity as a more sustainable alternative to traditional plastics. This presents opportunities for manufacturers to produce biodegradable packaging materials for various industries.

Challenges: Concern over the quality of products due to adulteration of GM ingredients

Many consumers are increasingly concerned about the presence of genetically modified organisms (GMOs) in their food and are actively seeking non-GMO or organic alternatives. Adulteration or contamination with GM ingredients can lead to a loss of consumer trust and potential market backlash. Some consumers have ethical concerns about GMOs and their impact on the environment, biodiversity, and farming practices. Adulteration with GM ingredients can be seen as an unethical practice and could lead to public relations challenges for companies.

The Starch Derivatives Market Ecosystem

By type, the Maltodextrin segment is projected to grow with the highest CAGR in the starch derivatives market during the forecast period.

Maltodextrin serves as a crucial ingredient in the food and beverage industry due to its attributes as a thickener, binder, and stabilizer. It enhances product texture and shelf life, making it a preferred choice. Furthermore, the clean-label trend and increasing consumer awareness of ingredients have propelled the demand for non-GMO and organic maltodextrin, driving its growth. In the pharmaceutical and cosmetic sectors, maltodextrin is utilized for its film-forming and emulsifying properties, broadening its application scope. As a multi-functional starch derivative, maltodextrin is poised for sustained expansion during the forecast period, responding to the evolving needs of these diverse industries.

By source, the Tapioca segment is projected to grow with the highest CAGR in the starch derivatives market during the forecast period.

Tapioca, sourced from the cassava plant, is gaining prominence due to its inherent characteristics. It's a gluten-free and allergen-friendly alternative, aligning with the increasing consumer demand for healthier and specialized dietary options. Tapioca-based starch derivatives are used extensively in food and beverage products, including gluten-free baked goods and snacks, enhancing their texture and sensory appeal. Moreover, the clean-label trend has boosted the demand for natural and minimally processed ingredients like tapioca starch derivatives, as they align with consumer preferences for transparency and sustainability. The versatile and sustainable nature of tapioca positions it for substantial growth during the forecast period, particularly in response to evolving dietary trends and health-conscious consumer choices.

By form, the liquid segment accounts second-highest market share in the starch derivatives market.

Liquid starch derivatives offer advantages such as improved solubility, dispersion, and ease of integration into various processes, making them ideal for applications where precise mixing and homogeneity are crucial. Their liquidity is especially beneficial in the pharmaceutical industry, where they are utilized for oral liquid formulations and drug delivery systems. Additionally, liquid starch derivatives enhance the textural properties of a wide range of food products, providing the desired mouthfeel and consistency in items such as soups, sauces, and beverages. The liquid form is also favored in the production of adhesives and coatings, catering to industrial needs. The growing demand for convenient, high-quality food products and specialized pharmaceutical formulations is propelling the liquid segment to its significant market share, reflecting the adaptability and efficacy of liquid starch derivatives.

By application, the food and beverages segment accounts significant market share in the starch derivatives market.

Starch derivatives have found a broad array of applications in the industrial sector due to their diverse functionalities. They serve as binders, thickeners, and stabilizers in industrial processes, particularly in sectors like textiles, paper manufacturing, and adhesives. Starch derivatives' ability to enhance viscosity, texture, and stability makes them essential components in a variety of industrial applications. Furthermore, the industrial sector is increasingly seeking eco-friendly and sustainable alternatives, and starch derivatives, often derived from renewable sources, align with these goals. Their biodegradability and reduced environmental impact have made them attractive choices. As industrial processes continue to evolve, the demand for starch derivatives in these applications is expected to grow, driving the high CAGR in the industrial segment during the forecast period.

Asia Pacific is poised to experience the highest CAGR in the starch derivatives market during the forecast period.

The region's remarkable economic growth has led to increased consumer purchasing power, which, in turn, has boosted demand for processed foods and beverages. Starch derivatives play a crucial role in this sector as thickeners, stabilizers, and texture enhancers, driving their growth. Additionally, Asia-Pacific countries are among the world's leading producers of starch-rich crops like rice, wheat, and cassava, ensuring a stable supply of raw materials for starch extraction. This accessibility to feedstock supports the development of a strong starch derivatives market in the region. Furthermore, the region's increasing focus on sustainability and eco-friendly practices has led to the utilization of starch derivatives for their renewable and biodegradable characteristics, catering to the growing demand for green solutions. As the Asia-Pacific region continues to experience economic expansion and evolving consumer preferences, starch derivatives are poised to witness substantial growth during the forecast period, making it the region with the highest CAGR in the market.

Asia Pacific: Starch Derivatives Market Snapshot

Key Market Players

Key players in this market include Cargill, Incorporated (US), ADM (US), Tate & Lyle PLC (UK), AGRANA Beteiligungs-AG (Austria), Roquette freres (France), Ingredion Incorporated (US), Green Processing Corp. (GPC) France, Avebe (Netherlands), Emsland Group (Germany), Foodchem International Corporation (China), Sukhjit Starch & Chemicals Ltd. (India), Universal Starch Chem Allied Ltd (India), Primient (US), SPAC Starch Products (India) Private Limited  (India), and JP&SB International (Spain)

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Scope of the Report

Report Scope:

Starch Derivatives Market:

By Type

• Glucose Syrup
• Modified Starch
• Maltodextrin
• Hydrolysates
• Cyclodextrin

By Source

• Corn
• Arrowroot
• Potato
• Rice
• Tapioca
• Wheat
• Other Sources

By Form

• Dry
• Liquid

By Application

• Food & Beverages
  • Bakery & Confectionery Products
  • Processed Foods
  • Beverages
  • Other Food Applications
• Industrial
  • Papermaking
  • Weaving & Textiles
  • Medicines & Pharmaceuticals
  • Cosmetics
  • Other Industrial Applications
• Feed

By Functionality (Qualitative)

• Thickening
• Stabilizing
• Emulsifying
• Binding
• Other Functionalities

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World

Recent Developments

• In October 2023, Cargill is poised for double-digit growth in 2023, focusing on South India expansion, investing USD35 million in a Nellore manufacturing facility. Cargill emphasizes supply chain resilience and quality to navigate inflationary pressures and drive long-term sustainable growth in India's evolving food market.
• In September 2023, Tate & Lyle partnered with IMCD in Finland and the Baltic region, expanding their ingredient distribution. This collaboration will help Tate & Lyle expand the geographical reach of its starch derivatives to Finland and the Baltic region thereby expanding its market share.
• In June 2023, Tate & Lyle has inaugurated a Customer Innovation and Collaboration Centre in Jakarta, Indonesia. This expansion enhances their presence in the Asia Pacific, enabling food science innovation tailored to local preferences, addressing health concerns, particularly diabetes, and bolstering their global network's expertise. The opening marks an important milestone in Tate & Lyle's growth strategy to expand its presence in the Asia Pacific region, and Indonesia specifically, into which it has been supplying for over a decade.

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