Starch Derivatives Market

The Starch Derivatives Market is estimated at USD 57.9 billion in 2023 and is projected to reach USD 68.5 billion by 2028, at a CAGR of 3.4% from 2023 to 2028.

Starch derivatives offer excellent stability against heat, acid, and freezing, making them ideal for use as thickening agents, stabilizers, or emulsifiers in various industries such as food and beverage, paper manufacturing, medicine, pharmaceuticals, and other industrial applications. Maltodextrins are commonly found in sports nutrition and sports drinks, and they are also beneficial for infant nutrition. By hydrolyzing starch, it can be converted into glucose syrup, which is widely used in the food, beverage, and confectionery industries. Major companies in this market invest significantly in new technologies and product development to provide high-quality and affordable solutions for health-conscious customers. Starch derivatives are emerging as a versatile functional ingredient with applications in different industries. The increasing consumption of processed and convenience foods is further driving the growth of the starch derivatives market.

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Drivers: Incorporation of starch derivatives in a wide range of applications.

Starch is a polysaccharide, consisting of many glucose molecules linked together in a chain. The molecule contains two types of glucose chains: amylose, a simple straight chain, and amylopectin, a complex branched form. Starch is a significant source of calories in the foods it is used in and is widely used in various industries such as paper, textiles, foods, pharmaceuticals, and cosmetics. However, it has some limitations such as poor processability, poor long-term stability, and high water sensitivity in certain applications. To overcome these limitations, nanocomposites are added to starch materials to improve their durability. Starch can be modified using physical, chemical, and enzymatic methods to enhance its functional properties, making it suitable for a wider range of industrial applications. Starch derivatives serve several functions such as thickening, improving texture, replacing fat, and emulsifying. Advanced technology is employed in processing these starches to address formulating challenges, resulting in highly functional ingredients customized as per demand. Modified starches are increasingly used as fat replacers and substitutes, providing the necessary mouthfeel, a glossy, fat-like appearance and allowing less fat absorption in fried foods, to address concerns about dietary caloric intake. These starch derivatives are used in the formulation of dietary foods such as vegetable soups and snacks. With such functional properties, starch derivatives find applications in a wide range of industries, contributing to the overall market growth.

Restraints: Rise in use of substitutes of starch derivatives such as gums, pectin, and cellulose derivatives

The use of starch derivatives in the food and beverage industry is increasing. The global beverage sector is experiencing growth due to the use of modified starches. However, there are alternative ingredients such as modified cellulose, pectin, and gums that can be used as thickeners and stabilizers in food products. Gum arabic is increasingly preferred over modified starch, particularly in beverages, as it has been shown to provide better stability. In addition to beverages, gum arabic, pectin, and cellulose derivatives are the preferred stabilizers in the confectionery industry, as they help prevent sugar crystallization and emulsify fat. Gum arabic is especially compatible with beverages, both in terms of processing and functionality. These alternatives pose a challenge to the market for starch derivatives.

Opportunities: Rising focus on animal nutrition, health and well-being

The OECD-FAO Agricultural Outlook 2021-2030 report predicts a 14% increase in global meat consumption by 2030 compared to the period from 2018 to 2020. By 2030, poultry meat is expected to make up 41% of all meat protein sources. The report also forecasts a 44-million-ton increase in global meat production by 2030, reaching 373 Mt. Poultry meat is driving the overall growth of meat production due to high demand, low production costs, and lower product prices in both developed and developing countries. Starch derivatives can be used in animal feed as binders and energy sources. With the growing focus on animal health, there are opportunities to develop specialized feed products that include starch derivatives to enhance nutrition and performance. The rising demand for meat and meat products is prompting livestock breeders to invest in quality and natural feed additives, such as starch derivatives, to improve livestock health and productivity, thereby boosting the overall market.

Challenges: Concerns over quality of products due to adulterations with genetically modified ingredients

Many consumers are becoming increasingly concerned about the presence of genetically modified organisms (GMOs) in their food and are actively seeking non-GMO or organic alternatives. If food products are adulterated or contaminated with GM ingredients, it can lead to a loss of consumer trust and potential market backlash. Some consumers also have ethical concerns about the impact of GMOs on the environment, biodiversity, and farming practices. Adulteration with GM ingredients can be seen as an unethical practice and may result in public relations challenges for companies. Companies that strive to stand out by offering non-GMO or organic starch derivatives may struggle to maintain their differentiation if there is a risk of adulteration with GM ingredients. Government regulators in regions such as the Asia Pacific and Europe have made it mandatory to declare the GM/non-GM status of food ingredients on the packaging of all processed food and beverages. GM ingredients are linked to allergic reactions and may contain herbicidal residues, which makes their production and use for creating plant-based foods and ingredients challenging for the market players.

Market Ecosystem

Based on source, corn is estimated to account for the largest market share of the starch derivatives market.

Corn is a widely consumed staple food enjoyed across the globe for its importance in the diets of various cultures. It can be eaten in different forms, such as porridge, popcorn, vegetables, roasted or fried kernels, and as flour or meal. In addition to human consumption, its by-products and grains are used as animal feed and biomass for energy. Corn starch is a crucial source for starch derivatives, making up approximately 75% of corn’s dry matter. These derivatives are used in various industrial applications, and about 1.6% of US corn is used for this purpose. Corn starch is composed of two primary polymers: amylopectin (approximately 75%) and amylose (approximately 25%). The demand for corn starch has increased due to the development of niche markets and the growing focus on biofuel production. So, improving both the quantity and quality of starch in corn breeding programs has become an economic imperative. According to the USDA, the availability of sweeteners from corn has seen a decade-long shift. In 2021, US consumers had access to 127.3 pounds per person of caloric sweeteners, down from 1999’s 153.6 pounds. Total corn sweeteners, including high-fructose corn syrup, glucose syrup, and dextrose, decreased from 85.7 to 55.3 pounds per person. Meanwhile, refined sugar, sourced from cane and beet, surpassed corn sweeteners in 2011, with availability reaching 69.7 pounds per person in 2021. This shift reflects changing consumer preferences and industry dynamics. As refined sugar gains ground, it may prompt the starch derivatives industry sourced from corn to grow, offering a more natural and versatile alternative.

Based on form of starch derivative, liquid is anticipated to have the highest growth rate in the starch derivatives market.

Liquid starch derivatives are widely used in the food industry to improve texture and consistency. They act as effective thickeners and stabilizers in products like soups, sauces, gravies, and dairy items. Their liquid form makes them easy to mix into food, resulting in better mouthfeel and appearance. These derivatives are also popular due to their ability to provide a clean and transparent option for natural and clean-label food products, meeting the high demand for such products. In the paper industry, liquid starch derivatives are crucial for surface sizing and coating processes, enhancing printability, strength, and smoothness of paper. As the focus on eco-friendly paper production and recycling grows, the demand for liquid starch derivatives in this sector remains steady. While glucose syrup is available in liquid form and has functional properties, other starch derivatives are preferred in dry form due to the challenges associated with transporting and handling them in liquid form. Consequently, maltodextrin and cyclodextrin are commonly used in dry form across all industries.

The Asia-Pacific market is projected to contribute the largest share of the global starch derivatives market.

The Asia Pacific region is expected to be the leading market for starch derivatives due to the increasing demand for starch and its derivatives in major economies such as China, India, Japan, and Southeast Asian nations. In Asia Pacific, the industrial organization and technology of starch processing are rapidly evolving. Unlike other regions where large companies dominate starch processing, in Asia Pacific, it is mainly carried out by small and medium-sized firms. According to Agriculture and Agri-Food Canada’s (AAFC) Customized Report Service for Frozen Baked Goods in China in 2023, the thriving baked goods sector in the country is particularly relevant to the starch derivatives market. Over the past five years, the consumption of baked goods, such as bread, cakes, and pastries, has grown at a 5% compound annual growth rate (CAGR) in China. This increasing consumption of baked goods indicates a rising demand for starch and its derivatives, which could potentially boost the starch derivatives market. Major market players are also making investments in the Asia Pacific region to meet the growing consumer needs. In recent years, significant companies such as Cargill (US) and Ingredion (US) have invested in China to strengthen their position in the Asia Pacific region. In October 2023, the major player Cargill is set for double-digit growth. With a focus on expanding in South India, they have invested USD 35 million in a manufacturing facility in Nellore. Cargill’s focus on supply chain resilience and quality aims to navigate inflationary pressures and drive sustainable, long-term growth in India’s evolving food market, influencing the starch derivatives industry.

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). These players in this market are focusing on increasing their presence through expansion and collaboration. These companies have a strong presence in North America, Asia Pacific, and Europe.

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Scope of the Report

Key stakeholders

• Starch and starch derivative manufacturers and processors
• Intermediate suppliers, such as traders and distributors of starch and starch derivatives
• Manufacturers of food & beverage ingredients, processed food, and feed
• Other manufacturing industries, such as the personal care, pharmaceutical, and papermaking industries
• Government and research organizations
• Associations, regulatory bodies, and other industry-related bodies:
• Starch Europe
• The Food and Agriculture Organization (FAO)
• Food and Drug Administration (FDA)
• US Department of Agriculture (USDA)
• European Food Safety Agency (EFSA)
• Agriculture and Agri-Food Canada
• National Corn Grower Association - World of Corn
• The International Food Additives Council (IFAC)
• Food Processing Suppliers Association (FPSA)
• Food Standards Australia New Zealand (FSANZ)

Starch derivatives Market:

By Type

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

By Source

• Corn
• Arrowroot
• Potato
• Rice
• Tapioca
• Wheat
• Other Sources (Cassava, Peas, and Tubers)

By Application

• Food & Beverages
  • Bakery & Confectionery Products
  • Processed Foods
  • Beverages
  • Other Food Applications (Snacks and Cereals)
• Industrial
  • Papermaking
  • Weaving & Textiles
  • Medicines & Pharmaceuticals
  • Cosmetics
  • Other Industrial Applications (Adhesives, Foundry, Detergents, and Cardboard Manufacturing)
• Feed

By Functionality

• Thickeners
• Stabilizers
• Binders
• Emulsifiers
• Other Functionalities (Sizing, Gelling, Adhesion, Moisture Retention, Film Formation, and Fat Substitution Agents)

By Form

• Dry
• Liquid

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In October 2022, Grain Processing Corp. (GPC) unveiled Fybrin RS, a cornderived resistant starch enhancing fiber content in food formulations. With applications in pasta, baked goods, and more, it offers a neutral taste, minimal water retention, and smooth texture. Fybrin RS supports digestive health through fermentation in the large intestine.
• In September 2023, Tate & Lyle partnered with IMCD in Finland, Lithuania, Latvia, and Estonia, expanding their ingredient distribution. This collaboration will help Tate & Lyle expand the geographical reach of its food textures to Finland and the Baltic region, thereby expanding its market share.
• On June 2023, Avebe, an international farmer cooperative renowned for potato starch and protein production, partnered strategically with Brenntag, the global chemicals and ingredients distribution leader. This collaboration expands Brenntag Specialties' product portfolio, enhancing its global offerings of innovative and sustainable solutions.

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