Food Starch Market - Forecast(2023 - 2028)

Food Starch Market Overview

The Food Starch Market is estimated to reach $32.4 billion by 2028, growing at a CAGR of 5.9% over the forecast period 2023-2028. Rice, corn, wheat, beans, potatoes and many other vegetables include starch - a white, flavorless, solid carbohydrate that is found in the form of tiny granules in the seeds, tubers and other portions of plants. The market for food starch is anticipated to experience significant expansion due to the growing consumer willingness to pay more for food additives for improved flavor and texture. Since many packaged food items contain starch, the need for food starch is anticipated to increase. According to Agriculture and Processed Food Products Export Development Authority, India's exports of processed food were $5,559.84 million in 2021-2022. In addition to its functional advantages, modified starch has a variety of uses in food, including replacing fat and enhancing texture in baked goods, snacks and beverages.

Food Starch Market Report Coverage

The report: “Food Starch Market – Forecast (2023-2028)” by IndustryARC, covers an in-depth analysis of the following segments in the Food Starch Market.

Key Takeaways

• North America dominates the food starch market in 2022 since ready-to-eat premixes use food starch heavily and the U.S. is one of the major markets for it. Asia-Pacific is anticipated to dominate the food starch market in the forecast period 2023-2028, as starch is used to prepare a variety of dishes in several upscale eateries and cafes.
• A rise in the wellness and health trend and growing consumer demand for all-natural products are driving the market's competitiveness.
• The availability of raw materials, an effective supply chain and the increasing variety of end-user industries that use starch are some more variables that further increase market demand around the world.
• A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Food Starch Market Report.

Food Starch Market Segment Analysis – by Type:

Based on type, the Food Starch Market is further segmented into Native Starch, Modified Starch and Starch Derivatives. The Native Starch segment held the largest revenue market share in 2022, as it has a 4 kcal/g energy content - the same as all other carbs. Native starches, which are carbohydrates, are physically extracted from agricultural raw materials like rice, barley and peas as well as from grains like wheat, corn and potatoes. Proteins and fibers are separated throughout the procedure. According to an article on the Energy Consumption of the Starch Industry, the native starch industry, which accounts for over 6.2% of the food and beverage industry, is the second most energy-consuming industry. 

However, the Modified Starch segment is estimated to grow at the fastest CAGR of 6.7% over the forecast period 2023-2028, since various product categories, including batters and breading, dairy and dessert items, soups and sauces and confectionary use modified starches as thickeners. Modified starches can offer a variety of functional advantages to snack foods, such as the replacement of fats and oils, thereby meeting customer desire for tastier and more enticing low-fat snacks.

Food Starch Market Segment Analysis – by Source:

Based on the source, the Food Starch Market is further segmented into Corn, Wheat, Potato, Cassava and Others. The Cassava Starch segment held the largest revenue market share in 2022, as the amount of resistant starch in cassava is large. This kind of starch avoids digestion and resembles soluble fiber in its characteristics. The ability of cassava starch to enhance metabolic health and lower the risk of obesity and type 2 diabetes has been backed by research. According to Food and Agriculture Organization, about 10% of that starch is derived from the roots of the cassava plant, which is also the main source of nutrition for many rural residents in developing nations in Africa, Asia and Latin America.

However, the Corn Starch segment is anticipated to grow at the fastest CAGR of 7.4% over the forecast period 2023-2028 as it is most often used as a thickener for stews, soups and gravies. It is frequently preferred by people who suffer from gluten-related diseases as it is made from corn and not wheat. So, it is gluten-free. According to International Starch Organization, people in Mexico use a lot of corn-based starch in their food. Investments in brewing capacity are causing the industry to expand.

Food Starch Market Segment Analysis – by Geography:

Based on Geography, the North America Food Starch Market accounted for 36% of revenue share in 2022, as the U.S. is the largest producer of corn and corn derivatives. According to International Starch Organization, 10% to 15% of the corn produced in America is purchased and processed by corn refiners each year. However, the Asia-Pacific region is estimated to grow at the fastest CAGR during the forecast period 2023-2028, due to the rising demand for bakery products. Starch derivatives are anticipated to be used more frequently in the region, which also opens up new potential for foreign exports and investments.

Food Starch Market Drivers

Rising Prevalence of Native Starch:

Native starches, which can be found in foods like corn, wheat, potatoes, rice, cassava and tapioca, are basically pure forms of starch. The structure and composition of native starches derived from various plant sources vary greatly. However, all granules are mostly made up of components - amylose 20–30% and amylopectin 70–80%. In the food and beverage sector, native starch is employed as thickeners, binders and stabilizers. They are regarded as essential elements in the business due to their useful qualities. They perform a variety of important tasks, including preventing excessive hydration, producing the ideal mouthfeel and texture, extending shelf life and encapsulating additional substances. With the growing trend of customers favoring healthy foods that contain fat substitutes to boost the nutritional value of food, the use of native starch as a fat replacer is predicted to increase even more in the future.

Increasing Starch Product Consumption:

The food and beverage industry is expanding rapidly. As a result, there is an increase in demand for cereals, pulses and both carbonated and non-carbonated beverages. Numerous individuals are moving for work as a result of rising urbanization, which is causing profound changes in lifestyle. Consumers' high purchasing power is anticipated to increase demand for ready-to-eat food products that contain food starch. The need for rice starch is also anticipated to increase since it can be employed as a stabilizer, thickening agent and emulsifier. Preparations of common foods like sago, rice, noodles, macaroni, spaghetti and vermicelli are considered to contain a significant amount of starch and starch derivatives. According to an article on Starch Products, Products made with macaroni are thought to have originated in Italy, where the average person consumes up to 30-35 kilograms (65-75 pounds) of the food each year. About 6.3 kilograms are consumed annually in France, 3.7 kilograms in the U.S. and 0.4 kilograms in the UK.

Food Starch Market Challenges

Lack of Resources and High Production Costs:

The starch content of sweet potatoes, potatoes, cassava, kudzu root, plantain, taro, acorns, peas, lotus root, wheat and other crops is exceptionally high and they also have a high level of flavor and nutritional value. According to Food and Agriculture Organization (FAOSTAT), corn was grown on almost 201 million hectares, producing 1162 million tonnes at a rate of 5754.7 kg/ha, with a larger range of soil, temperature, biodiversity and management techniques in 2020. In 2020-2021, India produced 31.51 million tonnes across an area of 9.9 million hectares. Planting occurs in several locations. More and more potato growers are depending on a standardized industrial cooperation model and the national poverty alleviation program to progressively expand into the field of starch deep processing. Smaller plants cannot survive. Consequently, it is not advisable to invest in a starch plant unless there are significant financial resources available and the potential to produce a dozen goods with value-added. The appropriate technology is necessary as there is likely to be a lot of marketing. These factors impede market growth.

Food Starch Industry Outlook:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Food Starch Market. The top 10 companies in the Food Starch Market are:

1. PlantPlus
2. ADM - Archer Daniels Midland
3. Agrana Group
4. BENEO
5. KaTech
6. Royal Avebe U.A.
7. National Starch Food Innovation
8. Cargill Incorporated
9. Tate & Lyle
10. Ingredion Inc.

Recent Developments

• In December 2021, Cargill and Croda reached an agreement for the latter to acquire the former's technology and industrial chemicals sector. Together, Croda and Cargill's profound industry knowledge, extensive bio-based portfolio and substantial industrial business capabilities would inspire a new wave of technology and generate enormous value for their clients throughout the globe.
• In May 2020, PlantPlus Foods, a joint venture for the selling of plant-based food products, including food-grade starches, across South American and North American markets, was created by Archer Daniels Midland Company (ADM) and Marfrig.
• In March 2020, Tate & Lyle launched a new line of clean-label starches for freeze-thaw stability. The new product line was given the name CLARIA EVERLAST. The new clean-label starches would offer superior shelf stability. They offered instant corn and tapioca starches and cook-ups.

Relevant Titles

Latin America Corn Starch Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: FBR 0447

India Corn Starch Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: FBR 0391

Starch Derivatives Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: FBR 0044

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