Reduced Starch Syrup Market - Forecast(2023 - 2028)

Key Takeaways

• Geographically, the Europe Reduced Starch Syrup Market accounted for the highest revenue share in 2021. The growth is owing to gigantic confectionery consumption, quality lifestyles, and high GDP per capita incomes.
• Versatile functional properties, and easy incorporation is said to be preeminent driver driving the growth of the Global Reduced Starch Syrup Market. Adversely impacted production because of the COVID-19 is said to reduce the market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Global Reduced Starch Syrup Market report.

Reduced Starch Syrup Market Segment Analysis-By Applications

The Global Reduced Starch Syrup Market based on the basis of applications can be further segmented into Confectionery, Dairy products, Jams, animal feed, a cosmetic composition, and Others. The confectionery segment held the largest share in 2021. The growth is owing to the growing trend of confectionery consumption across the continents. Starch syrups play a vital role as a sweetener in the preparation of various confectionery items such as cakes, pastries, desserts, and others. It is also considered during the production of candies and lollypops. Also, growing health awareness among people has forced manufacturers to avoid unhealthy sweetening agents and opt for healthy options. Moreover, confectionery is estimated to be the fastest-growing segment with a CAGR of 4.5% over the forecast period 2022-2027. Besides confectionery, the reduced starch syrup is used in the food industry as a thickening agent. Therefore, the growing cuisine culture is providing fairgrounds for the aforementioned market.

Reduced Starch Syrup Market Segment Analysis-By End-User

The Global Reduced Starch Syrup Market based on end-user can be further segmented into Foodservice providers and Food Industry. The food industry segment held the largest share in 2021. Unlike food service providers, the food industry uses the reduced starch syrup in large quantities as they produce various food items in bulk. Moreover, during the COVID-19 outbreak, the majority of foodservice providers were forced to shut their services. Moreover, the food industry along with foodservice providers is estimated to be the fastest-growing segment with a CAGR of 4.6% over the forecast period 2022-2027. This growth is owing to the re-entry of restaurant, hotels, and other hospitality venues in business as infection rates is curbing and governments have relaxed the restrictions. In addition to that, as the pandemic is coming to an end, people are making more demand for goods and services; therefore, to meet the surging demand companies have ramped up their production activities.

Reduced Starch Syrup Market Segment Analysis-By Geography

The Global Reduced Starch Syrup Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held the largest share with 38% of the overall market in 2021. The growth in this segment is owing to the factors such as humungous confectionery consumption. Confectioneries are an inextricable part of people's lives in Europe. For instance, in 2021 with 11 kg per capita consumption Germany was the biggest chocolate consumer worldwide; whereas, Switzerland holds the second position with nearly 9.7 kg per capita consumption. The higher purchasing power in the hands of the consumers and quality lifestyles are prominent factors behind propelling the reduced syrup market in the said region. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to enormous population, growing production because of ease of doing business in several developing countries, western influence, augmenting economic prosperity, and improving quality of lifestyles.

Reduced Starch Syrup Market Drivers

Improving living standards in developing countries and mounting GDP per capita incomes are anticipated to boost market demand

The gross domestic product per capita in the US is over $55,000; whereas, the majority of European countries like Ireland, Norway, Denmark, San Marino, Netherlands have GDP per capita of over $60,000. Therefore, people in these wealthy regions of the world enjoy better lifestyles compared to anywhere in the world. As a result, they make more demand for confectioneries and various food items. In addition to that, the rising economic affluence of major developing countries like China, Indonesia, and India is adding to the market. For instance, in 2021 China’s GDP per capita income crossed the $10,000 mark and reached $12,551. In addition to that, the country declared itself free from extreme poverty.

Rapid migration of people toward cities and the strengthening retail chain are expected to boost market demand

Rural areas may be the epitome of idyll, fresh air, and peace but it can’t be denied that they don’t provide adequate growth opportunities to individuals because of a lack of infrastructure and industrialization. As a result, every year millions flee their homes and migrate to cities to find better jobs and lead happy life. Moreover, in cities, they get all-weather access to confectioneries made from reduced starch syrup. Moreover, it becomes easy for companies to target their audience with innovative marketing strategies. According to a report, in 2021 nearly 4.46 billion people were living in cities, and the number is anticipated to reach 6.8 billion by 2050. On another hand, better retail infrastructure and the across-the-board presence of hospitality venues in urban areas have a reasonable contribution to propelling the growth of the aforementioned market.

Reduced Starch Syrup Market Challenges

Hampered production because of COVID, and overwhelming job loss are anticipated to hamper the market growth

The staggering pervasiveness of the COVID-19 infections subjected governments around the globe to implement several restrictions aimed at curbing the spread. As a result, it created a huge gap between demand and supply and adversely impacted the companies’ operations. For instance, many factory workers lost their jobs, employees were fired, and several choose voluntary resignation. In the second quarter of 2020, working hours decreased 15.7 percent in the Asia-Pacific region; whereas, around 8.8 percent of global working hours get squandered in 2020 as compared to the fourth quarter of 2019. Additionally, unemployment rates soared in developing countries like India as a report claimed that nearly 1.5 million lost their jobs in august 2021.

Reduced Starch Syrup Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Global Reduced Starch Syrup market top 10 companies include-

1. Gulshan Polyols Ltd
2. Manildra Group
3. Tate & Kyle Plc
4. Aston Group
5. Cargill Inc
6. Egyptian Starch and Glucose
7. Tongaat Hulett Starch
8. Tereos
9. KASYAP
10. Others

Recent Developments

• On September 1, 2021, Minnesota, United States-based food company “Cargill” publicized the successful acquisition of Singapore-based Aalst Chocolate (a company known for its gourmet and industrial chocolate manufacturing) The transaction has supplemented the Cargill footprints in the Asian market.
• On August 9, 2021, Cargill (a US-based food corporation) publicized the successful acquisition of Sanderson farms from New York, United States-based “Continental Grain Company.” A payment of $4.53 billion ($203 per share) was made by Cargill in order to bring the acquisition to a close.
• On February 10, 2021, London, United Kingdom-based well-known food and beverage company “Tate & Kyle” announced that it has successfully acquired majority stakeholding (85 percent) in Thailand-based company Chaodee Modified Starch (a firm that operates in starch manufacturing). The acquisition is anticipated to strengthen Tate & Kyle’s tapioca-based systems.

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