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The starch derivatives market size is forecast to increase by USD 6.50 billion at a CAGR of 5.04% between 2023 and 2028. The market is driven by the high demand for cost-effective alternatives, such as wheat starch, in various industries, including the paper industry as thickeners, binders, and gelling agents. The trend toward clean label movement and sustainability is also fueling market growth, as consumers prefer bio-based products over synthetic alternatives. Additionally, the convenience food sector's increasing popularity is contributing to the market's expansion. However, the market faces challenges from the constant fluctuation in raw material prices, particularly for wheat and corn, which can impact production costs. Environmental protection regulations are another challenge, as manufacturers must ensure their processes and products meet stringent sustainability standards.
Starch derivatives are essential organic compounds produced from the natural polymer, starch. These derivatives offer functional benefits in various industries, including textiles, paper production, food and beverages, cosmetics, animal feed, pharmaceuticals, and biofuels. In the textile industry, starch derivatives contribute to improving fabric texture and enhancing the finishing process. They act as effective sizing agents, providing improved fabric strength and smoothness. In paper production, starch derivatives are used as adhesives, providing excellent binding properties and contributing to improved paper quality. Starch derivatives offer numerous advantages in the food industry.
Further, the versatility of starch derivatives is evident in their applications in various industries. From improving texture and stability in textiles and paper production to extending shelf life and enhancing the nutritional value of food and beverages, starch derivatives offer numerous benefits. As the demand for natural, sustainable, and functional ingredients continues to grow, the market for starch derivatives is expected to expand significantly.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The corn segment is estimated to witness significant growth during the forecast period. Corn starch, derived from the endosperm of corn kernels, is a fine powder consisting almost entirely of starch. This substance, devoid of fiber, protein, fat, and other impurities, is widely utilized for thickening various food items. In the culinary sphere, it is employed to enhance the texture and stability of dairy products like vanilla pastry cream, gravies, marinades, sauces, soups, and casseroles. Moreover, cornstarch plays a significant role in gluten-free baking, serving as a suitable substitute for arrowroot starch, potato starch, or tapioca starch. Beyond the food industry, starch derivatives find extensive application in textile and paper production. They contribute to the functional benefits of these products, such as improved texture, stability, and shelf life.
In textiles, starch derivatives act as sizing agents, enhancing the fabric's strength and texture. In paper production, they serve as binders, ensuring the paper's uniformity and durability. For consumers seeking clean-label alternatives, starch derivatives offer a viable solution. These ingredients, free from artificial additives, provide the desired texture and functionality in various food applications, making them an attractive choice for manufacturers and consumers alike. Additionally, starch derivatives function as effective fat replacers, reducing the caloric content of food products while maintaining their desirable texture and mouthfeel. In conclusion, corn starch and its derivatives offer a versatile range of applications across industries, from food and beverage to textiles and paper production.
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The corn segment accounted for USD 13.97 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In North America, the demand for starch derivatives is anticipated to remain moderate due to the mature market conditions in the region. Mexico is projected to exhibit the fastest growth during the forecast period. Glucose syrups and maltodextrin are the most widely used starch derivatives in North America's food industry. These derivatives are employed as natural sweeteners, biofuels, adhesives, and thickening agents in various food and beverage applications. The availability of native starch resources in North America is a significant driver for the market. The United States is one of the leading producers of starch derivatives globally. Modified starches, such as cyclodextrin, are gaining popularity due to their unique physiochemical properties, which enable them to improve product stability and enhance functionalities in various industries.
Further, the cosmetics industry also utilizes starch derivatives as thickening agents and emulsifiers. The growing demand for healthier and natural cosmetics is expected to boost the market growth. According to market research, the North American market is expected to grow steadily during the forecast period, driven by the increasing demand from the food, beverage, biofuels, adhesives, and cosmetics industries.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
High demand for corn starch as a less expensive alternative is the key driver of the market. The market is experiencing significant expansion due to the increasing demand for these derivatives in various industries, including animal feed and pharmaceuticals. Starch derivatives, such as modified natural starches derived from corn and potatoes, play essential roles in these sectors as stabilizing, emulsifying, binding, and thickening agents. Corn is a primary source for producing starch derivatives due to its abundant availability in agriculture-rich countries like India and China. In the food and beverage industry, corn starch derivatives are widely used as replacements for wheat in gluten-free products. The lower price point of corn starch derivatives compared to wheat or tapioca starches further fuels their demand.
In the pharmaceutical sector, starch derivatives are used as excipients, providing essential functions such as binding and coating in the manufacturing of tablets and capsules. The versatility and affordability of starch derivatives make them indispensable in numerous applications, driving the market's growth.
Increasing preference for bio-based products is the upcoming trend in the market. The market is expected to experience significant growth due to increasing consumer awareness towards health and wellness, as well as the rise of veganism. Regulatory bodies in the US, such as the Food and Drug Administration (FDA,) enforce strict regulations on food labeling, requiring manufacturers to specify the raw materials and food additives used in their products. This can lead to an increase in demand for bio-based ingredients, such as starch derivatives, which are often used in vegan and e-commerce packaging. Starch derivatives, including glucose syrup, modified starch, hydrolysates, and dry starch derivatives, can be sourced from various plant-based raw materials, such as cassava and potato.
These renewable resources offer a sustainable alternative to synthetic polymers, which are not biodegradable. Biodegradable biopolymer fibers, derived from these starch sources, are gaining popularity in various industries due to their eco-friendly properties. The use of starch derivatives in food and beverage applications is also on the rise, as consumers increasingly demand clean label products. These ingredients provide functional benefits, such as improved texture, stability, and shelf life, while maintaining the natural taste and appearance of food products. As the demand for healthier, more sustainable food options continues to grow, the market is poised for substantial expansion.
The constant fluctuation in raw material prices is a key challenge affecting market growth. The market in the United States has experienced price fluctuations due to the natural volatility in the cost of raw materials, particularly wheat. This raw material is a crucial input in the production of starch derivatives, which are widely used as thickeners, binders, and gelling agents in various industries, including paper and food processing. The paper industry relies on starch derivatives for enhancing the strength and bonding properties of paper, while the food sector utilizes them for the production of convenience foods and clean label products. The clean label movement and the growing emphasis on sustainability and environmental protection have led to an increased demand for plant-based products, further fueling the demand for starch derivatives.
However, the uncertainty in raw material prices can pose challenges for market participants. Producers of starch derivatives closely monitor the cost of acquiring native starch, which is the primary raw material used in the production process. These price fluctuations can impact the pricing strategy of starch derivative companies and potentially increase the final price of the product to maintain profitability in the market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AGRANA BEteilgungs AG - The company offers starch derivatives products from corn, potatoes, and wheat for a range of applications such as Paper finishing, cardboard, coatings, and decorative cosmetics.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Starch derivatives are valuable ingredients in various industries, including food, textiles, paper production, and bioplastics. These derivatives offer functional benefits such as texture, stability, and extended shelf life. In food applications, they serve as fat replacers, emulsifiers, and dietary fibers in dairy products, processed foods, and dietary foods. In textiles and paper production, starch derivatives act as binders, thickeners, and gelling agents. The demand for clean label and eco-friendly starch derivatives is increasing, with a focus on renewable sources, green solutions, and health advantages. Maltodextrin, tapioca, and corn are popular raw materials used in the production of starch derivatives. Climatic conditions and sustainable practices play a crucial role in the production process. Starch derivatives are used in various industries, including food and beverages, cosmetics, animal feed, pharmaceuticals, and adhesives.
Further, modified starches, such as cyclodextrin and glucose syrups, offer unique properties like stabilizing, emulsifying, and binding capabilities. Hydrolysates from cassava, potato, and other renewable sources are gaining popularity due to their biodegradability and health benefits. The food industry is a significant consumer of starch derivatives due to their role in food technology and the increasing trend towards convenience foods, nutrition and health, and chronic diseases. The clean label movement and environmental protection are driving the demand for eco-friendly and plant-based products, including biodegradable plastics and packaging. The growing veganism trend also presents an opportunity for starch derivatives as they are often allergen-friendly and gluten-free. E-commerce is another growing market for starch derivatives due to the convenience and accessibility it offers.
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Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.04% |
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Market Growth 2024-2028 |
USD 6.50 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.71 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, Germany, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AGRANA Beteiligungs AG, Archer Daniels Midland Co., B Food Science Co. Ltd., Beneo GmbH, Cargill Inc., Emsland Starke GmbH, Food Innovation Online Corp., Foodchem International Corp., Grain Processing Corp., Gujarat Ambuja Exports Ltd., Gulshan Polyols Ltd., Ingredion Inc., Jay Sardar Starch and Gum Consultant, Roquette Freres SA, Royal Avebe, Sanstar Bio Polymers Ltd., ShreeGluco Biotech Pvt. Ltd., Shubham Starch Chem Pvt. Ltd., Tate and Lyle PLC, and Tereos Participations |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Raw Material
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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