Modified Starch Market Analysis

Global Modified Starch Market Overview

Modified Starch Market Size was valued at USD 13.4 billion in 2022. The modified starch industry is projected to grow from USD 13.8489 Billion in 2023 to USD 16.87633 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2023 - 2030). An expanding population drives the demand for processed and convenience foods. Modified starch is a crucial and valuable component found in manufacturing ready-to-eat food products are the key market driver enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Modified Starch Market Trends

• Growing demand for convenience and processed food boost market growth

In most industrialized countries, customers use convenience foods daily. Convenience meals necessitate a great deal of processing and preparation, which is made easier by technical advancements in preservation, packing, freezing, and artificial flavorings and ingredients, among other things. Convenience foods are popular in North American and European countries based on their annual consumption rates. People often lead busy and isolated lives, leaving them no time to prepare their food at home. Globalization and the resulting changes in lifestyles have led to a growth in the intake of convenience foods in various nations worldwide, particularly in Asia's expanding markets, resulting in a rise in demand for modified starch. Therefore, The versatility of significantly modified starches makes them suitable for a wide variety of food applications. They are highly used as food additives as they enhance texture, viscosity, gel formation, adhesion, binding, moisture retention, and film formation, which has enhanced the Modified Starch market CAGR globally in recent years.

However, there have been significant advances in innovations to cater to the demand. These are the factors driving the growth of the modified starch industry revenue.

Segment Insights

Modified Starches Source Insights

Based on the source, the Modified Starch market segmentation includes Corn, Wheat, Cassava, Potato, and Others. The corn segment held the majority share in 2022 concerning the modified starch industry revenue. This is primarily owing to the rising Corn-based modified starch extensively used in various industries as stabilizers, thickening agents, and emulsifiers. Food, beverages, confectionery, paper, medicines, textiles, adhesives, and building materials. These goods' unique properties, like high paste clarity, freeze-thaw stability, and paste viscosity, drive expansion in the cassava-based category.

April 2021: Cargill Inc. partnered with Starpro, a key food-grade tapioca starch producer in Thailand, to expand its specialty tapioca starch offerings in Asia-Pacific. The collaboration will support food manufacturers' product processing requirements and meet consumers' sensory expectations.

April 2021: EmslandGroup launched The Emwaxy Spray 200, which perfectly fits the rapidly growing demand for clean-label alternative ingredients for the food industry. Emwaxy Spray 200 is a clean-label low DE starch derivative based on high amylopectin potato starch.

Modified Starches Form Insights

Based on form, the Modified Starch market segmentation includes Powder, Liquid, and Gel. The powder segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the roll-drying technique used to create roll-dried starch. It's utilized in the making of chilled products. High performance, extra convenience, dispensability, flexibility, and other benefits are all provided by roll-dried starch. Cold manufacturing requires rapid hydration, a high processing tolerance, and long shelf life. Because of their hectic lifestyles, consumers demand convenience foods. Roll-dried starch is used to produce traditional foods to extend their shelf life, add texture, and boost nutritional content. Roll-dried starch keeps food fresh and prevents it from being damaged during transit and storage. Baby food also contains roll-dried starch. A safe and nutritious environment for toddlers and newborns is essential. Hence, rising applications of Modified Starches positively impact the market growth.

Figure 1: Modified Starch Market, by Form, 2022& 2030(USD Billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Modified Starches Application Insights

The Modified Starch market data has been based on Applications in Food & Beverages, Non-Food Applications. The Food & Beverages segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Modified starch is a feed component used to enhance digestibility and assist animals in gaining weight. It is primarily used as a milk replacer and energy source. Companies are concentrating on improving the collection & processing of modified starch to find new feed uses. In swine feed, starch is the principal source of carbohydrates. When fed to weaning pigs as a corn replacement, potato starch can help them grow faster. Modified starch in ruminant feed works as a milk substitute for newborn calves. It is a source of carbohydrates, which improves ruminant digestion and helps them acquire weight.

February 2021: Tate & Lyle PLC completed the acquisition of an 85% shareholding in Chaodee Modified Starch Co. Ltd ("CMS"), a well-established tapioca-modified food starch manufacturer based in Thailand. The signing of a conditional agreement for this acquisition was announced on October 28, 2020. The investment extended Tate & Lyle's presence in specialty tapioca-based restaurants and established a dedicated production facility in the central tapioca-producing Region of Eastern Thailand. This approval has further broadened the growth opportunity for the Modified Starches industry.

Modified Starches Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Europe Modified Starch market accounted for USD 13.4 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The Asia-Pacific starch sector offers a variety of starch products, including native and modified (chemically and physically) starches, as well as liquid and solid sweeteners. Potato starches’ versatility allows them to be used as ingredients & available supplements in the food, non-food, and feed industries.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MODIFIED STARCHESMARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

North America Modified Starch Market accounts for the second-largest market share due to the Rising consumer awareness of the health benefits of eating low-fat foods is expected to drive demand. Further, the U.S. modified starch industry held the largest market share, and the market for modified Starch was the fastest growing market.

The Asia-Pacific Modified Starch Market acquired the largest revenue share in 2021. The Asia-Pacific starch sector offers a variety of starch products, including native and modified (chemically and physically) starches, as well as liquid and solid sweeteners. Potato starches’ versatility allows them to be used as ingredients & available supplements in the food, non-food, and feed industries. Moreover, China market for modified starch held the largest market share, and India modified starch industry was the fastest-growing market in the Asia-Pacific region.

Modified Starches Key Market Players & Competitive Insights

Major market players are spending a lot on R&D to increase their product lines, which will help the Modified Starch market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Modified Starches industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the globally Modified Starches industry to benefit clients and expand the market sector. The modified Starchesindustry has provided medicine with some of the most significant benefits in recent years. The Modified Starch market major player such as Cargill Incorporated (U.S.), Archer Daniels Midland Company (U.S.), Ingredion Incorporated (U.S.), Tate & Lyle PLC (U.K.), Agrana Beteiligungs-AG (Austria), Grain Processing Corporation (U.S.), Roquette Frères (France) is working on expanding the market demand by investing in research and development activities.

Tate & Lyle PLC is a supplier of food and beverage ingredients to industrial markets. It was initially a sugar refining business, but in the 1970s, it began to diversify, eventually divesting its sugar business in 2010. Tate & Lyle PLC acquired an 85% shareholding in Thailand's Chaodee Modified Starch Co. Ltd ("CMS"), a well-established tapioca-modified food starch manufacturer. The signing of a conditional agreement for this acquisition was announced on October 28, 2020. The investment extended Tate & Lyle's presence in specialty tapioca-based restaurants and established a dedicated production facility in the central tapioca-producing Region of Eastern Thailand.

Cargill, Incorporated, is a privately held American food corporation based in Minnetonka, Minnesota, and incorporated in Wilmington, Delaware. Founded in 1865, it is the largest privately held corporation in the United States. Cargill Inc. partnered with Starpro, a key food-grade tapioca starch producer in Thailand, to expand its specialty tapioca starch offerings in Asia-Pacific. The collaboration will support food manufacturers' product processing requirements and meet consumers' sensory expectations.

Key Companies in the Modified Starch market include

• Cargill Incorporated (U.S.)


•  Archer Daniels Midland Company (U.S.)


•  Ingredion Incorporated (U.S.)


•  Tate & Lyle PLC (U.K.)


•  Agrana Beteiligungs-AG (Austria)


•  Grain Processing Corporation (U.S.)


•  Roquette Frères (France)

Modified Starch Industry Developments

April 2021: Cargill Inc. partnered with Starpro, a key food-grade tapioca starch producer in Thailand, to expand its specialty tapioca starch offerings in Asia-Pacific. The collaboration will support food manufacturers' product processing requirements and meet consumers' sensory expectations.

April 2021: EmslandGroup launched The Emwaxy Spray 200, which perfectly fits the rapidly growing demand for clean-label alternative ingredients for the food industry. Emwaxy Spray 200 is a clean-label low DE starch derivative based on high amylopectin potato starch.

Modified Starch Market Segmentation

Modified Starch Source Outlook

• Corn


• Wheat


• Cassava


• Potato


• Other

Modified Starch Form Outlook

• Powder


• Liquid


• Gel

Modified Starch Application Outlook

• Food & Beverages


• Non-Food Application

Modified Starch Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America