The global starch derivatives sales is expected to reach a valuation of USD 24.6 billion by the year 2024, accelerating with a CAGR of 4.1% by 2024 to 2034.
To maintain a healthy lifestyle, consumers have turned to natural, gluten-free and non-GMO products. This has led to the wide use of gluten free and non-GMO ingredients by food manufacturers. There scientific reason why manufacturers are investing more in research and development so as to produce innovative functional starch derivatives is because of its high nutritional value and multiple health benefits.
There has been a growing awareness about the health benefits associated with corn, wheat, potato and tapioca among consumers. As such, they are being used more in final foods by food processors. Starch derivatives play roles such as gelling agents, thickeners and binders in food processing which enhance texture stability and nutritional value of food products. This trend is perfectly matching with increasing consumer demand for healthier, more natural food options thereby signaling continued innovation and adoption within the business sector.
Another factor driving this shift toward healthier eating patterns is the increased prevalence of food intolerances and allergies including celiac disease as well as gluten sensitivity. In order to meet this surge in demand for gluten-free alternatives that’s why these companies have started looking into other sources of starch like potatoes or tapioca which do not contain any traces of gluten naturally.
| Attributes | Description |
|---|---|
| Starch Derivative Market Size (2024E) | USD 24.6 billion |
| Starch Derivative Market Projected Size (2034F) | USD 36.8 billion |
| Value CAGR (2024-2034) | 4.1% |
| Top 3 Countries Market Share | 23.6% |
The quest for clean labeling whereby buyers prefer easily recognizable parts has driven the use of non-GMOs on one hand as well as other naturally sourced starch processing materials. Consumers have become more knowledgeable regarding genetically modified organisms (GMOs) and are going out to look for items that do not include these components.
Not only are food makers responding to customer demands but also looking at sensory attributes like taste mouth feel appearance when developing their products besides focusing on nutrition alone. This will help improve certain qualities such as taste smell or sight through advanced starch derivatives making them more appealing satisfying to customers especially those who wish to take some healthy choices.
Moreover, there is an increase in functional foods industry where products provide additional health related advantages apart from basic nutrition; starch derivatives have a significant role in this category. Starch derivatives play an instrumental role in this sector by offering specific health benefits that include improved digestion, increased energy levels and better blood sugar control.
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| Particular | Value CAGR |
|---|---|
| H1 | 3.9% (2023 to 2033) |
| H2 | 4.6% (2023 to 2033) |
| H1 | 4.1% (2024 to 2034) |
| H2 | 4.5% (2024 to 2034) |
The above table presents the expected CAGR for global starch derivative sales over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 3.9%, followed by a slightly higher growth rate of 4.6% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 4.1% in the first half and remain relatively moderate at 4.5% in the second half. In the first half (H1) the industry witnessed an increase of 70 BPS while in the second half (H2), the industry witnessed an increase of 40 BPS.
Clean Label Products Gaining Traction in Asia
These “clean” products are increasingly popular in Asia as customers are demanding more transparency and simplicity in their food ingredients. The modified starch sales have been boosted by the introduction and sale of various clean label food ingredients. This is why more manufacturers now advertise their brands as clean label with health benefits.
Ingredient lists awareness and clean labeling among Asian consumers has increased significantly due to legal requirements on some of these additives. According to Food Navigator-Asia, 60% of new food and drink launches across Asia Pacific carry at least one clean label claim including confectionery which was always the exception.
Preference for Natural Products Over Food Containing Additives
The demand for “all natural” labeled foods and drinks is increasing significantly among healthy eaters while conventional processed foods with artificial components are either stagnating or losing ground. For example, there will be a stronger emphasis on combining clean label, natural, organic claims with environmental sustainability when it comes to future trends surrounding such concepts within consumables. The transition from artificial to natural ingredients is changing the dynamics of the food industry forever.
Creative use of technology solutions to meet customer demands
Emerging market firms are coming up with innovative products to fit recent industry trends. By making use of state-of-the-art technologies, these companies are fulfilling ever-changing end-user needs and preferences thus attracting more customers and gaining more market share.
The use of natural ingredients in making modified starch that addresses the need for healthier choices amongst healthy eaters is one good example. This innovation has made modified starch a more attractive product in the industry.
Focus on Clear Ingredient Lists Rising
There’s an increasing number of consumers who have become ingredient-checkers, demanding for greater transparency as well as absence of unnecessary additives, chemicals or artificial colors and flavors.
Products that clearly indicate what they contain by not including these unwanted elements appear real. Many consumers’ buying decisions have been affected by this trend who may be ready to pay a premium for products that bear “clean labels.” The future of product labeling and consumer trust involves such things as clear and honest lists.
Growing Demand for Low-Fat/Fat-Free Dairy Products
The awareness about the importance of nutrient-dense foods has led to an increase in demand for low-fat or fat-free dairy products. Most importantly, it plays a crucial role in this segment that involves binders, fat reducers, emulsifiers, and thickeners like modified starch.
Modified starch is widely used in dairy products globally due to growing interest among consumers regarding health-conscious approaches when purchasing dairy foodstuffs. The sale growth rates associated with modified starch come from its ability to act as a versatile medium which can improve both texture and nutritional profile within dairy items.
Popularity of Organic & Non-GMO Products on the Rise
Organic foodstuffs have gained popularity because customers increasingly prefer organic foods and ingredients. This drives the demand for organic modified starches such as those derived from potatoes. Another trend is noticed wherein there are growing concerns about food safety resulting into non-genetically modified organism (GMO) products.
Their food choices demonstrate a search for fresh and natural food, which is what many people are demanding. Modified starch is often used in bakery products, soups; breakfast cereal blends and other ready meals because it has no allergens or GMOs. This offers opportunities for modified starch manufacturers and buyers in this up-and-coming situation.
Principal Consultant
The starch derivative sales saw robust growth from 2019 to 2023, with sales increasing at a compound annual growth rate (CAGR) of 3.8%. This period of steady growth was driven by the rising consumer demand for gluten-free, non-GMO, and clean-label products, as well as the increased use of starch derivatives in various food applications due to their functional benefits.
During the 2019 to 2023 period, the functional food and beverage industry significantly contributed to the growth of the starch derivative sales as consumers' increasing awareness of health and wellness led to a surge in demand for food products that offer additional health benefits beyond basic nutrition.
The role played by starch derivatives is known to improve digestion, boost energy levels, and help maintain blood sugar levels when consumed as part of a functional meal.
Apart from the food sector; starch derivatives are also being applied in non-food sectors such as pharmaceuticals, cosmetics, paper industry etc. The use of starch derivatives as excipients and drug delivery agents makes them an important ingredient in pharmaceutical production while they can act as stabilizers and texture enhancers in cosmetics. Increasingly diversified applications contributed to an overall positive trend within this sector.
The clean label trend which called for transparency on ingredient lists was intense between 2019 to 2023 resulting to many consumers favoring more recognizable natural ingredients over artificial additives. Starch derivatives sourced from non-GMO organic sources were also popular on account of the same thereby increasing their demand.
From 2024 to 2034, the starch derivative sector is expected to witness more accelerated growth in future. This growth is anticipated to be driven by factors such as increase in consumer health awareness, ongoing innovation in food technology and increasing application in emerging industries.
One key driver of future growth will be increased demand for plant-based and sustainable products. The concern for global warming has led to an inclination towards plant-based diets and sustainably sourced ingredients among consumers. Starch derivatives are derived from plants therefore they will easily benefit from this trend.
The sales in Asia-Pacific, Latin America, and Africa indicate potential for significant growth in the starch derivative sales.
As a result of rising disposable incomes, increased urbanization and shift in diets, especially in these parts of the world will push up demand for processed foods as well as convenience foods where starch derivatives feature prominently.
Regulation authorities across the globe have been advocating for clean labels and natural ingredients adoption within the food industry. Such regulatory support is expected to lead to an increase in the use of starch derivatives which would drive higher sales volume.
The starch derivative industry is characterized by a tiered structure, reflecting a diverse and competitive industry landscape. This structure includes a mix of major multinational corporations and smaller, local enterprises, each playing a unique role in industry dynamics.
The top tier, accounting for 23.0% of the industry, is dominated by well-established multinational corporations such as Ingredion Incorporated, Cargill, Incorporated, Archer Daniels Midland Company, Roquette Frères Company, Tate & Lyle PLC, The Agrana Group among others. These industry leaders leverage extensive production capabilities, advanced technological infrastructure, and comprehensive product portfolios to maintain significant industry presence.
Their ability to meet stringent regulatory standards and sustain robust distribution networks allows them to capture substantial industry share globally. Additionally, their investment in research and development facilitates continuous innovation, enabling them to introduce a wide array of starch derivatives that cater to evolving consumer preferences, particularly those of health-conscious and environmentally aware individuals.
The second tier, constituting 45.0% of the sales, includes established companies that have solidified their positions through consistent growth and sales presence. These companies, while not as dominant as the top-tier players, possess significant industry share and play a crucial role in driving the industry's growth. Their capabilities allow them to compete effectively with Tier 1 companies, especially in regional sales.
The third tier, making up 32.0% of the sales, comprises smaller and often local companies. These emerging and niche players, while lacking the global reach and resources of their larger counterparts, are pivotal in specific regions and market segments.
They focus on niche industries and specialized products that cater to localized demands and specific dietary needs. Their flexibility and agility enable these companies to quickly adapt to key trends and consumer preferences, often leading to unique and innovative product offerings.
The coexistence of both large multinational corporations and smaller local enterprises within the starch derivative industry ensures a dynamic and competitive industry landscape. This diversity fosters continuous advancements and a broad spectrum of product choices, meeting the diverse needs and preferences of consumers globally.
The organized segment, dominated by Tier 1 and Tier 2 players, benefits from economies of scale, advanced R&D facilities, and comprehensive distribution networks. In contrast, the unorganized segment, represented by Tier 3 players, thrives on flexibility, regional expertise, and the ability to cater to niche category.
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The following table shows the estimated growth rates of the significant five geographies of sales. China and Brazil are set to exhibit high starch derivative consumption, recording CAGRs of 4.2% and 4.3%, respectively, through 2034.
| Country | CAGR, 2024 to 2034 |
|---|---|
| United States | 2.8% |
| Germany | 0.6% |
| China | 4.2% |
| India | 3.2% |
| Brazil | 4.3% |
In the United States, starch derivative sales is expected to grow at a steady CAGR of 2.8% from 2024 to 2034. This growth is primarily driven by increasing consumer demand for healthier and more sustainable food options.
The strong presence of major multinational corporations, which invest heavily in advanced R&D and innovative product development, also contributes to the industry steady expansion. Additionally, regulatory standards and robust distribution networks further bolster industry growth.
Germany's starch derivative market is projected to experience a modest CAGR of 0.6% over the next decade. As a mature sales with well-established food processing industries, growth in Germany is likely to come from incremental innovations and the adoption of cleaner, more natural ingredients in food products.
The focus will be on maintaining high-quality standards and meeting stringent regulatory requirements, ensuring the sales remains competitive and sustainable.
China is set to witness a robust CAGR of 4.2% in its starch derivative sales from 2024 to 2034. This rapid growth is driven by the country's ongoing industrialization and urbanization, coupled with a growing middle class that is increasingly health-conscious.
The Chinese sales is becoming a hotspot for new product launches and technological advancements in starch derivatives, as manufacturers strive to meet the evolving preferences of consumers.
India's starch derivative sales is projected to grow at a CAGR of 3.2%, fueled by rising disposable incomes and a significant shift towards processed and convenience foods. The increasing awareness of the health benefits associated with starch derivatives is further driving sales expansion.
As consumers seek healthier food options, the demand for functional ingredients like starch derivatives is expected to rise, creating opportunities for both local and international manufacturers.
Brazil leads the key countries with the highest projected CAGR of 4.3% in the starch derivative sales from 2024 to 2034. This impressive growth is driven by the country's expanding food and beverage industry and a growing consumer preference for natural and functional food ingredients.
Brazil's abundant agricultural resources provide a strong base for starch production and innovation, positioning the country as a key player in the global starch derivative market.
| Segment | Product Type (Modified) |
|---|---|
| Value Share (2024) | 56.8% |
In 2024, modified starch derivatives dominate with a commanding 56.8% value share. These derivatives are witnessing robust growth due to their versatility in various industries, from food and beverages to pharmaceuticals and textiles. Their ability to enhance stability, texture, and shelf life makes them indispensable in modern manufacturing.
| Segment | Source (Maize/Corn) |
|---|---|
| Value Share (2024) | 47.1% |
Maize or corn-based starch derivatives hold a significant 47.1% value share in the sales. This source's popularity stems from its abundance, cost-effectiveness, and sustainability. As industries increasingly prioritize eco-friendly practices, corn-derived starch derivatives are poised to maintain their pivotal role in the sales landscape.
| Segment | End Use (Food & Beverage) |
|---|---|
| Value Share (2024) | 83.0% |
The food and beverage sector commands an impressive 83.0% share of the starch derivative sales in 2024. This dominance underscores the critical role these derivatives play in enhancing product quality and consumer appeal. From thickening agents to stabilizers, their applications in this sector ensure consistent taste, texture, and appearance in a wide array of products.
The starch derivative industry is well-positioned for sustained growth, driven by innovation and the increasing consumer shift towards healthier and more sustainable food options.
As consumer awareness of the health benefits associated with starch derivatives continues to rise, and as technological advancements enable the development of new and improved products, the sales is expected to expand further. From a manufacturer's perspective, this growth presents significant opportunities to invest in cutting-edge technologies and research and development initiatives that can lead to the creation of high-quality, versatile starch derivatives.
Manufacturers can capitalize on this trend by diversifying their product offerings to include a wider range of gluten-free, non-GMO, and organic options, which are increasingly in demand. Moreover, the synergy between large and small players, each contributing to the sales's dynamism, will continue to be a key factor in the industry's ongoing evolution and success.
Large corporations can leverage their extensive resources and global reach to drive sales expansion, while smaller firms can innovate rapidly and respond to specific consumer needs, creating a balanced and competitive sales environment.
Starch Derivative industry is segmented as Modified, Native
As per source, the industry has been categorized Maize / corn, Wheat, Potato, Tapioca, and Rice
End use further includes Food & Beverage (Breads and bakery products, Nutrition bars, Biscuits and cookies, Breakfast cereals, Pasta and noodles, Sheeted baked snacks and crackers, Extruded snacks, Soups and ready meal, components, Thickened beverages, Meat Substitutes/ Meat Analogues/ Meat Extenders) Dietary Supplements and Animal Nutrition
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa
The Starch Derivative sales shall reach nearly USD 24.6 billion by 2024.
The North American Starch Derivative Sales has a share of around 33.4% in 2024.
The demand for Starch Derivative is anticipated to grow at a 2.9% CAGR between 2024 and 2034.
Clean Label Movement, Functional and Nutritional Enhancement, Sustainability Initiatives, Technological Innovations, Diversification of Applications, are among the most well-known trends.
1. Executive Summary
2. Industry Introduction, Including Taxonomy and Market Definition
3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Product Type
6.2. Source
6.3. End Use
6.4. Region
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type
7.1. Modified
7.2. Native
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Source
8.1. Maize / corn
8.2. Wheat
8.3. Potato
8.4. Tapioca
8.5. Rice
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use
9.1. Food & Beverage
9.1.1. Breads and bakery products
9.1.2. Nutrition bars
9.1.3. Biscuits and cookies
9.1.4. Breakfast cereals
9.1.5. Pasta and noodles
9.1.6. Sheeted baked snacks and crackers
9.1.7. Extruded snacks
9.1.8. Soups and ready meal components
9.1.9. Thickened beverages
9.1.10. Meat Substitutes/ Meat Analogues/ Meat Extenders
9.2. Dietary Supplements
9.3. Animal Nutrition
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. Eastern Europe
10.5. East Asia
10.6. South Asia and Pacific
10.7. Middle East and Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Product Type, Source, and End Use for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Archer Daniels Midland Company
20.2. Ingredion Incorporated
20.3. Tate & Lyle
20.4. Roquette Frères
20.5. Cargill Incorporated
20.6. Fooding Company Limited
20.7. Foodchem International Corporation
20.8. Tereos SA
20.9. Molinos Juan Semino SA
20.10. Grain Processing Corporation
20.11. Global Sweeteners Holdings Ltd.
20.12. AGRANA
20.13. JP & SB International
20.14. Varun Industries (India)
20.15. Gujarat Ambuja Export
20.16. ShreeGluco Biotech Private Ltd.
20.17. Matsutani Chemical Industry Co., Ltd.
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Starch Derivative Market
