Modified Starch Market Size, Share & Trends Analysis Report By Product (Starch Esters & Ethers, Resistant, Cationic), By Material (Corn, Wheat), By Function (Stabilizers, Thickeners), By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global modified starch market size was estimated at USD 11.8 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 5.3% from 2022 to 2030. The demand for processed and convenience foods is being driven by an expanding global population. Modified starch is a crucial and useful component found in manufacturing ready-to-eat food products. The market for modified starch is anticipated to expand significantly due to rising consumer demand for processed foods over the coming years.

COVID-19 had both positive and negative impacts on the market. Processed and packaged foods were in high demand during the pandemic when consumers rushed to pile up foods that had longer shelf lives, which led to higher demand for modified starch. However, many restaurants and food service outlets were shut as well as the food and beverage supply chain was disrupted due to lockdowns and restrictions across the globe. As the supply chain is gradually restored and restaurants and other food service establishments start to reopen, the market is anticipated to return to its pre-COVID levels.

Convenience foods are mainly prevalent in North America and Europe based on regional annual consumption rates. People's lives are nowadays becoming hectic and isolated, resulting in little time for home cooking. Globalization and the resulting lifestyle changes have resulted in an increase in the consumption of convenience foods in various countries around the world, especially in Asia's expanding markets, thereby increasing the demand for modified starch.

Modified starch is utilized in a wide range of industries, including food, papermaking, cosmetics, personal care, and textiles due to its many advantages. The personal care and cosmetics industries use modified starch as a versatile additive. Manufacturers are making new cosmetic products using organic ingredients like modified starch, as the demand for natural cosmetics has grown over the past few years, which is expected to fuel product demand in the coming years.

A significant number of international fast-food restaurant chains have expanded their operations in various parts of the world over the past few years, each with its own cuisine and product offerings to meet consumer demand in multiple regions. Fast food restaurants often utilize modified starch in their food preparation to enhance the flavor, taste, and texture of products, which will drive product demand during the forecast period.

The Asian markets have lenient regulations when it comes to health claims for modified starch. However, the U.S. market has stringent regulations, and no health claims for food additives are permitted; however, functional or structural claims are permitted. In terms of health claims for modified starch, European markets have the most strict regulations. Distributors and manufacturers face production and distribution challenges as a result of these stringent laws and regulations, which are expected to hinder market growth.

Product Insights

In 2021, the starch esters and ethers segment led the market with a revenue share of over 30% owing to their ability to improve food texture and shelf life. These products are expected to see increased consumption in bakery, convenience, and dairy foods. The segment will also benefit from a positive outlook in the food and beverage industries in China and India. These developing markets are also expected to see substantial growth in the pharmaceutical industry, as consumer demand for advanced medicines rises, propelling product demand over the forecast period.

Cationic starches are expected to expand at a CAGR of 5.1% between 2022 and 2030. This expansion can be attributed to the product's unique properties of sizing agent emulsification and dry strength, which are broadly used in the paper industry. The aforementioned factors, as well as numerous retention and drainage properties, will boost demand in the paper industry in the coming years. The other products in the segment include resistant, pre-gelatinized, and others.

Material Insights

The cassava segment is expected to expand at a CAGR of 6.3% between 2022 and 2030. Confectionery, adhesives, food and beverage, pharmaceuticals, building materials, and textiles all require intensive use of starch. The product's growth is primarily driven by properties such as stability and high paste clarity. Corn accounted for the highest revenue share of over 81% in 2021 due to its widespread availability and high demand. It is widely used to thicken liquid-based food products like gravies, puddings, sauces, soups, and custards. Corn starch is versatile, can be easily modified, and has many industrial applications, including anti-sticking agents and adhesives in the papermaking industry. It is also used in the production of textiles, as well as the production of sugars and corn syrups.

Function Insights

The thickeners segment led the global market in terms of revenue in 2021 with a market share of over 50%. As a thickening agent, modified starch enhances the viscosity of any liquid without affecting its other properties significantly. It is frequently used in the food and beverage industry, particularly in puddings, sauces, soups, and gravies, without changing the taste, which will fuel product demand.

The emulsifier segment is also expected to grow during the forecast period with a compound annual growth rate of 5.7%. It is highly useful for emulsifying end-use products in a variety of industries, particularly in food and beverage products containing flavored oils. Modified starch bonded with phosphate enables the starch to soak up more water while also keeping the ingredients together. It acts as an emulsifier in various food applications such as French dressing by encasing oil droplets and suspending them in water.

End-use Insights

The food and beverage segment accounted for the highest revenue share of over 45.0% in 2021 and is predicted to lead the market throughout the forecast period. Modified starches are excellent flavor carriers and may be added to ready-to-drink mixes. It adds a slight amount of viscosity for a silky texture in coffee, slushies, smoothies, and other beverages. When added to pasta, soup, and mayonnaise, it enhances the quality of such products in the baking industry. It is also very beneficial for emulsifying end-use products in a variety of industries, particularly those containing flavored oils.

The paper segment was valued at USD 2.5 billion in 2021. After fiber, water, and fillers, modified starch is employed in large quantities in the papermaking process. Starch aids in the production of paper by providing functional characteristics and acting as a processing aid. Paper mills use starches derived from a variety of sources, including waxy maize, regular corn,  tapioca, wheat, and potato to make the paper stronger and smoother to write on. Starch is also used as a binder in paper coating, improving the firmness and whiteness of the paper, thereby improving the printing characteristics.

Regional Insights

North America dominated the global market in 2021, accounting for more than 42% of the total revenue share. Rising consumer awareness of the health benefits of eating low-fat foods is expected to drive demand in the region, especially in the U.S., which is one of the largest producers of corn starch and corn globally. Furthermore, diverse applications of modified starch products, as well as innovation and new product development like Octenyl Succinic Anhydride (OSA), a widely utilized esterification agent, are propelling the market growth.

Asia Pacific is expected to witness the fastest CAGR of 5.9% from 2022 to 2030. Several countries in this region, including India, Taiwan, Japan, South Korea, and China, are heavily reliant on agriculture for economic growth, which is driving market growth. Furthermore, favorable government agricultural policies and shifts in people's lifestyles have increased the demand for processed and convenience food, driving market growth in this region.

Key Companies & Market Share Insights

The modified starch market is moderately fragmented. International players in the market are focusing on implementing strategies in order to increase their market share. Some of the major players in the market include Archer Daniels Midland Company, Agrana Beteiligungs-AG, Emsland-Starle GmbH, Cargill, Inc., Global Bio-Chem Technology Group Co. Ltd., and others. Key players in the market enter into strategic partnerships, mergers & acquisitions, and joint ventures, and focus on research & development to launch innovative products to cater to the changing preferences of consumers around the world. For instance, in April 2021, Cargill Inc., partnered with Starpro, a major food-grade tapioca starch manufacturer in Thailand. The partnership is aimed to expand its tapioca starch products in the Asia Pacific as well as to support food manufacturers' product processing needs while also meeting consumers' sensory expectations. Some of the prominent players in the global modified starch market include:

• Emsland-Stärke GmbH

• Grain Processing Corporation

• Global Bio-Chem Technology Group Company Limited

• Ingredion Incorporated

• Roquette Frères

• ADM

• Agrana Beteiligungs AG

• Avebe U.A.

• Cargill, Incorporated

• Samyang Genex Corp.

• Beneo-Remy N.V.

• Siam Modified Starch Co., Ltd.

• China Essence Group Ltd.

• PT Budi Starch & Sweetener Tbk

• Tate & Lyle PLC

• ULRICK&SHORT

• KMC (Kartoffelmelcentralen) Amb

Modified Starch Market Report Scope

Global Modified Starch Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global modified starch market report on the basis of product, material, function, end-use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Starch Esters & Ethers

  • Resistant

  • Cationic

  • Pre-gelatinized

  • Others

• Material Outlook (Revenue, USD Million, 2017 - 2030)

  • Corn

  • Cassava

  • Wheat

  • Potato

  • Others

• Function Outlook (Revenue, USD Million, 2017 - 2030)

  • Stabilizers

  • Thickeners

  • Emulsifiers

  • Binders

  • Others

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Food & Beverage

  • Animal Feed

  • Paper

  • Pharmaceuticals

  • Textiles

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Thailand

    • Australia & New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa