Industrial Starch Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every company and its procurement unit look to bargain for the best deal when procuring a set of products or subscribing to a set of services. Rate benchmarking contains price/cost comparison of multiple sets of products/services to evaluate the most effective combination that can potentially assist the procurement team in getting the optimal rate.

In Q1 2024, the prices of corn starch in several countries/regions experienced fluctuations due to various factors. For instance, by the end of Q1 2024, the price of corn starch (Free On Board, FOB), (Shanghai, China) was USD 460/MT, reflecting an average quarterly increase of 0.37%. This rise was driven by intensified domestic and international demand, causing suppliers to modify their prices accordingly. Similarly, the corn starch prices in Europe during Q1 2024 were influenced by multiple factors, resulting in a price of USD 700/MT (Cost and Freight, CFR), (Antwerp, Belgium) by the end of Q1 2024. In the UAE, corn starch prices (by the end of Q1 2024) reached USD 450/MT (CFR), (Zayed), marking a quarterly increase of 0.78%.

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Labor cost is one of the key components of the total costs incurred while offering a product or service. Therefore, an organization must decide whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Engineers working in Cargill Incorporated and Ingredion Incorporated receive a 10%-15% higher base salary as compared to the salary received by Engineers working in Tereos Group and Tate & Lyle PLC. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).

Organizations may find it burdensome to constantly track all the latest improvements in their supplier landscape. Outsourcing the activities related to collecting intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help companies stay up to date with the latest innovations and developments and subsequently support in preventing disruptions in the supply chain. We have identified the following developments within the industrial starch market over the last two years:

• In May 2024, Roquette announced the launch of its new ‘hydroxypropyl’ pea starch excipient, LYCAGEL®, at ‘Vitafoods’ Europe 2024. This addition enhances vegetarian and vegan dietary supplements (in soft gel forms) into the Roquette portfolio. This excipient will enable Roquette to tailor its nutraceutical formulations to accommodate diverse end-user needs. With this launch, Roquette aims to improve efficiency, quality, and sustainability in its starch-derived nutraceutical formulations.

• In February 2024, Ingredion introduced its ‘Novation Indulge 2940’ starch in North America, its first gelling functional native clean-label starch. This non-GMO corn starch provides a desirable texture to dairy and non-dairy products like yogurts, puddings, and desserts, meeting consumer demand for natural ingredients. The starch offers cost stabilization benefits to food brands due to its reliable supply and minimal processing. This innovation aligns with Ingredion’s emphasis towards transparency and sustainability in its food products.

• In September 2023, Grain Processing Corporation (GPC) purchased a specialty flour milling and warehouse facility in Oskaloosa, Iowa, U.S. This 64,000 sq. ft. facility is poised to enhance GPC’s starch milling operations, allowing for future growth and product diversification. It will also help GPC to expand the production of its plant-based, clean-label starch ingredients. With this purchase, GPC aims to cater to U.S. and global starch demand.