Organic starch acts as a binding, thickening, anticaking, filling, and gluing agent in food and beverage application. Rising demand for convenience foods and busier lifestyles of consumers are factors anticipated to encourage market growth over the forecast period. The on-the-go lifestyle trend in the U.S. is expected to boost the use of organic starch in food sector over the next eight years. Convenient, easy to carry options, offered by manufacturers of bakery products, such as pocket rolls and wraps, are further anticipated to drive the market over the forecast period.
Increasing consumption of meat is expected to boost product demand in food and beverage application in the U.S over the next eight years. This application segment is characterized by large multinationals that have attained market maturity. The presence of such large and established participants has led to a high degree of rivalry in the market. Rising demand for meat snacks, due growth in purchasing power parity, is likely to drive the product demand over the forecast period.
Manufacturers and distributors operating in the U.S. organic starch market are obligated to comply with the regulations laid down by various organizations including United States Pharmacopeia XVII, United States Department of Agriculture, and Organic Trade Association. Regulatory bodies in the U.S. have established strict regulations regarding the manufacturing of meat snacks to ensure better protection for consumers. The regulations mandate manufacturers to ensure good quality products, which may incur additional costs and restrain market growth.
Organic starch is produced from potato, cassava, wheat, tapioca, and corn. Variations in the prices of raw materials, on account of their availability, heavily impact the product prices. Starch prices have been volatile over the past few years owing to the increasing direct human consumption of the aforementioned raw materials. Over the past few years, climate changes and global warming also had a huge impact on cultivation, mainly owing to irregular rainfall, which, in turn, has affected the overall crop yield.
Technological advancements have led to the development of several novel applications with higher efficiency, thus opening up several new opportunities for market growth. Rising awareness, growing population, increasing disposable income, and improving living standards are factors that have resulted in a high demand for organic starch, thereby leading to increased opportunities for market participants.
There has been a significant increase in product innovation by companies to enhance their product portfolio, gain access to new markets, and avail synergetic benefits. This factor, coupled with the diversification of product portfolio, has helped companies increase their presence across the value chain. Market players such as Cargill, Inc., Ingredion, and Roquette America, Inc. are integrated across different stages of the value chain.
In-depth report on North America organic starch market market by Grand View Research:
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