Industrial Starch Market Size, Share & Trends Analysis Report By Source (Corn, Wheat, Cassava, Potato), By Product (Native, Cationic, Ethylated, Acid Modified, Unmodified), By Application, By Region, And Segment Forecasts, 2020 - 2028

Report Overview

The global industrial starch market size was valued at USD 97.85 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.0% from 2020 to 2028. The growing application of industrial starch as a thickening, stabilizing, and gelling agent, binder, diluent, and excipient is anticipated to generate high demand for the product over the forecast period. The growth of the food and beverage industry is likely to be a major factor driving the demand for industrial starch. The product is used for the manufacturing of frozen, packaged, and convenience food products. The demand for such food products is increasing at a rapid rate, especially in developing countries, which is likely to influence the industry growth on a positive note.

Starch is manufactured using various sources, including corn, potato, and wheat. As of 2020, the U.S. is the largest corn producer and exporter in the world. The abundant availability of raw materials, coupled with the well-established manufacturing sector in the country, is expected to be a key factor for the industry growth in the U.S.

The flourishing food and beverages industry, especially in emerging economies, such as India and China, has increased the number of buyers of industrial starch in these markets. Cost competitiveness and product quality are likely to be the key factors influencing the buyer's decision. Low switching costs and the presence of several manufacturers across the globe have resulted in high buyer power.

The industry players have been focusing on various strategies such as mergers, expansions, and new product development to gain a foothold in the market. For instance, in March 2021, Cargill, Incorporated introduced label-friendly tapioca under the SimPure line. SimPure products were earlier made only using waxy corn- and potato-based starches. Tapioca starch provides soft texture, strong water-binding properties, and cold-storage stability.

The market is expected to face competition from alternatives, such as alginates, guar gum, gum Arabic, and agar, used in various end-use industries. However, the high scope for product penetration in the continuously innovating food and beverage industry is expected to open new growth opportunities for the industry.

Source Insights

Corn held the largest share of over 76.0% in 2020 in terms of revenue. Corn starch is a carbohydrate extracted from the endosperm of corn seeds. Corn starch is gluten-free and thereby is gaining traction in the market. It is a good source of energy and prevents low blood sugar in individuals with nocturnal hypoglycemia.

Wheat starch is widely used in the paper industry as an adhesive for surface coating and the production of corrugated boards. It is also used in cotton finishing and laundry sizing, where it aids in offering an excellent finish. The paste texture, strength, and clarity provided by wheat starch are similar to that of corn starch. However, wheat starch has less thickening power compared to corn starch.

Cassava starch is used as a water-binding and texturizing agent and helps to achieve desired viscosity in food products. The high viscosity, binding, and water-holding properties of cassava starch make it ideal for various food applications. Cassava starch also finds application in the textile industry for wrap sizing and cloth finishing.

Potato starch is gluten-free and thereby widely used as an alternative to flour in bakery products. This can be attributed to a rising number of health-conscious consumers having a greater preference for gluten-free, chemical-free, and additive-free products. Starch is extracted from various other sources including, rice, pea, and barley. The demand for rice starch is witnessing growth on account of its beneficial characteristics, such as neutral taste, white color, creamy texture, and greater digestibility.

Product Insights

Native starch and starch derivatives and sweeteners held the largest revenue share of over 60.0% in 2020. Native starches are the original form of starch. These are widely used in formulations of foods, pharmaceuticals, and other industrial products. The properties of the native starch can be modified to suit various applications by acid and other chemical treatments at specified temperatures. This modified starch is known as a starch derivative. White dextrins, British gums, and yellow dextrins are types of starch derivatives used in the food industry as thickeners, gelling agents, and stabilizers.

Cationic starch has been used in the paper industry. The capability of the cationic starch to bond the cellulose fibers together results in increasing the internal strength of the paper. The rising adoption of recycled paper stock in paper manufacturing has resulted in the rising penetration of treated cationic starches owing to their high strength and fiber retention properties.

Ethylated starch, acid-modified starch, and oxidized starch are widely used in size press, tub, and calendars to improve sheet strength, stiffness, and surface characteristics. Unmodified starch is used in the production of corrugated boards; coated & sized papers; paperboards; and adhesives, while it is also used in food processing in salad dressings; beers; and canned foods.

Application Insights

The food and beverages segment accounted for the largest revenue share of more than 55.0% in 2020 and is expected to witness strong growth from 2020 to 2028. The rising utilization of industrial starch in the bakery and confectionery sector is expected to have a positive impact on market growth over the forecast period. Expanding demand for on-the-go food products and various beverages from the young and working population is expected to drive the segment.

Industrial starches are used in animal feed, aquaculture feed, and pet food products on account of their binding and stabilizing properties. They can be used as milk alternatives and functional binders in the compound feed industry to adjust pellet characteristics, such as strength and hardness.

Functionalities of starch such as biodegradability, biocompatibility, and gel-forming ability have resulted in its increased applications in the pharmaceutical industry. Starch-based polymers are widely being used as an alternative to metals and ceramics in tissue engineering, thereby fueling the growth of the market.

Industrial starches are used in various end-use applications such as paper and boards, textiles, organic chemicals, enzymes, plastics, and glues. They are used to enhance the strength of paper and used as adhesives for bonding layers of corrugated boards. Industrial starches play an important role in the mixing, printing, and finishing phases of the textiles industry. The growing applications of starches in end-use industries are expected to augment the growth of the market.

Regional Insights

North America dominated the market with a revenue share of more than 45.0% in 2020. The region is home to various multinational food manufacturing and processing companies, resulting in an increased demand for industrial starch. According to Farm Credit Canada (FCC), in 2020, food and beverage sales grew by 3.5% year on year basis to USD 122.9 billion. Thus, with the growth of such application industries, the product demand in Canada is likely to witness significant growth.

Asia Pacific is expected to register the highest revenue-based CAGR from 2020 to 2028 on account of the robust growth of the manufacturing sector in the region. The presence of numerous pharmaceutical companies such as Kalbe’s Pharma, Hyphen’s Pharma, and Serum Institute of India Pvt. Ltd is expected to support the product demand. Industrial starch is used in the production of tablets and capsules due to its biocompatibility and gel-forming ability.

Europe emerged as the second-largest regional market in terms of value in 2020. The expanding application scope of industrial starch, specifically in convenience foods, is expected to drive the market in the region in the coming years. In November 2019, AGRANA Beteiligungs-AG announced an expansion of wheat starch production in Pischelsdorf, Lower Austria as wheat starch is used in the production of noodles and bakery products due to its growing demand.

According to the European Commission, Germany was the largest consumer of food and beverages in Europe in 2019 owing to the presence of numerous manufacturers of confectionery, bakery, and dairy products. Whereas, according to the Food & Drink Federation, food and beverage was the largest manufacturing industry in the U.K., contributing over USD 30 billion to its economy in 2019. The growth of the food and beverage industry in European countries is thus expected to augment the growth of the market.

Key Companies & Market Share Insights

The industry is highly competitive owing to the growing initiatives of market players to offer well-differentiated products. The flourishing food and beverage industry and the surging demand for thickeners, sizing agents, binding agents, and texture enhancers are further driving market players to offer high-quality food-grade starch products.

Archer Daniels Midland Company (ADM), Cargill Inc., and Ingredion are a few key companies involved in the manufacturing and distribution of industrial starch across the globe. Companies like Cargill Inc. are integrated across three segments of the value chain. Few of the companies produce fruits and vegetables that are used as raw materials to manufacture modified starches and native starches minimizing reliance on raw material suppliers.

Key players are engaged in adopting growth strategies such as product launches, acquisitions, and distribution partnerships. For instance, in March 2021, Ingredion Incorporated launched PURITY P 1002, a pea starch to strengthen its plant-based portfolio. The product provides improved texture for applications ranging from plant-based cheese to gluten-free baked goods to gelatin-free confectionery. Some prominent players in the global industrial starch market include:

• Cargill, Incorporated

• Archer Daniels Midland Company

• Ingredion Incorporated

• Tate & Lyle PLC

• AGRANA Beteiligungs-AG

• Grain Processing Corporation

• Roquette Frères

• Tereos Group

• Royal Cosun

• Altia Industrial

• Global Bio-chem Technology Group Company Limited

• General Starch Limited

• Eiamheng

• Coöperatie Koninklijke Avebe U.A.

• Galam Group

Industrial Starch Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global industrial starch market report on the basis of source, product, application, and region:

• Source Outlook (Volume, Metric Tonnes; Revenue, USD Million, 2017 - 2028)

  • Corn

  • Wheat

  • Cassava

  • Potato

  • Others

• Product Outlook (Volume, Metric Tonnes; Revenue, USD Million, 2017 - 2028)

  • Native Starch and Starch Derivatives & Sweeteners

  • Cationic Starch

  • Ethylated Starch

  • Oxidized Starch

  • Acid Modified Starch

  • Unmodified Starch

• Application Outlook (Volume, Metric Tonnes; Revenue, USD Million, 2017 - 2028)

  • Food & Beverage

    • Bakery & Confectionery

    • Dairy & Frozen Desserts

    • Beverages

    • Convenience Foods

    • Others

  • Feed

  • Pharmaceuticals

  • Others

• Regional Outlook (Volume, Metric Tonnes; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

  • Central & South America (CSA)

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • Saudi Arabia