Advancements in processing technologies and expanding applications in non-food industries will lead to increased demand for Industrial Starch

Industrial Starch Procurement Intelligence

Procurement of industrial starch offers numerous benefits to buyers across various industries, including food and beverage, paper and packaging, pharmaceuticals, and textiles. The global market size was estimated at USD 119.9 billion in 2023. This commodity plays a vital role due to its thickening, gelling, and stabilizing properties by enhancing the texture, appearance, and durability of end-products. Key drivers fueling the global market include the rising demand for convenience foods, expanding applications in non-food industries, advancements in processing technologies, and high demand for starch derivatives. Additionally, the growing preference for natural and organic ingredients further stimulates market growth.

Several key trends are shaping the global market, such as increasing demand for modified starch, adoption of starch-based bioplastics, and growth in R&D activities. For instance, the growing demand for modified starch is being driven by its enhanced functional properties suited for specific industrial applications. The adoption of starch-based bioplastics as eco-friendly alternatives to conventional plastics highlights the industry’s shift towards sustainability.

There is also a notable rise in R&D activities aimed at developing novel derivatives of this commodity with improved performance characteristics to cater to diverse industry needs. Moreover, the market is experiencing a geographical shift, with emerging countries, such as India, China, and Brazil, gaining a share of the global market due to their strong industrial growth and agricultural output.

The global industry is currently facing several challenges. Supply chain disruptions, especially when sourcing raw materials, including corn, cassava, and potatoes, are presenting significant obstacles. Fluctuations in raw material prices due to weather conditions, geopolitical tensions, and trade policies add to the complexity of maintaining a consistent supply. Environmental concerns related to the intensive use of water and energy in processing are hindering market growth. Additionally, the industry is contending with regulatory pressures concerning the use of genetically modified organisms (GMOs) in the production of this commodity.

Key technology trends driving industry growth include nanotechnology integration, modification using ozone technology, use of de-sanding cyclones, starch-based thermoplastic production using green solvents, and 3D printing. For instance, starch-based thermoplastics offer a sustainable alternative to traditional plastics because they can be made using green solvents derived from renewable sources, thus reducing environmental impact and promoting eco-friendly disposal. In another instance, 3D printing offers a cost-effective solution for small batch production, suitable for niche or specialty starch-based products.

Major suppliers are competing primarily based on product diversification, quality, sustainability initiatives, cost-efficiency, and innovation. They are striving to offer a diverse portfolio tailored to meet the specific needs of various industries and are emphasizing consistency with respect to the quality and performance of the commodity. Moreover, suppliers are highlighting innovation by increasingly investing in R&D for new formulations and applications. Cost efficiency, supported by efficient production processes and economies of scale, is vital for suppliers to price their products competitively to attract and retain customers. Buyers are prioritizing factors such as product consistency, supply chain reliability, cost-effectiveness, and supplier reputation for the sourcing of this commodity.

Price fluctuations of the commodity are influenced by several key factors, including raw material price volatility, currency exchange rates, weather conditions, and trade policies. For example, corn prices are highly susceptible to changes in agricultural yield, influenced by weather patterns, pest outbreaks, and farming practices. Moreover, adverse weather conditions, such as droughts or floods, can significantly reduce crop yield, leading to supply shortages and a subsequent increase in corn prices. Furthermore, trade policies and tariffs imposed by major producing countries may have a direct impact on the final prices of the commodity.

During the COVID-19 pandemic, the industry faced supply chain disruptions, bottlenecks in production processes, and demand variations. Lockdowns and restrictions reduced industrial activities and slowed down manufacturing sectors, significantly affecting demand for this commodity.

However, the F&B industry, being among the essential services, continued to drive demand for food-grade starch. Since 2023, the market has been witnessing a recovery with the resumption of industrial activities and the easing of supply chain constraints. The recovery is further supported by increased investments in sustainable and resilient supply chains, diversification of raw material sources, and the adoption of advanced technologies to enhance operational efficiency.

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Industrial Starch Sourcing Intelligence Highlights

• This market consists of a fragmented landscape, with the players engaged in robust competition.

• Buyers have substantial bargaining power and have the flexibility to switch to alternative suppliers.

• India, China, Thailand, Vietnam, and Indonesia are preferred as low-cost or best-cost countries for sourcing due to their vast availability of raw materials, cost-effective labor, supportive government policies, and large production volume.

• The key components of the cost structure comprise raw materials, labor, equipment, energy, packaging, logistics and others. Other costs include R&D, safety & compliance, general and administrative, marketing and sales, and insurance.

Industrial Starch Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market intelligence, along with emerging technology and the regulatory landscape

• Market estimates and forecasts from 2024 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights

As part of the industrial starch procurement intelligence report, Grand View Research has identified the following total cost components:

• Raw materials

• Labor

• Equipment

• Energy

• Packaging

• Logistics

• Others

  • R&D

  • Safety & Compliance

  • General & Administrative

  • Marketing & Sales

  • Insurance

Raw materials and labor form the largest cost component of Industrial Starch.

Industrial Starch - Key Suppliers

• AGRANA Beteiligungs AG

• Archer Daniels Midland Company

• ACH Food Companies, Inc.

• Cargill Incorporated

• Coöperatie Koninklijke Cosun U.A (Royal Cosun)

• General Starch Limited

• Grain Processing Corporation

• Ingredion Incorporated

• Roquette Frères S.A.

• Tate & Lyle PLC

• Tereos Group

• Universal Starch Chem Allied Ltd.