May 18, 2024

Starch Derivatives Market is Poised for High Growth due to Increasing Applications Across Multiple Industries

The global starch derivatives market is primarily driven by the expanding food and beverage industry where starch derivatives are widely utilized. Starch derivatives are commonly used as thickeners, stabilizers, emulsifiers and binders in various foods including soups, sauces, baked goods, desserts, snacks, and other processed food products. They help improve texture, appearance, cooking qualities and stability to food items. Apart from food, starch derivatives also find applications in pharmaceuticals, paper, textile, and other industries. Growth of these end-use industries is fueling the demand for starch derivatives globally.

The Global starch derivatives market is estimated to be valued at US$ 76.73 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period.

Key Takeaways

Key players operating in the starch derivatives market are Cargill, Incorporated , ADM , Tate & Lyle PLC , Roquette freres , AGRANA Beteiligungs-AG , Ingredion Incorporated , Green Processing Corp. (GPC) , Avebe , Emsland Group , Foodchem International Corporation, Sukhjit Starch & Chemicals Ltd. , Universal Starch Chem Allied Ltd , Primient , SPAC Starch Products (India) Private Limited , JP&SB International, Matsutani Chemical Industry Co., Ltd, Crespel & Deiters Group, SMSCor. , Manildra Group, and KMC. These leading players are focusing on new product launches and capacity expansions to strengthen their market position.

There is huge potential for growth of Starch Derivatives Market Size in pharmaceuticals, paper, construction and other industrial applications. Rapid urbanization and industrialization in developing regions is opening new opportunities. Technological advancements are allowing manufacturers to develop innovative starch derivatives tailored for niche applications.

Market drivers:

The global starch derivatives market is expected to witness high growth owing to increasing food processing and expanding applications of starch derivatives across industries. Growth in the pharmaceutical industry where starch is widely used as a binder in tablets and capsules will also drive the demand. Rapid urbanization leading to high consumption of packaged and processed food is a key factor fuelling the global starch derivatives market. Moreover, starch derivatives offer functionality, quality and cost advantages over substitutes which is boosting their adoption in various sectors.

Current Challenges in Starch Derivatives Market
The starch derivatives market is facing challenges due to fluctuating prices of raw materials and supply issues. Corn is one of the primary raw materials used for producing starch. However, corn production and prices vary significantly depending on factors like weather conditions. This leads to instability in raw material prices. Moreover, supply chain disruptions caused due to the Covid-19 pandemic have hampered transportation and production activities across regions, negatively impacting the market.

SWOT Analysis
Strength: Starch derivatives have wide applications in industries like food and beverages, paper, textiles, pharmaceuticals, and others owing to their desirable functional properties. This leads to steady demand.
Weakness: Raw material price volatility makes production costs unpredictable. Additionally, environmental concerns related to overuse of chemicals during production act as a restraint.
Opportunity: Growth of end-use industries like food processing will augment demand for functional ingredients like starch derivatives. Market players can explore opportunities in regions with high agricultural output to ensure stable supply.
Threats: Stringent regulations pertaining to use of chemical additives during manufacturing pose compliance challenges. Intense competition from substitute products also threatens market share.

Geographical Regions with High Market Concentration
North America dominates the global starch derivatives market, accounting for over 35% value share. This is due to the presence of major manufacturers and a robust food processing industry in the US and Canada. Asia Pacific is another lucrative region driven by countries such as China, India, and Japan, supported by increasing population and rising middle-class income.

Fastest Growing Geographical Region
Asia Pacific region is projected to be the fastest growing market for starch derivatives during the forecast period. This growth can be attributed to rising health awareness, westernization of diets, and expansion of end-use industries in emerging economies of the region. China, India and Southeast Asian nations are expected to witness high demand growth due to favourable economic conditions and improving standards of living.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it