Modified Starch Market By Product Type (Cationic Starch, Anionic Starch, Esterified Starch, Oxidized Starch, Acetylated Starch, Resistant Starch, Pre-gelatinized Starch, Others ); By Raw Material Source (Corn, Potato, Cassava, Wheat, Other Sources); By Functionality (Thickening and Gelling Agents, Binding Agents, Texture Modification, Film-Forming Starches, Stabilizers and Emulsifiers, Glazing and Coating Agents, Others); By Application (Food and Beverages, Pharmaceuticals, Paper and Textile Industry, Animal Feed, Cosmetics and Personal Care, Biochemical and Biotechnological Applications, Others); By Distribution Channel (Direct Sales to Manufacturers, Distributors and Wholesalers, Online Retail); By Region)– Global Growth, Future Prospects & Competitive Analysis, Report 2020 – 2030
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The industry sector focused on the production, distribution, and application of starch derivatives that have undergone physical or chemical modification to improve their functional characteristics is known as the modified starch market. Modified starches are valuable ingredients in various culinary, beverage, pharmaceutical, and industrial applications because they can improve stability, texture, viscosity, and shelf life. The market, which includes a variety of modified starches like acetylated, cross-linked, and hydrolyzed starches, is essential to satisfying the varied needs of the contemporary food processing and manufacturing sectors.
Market Overview
The modified starch market has been expanding steadily in recent years, and between 2023 and 2030, it is anticipated to rise at a CAGR of 5.80%. The market was estimated to be worth USD 12154.8 million in 2022 and is anticipated to be worth USD 19082.40 million in 2030.
Processed foods often require specific textures and stability. Modified starches improve the texture, consistency, and shelf life of processed food products, making them more appealing to consumers. Processed foods need longer shelf lives to maintain product quality during distribution and storage. Modified starches can help achieve this by reducing moisture migration, preventing syneresis, and inhibiting retrogradation.
Modified starches are used in animal feed to improve the nutritional value and overall quality of the feed. They can serve as a source of energy and can enhance the digestibility of feed ingredients. Modified starches provide a concentrated energy source for livestock, poultry, and aquaculture, helping to meet the dietary energy requirements of animals for growth and production.
Modified starches are used to make products with the proper texture and consistency, guaranteeing a satisfying consumer experience as the demand for quick, ready-to-eat meals rises. Modified starches improve and enhance the texture of a wide range of food products, from dairy and bakery items to sauces and soups. This includes creating creamy textures, preventing syneresis, and providing a pleasant mouthfeel.
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The global demand for modified starch was valued at USD 12154.8 million in 2022 and is expected to reach USD 19082.40 million in 2030, growing at a CAGR of 5.80% between 2023 and 2030.
Anionic starch is the leading segment by product type. Cationic starch, on the other hand, is expected to grow at a robust CAGR.
The leading raw material source segment is corn.
The CAGR for the thickening and gelling agents is expected to be the highest during the projection period.
During the forecast time frame, the food and beverages category will likely have the highest CAGR.
Direct sales to manufacturers are estimated to have the greatest CAGR during the forecast period.
North America dominated the modified starch market.
Europe is predicted to be the second-largest region in the modified starch market.
In the modified starch market, Asia Pacific is anticipated to grow fastest.
Increased use in the pharmaceutical industry and expanding applications in non-food industries are the key factors boosting the modified starch market.
Rising demand for eco-friendly and biodegradable substances, and expanding functional starch blends that lower the cost of modified starch for consumers are the main market potential.
Segmentation by Product Type
Anionic starch is the market leader by product type. Anionic starch is a key ingredient in producing adhesives, particularly for corrugated paperboard and packaging applications. It enhances adhesion and provides good viscosity control.
During the projected period, the cationic starch category is anticipated to exhibit a sizable CAGR. This expansion can be attributed to the product’s unique properties of sizing agent emulsification and dry strength, broadly used in the paper industry. As mentioned above, numerous retention and drainage properties will boost demand in the paper industry in the coming years.
Other product types, such as esterified starch, oxidized starch, acetylated starch, resistant starch, pre-gelatinized starch, and others, also contribute to the demand for modified starch.
Segmentation by Raw Material Source
The main raw material source category is corn. Because of its great demand and extensive availability. It is frequently used to provide thickness to food items that are made with liquids, such as custards, puddings, sauces, soups, and gravies. With its versatility and ease of modification, corn starch has numerous industrial uses, such as in the papermaking sector for adhesives and anti-sticking agents.
The cassava category will likely register a significant CAGR during forecasting. Starch is heavily used in confectionery, adhesives, food and drink, medications, building materials, and textiles. Characteristics like high paste clarity and stability mainly drive the growth of the product.
Other raw material source, such as potato, wheat, and other sources, also contribute to the demand for modified starch.
Segmentation by Functionality
The category for thickening and gelling agents is anticipated to experience the highest CAGR during the projection period. Modified starches are used in pharmaceutical capsules as gelatin alternatives for controlled release and gelling properties. Modified starches can be used to create biodegradable films and packaging materials with gelling and thickening properties.
Other functionalities, such as binding agents, texture modification, film-forming starches, stabilizers and emulsifiers, glazing and coating agents, and others, also contribute to the demand for modified starch.
Segmentation by Application
The food and beverages category will likely have the highest CAGR during the projection period. Ready-to-drink mixes may benefit from the use of modified starches, which are great flavor transporters. It gives coffee, smoothies, slushies, and other drinks a smooth texture by adding a small amount of viscosity. It improves the quality of baked goods such as pasta, soup, and mayonnaise when added.
Other applications, such as pharmaceuticals, paper and textile industry, animal feed, cosmetics and personal care, biochemical and biotechnological applications, and others, also contribute to the demand for modified starch.
Segmentation by Distribution Channel
Direct sales to manufacturers will be expected to have the foremost CAGR during the prediction period. Manufacturers can have direct communication with the modified starch supplier, allowing for quality assurance and consistent product performance. Any issues or concerns can be addressed promptly, helping maintain product quality.
Other distribution channels, such as distributors and wholesalers and online retail, also contribute to the demand for modified starch.
Segmentation by Region
North America led the modified starch market. Consumers in North America are increasingly seeking clean-label and natural ingredient products. Modified starches that meet clean label criteria while providing functionality are in demand, driving the market’s growth.
Europe is estimated to rank second in market size for modified starch.
Asia Pacific will witness the most rapid growth in the modified starch market.
The rest of the world, including Latin America, the Middle East, and Africa, meets the rest of the modified starch demand.
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The increasing need for processed meals, modified starches from the pet feed sector, expanding demand for healthy meals and drinks, and technological improvements are the factors supporting the growth of the global market.
North America will rule the modified starch market during forecasting. This is due to the demand in the region being predicted to increase, particularly in the United States, one of the world’s biggest producers of corn and corn starch, as consumers become more conscious of the health advantages of low-fat foods. In addition, the market is expanding due to the variety of uses for modified starch products and the invention and creation of new goods like Octenyl Succinic Anhydride (OSA), a common esterification agent.
The Asia Pacific area is projected to grow fastest throughout the forecast. Asia Pacific has a large and continuously growing population. This demographic factor increases the demand for food products, both processed and natural, where modified starches are used in various applications.
The rising middle-class population in many Asia Pacific countries has increased consumer spending on processed and convenience foods, creating a robust market for modified starches. The region is known for its diverse food culture, with a wide variety of traditional and innovative food products. Modified starches are used to cater to the diverse textural and sensory preferences of consumers.
Increasing global awareness of environmental issues and concerns about plastic pollution drive the demand for eco-friendly packaging solutions, including biodegradable materials. Governments, organizations, and consumers are advocating for sustainable packaging practices, leading to regulations and industry initiatives that promote the use of biodegradable materials like modified starch-based packaging.
Key Highlights of the Report
The global modified starch market is segmented by product type, raw material source, functionality, application, distribution channel, and region. As far as the product type is concerned, Anionic Starch is the market spearhead. Corn is the best raw material source segment. During the forecast period, the thickening and gelling agent’s category is expected to grow at the highest CAGR. Food and beverages are anticipated to experience the highest CAGR during the forecast period. North America is driving the modified starch market growth.
The market for modified starches is growing, and a primary factor for this is the growing usage of modified starches in the pharmaceutical industry. Modified starches are used in the pharmaceutical industry for drug formulation, where they serve as excipients, binders, disintegrants, and fillers in various dosage forms, including tablets, capsules, and granules. Modified starches are employed in pharmaceutical formulations to control drug release, ensuring that active pharmaceutical ingredients are released in a controlled and predictable manner for improved therapeutic outcomes. Modified starches are used to mask the taste of bitter or unpleasant-tasting drugs, making them more palatable and improving patient compliance, especially in pediatric and geriatric formulations.
However, according to forecasts, North America will hold the largest market share for modified starch globally. North America has a strong consumer demand for processed and convenience foods. As the processed food industry continues to grow in the region, the demand for modified starches as texturizing, stabilizing, and thickening agents in these products also rises. Additionally, the Asia-Pacific (APAC) region is assumed to have the sharpest growth in the market. The demand for functional and fortified foods is on the rise in Asia Pacific, and modified starches are used to encapsulate nutrients and enhance the functionality of such products.
Which Key Factors Are Driving the Global Modified Starch Market?
The fundamental drivers propelling the modified starch market’s continuous rise include growing demand for functional foods and beverages, rising demand for modified starches from the animal feed industry, rising demand for processed foods, and technological advancements.
What Are the Key Challenges in The Global Market for Modified Starch?
Fluctuating raw material costs, regulatory challenges, consumer perception, and competition from alternative ingredients are some challenges hindering the market’s growth for modified starch.
What Market Opportunities Exist for Modified Starch Globally?
Modified starch has a lot of opportunities to grow because of the rising clean label and natural ingredients, health-focused products, gluten-free and allergen-free alternatives, and advanced food texturization.
Market Drivers
Several factors influence the modified starch market globally. The main factors influencing the modified starch market globally are as follows:
Growing Demand for Functional Foods and Beverages
Consumers are increasingly seeking food and beverage products that offer health benefits beyond basic nutrition. Functional foods and beverages are formulated to provide specific health advantages, such as improved digestion, enhanced immunity, or better heart health. Modified starches can be used to enhance the functionality of these products. Modified starches are crucial in improving the texture, mouthfeel, and stability of functional foods and beverages. They can create creamy textures in dairy alternatives, control syneresis in yogurt, or prevent phase separation in fortified beverages. Modified starches can carry vitamins, minerals, and other bioactive compounds in functional foods and beverages. This enables better nutrient absorption and bioavailability, enhancing the health benefits of these products. Many functional foods and beverages target sugar reduction to address health concerns such as diabetes and obesity. Modified starches can replace sugar or enhance the sweetness perception without adding calories, contributing to healthier formulations.
Market Restraints
Several challenges could prevent the expansion of the global market for modified starch. Among them are the following:
Fluctuating Raw Material Costs
The modified starch production process heavily relies on raw materials, such as corn, tapioca, or wheat. Fluctuations in the prices of these commodities can lead to unstable profit margins for manufacturers. When raw material costs rise, it can squeeze profitability, especially if manufacturers cannot pass on the cost increases to customers. Rapid and unpredictable changes in raw material prices make it challenging for manufacturers to plan and budget effectively. This can lead to uncertainty in production costs, hindering long-term strategic decision-making. Manufacturers could be hesitant to boost prices to offset higher raw material costs in a market where price rivalry is crucial, like the food industry. Lower margins and pressure from the competition may result from this.
Opportunities
The global market for modified starch presents significant potential opportunities. The following is an example of these:
Expanding Gluten-Free and Allergen-Free Alternatives
The prevalence of celiac disease and gluten sensitivity has driven the demand for gluten-free products. Modified starches can be gluten-free alternatives to traditional wheat-based thickeners and stabilizers in various food products. Food allergies are a growing concern, and many individuals must avoid allergenic ingredients like nuts, dairy, or soy. Modified starches can create allergen-free formulations, making products safer for those with allergies. Manufacturers can broaden their consumer base by offering gluten-free and allergen-free options, reaching individuals who would otherwise be unable to consume their products due to dietary restrictions. Modified starches can help maintain or even enhance the taste and texture of gluten-free and allergen-free products, addressing the common issue of dryness or crumbliness in such formulations.
Competitive Landscape
Key Players
The global modified starch market is very competitive, with many influential players. Some of the leading market participants and their corresponding market shares are listed below:
Emsland-Stärke GmbH
Grain Processing Corporation
Global Bio-Chem Technology Group Company Limited
Ingredion Incorporated
Roquette Frères
ADM
Agrana Beteiligungs AG
Avebe U.A.
Cargill, Incorporated
Samyang Genex Corp.
Beneo-Remy N.V.
Siam Modified Starch Co., Ltd.
China Essence Group Ltd.
PT Budi Starch & Sweetener Tbk
Tate & Lyle PLC
ULRICK&SHORT
KMC (Kartoffelmelcentralen) Amb
Others
These companies prioritize mergers and acquisitions, expanding their distribution network, and developing new products to remain competitive.
The leading competitors in the global market for modified starch are constantly looking for ways to get an advantage by releasing new items and advancements.
In October 2022, Organic pea protein starch was introduced by Roquette as a meat and dairy alternative. This new grade of organic pea starch was introduced for the US and EU markets by ingredient provider Roquette.
In March 2022, Ingredion released two rice starches with a clear label. Rice starch is not only very well-digested and hypoallergenic, but it also looks creamy and smooth. Because native rice starches have improved color and flavor release, natural flavor and color are intended to be evident in even white products. Additionally, the starches lessen the adverse environmental consequences of the organization and increase the robustness of its supply chain.
Summary of Key Findings
The modified starch sector continues to grow due to reimbursement regulations and rising demand for functional foods and beverages.
The market is segmented by product type, raw material source, functionality, application, distribution channel, and region.
Anionic starch is a popular kind of modified starch in the market.
Corn is the most common raw material source category.
Regarding CAGR, the thickening and gelling agents are expected to grow fastest during the forecast period.
The category for food and beverages will likely see the highest CAGR during the anticipated time frame.
North America is leading market development; the market is highly competitive with key players including Emsland-Stärke GmbH, Grain Processing Corporation, Global Bio-Chem Technology Group Company Limited, Ingredion Incorporated, Roquette Frères, ADM, Agrana Beteiligungs AG, Avebe U.A., Cargill, Incorporated, Samyang Genex Corp., Beneo-Remy N.V., Siam Modified Starch Co., Ltd., China Essence Group Ltd., PT Budi Starch & Sweetener Tbk, Tate & Lyle PLC, ULRICK&SHORT, KMC (Kartoffelmelcentralen) Amb, and others.
Future Outlook
Optimistic viewpoint for the global modified starch market with noteworthy growth potential in the North American region.
One of the main factors driving the modified starch market is the escalating demand for technological advancements.
During the projected period, the fluctuating raw material costs for modified starch might be a significant challenge to the market’s expansion.
Foremost companies must concentrate on product innovation, expanding their market reach, and maintaining competitive pricing to stay ahead.
Segmentation
By Product Type
Cationic Starch
Anionic Starch
Esterified Starch
Oxidized Starch
Acetylated Starch
Resistant Starch
Pre-gelatinized Starch
Others
By Raw Material Source
Corn
Potato
Cassava
Wheat
Other Sources
By Functionality
Thickening and Gelling Agents
Binding Agents
Texture Modification
Film-Forming Starches
Stabilizers and Emulsifiers
Glazing and Coating Agents
Others
By Application
Food and Beverages
Pharmaceuticals
Paper and Textile Industry
Animal Feed
Cosmetics and Personal Care
Biochemical and Biotechnological Applications
Others
By Distribution Channel
Direct Sales to Manufacturers
Distributors and Wholesalers
Online Retail
By Region
North America
The US.
Canada
Mexico
Europe
Germany
France
The U.K.
Italy
Spain
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
South-east Asia
Rest of Asia Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East & Africa
GCC Countries
South Africa
Rest of the Middle East and Africa
How big is the global market for modified starch right now?
In 2022, the modified starch market was estimated to be worth USD 12154.8 million.
What is the modified starch market’s anticipated growth rate from 2023 to 2030?
The market for modified starch is anticipated to increase at a CAGR of 5.80% from 2023 to 2030, reaching USD 19082.40 million in 2030.
In terms of the product type, which market category is in the lead?
The most widely used product type is the anionic starch.
Who are the key participants in the market for modified starch globally?
The top players include Emsland-Stärke GmbH, Grain Processing Corporation, Global Bio-Chem Technology Group Company Limited, Ingredion Incorporated, Roquette Frères, ADM, Agrana Beteiligungs AG, Avebe U.A., Cargill, Incorporated, Samyang Genex Corp., Beneo-Remy N.V., Siam Modified Starch Co., Ltd., China Essence Group Ltd., PT Budi Starch & Sweetener Tbk, Tate & Lyle PLC, ULRICK&SHORT, KMC (Kartoffelmelcentralen) Amb, and others.
What main market factors drive the modified starch sector?
Expanding demand from developing nations, improving convenience food, increasing biodegradable packaging, and promoting health and well-being are the factors influencing the expansion of the modified starch market.
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