According to MarketsandMarkets, the global modified starch market size is estimated to be valued at USD 13.1 billion in 2020 and projected to reach USD 14.9 billion by 2025, recording a CAGR of 2.7%. It is witnessing significant growth due to increasing incorporation in a wide range of foods and cost-effectiveness offered by them, along with the enhanced functionalities they provide in comparison to native starch. The growing demand for processed and convenience food among consumers is creating a demand for modified starch. With the advancement of new technologies and innovative experiments in the food and beverage sector, the incorporation of modified starch across various industries is increasing. Asia Pacific segment is going to dominate the market due to its high production of processed food.
Restraints: Limited sources and the high cost of natural additives
Modified starch is used in a range of industrial applications due to its functional properties. But, the sources from which starch is extracted are very limited, which includes corn, cassava, wheat, potato, rice, and others. The production of these sources depends on climatic conditions. For instance, the production of cassava depends on climatic conditions. Unfavorable climate hampers the overall production of cassava and leads to the fluctuation in the price of cassava.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=511
Also, these are not only used for manufacturing starch but for other purposes as well. Corn is the largest crop produced in the US. More than 40% of the production is dedicated to non-food applications. A large amount of raw corn is used in the production of ethanol, which negatively impacts the food sector. The use of corn in ethanol production decreases its proportion in food as well as in many other non-food applications, especially as modified starch. Tapioca and wheat are also used in the production process of ethanol. Therefore, the ratio of modified starch is lower than the potential production of modified starch through various sources.
Challenges: Rising cost of raw materials
Natural sources such as wheat, cassava, corn, and rice are used as raw materials for manufacturing modified starch and its derivatives. These raw materials are used widely for the production of modified starch are also used in the production of bio-ethanol products. Increasing consumption of modified starch in segments such as food & beverages, feed, pharmaceuticals, cosmetics, and paper leads to higher demand for this starch, thereby resulting in rising in the prices of raw materials. The modified starch industry is heavily dependent on raw materials—conventional and organic raw corn, wheat, potato, and rice. The raw material prices depend on the crop plantation area and harvest from which the raw materials are obtained.
By application, food & beverages segment is projected to account for the largest share in the modified starch market during the forecast period
By application, the market is segmented into food & beverages, industrial, and feed. The food & beverage segment is further classified into bakery & confectionery products, processed food, beverages, and others, which includes snacks and soups. Modified starches have been developed for a significant period of time, and their applications in the food & beverage industry are increasingly gaining importance. Modified starches are considered as food additives that are prepared by treating starch or their granules with chemicals or enzymes, causing the starch to be partially degraded. They are used across various food applications owing to their functional properties.
Make an Inquiry: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=511
The Asia Pacific region dominated the modified starch market with the largest share in 2019, and it is also expected to grow with the highest CAGR
The modified starch market in Asia Pacific is dominant due to the increasing demand for processed food because of a shift in lifestyle trends. People are looking for ready-to-eat meal options as they are leading a busy life.
Asia Pacific is also the fastest-growing market as industrial applications and technologies involved in starch processing are changing rapidly in the region. The demand for modified starch is increasing as various industries are incorporating in their manufacturing processes and products. Also, key players are increasingly investing in the Asia Pacific modified starch market.
This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Archer Daniels Midland Company (ADM) (US), Cargill (US), Ingredion (US), Tate & Lyle (UK), Roquette Frères (France), Avebe U.A (the Netherlands), Grain Processing Corporation (US), Emsland (Germany), AGRANA (Austria), SMS Corporation (Thailand), Global Bio-Chem Technology Group (Hong Kong), SPAC Starch (India), Qindao CBH Company (China), Tereos (France), and KMC (Denmark), Beneo (Germany), Angel Starch Food Pvt. Ltd. (India), Shubham Starch Chem Pvt Ltd. (India), Everest Starch India Pvt Ltd. (India), Sheekharr Starch Pvt Ltd. (India), Sanstar Bio-Polymers Ltd. (India), Universal Biopolymers (India), Sonish Starch Technology Ltd. (Thailand), Venus Starch Suppliers (India), and Gromotech Agrochem Pvt. Ltd. (India).