The starch derivatives market is estimated to be valued at USD 50.9 billion in 2020 and is projected to reach USD 61.5 billion by 2025, recording a CAGR of 3.9%, in terms of value.
It is witnessing significant growth due to increasing incorporation in a wide range of food applications 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 the demand for starch derivatives. With the advancement of new technologies and innovative experiments in the food and beverage sector the incorporation of starch derivatives across various industries is increasing. Asia Pacific segment is going to dominate the market, due to its high production of processed food.
Drivers: Functional properties of starch derivatives and their ease of incorporation in a wide range of food applications
Starch derivatives possess enhanced functional properties which are suitable for a wide range of food and non-food applications. It has a variety of functions; it is used as a thickener, texture agent, fat replacer, and emulsifier. Starch derivatives, because of their characteristic of absorbing water and bulking up, render the essential mouthfeel to the food products they are used in. This makes them an excellent substitute for fat. Starch is also used as thickener or as gelling agent in food products, as texture is one of the important factors for the consumers to accept the food products. The advancement in technology used for processing starch has developed a variety of ingredients that can be customized to meet most formulating challenges.
Restraints: High R&D cost creates a barrier in the development of starch derivatives market
One of the major factors restraining the growth of starch derivatives market is high R&D cost involved in the extraction and production of starch derivatives. They are used across various industries such as food & beverage, pharmaceutical, paper and many more, but have limited natural sources for extracting starch. Starch derivatives have enhanced functional properties and provide multiple benefits. This has forced the manufacturers and marketers to produce and distribute a wide range of starch derivatives for food and non-food applications. However, huge investment is needed to produce high-quality starch derivatives and identify their usage in many new industries. The absence of an appropriate amount of investment is hindering the growth of the starch derivatives market.
Opportunities: Untapped application of starch derivatives
There are various application areas which are untapped and can be big opportunities for starch derivatives manufacturers. Expanding the commodity sources for extracting starch and combining modification processes add a wider range of probable applications to the list. Starch-derived glucose can be fermented to produce lactic acid, which may be polymerized for biodegradable films or bioplastics. Similarly, potato starch wastes may also be used as feedstock in fermentation reactions. Several polymers can be prepared using a variety of starch-based feedstock. Modified starch can also act as an excellent fermentation base for the bulk production of a wide variety of biotechnological products, such as organic acids, antibiotics, vitamins, and hormones.
Challenges: Rising cost of raw materials
Natural sources such as wheat, cassava, corn, and rice are used as raw materials for manufacturing starch and its derivatives. These raw materials are widely used for the production of starch derivatives are also used in the production of bio-ethanol products. Increasing consumption of starch derivatives 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 starch derivatives 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.
Key Market Players:
Archer Daniels Midland Company (US), Cargill (US), Ingredion (US), Tate & Lyle (UK), Roquette Frères (France), Grain Processing Corporation (US), Global Sweeteners Holdings Ltd. (Hong Kong), AGRANA (Austria), Gulshan Polyols (India), Fooding Company Limited (China), Foodchem International Corporation (China), Tereos (France), Molinos Juan Semino SA (Argentina), JP & SB International (Spain), and Gujarat Ambuja Export (India). ShreeGluco Biotech Private Ltd. (India), Varun Industries (India), Shubham Starch Chem Pvt. Ltd. (India), Matsutani Chemical Industry Co., Ltd. (Japan), Sanstar Bio-Polymers Ltd. (India), Jay Sardar Starch & Gum Consultant (India), B Food Science Co., Ltd. (Japan), Tirupati Starch & Chemicals Ltd. (India), Sinofi Ingredients (China), and Nagase & Co., Ltd. (Japan).
