Modified Starch Market Expected to Reach $14.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Modified Starch Market," The modified starch market was valued at $9 billion in 2022, and is estimated to reach $14.4 billion by 2032, growing at a CAGR of 4.9% from 2023 to 2032. 

Modified starch refers to a chemically or physically altered form of starch that possesses modified properties compared to native or unmodified starch. Starch is a complex carbohydrate found in various plant sources, such as corn, wheat, tapioca, and potato. It is composed of glucose units and is commonly used in food and beverage, animal feed, textile, and other industries due to its thickening, stabilizing, gelling, and binding properties.

The modification of starch involves making changes to its molecular structure or properties to enhance its functionality for specific applications. This process can be achieved through various methods, including physical, enzymatic, or chemical treatments.

The food and beverage industry is one of the primary drivers responsible for the growth of the modified starch industry. The industry has experienced significant growth due to factors such as change in consumer preferences, increasing urbanization, and rising disposable incomes. Modified starches are widely used in the food and beverage industry as stabilizers, thickeners, emulsifiers, and texture enhancers. They improve the overall quality and sensory attributes of food products, leading to increased demand for these ingredients.

Moreover, there is a surge in consumer demand for clean and natural food products. Consumers are increasingly conscious about the ingredients used in their food and are inclined toward products with minimal or no artificial additives. Modified starches provide an opportunity for manufacturers to meet these clean label trends. They can be used as natural alternatives to artificial additives and emulsifiers, ensuring the label claims of natural or organic products. The clean label trend has led to increased utilization of modified starches in a wide range of food products.

However, modified starches face competition from alternative ingredients and additives that offer similar functionalities. For example, gums, hydrocolloids, and other stabilizers can provide comparable texture and stability properties in certain applications. The availability and effectiveness of these alternatives can impact the demand for modified starches, especially in specific industries or product formulations.

On the contrary, there is a continuous need for product innovation and differentiation in the food and beverage industry. Modified starches offer manufacturers the ability to develop new and unique products with improved functionalities, textures, and stability. By leveraging the diverse properties of modified starches, manufacturers can create differentiated products that cater to specific consumer demands, such as gluten-free, organic, or low-fat options. Innovations in modified starch formulations and applications can drive market growth and capture consumer attention.

The modified starch market analysis is done on the basis of raw material, type, function, application, and region. By raw material, the market is segregated into maize, cassava, potato, wheat, and others. The maize segment dominated the global market, in terms of revenue in 2022. Maize is widely cultivated globally and is one of the most abundant cereal crops. It is readily available in large quantities, making it a reliable and cost-effective source of starch for industrial purposes.

Moreover, maize has a high starch content, making it suitable for starch extraction and modification. The starch granules in maize are large and can be easily separated from other components during the extraction process. These factors have increased the utilization of maize as a raw material for producing modified starch.

Maize starch is naturally gluten-free, making it a suitable alternative for individuals with gluten intolerance or celiac disease. It is widely used in gluten-free food products as a thickening and stabilizing agent. This factor has led the modified starch manufacturer to increase the usage of maize as a raw material for producing maize-based modified starch.

By type, the market is segregated into cationic starch, etherified starch, esterified starch, resistant starch, and pre-gelatinized. The pre-gelatinized segment dominated the global market, in terms of revenue in 2022. Unlike regular starch, pre-gelatinized starch can be readily dispersed and thickened in cold water or other cold liquids. This makes it convenient for applications where heat or cooking may not be suitable or desired, such as in instant puddings, cold desserts, salad dressings, and beverages. This may further aid the growth of the modified starch market for pre-gelatinized starch type. The modified starch market forecast is based on a combination of quantitative and qualitative analysis.

By function, the market is segregated into thickeners, stabilizers, binders, emulsifiers, and others. The thickeners segment dominated the global market, in terms of revenue in 2022. consumers increasingly seek products with appealing textures and mouthfeel. Modified starches play a vital role in achieving these desired attributes, providing smoothness, creaminess, and thickness in various food & beverage formulations. They contribute to the sensory experience and overall quality perception of the products. These factors altogether may surge the demand for modified starch for thickener purposes; thus, fuelling the market growth.

By application, the market is divided into food & beverages, animal feed, papermaking, weaving textiles, pharmaceuticals, and others. The food and beverages segment dominated the global modified starch market share, in terms of revenue in 2022 with 58.0% share in the global market. Modified starches offer a wide range of functional properties that can improve the quality, texture, and stability of food products.

They provide thickening, stabilizing, emulsifying, and binding properties, allowing manufacturers to achieve desired product characteristics and meet consumer preferences. This factor acts as one of the key drivers responsible for the growth of the modified starch market. Moreover, consumers are increasingly seeking food products with simple and recognizable ingredients. Modified starches can be used as a clean-label ingredient, providing functionality while replacing or reducing the need for certain additives or chemical stabilizers.

This aligns with the surge in consumer demand for clean, natural, and minimally processed foods. These factors altogether may surge the demand for modified starch in the growing food & beverages sector; thus, fuelling the market growth.

Region-wise, the modified starch market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific modified starch market size is projected to grow at the highest CAGR during the forecast period, and account for a major market share in 2022, Asia-Pacific has witnessed rapid economic growth, population expansion, and an increase in urbanization. These factors contribute to the growth of the modified starch market. The region's large population and rise in disposable incomes drive the demand for processed foods, leading to increased utilization of modified starches as functional ingredients. The market is expected to grow at a robust rate, fuelled by the expanding food and beverage industry and the adoption of modified starches in various non-food applications.

Moreover, Asia-Pacific has witnessed a surge in interest in functional foods and nutraceuticals, driven by an increase in health awareness and the desire for preventive healthcare. Modified starches play a vital role in developing functional food products that offer additional health benefits, such as improved digestion, weight management, or cardiovascular health. The demand for modified starches with functional properties is expected to grow as consumers seek healthier food options. In addition to this, clean labels and natural ingredients have gained prominence in the Asia-Pacific market as consumers become more health-conscious and seek transparency in their food choices.

Key players operating in the global modified starch market include ADM, AGRANA Beteiligungs-AG, AVEBE U.A., Cargill, Incorporated, EMSLAND GROUP GmbH and Co. KG, Ingredion Incorporated., Roquette Freres, Royal Ingredients Group, Tate and Lyle PLC, and Tereos.

COVID-19 Analysis:

The novel coronavirus was an incomparable pandemic that had spread to over 180 countries and caused huge losses of lives and the economy across the globe. The pandemic led to disruptions in global supply chains, including the transportation and availability of raw materials used in the production of modified starch. Restrictions on international trade, lockdown measures, and reduced workforce availability affected the sourcing and distribution of modified starch products.

The food and beverage industry is a major consumer of modified starch. During the pandemic, the demand for certain food and beverage products experienced significant fluctuations. While the demand for staple food products remained stable or even increased, there was a decline in demand for some non-essential food items, such as snacks, desserts, and processed foods. These fluctuations in demand had an impact on the overall demand for modified starch in the food and beverage sector.

The pandemic led to changes in consumer preferences and behaviors. Consumers became more health-conscious and focused on purchasing essential and nutritious food products. This shift in consumer preferences influenced the demand for modified starch in food products, as manufacturers adjusted their formulations to meet the change in consumer demand. The modified starch market caters to various industries, such as paper-making, textiles, pharmaceuticals, and personal care. The pandemic had varying impacts on these industries.

For instance, the paper industry experienced a decline in demand due to reduced economic activity and disruptions in supply chains. Similarly, the textile industry faced challenges due to disrupted global trade and decreased consumer spending on non-essential items. These factors indirectly affected the demand for modified starch in these sectors.

The pandemic highlighted the importance of food security and supply chain resilience. This led to increased emphasis on local sourcing and shorter supply chains, ensuring a stable supply of essential food ingredients, including modified starch. These factors are expected to have implications for the sourcing and production practices of modified starch manufacturers in the future. 

Key Findings Of The Study:

• By raw material, the maize segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.2% from 2023 to 2032.
• By type, the pre-gelatinized segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.3% from 2023 to 2032.
• By function, the thickeners segment is estimated to display the highest growth rate, in terms of revenue, from 2023 to 2032.
• By application, the food and beverages segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.0% from 2023 to 2032.
• Asia-Pacific garnered the highest share in 2022, in terms of revenue, growing at a CAGR of 5.3%.