Industrial Starches Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

Industrial Starches Market Size

Industrial Starches Market Trends & Growth Drivers

Rising Usage of Starch-Based Thickeners in Food Products Drives Market

• One of the key drivers for the industrial starches market is the growing usage of these agents as a thickener in the food & beverage industry.
• Among the different starches used for this purpose, those derived from potatoes and corn are the most prominent.
• Apart from these, arrowroot and cassava are also used as sources.
• When added to a liquid and heated, its granules retain water and swell, which leads to the creation of long, tangly molecules, thus thickening the liquid.
• This property allows natural starches to be used in place of high-cholesterol agents or those with a high content of sugars.
• Additionally, starches do not require heating and pre-processing as they can be directly used to thicken food products.
• These chemicals also make the food product more aesthetically pleasing by imparting a clear, transparent shine.
• Other than as a thickener, starches are widely used as a binder, stabilizer, and emulsifier, thus driving the market for them.

Increasing Investment in Emerging Economies Provides Opportunities

• Food processing is one of the fastest-growing industries, particularly in emerging economies such as India and China, and it aspires to become one of the largest markets in developing countries.
• With a constantly expanding economy, rising food demand, and increasing income levels, the food sector has seen a significant shift in spending patterns.
• Among many others, starch has been identified as a potential product in the food processing sector.
• In the era of economic liberalization, governments play a key role in the growth of the food processing sector.
• For instance, the Indian government has sanctioned INR 10,9000 crore under the Production-Linked Incentive scheme for food processing.
• Moreover, companies are also serving as a catalyst for attracting more investment into emerging economies.

Increasing Prices and Competition from Alternatives Hamper Market Growth

• The key restraints for the market are the volatility in the prices of the crops used for starch production and competition from alternatives agents for various applications.
• The volatility in the prices of the source crops stems from the growing demand for bioethanol and biodiesel.
• Since these sustainable fuels demand crops with high sugar and carbohydrate content, wheat, corn, sugar beets, and other crops are preferred.
• Their increasing consumption in bioethanol production reduces their availability for the extraction of starches for industrial starches, thus raising their prices for the latter application.
• Moreover, with the extensive R&D being carried out across end-use industries, conventional starches are witnessing competition from alternative products, such as alginates, gum Arabic, guar gum, and agar,

Industrial Starches Market Analysis

Source Analysis

Corn holds the largest share in the market, of 55%, in 2024. As per the U.S. Department of Agriculture, worldwide corn/maize production rose by 6% from 1.16 billion metric tonnes in 2022–23 to 1.23 billion metric tonnes in 2023–24, due to the rapidly expanding agriculture and food processing sectors. The expansion provides an opportunity for starch manufacturers to take strategic approaches to use corns for the production of starch.

In the paper industry, corn starch is used as a wet end additive, surface sizing or tub sizing agent, binder, and coating agent. When compared to conventional plastic, corn starch has a variety of environmental advantages, such as biodegradability. Furthermore, maize starch packaging is more than 25% tougher than traditional polythene bags.

Cassava is expected to grow the fastest during the forecast period, with a CAGR of 8.3%. The biggest advantage of cassava over other sources is its higher starch content, which makes it a cheaper source to use. Moreover, cassava starch has diverse applications, including in the textile, pharmaceutical, food & beverage, and adhesive industries. Additionally, it is a stable crop in many African and Asian countries, which drives its consumption for numerous purposes. Another key benefit for cassava growers is the sustainability of the crop (it requires lower amounts of pesticides and fertilizers) and its ability to thrive in poor-quality soils.

The following sources have been analyzed

• Corn (Largest Category)
• Wheat
• Cassava (Fastest-Growing Category)
• Potato
• Others

Type Analysis

The native starches bifurcation holds the larger revenue share, in 2024. Natural sources of native starch include corn, wheat, potato, tapioca, and others. It is prevalently used as a thickening agent in the food processing industry, providing texture and stability to the food. Native starch can be also used as a binding agent or gelling agent, which is cryostable.

Furthermore, the demand for food made with natural ingredients is rising. Consumers are becoming increasingly concerned about the long-term viability of food, such as its safety, nutritional content, and environmental impact. To fulfill the need of consumers, companies are incorporating native starches into their products.

Starch derivatives will witness a CAGR of 7.8% during the forecast period, the highest in the segment. Their diverse applications in the food & beverage, paper, pharmaceutical, and textile agents are credited for the rapid rise in their consumption. This is, in turn, because of the myriad benefits starch derivatives offer, including enhanced solubility, stability, and texture. Additionally, R&D continues to yield even better starch derivatives for numerous applications, thus furthering the scope for their usage in the future. Another key factor driving the demand for these agents is the rising preference of health-conscious people for low-calorie food.

The report contains insights into the following types:

• Native Starches (Largest Category)
• Starch Derivatives (Fastest-Growing Category)
• Sweeteners
• Others

Application Analysis

The food category is the largest and fastest-growing, with a 2024 share of 55% and 2025–2030 CAGR of 8.4%. This is on account of the changing eating habits of consumers and the increasing number of employed people. For instance, in 2022, the number of employed people in the U.S. is around 160 million. Also, due to the long working hours, easy availability of processed food, and changing consumer lifestyles, the use of industrial starches is massively increasing across the world.

Starches are a key ingredient in confectionary, baked goods, sauces, and processed foods owing to their ability to improve these products’ texture and thicken and stabilize them. In this regard, the growing demand for convenience and on-the-go food products drives the consumption of starches in this industry.

We have studied the following applications for the study:

• Food (Largest and Fastest-Growing Category)
• Feed
• Pharmaceutical
• Paper
• Others

APAC Is a Significant Contributor to the Market

• The APAC market for industrial starches holds the largest share, of 45%, in 2024, and it is also expected to witness the highest CAGR, of 8.5%, during the forecast period.
• This is due to the increasing crop production of starch sources, such as cassava, sweet potato, and maize, in emerging economies such as China, Thailand, Indonesia, and India.
• The massive raw materials yield leads to an increase in product offerings, which is expected to boost the regional market.
• Moreover, the industry is progressing in the region, due to the growing end-use industries such as textile and paper.
• Furthermore, the rising disposable per capita income and the surging consumer demand for a broader range of food and manufactured products containing starch across the region are propelling the industrial starches market growth.
• For instance, real household domestic disposable income per capita in Australia increased by a 1.22% CAGR over the past decade.
• Also, APAC is an emerging pharmaceutical hotspot as a large number of pharmaceutical companies, such as Sun Pharmaceutical Industries, Dr. Reddy's Laboratories, Cipla Limited, and Serum Institute of India Pvt. Ltd., are establishing their manufacturing facilities in the region, due to approximately 30% lower cost of manufacturing compared to western countries.

Analysis of the market in the below-mentioned regions and countries is provided:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Category Market)
  • Japan
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Argentina
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • U.A.E.
  • Rest of MEA

Industrial Starches Market Share

The industrial starches market is fragmented as these agents have diverse applications in numerous industries. Moreover, it can be derived from many sources, and being natural, their extraction is not a capital-intensive process, which lowers the entry barriers for new players. The variety of sources also mean than different ones hold sway in different regions, depending on their endemism and nativity. Further, industries generally have different specifications for the starches they need; therefore, they contract different market players.

Industrial Starch Company News

• In June 2024, Cargill Incorporated announced plans to open a new office in Atlanta, Georgia, in autumn.
• In June 2024, Archer–Daniels–Midland Company partnered with Ooni Pizza Ovens to produce flour using sustainable agricultural methods.
• In June 2024, Tate & Lyle PLC initiated an agreement to acquire all the issues share capital of CP Kelco and all its subsidiaries from J.M. Huber Corporation for USD 1.8 billion (GBP 1.4 billion) in an all-cash, debt-free transaction.
• In February 2024, Ingredion Incorporated launched NOVATION Indulge 294, a native, clean-label, non-GMO functional starch as a co-texturizing and gelling agent for conventional and alternative dairy products, including desserts.