The global industrial starches market is expected to generate $169,971.8 million revenue by 2030, growing at a CAGR of 6.4% during 2021–2030. This can be ascribed to the rising popularity of industrial starches in the food and beverage (F&B) industry. Industrial starch is quite often used as a functional component in canned products and frozen food, due to its beneficial properties such as improving thickness, reducing oil absorption, and enhancing overall food quality.
Due to the pandemic, the sales of packaged and processed goods increased and the pharmaceuticals industry grew tremendously, which resulted in the increased demand for these starches. However, the market was slightly declined, due to the closure of other end-use industries, such as textile and paper & pulp. However, as the situation is improving worldwide, the market is expected to grow at a moderate pace in the coming years.
North America accounted for the largest revenue share in 2021 in the market. This is due to the rise in health consciousness among the population, strong growth in the F&B industry, and the presence of key players such as Grain Processing Corporation and Archer Daniels Midland Company, in the region.
The U.S. contributes the largest revenue share to the regional market. This is because consumers in the country are spending heavily on healthy, dairy, and supplemented food products, the rising penetration of industrial starches in the F&B industry, and the surging country’s GDP. For instance, the U.S. GDP increased by around 5% in 2021. For this, the strategies adopted by the government include investing in the country’s most growing industries, in terms of export value. One such industry is food and processing, and thus, the nation is trying to enforce manufacturing bases, which, in turn, increases the demand for these starches.
The wheat source category is expected to witness the highest CAGR, of more than 6%, during 2021–2030, in the industrial starches market, as the global wheat output increased by 28.4 million tons in 2020, as compared to 2019. Moreover, wheat starch is used as a surface coating and corrugated board production adhesive in the paper industry. It is also used as a binder, emulsifier, and stabilizer in the food and processing industry.
Starch derivatives will experience exponential growth in demand in the coming years. Starch derivatives, commonly referred to as modified starches, are created by altering the properties of native starches through enzymatic, physical, or chemical technique. Modified starches improve the quality of food products, due to their water absorption and bulking agent properties. Because of these factors, these are still a preferred substitute for fat among manufacturers. Furthermore, the diverse functional characteristics of starch and starch derivatives employed in a variety of end-use sectors are increasing the need for these starches.
The pharmaceutical industry is expected to witness the highest CAGR, of more than 6.5%, during 2021–2030, in the market. Starches are used in the pharmaceutical industry as a tablet and capsule diluent, tablet and capsule disintegrant, excipient, and binder. Moreover, potato starches are utilized to create synthetic red blood cells that can carry oxygen. Thus, during the forecast period, these factors are likely to increase the demand for these starches for pharmaceutical applications.
Prominent companies have been focused on strategic developments, such as product launches and acquisitions, to increase their footprints and create diversified product portfolios in the industrial starches market. For instance:
In March 2021, Purity P 1002 pea starch and Vitessence Pulse 1853 pea protein isolate are two new additions to Ingredion Incorporated's plant-based portfolio, both manufactured at the company's new pea protein production plant in South Sioux City, Nebraska.
In February 2021, Tate & Lyle PLC, a key provider of F&B ingredients and solutions in the world, acquired an 85% stake in Chaodee Modified Starch Co. Ltd., a Thai tapioca-modified food starch producer.
Some of the major players operating in the market are Cargill Incorporated, Archer Daniels Midland Company, Ingredion Incorporated, Tate & Lyle PLC, Grain Processing Corporation, Roquette Frères, Tereos Group, and Royal Cosun.