According to the report, the global food starch market is likely to grow from USD 24.7 billion in 2025 to USD 41.8 billion in 2035 at a moderate CAGR of 4.9% during the time period. The global food starch market has witnessed substantial growth, together with the rising demand for functional ingredients that help enhance a product's texture, stability, and shelf-life across other food applications. Urbanization and the escalation of disposable incomes, particularly in developing nations, have increased processed and convenience food consumption from bakery products to ready meals or snacks and starch demand themselves. At the same time, the increase in awareness of gluten- and allergen-free diets forces the manufacturers to come up with innovative modified and alternate starches such as tapioca, rice, and potato starch.
The clean-label bakery trend persisted with the entrance of new lines of functional native starches under the NOVATION portfolio in April 2024 by Ingredion, whom considered clean-label one of the hottest modern trends of the industry. Further backing to starch use worldwide is given by the growing plant-based and vegan food segments, requiring solutions for texturizing and binding. Such a vast application range over various sectors paves the way for efficient market growth.
The increasing use of different milks and plant-based drinks is one of the factors contributing to the rapid growth of the global food starch market. These makers employ starch derivatives, including maltodextrin and modified starches, to obtain the desired mouthfeel and stability in their preparations. The trend has been supported by consumers gravitating toward lactose-free and vegan options, especially in urban markets. Tate & Lyle partnered with one of the big oat milk producers in January 2024 to offer clean-label texturizing starches that improve product properties without synthetic coatings.
Price volatility of raw materials such as corn, wheat, potatoes, climatic changes, and crop yield fluctuation is a key constraint faced by the food starch market. Such uncertainties hike manufacturers' production costs that directly affect their profit margins and price-setting strategies. Droughts in several parts of the U.S. Midwest have slashed the corn yield in 2023 and 2024 and have severely strained corn starch prices while disorganizing starch supply chains of food manufacturers desperately in need of a steady starch supply.
Great potential lies in the increased demand for organic and non-GMO food starches. In order to cater to health-conscious consumers seeking transparency in ingredient sourcing, manufacturers have begun producing organic starches. Cargill, in March 2024, said it was extending its European portfolio with organic waxy maize starch specifically to address premium and clean-label food markets, thereby tapping into this fast-growing niche
Tariff rates in the food starch industry greatly affect its cost structure and international competition. Massive import tariffs on raw materials, such as corn, or starches in their processed form tend to elevate production costs for manufacturers in areas reliant on imports and ultimately, increase the consumer prices. To cite an instance, the U.S.-China trade conflict provided a suitable opportunity, wherein China imposed a 25% tariff on all U.S. corn products (which included starch) in 2019, causing Chinese food manufacturers to look elsewhere for suppliers in Thailand and Europe. The shift thus altered the global trade flows and dislocated U.S. starch exports, showing the ripple effects tariffs can have over the global starch supply chain.
Lower application tariffs by free trade agreements tend to favor market access and competitiveness. The EU-Vietnam Free Trade Agreement (EVFTA) has been operational since August 2020 and has been acting as such; with its coming into full force, tariffs on almost all agricultural products including starch product were abolished. Thus, it supported, in the economic sense, the export of tapioca starch from Vietnam into Europe and hence Southeast Asian producers; hence European food and beverage manufacturers could have cost-efficient access to non-GMO and clean label starch alternatives. These examples shed light on how tariff policies were influencing sourcing strategies, regional demand patterns, and pricing behaviors in the global food-starch market.
Prominent players operating in the global food starch market are AGRANA Beteiligungs-AG, Angel Starch & Food Pvt. Ltd., Archer Daniels Midland Company (ADM), Avebe U.A., Cargill, Incorporated., China National Starch & Chemical Co., Emsland Group, Grain Processing Corporation (GPC), Gulshan Polyols Ltd., Ingredion Incorporated., JP & SB International, KMC (Kartoffelmelcentralen), Manildra Group, Roquette Frères, SPAC Starch Products (India) Ltd., Sudzucker AG (via BENEO GmbH), Tate & Lyle PLC, Tereos Group, Universal Starch-Chem Allied Ltd., Zhucheng Xingmao Corn Developing Co., Ltd. and Other Key Players.
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