Modified Starch Market | Acumen Research and Consulting

Modified Starch Market Highlights

• The global modified starch market is projected to reach revenue of USD 19.8 billion by 2032, with a compound annual growth rate (CAGR) of 4.5% from 2024 to 2032
• In 2023, the North American modified starch market was valued at approximately USD 5.6 billion
• The modified starch market in the Asia-Pacific region is expected to grow at a CAGR exceeding 5.8% from 2024 to 2032
• In 2023, the starch esters and ethers product sub-segment accounted for 30% of the market share
• Based on function, the thickeners sub-segment held a 49% market share in 2023
• Increasing demand for natural and clean label ingredients is driving growth in modified starches derived from non-GMO and organic sources is the modified starch market trend that fuels the industry demand 

Modified starch refers to starch derived from grains such as corn, wheat, or potatoes that has been chemically or physically altered to improve its functionality for specific applications. This alteration can involve changes in viscosity, stability, gel formation, or texture, catering to various industrial needs. Common applications include its use as a thickening agent in food products like soups, sauces, and gravies, where it provides stability and enhances texture. In the paper industry, modified starch improves paper strength and reduces linting. Additionally, it finds use in the textile industry for sizing and finishing fabrics, as well as in pharmaceuticals for tablet binding. Its versatility makes it a valuable ingredient across multiple sectors, contributing to product quality and performance.

Global Modified Starch Market Dynamics

Market Drivers

• Growth in the convenience food sector globally
• Increasing demand for natural and clean label ingredients in food products
• Rising awareness about the benefits of modified starch in various industrial applications

Market Restraints

• Fluctuating prices of raw materials such as corn and cassava
• Regulatory challenges and varying food safety standards across regions
• Limited consumer awareness about the benefits of modified starch compared to traditional starches

Market Opportunities

• Expansion of applications in pharmaceuticals and personal care products
• Innovations in product formulations to meet specific dietary and functional needs
• Growing investments in research and development for sustainable and eco-friendly starch modifications

Modified Starch Market Report Coverage

Modified Starch Market Insights

The increasing consumer preference for natural and clean label ingredients in food products has driven significant growth in the modified starch market. For instance, in March 2023, Ingredion, Inc., a global supplier of ingredients, expanded its portfolio with new texturizers as part of its functional, clean label ingredient solutions in the United States. Modified starches, derived from natural sources such as corn, tapioca, and potato, are favored for their functional properties like thickening, stabilizing, and enhancing texture. They are widely used in food applications to replace synthetic additives and improve product quality. This shift is propelled by growing awareness of health and sustainability, prompting food manufacturers to seek alternatives that meet clean label criteria without compromising on performance or taste. As a result, the modified starch market is poised for continued expansion as manufacturers innovate to meet evolving consumer demands for healthier and more natural food options.

Fluctuating prices of raw materials like corn and cassava present significant challenges for the modified starch market. These raw materials are vital for producing starch derivatives used in various industries, including food, pharmaceuticals, and textiles. Price instability can disrupt production costs, affecting profit margins and pricing strategies for manufacturers. To mitigate these effects, companies often seek diversification in sourcing or invest in technology to enhance efficiency and reduce dependency on volatile raw material prices.

The modified starch market is experiencing growth fueled by expanding applications in pharmaceuticals and personal care products. As these industries seek safer and more sustainable ingredients, modified starches offer versatile solutions, from binding agents in tablets to stabilizers in lotions and creams. This trend is driven by consumer demand for natural and functional ingredients, prompting manufacturers to innovate with modified starches that enhance product performance while meeting regulatory standards. This shift underscores a dynamic opportunity for the modified starch market to thrive in diverse sectors beyond traditional food applications.

Modified Starch Market Segmentation

The worldwide market for modified starch is split based on product, function, material, end-use, and geography.

Modified Starch Products

• Starch Esters & Ethers
• Resistant
• Cationic
• Pre-Gelatinized
• Others

According to the modified starch industry analysis, starch esters and ethers dominate the market due to their versatile applications in food, pharmaceuticals, and industrial sectors. Esters are prized for their enhanced stability and emulsifying properties, making them ideal for food additives and coatings. Ethers excel in providing viscosity and stabilizing properties in applications like paper coatings and adhesives. Together, they cater to a wide range of consumer and industrial demands, driving their significant presence and growth within the modified starch industry.

Modified Starch Functions

• Stabilizers
• Thickeners
• Emulsifiers
• Binders
• Others

According to the modified starch industry analysis, thickeners play a crucial role due to their ability to enhance viscosity and texture in various applications. They are widely used in food products such as sauces, soups, and dressings to achieve desired consistency and stability. Additionally, thickeners are essential in industries like pharmaceuticals and cosmetics, where they contribute to product formulation and quality. Their dominance reflects the market's demand for functional ingredients that improve texture and performance across a range of consumer and industrial goods.

Modified Starch Materials

• Corn
• Cassava
• Wheat
• Potato
• Others

According to the modified starch industry forecast, cassava-based materials are poised to dominate the market due to several factors. First, cassava offers a sustainable and abundant source for starch production, meeting increasing demand while reducing environmental impact. Second, its versatility allows for a wide range of modifications catering to diverse industrial applications, from food to pharmaceuticals. Third, cassava's resilience to diverse climatic conditions ensures consistent supply stability, appealing to manufacturers seeking reliable sourcing options. Lastly, its cost-effectiveness compared to other starch sources enhances its attractiveness in global markets, driving its projected dominance in the modified starch sector.

Modified Starch Applications

• Food & Beverage
• Animal Feed
• Paper
• Pharmaceuticals
• Textiles
• Others

According to the modified starch industry forecast, modified starches find significant application in the food and beverage industry, where they serve as versatile ingredients offering various functionalities. They are used to enhance texture, stability, and consistency in a wide range of products, including sauces, soups, desserts, and beverages. Their ability to act as thickeners, binders, and emulsifiers makes them indispensable in food processing. Moreover, modified starches cater to consumer demands for clean label products by providing natural alternatives that meet specific dietary and functional requirements. This versatility and consumer appeal contributes to their dominance in the food and beverage sector within the modified starch market.

Modified Starch Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Modified Starch Market Regional Analysis

For several reasons, North America dominates modified starch market. The rising popularity of low-fat foods in the U.S. is expected to drive growth in the regional market. The U.S. is a leading global producer of corn and corn starch, which is anticipated to significantly contribute to market expansion through high exports and production. Additionally, investments by key manufacturers further contribute to market growth. For instance, in November 2022, Ingredion Incorporated invested $160 Million in capital expenditures, completing one-third of its plan to significantly expand supply chain capacity for various modified and clean-label specialty starches. Similarly, Canada, as the second largest contributor in North America, is expected to enhance the modified starch market, driven by the increasing demand for animal feed to support healthier cattle. Anticipated growth in the animal feed and food and beverage industries is likely to further propel regional expansion in the coming years.

Asia-Pacific is fastest-growing region in modified starch market, due to expanding food and beverage industries. Increasing consumer demand for convenience foods and functional ingredients has driven the adoption of modified starches in this region. The presence of key players and their collaborations further bolster market growth in Asian region. For instance, in February 2021, Tate & Lyle PLC finalized the acquisition of an 85% stake in Chaodee Modified Starch Co. Ltd ('CMS'), a prominent manufacturer of tapioca-modified food starch located in Thailand. This move expanded Tate & Lyle's footprint in specialty tapioca-based ingredients, establishing a dedicated production facility in Eastern Thailand, a key region for tapioca production. Additionally, technological advancements and rising investments in food processing contribute to the market's robust growth in Asia-Pacific.

Modified Starch Market Players

Some of the top modified starch companies offered in our report include Global Bio-Chem Technology Group Company Limited, Emsland-Stärke GmbH, KMC (Kartoffelmelcentralen) Amb, Grain Processing Corporation, Ingredion Incorporated, Siam Modified Starch Co., Ltd., ADM, Agrana Beteiligungs AG, Avebe U.A, Samyang Genex Corp., Beneo-Remy N.V., PT Budi Starch & Sweetener Tbk, Tate & Lyle PLC, Roquette Frères and ULRICK&SHORT.