Modified Starch Market Size, Share, Forecast, & Trends Analysis by Product Type (Acetylated Distarch Adipate, Dextrin, Maltodextrin), Raw Material (Corn, Cassava), Production Method (Chemical), Function, Form, End-use Industry - Global Forecast to 2031

The Modified Starch Market was valued at $13.1 billion in 2023. This market is expected to reach $17.98 billion by 2031, from an estimated $13.57 billion in 2024, at a CAGR of 4.1% during the forecast period 2024-2031.

Modified Starch Market Size & Forecast

The growth of the modified starch market is driven by the growing demand for convenience & processed foods, the functional properties & widening food applications of modified starch, increasing investments in the starch market, the growing demand for bio-based products, technological advancements in starch modification equipment, and the rapid growth of the bakery industry. However, the limited sources & high costs of natural additives and the high preference for gum arabic restrain the growth of this market.

Furthermore, the increasing demand for starch-based bioplastics and emerging economies in Latin America, Asia-Pacific, and the Middle East & Africa are expected to offer market growth opportunities. However, stringent regulatory processes for the approval of modified starch products and increasing raw material costs are major challenges impacting the growth of the modified starch market.

Modified Starch Market Growth Drivers

Growing Demand for Convenience & Processed Foods

Consumer demand for processed and convenience food has grown significantly. The processed foods market is driven by the increasing need for convenience due to hectic lifestyles, socioeconomic changes, and urbanization. In addition, consumers' rising buying power, growing awareness regarding healthy and readily available foods, and changing food habits and meal patterns are driving the demand for processed & convenience foods. According to Eating Better's Ready Meals Survey, in 2020, 88% of adults in the U.K. consumed ready-to-eat and ready-to-cook foods, and two in five people ate packaged meals weekly.

According to the United Nations' The World Cities in 2018 Data Booklet, the global urban population is projected to reach 5,167 million by 2030 (60.4% of the global population) from 4,220 million in 2018 (55.3% of the global population). Urban consumers are gaining exposure to a much wider choice and better availability of food products than those living in rural areas. This urbanization trend contributes significantly toward improved living standards and rising incomes, greatly influencing the affordability of processed foods. Hence, as starch is a universal binder and thickener for many applications in the food industry, the increasing demand for convenience & processed foods is driving the growth of the modified starch market.

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Functional Properties & Widening Food Applications of Modified Starch

Modified starch is derived from native starch through physical, enzymatic, or chemical processes to expand its applications in the food & beverage industry. It is a versatile ingredient used in food applications due to its functional properties, such as thickening, gelling, stabilizing, solubility, stability, and emulsification. Modified starch can be used as a thickener in various food applications, including sauces, soups, and gravies.

The ease of incorporation depends on the application and the type of modified starch being used. Modified starch improves the stability of food products by preventing them from separating, settling, or breaking down. It is particularly useful in acidic or high-temperature environments where native starch can be less stable. Modified starch can improve the texture of food products by enhancing their chewiness, creaminess, or crispiness. It is commonly used in processed foods such as snacks, confectionery, and meat products. Modified starch can clarify liquids by removing suspended particles and impurities. It is also used in fruit juices, vegetable oils, and alcoholic beverages.

Incorporating modified starches into food formulations is relatively easy as they are typically added during mixing. They can be dispersed in cold water and added to the food formulation while mixing. The ease of using modified starches varies depending on the final application. On the other hand, modified starches can be easily mixed with other ingredients to achieve the desired result in the final product. Modified starches' ease of incorporation and ability to enhance various food applications make them a valuable ingredient for food manufacturers, driving their utilization in the F&B industry.

Modified Starch Market Opportunity

Increasing Demand for Starch-based Bioplastics

Globally, plastics are one of the leading causes of growing environmental pollution. Plastics, when accumulated, can accelerate the biological clock of many organisms in the ecosystem and cause death. Several countries' governments are undertaking initiatives to ban plastic production and sale. However, biodegradable plastics can reduce the volume of waste generated by packaging materials. Therefore, biomass-derived polymers have emerged as promising alternatives to petroleum-based nondegradable polymers in addressing environmental issues. Bioplastics are considered green alternatives to plastics and are produced from renewable resources such as corn and potatoes or microorganisms under certain conditions.

Moreover, there is a high demand for packaging made from bioplastics for wrapping organic foods and premium and branded products with specific requirements. According to European Bioplastics, the global production capacities of bioplastics amounted to about 2.42 million tonnes in 2021, with almost 48% (1.15 million tonnes) of the volume used in the packaging market. The booming bioplastics industry is expected to boost the demand for modified starch in the coming years, generating market growth opportunities.

Emerging Economies in Latin America, Asia-Pacific, And the Middle East & Africa

Emerging economies, particularly in Asia-Pacific, Latin America, and the Middle East & Africa, hold huge potential for the future growth of the modified starch market. Countries such as China, India, South Africa, Argentina, and Brazil are expected to be some of the fastest-growing markets. As these economies develop and urbanize, the demand for modified starch is expected to grow substantially, driven by rising incomes and changing dietary preferences. This growth is likely to be compounded due to the abundant availability of food manufacturers and increasing health & wellness trends.

Moreover, governments in Asia-Pacific and the Middle East & Africa are creating a favorable environment to attract foreign investors to the food & beverage sector. For instance, the Indian government has declared major tax breaks to attract multinational investors. Also, according to the USDA FAS GAIN report, by 2030, investments in Saudi Arabia's food & beverage sector are expected to reach USD 71 billion, an increase of 59% compared to 2016. Such initiatives from governments to increase foreign investments in the food sector are expected to support the demand for modified starch in these regions.

Furthermore, Latin America is one of the most important compound feed producers in the world, with a substantial number of feed manufacturers. According to Alltech's Agri-Food Outlook 2023 report, Latin America produced 190.9 million tonnes out of the global compound feed production of 1.266 billion tonnes. It was the second-largest poultry feed producer in 2022. Also, companies like Kemin Industries, Inc. are investing in Latin America. All these factors are generating opportunities for modified starch manufacturers in the emerging economies of Asia-Pacific, Latin America, and the Middle East & Africa.

Modified Starch Market Analysis: Key Findings

By Product Type: In 2024, the Acetylated Distarch Adipate Segment to Dominate the Modified Starch Market

Based on product type, the modified starch market is segmented into acetylated distarch adipate, maltodextrin, hydroxypropyl distarch phosphate, pre-gelatinized starch, distarch phosphate, cationic starch, functional clean-label starch, acetylated starch, monostarch phosphate, hydroxypropyl starch, dextrin (dextrinized starch), acetylated distarch phosphate, octenyl succinic anhydride (OSA) starch, phosphated distarch phosphate, and other modified starches. In 2024, the acetylated distarch adipate segment is expected to account for the largest share of 28.8% of the modified starch market. The large market share of this segment can be attributed to factors such as the increasing demand from the food industry and other industrial applications, its adoption & preference as a bulking agent, stabilizer, and thickener for food, and its ability to improve the functional properties of products.

However, the functional clean-label starch segment is projected to witness the highest growth rate of 6.0% during the forecast period of 2024–2031 due to the growing vegan population, increasing demand for natural, derived, or sustainable-sourced ingredients, rising applications in the food and beverage industry, increasing demand for functional food, growing use in cosmetics, and rising awareness regarding fitness among consumers.

By Raw Material: In 2024, the Corn Segment to Dominate the Modified Starch Market

Based on raw material, the modified starch market is segmented into corn, cassava, potato, wheat, and other raw materials. In 2024, the corn segment is expected to account for the largest share of 47.8% of the modified starch market. The large market share of this segment is attributed to its various benefits, such as versatility and low cost, widespread availability, high demand, and extensive use in the food and beverage industry.

However, the cassava segment is also projected to register the highest CAGR of 4.5% during the forecast period of 2024–2031 because of its escalating adoption in frozen food applications due to its superior freeze-thaw stability compared to other modified starch. Additionally, it stands out as one of the most cost-effective starch sources, experiencing rapid adoption across diverse industries, and is known for its stability and superior paste clarity.

By Production Method: In 2024, the Chemical Modification Segment to Dominate the Modified Starch Market

Based on production method, the modified starch market is segmented into chemical modification, physical modification, and enzymatic modification. In 2024, the chemical modification segment is expected to account for the largest share of 66.9% of the modified starch market. The large market share of this segment can be attributed to the benefits offered by chemical modification, enabling the creation of a diverse range of starch-based products tailored to meet specific applications across industries, including food & beverage, pharmaceuticals, textiles, paper, and personal care products. Furthermore, chemical modification enhances the functional properties of starch, including solubility, viscosity, and stability, thereby further enhancing its suitability for industrial applications.

However, the enzymatic modification segment is also projected to register the highest CAGR of 4.4% during the forecast period of 2024–2031. Enzymatic modification enhances the resistant starch content of starch, thereby expanding its application in sectors like food & beverage, animal nutrition, and pharmaceuticals. Moreover, enzymatic modification offers an efficient and cost-effective means of converting starch solid wastes, further contributing to its increased adoption.

By Function: The Thickener Segment to Witness Highest Demand During the Forecast Period

Based on function, the modified starch market is segmented into thickener, binder, stabilizer, emulsifier, and other functions. In 2024, the thickener segment is expected to account for the largest share of 45.2% of the modified starch market. The large share of this segment can be attributed to the benefits offered by modified starch in the F&B sector, such as desired texture, consistency, moisture, transparency, and cost-effectiveness. The use of modified starch as a thickener provides formulators with greater flexibility, reliability, and efficiency in developing a wide range of food products with consistent quality and performance.

However, the emulsifier segment is projected to register the highest CAGR of 4.7% during the forecast period of 2024–2031. The growth of this segment is driven by its benefits, such as improved quality and stability of various products. In addition, the use of modified starches as emulsifiers provides formulators with a reliable and versatile tool for achieving stable emulsions, enhancing texture, and meeting consumer preferences for clean labels and healthier product options.

By Form: The Dry/Powder Segment to Witness Highest Demand During the Forecast Period

Based on form, the modified starch market is segmented into dry/powder and liquid. In 2024, the dry/powder segment is expected to account for the larger share of 64.5% of the modified starch market. The large market share of this segment can be attributed to the benefits offered by dried modified starches over their liquid counterparts, such as better homogeneity, ease of use & transportation, better stability, and availability in a wide range of grades to suit different applications. Moreover, the dry/powder segment is projected to register the highest CAGR of 4.2% during the forecast period of 2024–2031.

By End-Use Industry: The Food & Beverage Segment to Witness Highest Demand During the Forecast Period

Based on end-use industry, the modified starch market is segmented into food & beverage, animal nutrition, textiles, cosmetics & personal care, pharmaceuticals, papermaking, and other end-use industries. In 2024, the food & beverage segment is expected to account for the largest share of 50.8% of the modified starch market. The large market share of this segment is mainly attributed to the high utilization of modified starches in food and beverages mainly due to their versatility and functionalities, such as thickening, stabilizing, and enhancing texture. Moreover, increasing demand for convenience food products, functional ingredients, and rising demand for ready-to-eat and ready-to-cook food products are further supporting the growth of this segment.

Moreover, the food & beverage segment is projected to register the highest CAGR of 4.5% during the forecast period of 2024–2031, mainly due to the rapidly growing awareness of the benefits of modified starch, such as its ability to improve the shelf life of food products, enhance their sensory properties, and provide cost-effective solutions for food manufacturers.

Geographical Analysis

Based on geography, the modified starch market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 38.1% of the modified starch market, followed by Europe and Asia-Pacific. The North America modified starch market is estimated to be worth USD 5.16 billion in 2024. The large share of this market is mainly attributed to the well-established food & beverage sector, the growing demand for natural and sustainable ingredients, high awareness regarding the benefits of modified starch across various applications, and the presence of major market players in the region.

However, Asia-Pacific is slated to register the highest CAGR of 5.0% during the forecast period of 2024–2031, mainly due to the widespread availability of raw materials, the increasing investments in the food & beverage sector, and the rising demand for modified starch in major economies like China, India, Japan, and other Southeast Asian countries.

Modified Starch Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the modified starch market are Cargill, Incorporated (U.S.), Ingredion Incorporated (U.S.), Archer-Daniels-Midland Company (U.S.), Roquette Frères (France), Tate & Lyle Plc (U.K.), AGRANA Beteiligungs-AG (Austria), Royal Avebe (Netherlands), Emsland-Stärke GmbH (Germany), Grain Processing Corporation (U.S.), Global Bio-chem Technology Group Company Limited (China), Asia Fructose Co., Ltd. (Thailand), Angel Starch and Foods Pvt. Ltd. (India), SMS Corporation Co., Ltd. (Thailand), Royal Ingredients Group B.V. (The Netherlands), and SPAC Starch Products Ltd. (India) Private Limited (India).

Modified Starch Market Overview: Latest Developments from Key Industry Players

• In April 2024, Roquette Frères launched the Beauté by Roquette ST 730 INCI hydroxypropyl starch to cater to the rising consumer demand for plant-based cosmetics.

• In February 2024, Ingredion Incorporated launched NOVATION Indulge 2940, a functional native starch, to meet the demand of health-conscious consumers looking for an indulgent, plant-based texture in their foods.

• In September 2022, Cargill inaugurated corn wet mill facilities in Pandaan, Pasuruan, and Surabaya to meet the growing demand in starches, sweeteners, and feed markets in Asia and Indonesia.
• In May 2022, ADM invested in expanding starch production at its Marshall, Minnesota, U.S., facility to meet the growing demand from the food & beverage sector and support the continued expansion of the company's BioSolutions platform.

Modified Starch Market Research Summary

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