The Modified Starch Market is expected to reach $17.3 billion by 2030, at a CAGR of 3.8%, during the forecast period of 2023 to 2030. The growth of this market is attributed to the rise in demand for convenience and processed food, functional properties of modified starch and their wide range of food applications, increasing investments in the starch market, growing demand for bio-based products, technological advancements in the production of modified starches, and growing bakery industry. Additionally, potential alternative sources of modified starch and emerging economies offer significant growth opportunities for manufacturers. However, limited sources, the high cost of natural additives, and the high demand for gum Arabic restrain the modified starches market growth.
Functional Properties of Modified Starch and their Wide Range of Food Applications to Drive the Growth of this Market
Modified starch is derived from native starch by physical, enzymatic, or chemical processes to expand its applications in the food and beverages industry. It is a versatile ingredient used in food applications to improve 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 type of modified starch and the specific application. They also improve food products' stability by preventing them from separating, settling, or breaking down. It is particularly useful in acidic or high-temperature environments where native starch would 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 commonly used to produce fruit juices, vegetable oils, and alcoholic beverages.
Incorporating modified starches into food formulations is relatively easy as they are typically added during mixing. It 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 of the final product. Hence, their ease of incorporation and ability to enhance various food applications make modified starches a valuable ingredient for food manufacturers.
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Key Findings in the Modified Starch Market Study:
In 2023, the Starch Ethers & Esters Segment is Expected to Account for the Largest Share of the Modified Starch Market
Based on product type, the modified starch market is segmented into starch esters & ethers, pre-gelatinized starch, resistant starch, cationic starch, and other product types. In 2023, the starch esters & ethers segment is expected to account for the largest share of the modified starch market. The high demand for starch esters and ethers is attributed to the unique properties that make them suitable for a wide range of applications and their natural origin. Starch ethers are commonly used as thickening agents in personal care products like shampoos and lotions, while starch esters are used as emulsifiers in food products like margarine and salad dressings. However, the cationic segment is expected to register the highest CAGR during the forecast period due to increasing demand from papermaking, textile sizing, and oil & gas.
In 2023, the Corn Segment is Expected to Account for the Largest Share of the Modified Starch Market
Based on raw material, the modified starch market is segmented into corn, cassava, potato, wheat, and others. In 2023, the corn segment is expected to account for the largest share 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 and high demand, and is widely used in the food & beverage industry. However, the cassava segment is expected to register the highest CAGR during the forecast period due to being the most economical source of starch, extensive use in a wide range of applications, stability and high paste clarity.
In 2023, the Physical Modification Segment is Expected to Account for the Largest Share of the Modified Starch Market
Based on production method, the modified starch market is segmented into physical, enzymatic, and chemical modification. In 2023, the physical modification segment is expected to account for the largest share of the modified starch market. Physical modification is a common method used to modify starch because it is a relatively simple and cost-effective process that can produce a range of functional properties. However, the chemical modification segment is expected to register the highest CAGR during the forecast period as it is meant for tailoring its properties to meet the specific requirements of various applications.
In 2023, the Thickener Segment is Expected to Account for the Largest Share of the Modified Starch Market
Based on function, the modified starch market is segmented into thickener, binder, stabilizer, emulsifier, and other functions. In 2023, the thickener segment is expected to account for the largest share of the modified starch market. Modified starch as a thickener is widely accepted and preferred in various industries due to its ability to enhance product texture, stability, shelf life, and cost-effectiveness. However, the emulsifier segment is expected to register the highest CAGR during the forecast period due to its benefits, such as improved quality and stability of various products.
In 2023, the Dry/Powder Segment is Expected to Account for the Largest Share of the Modified Starch Market
Based on form, the modified starch market is segmented into dry/powder and liquid. In 2023, the dry/powder segment is expected to account for the larger share of the modified starch market. The large market share of this segment is attributed to the benefits offered by powdered-modified starches over liquid-modified starches, such as better homogeneity, ease of use & transportation, better stability, and availability in a wide range of grades to suit different applications. However, the liquid segment is expected to register the highest CAGR during the forecast period due to the increasing demand from beverage manufacturers, cost-effectiveness, ease of use, and its ability to improve the texture, stability, visual aspect, and functionality of various products, while also being cost-effective and easy to use.
In 2023, the Food & Beverages Segment is Expected to Account for the Largest Share of the Modified Starch Market
Based on end-user industry, the modified starch market is segmented into food and beverages, animal nutrition, textile industry, cosmetics and personal care products, pharmaceutical, papermaking, and other end-user industries. In 2023, the food and beverage segment is expected to account for the largest share of the modified starch market. The large market share of this segment is attributed to factors such as versatility and functionality, high demand for clean label and natural products, and high demand for low-calorie content food. However, the cosmetics and personal care segment is expected to register the highest CAGR during the forecast period as its cost-effective alternative to other thickening and stabilizing agents, such as gums and synthetic polymers commonly used in this industry.
Asia-Pacific: Fastest-growing Regional Market
Based on geography, in 2023, North America is expected to account for the largest share of the modified starch market. North America’s major market share is attributed to the well-established food & beverage sector, increasing demand for natural and sustainable ingredients, high awareness about the benefits of modified starch in various applications, and the presence of major market players in the region. However, Asia-Pacific is projected to register the highest CAGR during the forecast period. The growth of this regional market is attributed to the huge availability of raw materials, booming manufacturing sectors, increasing investment in the food & beverage industry, and rising demand in large economies such as China, India, Japan, and other Southeast Asian countries.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players in the past three to four years. The key players profiled in the modified starch market are Cargill, Incorporated (U.S.), Ingredion Incorporated (U.S.), Archer Daniels Midland Company (U.S.), Tate & Lyle Plc (U.K.), Roquette Frères (France), AGRANA Beteiligungs-AG (Austria), AVEBE U.A. (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 (Thailand), Royal Ingredients Group B.V. (The Netherlands), and SPAC Starch Products Ltd. (India).
Scope of the report:
Modified Starch Market Assessment, by Product Type
- Starch Esters & Ethers
- Pre-gelatinized Starch
- Resistant Starch
- Cationic Starch
- Other Product Types
Modified Starch Market Assessment, by Raw Material
- Corn
- Cassava
- Potato
- Wheat
- Other Raw Materials
Modified Starch Market Assessment, by Production Method
- Physical Modification
- Enzymatic Modification
- Chemical Modification
Modified Starch Market Assessment, by Function
- Thickener
- Binder
- Stabilizer
- Emulsifier
- Other Functions
Modified Starch Market Assessment, by Form
Modified Starch Market Assessment, by End User Industry
- Food and Beverages
- Animal Nutrition
- Poultry
- Ruminants
- Swine
- Other Animals
- Textile
- Cosmetics and Personal Care
- Pharmaceutical
- Papermaking
- Other End-user Industries
Modified Starch Market Assessment, by Geography
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
Key questions answered in the report: