According to a new market intelligence study published by Future Market Insights (FMI), modified starch market revenues are likely to reach ~US$ 10 Bn by 2019 end. Compared to developed regions, the sales value of modified starch is expected to be higher in countries of developing regions, including Asia Pacific and Middle East & Africa, with estimated market shares of ~20% and ~10% respectively, towards the end of next decade.

Growing demand for low-fat and fat-free dairy products from consumers around the world reflects a massive opportunity for modified starch manufacturers. The study opines that the increasing health awareness and growing demand for healthy and nutrient-rich food products denote the prominent factors directly impacting the modified starch market.

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Over the last century, global population has shown tremendous increase, nearly quadrupling, increasing the consumption of food and beverage products, and driving the global demand for modified starch. Currently, more than half of the world population is residing in urban areas. The increasing urban population is resulting in an increasing consumption of consumer goods and luxury items, due to the ease of access and tendency of consumers to opt for convenience products. This increase in the consumption of convenience food products is creating promising opportunities in the global modified starch market.

Modified Starch Manufacturers Remain Focused on R&D

The modified starch market has increased opportunities in developing economies and economies in transition, including nations from Asian and Middle Eastern and African regions. The urban population in these regions is increasing rapidly, projected to add around 2.5 Bn in the urban population by 2050, owing to the increasing growth rate of population with subsequent increase in urbanization and industrialization.

With the availability of potential labour pool and lenient government rules and regulations, many major manufacturers of food and beverages, cosmetics, pharmaceuticals, and textiles are penetrating emerging markets such as India, China, Brazil, etc. Also, research and development activities carried out by manufacturers are increasing the demand for modified starch in industries. This offers new opportunities and new market applications for modified starch in the global market.

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Modified Starch Sales Surge in F&B as Fat Replacer, Emulsifier, and Thickener

Modified starch is used in a variety of food products such as bakery, convenience, confectionery, dairy, and meat & poultry industries. Modified starch is used as a thickener, fat replacer, and emulsifier in these food and beverage products, mainly to increase their mass and viscosity. Bakery is the leading market sub-segment of the food and beverage end-use segment and is expected to remain strong over the forecast period, according to the FMI analysis. The use of modified starch has a promising application as a fat replacer in low-fat food products. Current consumer perception about eating healthy food products has created a trend for low-fat products. Thus, leading to an increasing demand for modified starch used as a fat replacer in low-fat products, creating a positive outlook for the global modified starch market.

Consumption of cosmetics and personal care products in developed nations has seen a tremendous rise in the last decade and a similar trend is being seen in developing nations as well. Moreover, new cosmetics and personal care products are being launched, targeting specific demographic of the population, and driving the sales of these products. Modified starch that is derived from natural sources, is a multifunctional additive used in the cosmetic and personal care industry. The trend for natural ingredients in cosmetic and personal care products is rising in the global market, thus driving the global modified starch market.

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Competitive Landscape

The key players in the modified starch market include Cargill, Incorporated, Archer Daniels Midland Company, Roquette Frères Company, Ingredion Incorporated, Tate & Lyle PLC, Agrana Group, Emsland Group, KMC Kartoffelmelcentralen A.M.B.A, The cooperative Avebe U.A., BENEO GmbH and many more. Manufacturers prioritize ‘natural and ‘gluten-free’ aspects to ensure higher product quality and nutritional benefits to consumers with the strategy of grasping the outsized segment of consumers.

Key Segment

Source

• Maize/ Corn
• Wheat
• Potato
• Tapioca
• Rice

Product Type

• Acetylated Starch
• Physically Modified Starch
• Enzyme Modified Starch
  • Anionic Starch
  • Cationic Starch
  • Dextrin
  • Oxidized Starch
  • Thinned Starch
  • Pre-Gelatinized Starch
  • Others

Grade

• Food and Beverage
  • Bakery Products
  • Dairy Products
  • Meat & Poultry
  • Convenience Food
  • Others
• Animal Feed
• Cosmetic and Personal Care
• Papermaking
• Textile
• Pharmaceuticals
• Others