As per the report published by Kings Research, the global Modified Starch Market was valued at USD 12.10 billion in 2023. The market is projected to reach USD 15.99 billion by 2031, growing at a CAGR of 3.60% from 2024 to 2031.
The modified starch market is witnessing steady growth due to its diverse applications in food, pharmaceuticals, and other industries. The prominent factors driving market expansion include rising demand for convenience foods, increased health consciousness among consumers, and technological advancements in starch modification processes.
Major market players are focusing on research and development (R&D) to introduce innovative products catering to specific consumer needs. Asia-Pacific dominates the market due to its large population and expanding food industry. However, challenges such as fluctuating raw material prices and regulatory constraints persist, prompting manufacturers to innovate their product lineup to maintain their presence in the market.
Key Insights
- Based on source, the cassava segment accounted for the largest market share of 44.00% in 2023
- Based on application, the animal feed industry segment is estimated to hold a share of roughly 7.33% by 2031
- On the basis of region, Asia-Pacific led the market in 2023 with a valuation of USD 3.93 billion
Ingredion Incorporated Increases its Texturizer Capacity to Meet the Rising Demand for Specialty Starches
November 2022: Ingredion Incorporated completed one-third of its $160 million capital investment aimed at expanding capacity for modified and clean label specialty starches globally. The company's strategic move responds to the increasing demand for texture-enhancing and label-friendly options in the food and beverage sector. Additionally, in September 2022, Ingredion inaugurated a cutting-edge manufacturing facility in Shandong, China, which significantly enhanced its starch production capacity and capabilities in the region.
Growing Demand for Clean Label Products to Boost Modified Starch Market Progress
The growing demand for clean label products is creating opportunities for the development of the modified starch market since consumers are increasingly seeking natural and minimally processed ingredients in their food products. This has led to a rise in the use of modified starches as clean label alternatives to traditional additives.
Manufacturers are capitalizing on this opportunity by developing modified starches derived from natural sources and using clean processing techniques. This trend is expected to drive the adoption of modified starches in various food applications, particularly in organic and health-conscious market segments.
Expanding Applications in Non-Food Industries to Create Lucrative Growth Opportunities
The modified starch market is seeing growth opportunities in non-food industries, including pharmaceuticals, textiles, and paper manufacturing. As industries increasingly seek sustainable and eco-friendly alternatives to synthetic materials, modified starches are gaining significant traction due to their biodegradable and renewable nature. In the pharmaceutical industry, modified starches are extensively used as excipients in drug formulations, while in textiles, they enhance the performance of fabrics. This diversification of applications is expected to fuel market growth and create new revenue streams for manufacturers.
Rising Demand for Gluten-Free Products to Drive Modified Starch Market Growth
The increasing prevalence of gluten intolerance and celiac disease is leading to the increased demand for gluten-free products, presenting a significant opportunity for the growth of the modified starch market. Modified starches are increasingly utilized as gluten-free alternatives in various food products, including baked goods, snacks, and sauces.
Manufacturers are investing heavily in research and development to improve the functionality and sensory attributes of gluten-free modified starches, in response to rising consumer preferences for taste and texture. This trend is likely to be further fueled by the rising global awareness regarding gluten-related disorders.
Europe is Slated to Be the Fastest-Growing Region, Exhibiting a Significant CAGR of 4.38% Between 2024 and 2031
Based on region, the global modified starch market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Europe is anticipated to emerge as the fastest-growing region in the modified starch market, showcasing the highest CAGR of 4.38% from 2024 to 2031. This growth is attributed to several factors, including the increasing demand for clean label and gluten-free products in the region.
Additionally, technological advancements in starch modification processes and the emphasis on sustainable practices are supporting regional market expansion. Europe's well-established food and pharmaceutical industries, coupled with changing consumer preferences toward healthier and natural ingredients, are contributing to the robust growth of the Europe modified starch market.
Companies Focus on Launching New Products to Expand Their Product Lineup and Market Reach
The global modified starch market reveals a fragmented landscape, featuring prominent companies including ADM, AGRANA Beteiligungs-AG, Cargill, Incorporated., Grain Processing Corporation, Ingredion, Roquette Frères, Royal Ingredients Group, SMS Group, Tate & Lyle, AVEBE, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.