Market Trends of Middle East & Africa Food Starch Industry
This section covers the major market trends shaping the MEA Food Starch Market according to our research experts:
Growing Food Sector in the Middle East & Africa Region
The food processing sector comprises the processing of fruits and vegetables, cereals, bakery and confectionary, pulses, oilseeds, dairy, carbonated beverages, fruit juices, and other food items. Saudi Arabia is one of the key consumers of meat products in the world, contributing to the prominent growth in the processed and frozen meat and seafood markets in the country, in which, additives like starches and textures are added to maintain its texture.
The consumers in Saudi Arabia are also interested in ethnic-inspired food kits, pre-packaged ethnic-inspired meals that require only heating, and portable meals more commonly eaten in other countries or regions which is driving the demand for food starches. Furthermore, consumer spending is driven by high disposable income as United Arab Emirates is one of the largest economies in the GCC region. According to a survey by World Bank, per capita consumer spending on food and non-alcoholic beverages in the United Arab Emirates amounts to an estimated 3,635.56 U.S. dollars in 2021.
Demand for food additives in the South African market is primarily driven by the increasing consumer inclination towards convenient and ready-to-eat packaged food. In April 2020, Ingredion EMEA developed an organic instant functional native starch, which can be used in certified organic products and delivers the quality of conventional ingredients.
South Africa America Holds A Prominent Share in The Market
South Africa is primarily engaged in the production of corn starch, both native and modified. Although potato starch and rice starch are also being produced in the country, production is limited.
Potato starch has many competitive uses in varied application areas. However, it is also an expensive starch relative to other starches. These factors indicate that the South African potato starch market is still in its nascent stage. Thus, it shows room for growth and improvement. Additionally, most of the wheat starches in the country are imported, and they are very expensive relative to other starches in the country.
Moreover, in South Africa, there are two types of starch modification processes used by leading starch producers. The small-scale starch producers use a physical modification process to produce native starch, whereas Tongaat Hulett, one of the largest producers of starch in South Africa, utilizes the chemical modification process to manufacture modified starch. For instance, in 2019, Tongaat Hulett expanded its starch portfolio with the launch of a new locally produced instant modified waxy corn starch called Stygel AWH in South Africa. Stygel AWH is suitable for various applications, including fruit pie fillings, frozen foods, cold process mayonnaise, salad dressing, dry mixes, bakery mixes, meat fillings, frozen dough, canned foods, and sauces.
