Market Trends of Starch and Starch Derivatives Industry
This section covers the major market trends shaping the Starch & Starch Derivatives Market according to our research experts:
Growing Food Processing Sector Globally
Starch derivatives with high tolerance to processing conditions are expected to be increasingly incorporated in the specialty applications, such as functional foods, pharmaceutical solutions, as well as sophisticated paper-based applications. The general health and wellness trend has provided the starch market with a distinct direction for new product development, which includes a clean label and exhibits enhanced functionality.
Furthermore, owing to the high incidence of obesity, there is an increasing demand for healthy foods and beverages among consumers, which further fuels the demand for starches in convenience and processed foods. According to a survey by Office for National Statistics (UK), the sales volume of potato starch increased to approximately 38.9 million tons in 2020.
Additionally, manufacturers are investing in developing clean label solutions, owing to the growing demand for clean label food products among consumers across the world. Such factors are anticipated to drive market growth in the coming years. For instance, in March 2020, Tate & Lyle expanded its line of Claria clean label starches and launched Claria Everlast. The starch is designed to solve formulation challenges related to refrigerated and freeze thaw stability in categories, such as frozen meals, sauces, and yogurts. The ingredient is not-GMO and has a clean taste and neutral color.
Asia-Pacific is the Fastest Growing Region
The starch and starch derivatives market in Asia-Pacific is experiencing rapid expansion due to the growing demand for non-GMO and organic ingredients in the region has led the manufacturers to introduce new lines of specialty starches, especially for applications in the food industry, including dressings, sauces, bakery fillings, ice creams, yogurt, soups, bakery items, beverages, meat, and dry sausages. There has been a significant increase in the demand for all forms of ready-to-eat or convenience food and beverage products, owing to increasingly busy lifestyles and the rising working population in the countries of Asia-Pacific. The food processing industry is thus expected to have significant growth and generate new opportunities for investment and exports for these developed countries.
The application of modified starch in varied applications is widely contributing to the Chinese market. It aids in thickening or stabilizing food products, especially sauces. Thus, with the rising market for sauces and condiments, the starch and starch derivatives market is also growing at a faster pace. For instance, in April 2021, Cargill partnered with Starpro, a key food grade tapioca starch producer in Thailand, and expanded its specialty tapioca starch offerings in the Asia-Pacific region. The collaboration is expected to support the product processing requirements of food manufacturers and meet the sensory expectations of consumers.
