Modified Starch Market Research - 2032
The global modified starch market was valued at $9.0 billion in 2022, and is projected to reach $14.4 billion by 2032, growing at a CAGR of 4.9% from 2023 to 2032. Rise in demand for modified starch across the food and beverage, pharmaceutical, and paper industries drives the growth of the market. In the food sector, modified starches are used for their thickening, stabilizing, and gelling properties, enhancing product texture and shelf life. The pharmaceutical industry utilizes them as binders and disintegrants in drug formulations. In addition, rise in consumer preference for clean-label and natural ingredients fuels the market, as modified starches are perceived as versatile and functional alternatives to synthetic additives.
Introduction
Modified starch is chemically, physically, or enzymatically altered to enhance its properties and performance for specific applications. Unlike native starch, used mainly as a thickening agent, modified starches are engineered to improve characteristics such as solubility, stability, viscosity, and texture. These modifications enable starches to function effectively in a variety of environments and conditions. Modified starches are widely used in food and beverage products for their thickening, gelling, and stabilizing abilities, and in pharmaceuticals as binders and disintegrants. They are also employed in industrial applications like papermaking and textiles to achieve desired properties in end products.
Report Key Highlighters:
The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
The modified starch market is fragmented in nature among prominent companies such as ADM, AGRANA Beteiligungs-AG, AVEBE U.A., Cargill, Incorporated, EMSLAND GROUP GmbH and Co. KG, Ingredion Incorporated., Roquette Freres, Royal Ingredients Group, and Tate and Lyle PLC.
The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), key regulation analysis, pricing analysis, and Porter’s Five Force Analysis across North America, Europe, Asia-Pacific, LAMEA regions.
Latest trends in global modified starch market such as undergoing R&D activities, public policies, and government initiatives are analyzed across 16 countries in 4 different regions.
More than 2,500 modified starch-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for global modified starch market
Market Dynamics
One of the primary drivers of the modified starch market is increase in applications of modified starches in various industries, including food and beverages, pharmaceuticals, and paper production. The food and beverage sector remains the largest consumer of modified starches, leveraging their properties for thickening, gelling, and stabilizing products.
Government statistics underscore the rising demand for modified starches in the food sector. For instance, the U.S. Department of Agriculture (USDA) reports that corn production, a primary source of starch, has been consistently high, with the 2023 production estimated at 14.8 billion bushels, reflecting a strong supply base for modified starches. Similarly, in India, the Ministry of Food Processing Industries supports the development and use of modified starches through various schemes aimed at enhancing food processing capabilities. The Indian food processing industry, valued at $369 billion in 2022, is expected to grow, driving demand for modified starches as ingredients in diverse food products.
Moreover, technological advancements in food processing and formulation are significantly driving the demand for modified starches. Innovations such as clean-label products, which use natural and minimally processed ingredients, have increased the interest in modified starches due to their versatility and functionality. For example, the use of modified starches in gluten-free and low-fat foods helps improve texture and mouthfeel, which is crucial for consumer acceptance. According to the European Union’s Food Information to Consumers Regulation (EU) No 1169/2011, there is an increasing emphasis on transparent labeling and natural ingredients, which aligns with the use of modified starches as alternatives to synthetic additives.
The European Food Safety Authority (EFSA) has also recognized the benefits of modified starches in food products. Their evaluations ensure that modified starches used in food applications meet safety and quality standards, further driving their adoption. The EU market for modified starches is anticipated to grow, supported by regulatory frameworks that encourage the use of functional and safe food additives. For instance, the European Union's Horizon Europe (Regulation (EU) 2021/695) program funds research and development projects aimed at improving food safety and quality, including innovations in starch modification technologies.
One significant restraint for the modified starch market is the stringent regulatory environment governing its use and production. Governments globally enforce rigorous standards to ensure the safety and quality of modified starches used in food, pharmaceuticals, and industrial applications. For instance, the U.S. Food and Drug Administration (FDA) regulates modified starches under 21 CFR Part 172, requiring extensive testing and documentation to ensure their safety for human consumption. This regulatory scrutiny can delay product approvals and increase compliance costs for manufacturers.
In Europe, the European Food Safety Authority (EFSA) plays a critical role in evaluating and approving food additives, including modified starches, as mandated by the EU Regulation (EC) No 1333/2008. The EFSA’s comprehensive risk assessments and stringent approval processes can pose challenges for manufacturers seeking to introduce new or modified starch products to the European market. The requirement for extensive safety data and regulatory documentation can be a barrier, particularly for smaller companies.
In addition, in Canada, the Food and Drugs Act (RSC 1985, c 27) and the Food and Drug Regulations (CRC, c 870) impose strict guidelines on the use of modified starches. Compliance with these regulations involves detailed safety evaluations and labeling requirements, which can be resource-intensive for manufacturers. Navigating these complex regulatory landscapes can be particularly challenging for companies operating in multiple markets, leading to increased operational costs and potential delays in product launches.
On the contrary, emerging economies, such as China, India, Brazil, and Southeast Asian countries, offer significant growth opportunities for the modified starch industry. These regions have large populations with increased disposable income and changed dietary patterns. As a result, there is a surge in demand for processed and convenience foods, which drives the need for modified starches. Moreover, the industrial sectors in these economies, including textiles, paper and packaging, and pharmaceuticals, provide opportunities for the utilization of modified starches in non-food applications.
Segments Overview
The modified starch market is segmented on the basis of raw material, type, function, application, and region. On the basis of raw material, the market is categorized into maize, cassava, potato, wheat, and others. On the basis of type, it is divided into cationic starch, etherified starch, esterified starch, resistant starch, and pre-gelatinized. On the basis of function, it is classified into thickeners, stabilizers, binders, emulsifiers, and others. By application, the market is segregated into food & beverages, animal feed, paper-making, weaving textiles, pharmaceuticals, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Modified Starch Market by Raw Material
In 2022, the maize segment was the largest revenue generator and is anticipated to grow at a CAGR of 5.2% during the forecast period. Maize is widely cultivated globally and is one of the most abundant cereal crops. It is readily available in large quantities, making it a reliable and cost-effective source of starch for industrial purposes. Moreover, maize has a high starch content, making it suitable for starch extraction and modification. The starch granules in maize are relatively large and can be easily separated from other components during the extraction process. These factors have increased the utilization of maize as a raw material for producing modified starch.
Modified Starch Market by Type
In 2022, the pre-gelatinized segment was the largest revenue generator and is anticipated to grow at a CAGR of 5.1% during the forecast period. One of the main advantages of pre-gelatinized starch is its instant solubility in cold or hot water. Owing to the partial gelatinization process, the starch granules are hydrated and partially disrupted, allowing them to disperse and dissolve easily in water without the need for cooking or heat. This factor has surged the utilization of pre-gelatinized starch among various applications; thus, fueling the modified starch market growth.
Modified Starch Market by Function
In 2022, the thickeners segment was the largest revenue generator and is anticipated to grow at a CAGR of 5.0% during the forecast period. Modified starch offers improved functional properties compared to native or unmodified starch. It provides better viscosity control, stability, texture enhancement, and suspension of particles in a wide range of applications. The modification process alters the starch's molecular structure, allowing it to exhibit desired thickening properties under various processing and storage conditions.
Furthermore, consumers increasingly seek products with appealing texture and mouthfeel. Modified starches play a vital role in achieving these desired attributes, providing smoothness, creaminess, and thickness in various food & beverage formulations. They contribute to the sensory experience and overall quality perception of the products. These factors altogether may surge the demand for modified starch for thickener purposes; thus, fueling the market growth.
Modified Starch Market by Application
By application, the food and beverages segment dominated the global market in 2022 and is anticipated to grow at a CAGR of 5.0% during the forecast period. Modified starches offer a wide range of functional properties that can improve the quality, texture, and stability of food products. They provide thickening, stabilizing, emulsifying, and binding properties, allowing manufacturers to achieve desired product characteristics and meet consumer preferences. This factor may act as one of the key drivers responsible for the modified starch market growth.
Modified Starch Market by Region
The Asia-Pacific modified starch market size accounted for 37.3% of modified starch market share in 2022 and is projected to grow at the highest CAGR of 5.3% during the forecast period and. Asia-Pacific has witnessed rapid economic growth, population expansion, and increase in urbanization. These factors contribute to the growth of the market. The region's large population and rise in disposable incomes drive the demand for processed foods, leading to increased utilization of modified starches as functional ingredients.
The modified starch market is forecast to grow at a robust rate, fueled by the expanding food and beverage industry and the adoption of modified starches in various non-food applications. Moreover, Asia-Pacific has witnessed a surge in interest in functional foods and nutraceuticals, driven by an increase in health awareness and the desire for preventive healthcare. Modified starches play a vital role in developing functional food products that offer additional health benefits, such as improved digestion, weight management, or cardiovascular health. The demand for modified starches with functional properties is expected to grow as consumers seek healthier food options. In addition to this, clean labels and natural ingredients have gained prominence in the Asia-Pacific market as consumers become more health-conscious and seek transparency in their food choices.
Competitive Analysis
The global modified starch market profiles leading players that include ADM, AGRANA Beteiligungs-AG, AVEBE U.A., Cargill, Incorporated, EMSLAND GROUP GmbH and Co. KG, Ingredion Incorporated., Roquette Freres, Royal Ingredients Group, Tate and Lyle PLC, and Tereos.
Moreover, other key players in the market that are not profiled in the report includes Grain Processing Corp., KMC, Roquette Freres, Archer Daniels, Everest Starch, Pars Koosheh Pardaz Co., SPAC Starch Products Ltd., Tongaat Hulett Starch, Eurodona Food Ingredients GmbH, and others. The global modified starch market report provides in-depth competitive analysis and profiles of these major players.
Industry Trends:
The modified starch market is expanding due to rise in demand for modified starch in food, pharmaceutical, paper, and textile industries. Governments promoting food security and agricultural development are driving growth. For example, India’s National Food Processing Policy and subsidies on maize and cassava cultivation boost domestic starch production. Similarly, the U.S. Department of Agriculture (USDA) reports indicate increasing corn production, supporting the market for modified starch as a key ingredient in food processing, including as a thickening, stabilizing, and gelling agent.
Health-conscious consumer trends are also shaping the market, with a preference for clean-label and gluten-free products. The European Union's Regulation (EU) No 1169/2011 on food labeling has led manufacturers to adopt modified starches as alternatives to synthetic additives. This demand is further propelled by government-backed research into non-GMO and organic starch sources, driving innovation in the market. As a result, modified starches are increasingly used in processed foods, convenience meals, and functional foods.
- In the industrial sector, the paper and textile industries utilize modified starch as a coating and sizing agent. The Made in China 2025 policy, emphasizing technological advancement in manufacturing, has increased the use of modified starch in paper production. Government initiatives focusing on eco-friendly production processes are also boosting the adoption of modified starch in biodegradable packaging and sustainable textile processing.
- Government Incentives for Promoting the Utilization of Modified Starch:
- In the U.S., the Food and Drug Administration (FDA) Regulation 21 CFR Part 172.892 permits the use of modified food starch in various food products, ensuring safety for consumption. The USDA's BioPreferred Program (2002 Farm Bill, Section 9002) promotes bio-based products, including modified starches, to reduce reliance on petroleum-based materials. In addition, the USDA Agricultural Research Service (ARS) invests in research to develop high value uses for starch, enhancing its application in food, pharmaceuticals, and industrial sectors.
- Canada's Food and Drug Regulations (SOR/2016-305, Division 16) govern the use of food additives, including modified starches, in various food products, emphasizing safety standards. The Canadian Agricultural Partnership (CAP) provides funding and support for the agriculture and agri-food sector, promoting the production of starch-rich crops like corn and potatoes. This indirectly benefits the modified starch market by boosting raw material availability and promoting innovation in starch modification techniques.
- The European Union's Regulation (EC) No 1333/2008 on food additives sets standards for using modified starches in food processing, ensuring consumer safety. The Common Agricultural Policy (CAP) encourages the cultivation of starch-rich crops, providing subsidies that support the starch industry. Moreover, the EU’s Horizon Europe (Regulation (EU) 2021/695) research framework funds projects for developing bio-based materials, including modified starches, to foster sustainability and innovation.
- In India, the National Food Processing Policy promotes agro-based industries, including starch production, by providing incentives and subsidies. The Food Safety and Standards Authority of India (FSSAI) Regulations (2011) govern the use of modified starches as food additives. In China, the National Key Research and Development Program supports biotechnology, driving research into modified starch production for food, pharmaceuticals, and bio-based materials, aligning with the country’s focus on sustainability and food security.
Modified Starch Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 14.4 billion |
 Growth Rate | CAGR of 4.9% |
 Forecast period | 2022 - 2032 |
 Report Pages | 570 |
 By Raw Material |
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 By Type |
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 By Function |
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 By Application |
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 By Region |
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 Key Market Players | Roquette Freres, Royal Ingredients Group, EMSLAND GROUP GmbH & Co. KG, Cargill, Incorporated, Ingredion Incorporated., AGRANA Beteiligungs-AG, AVEBE U.A., ADM, Tate & Lyle PLC, Tereos |
Analyst Review
The modified starch market has experienced significant growth in recent years and is expected to continue to expand. Factors such as the rise in demand for convenience foods, change in dietary patterns, and the need for functional ingredients in various industries (including food, pharmaceuticals, and textiles) drive the market growth. Moreover, consumers have become more conscious of the ingredients used in their food products. A surge in preference has been witnessed for clean label products that contain natural and minimally processed ingredients. In response, many companies focus on offering modified starch derived from natural sources and ensure transparency in labeling and meeting the demands of health-conscious consumers
Furthermore, CXOs added that sustained economic growth coupled with rapid development of pharmaceutical, personal care & cosmetics, and food & beverage sector may lead the modified starch market to witness a significant growth.
Escalating demand from food and beverage sector and robust demand for clean labels are the upcoming trends in the global modified starch market.
Food and beverages is the leading application of modified starch market.
Asia-Pacific is the largest regional market for modified starch.
The modified starch market was valued for $9.0 billion in 2022 and is estimated to reach $14.4 billion by 2032, exhibiting a CAGR of 4.9% from 2023 to 2032
ADM, AGRANA Beteiligungs-AG, AVEBE U.A., Cargill, Incorporated, EMSLAND GROUP GmbH and Co. KG, Ingredion Incorporated., Roquette Freres, Royal Ingredients Group, Tate and Lyle PLC, Tereos are the top companies to hold the market share in the modified starch market.
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