Starch

Global Starch Market Outlook

Global STARCH MARKET (2022)

Global Starch Production: Approx. 120 MMT

• The global supply of starch has been rising at a CAGR of 5.73 percent between 2022 and 2030. About 80 MMT of corn starch and 8.8 MMT of tapioca starch were produced globally in 2022. Demand for starch mainly comes from Germany and France in Europe and Indonesia, Malaysia in the Asian region. Both corn and tapioca starch are predominantly used in the F&B industry, paper and animal feed industry.

Starch Market Share by Region (2022)

• North America is the largest market followed by Asia Pacific, the industry is expected to grow tremendously on account of the expansion of production facilities in the emerging economies such as India and China, coupled with increasing demand for the food, paper, and textile sectors

• The robust manufacturing base of the food processing and paper industry coupled with the growing demand in Germany is expected to augment demand in Europe over the forecast period

• High demand for modified starch-based products from the convenience and packaged food sector would propel the growth of starches, thereby resulting in the improvement of margins of the food processing industry over the past couple of years

• The textile sector in China, Malaysia, and India increases the growing domestic consumption coupled with favorable regulations attract investments and strengthen the market

Corn Starch Supply-Demand Analysis

• The global corn starch market size was $21.13 billion in 2020 and is projected to reach $33.27 billion by the end of 2027, exhibiting a CAGR of 6.7 percent in the forecast period. More than 80 percent of the global corn starch is concentrated in the US and China, in which, the US is the world's largest producer of corn starch and also maintains low prices.

• Corn starch, used as a thickener or binder, constitutes a minimal percentage of the total corn starch application. Major application of corn starch in the food sector covers a broad spectrum of dairy, confectionery, bakery, meat products, etc.

• US and China are the major producers of corn starch, holding about 30 percent and 28 percent of the global share respectively. US-based global companies, utilize corn starch to manufacture sorbitol. Therefore, the key regions to focus are the U.S., China, as well as major producing countries in the EU, and parts of Asia, other than China

• The Chinese government’s strict COVID-19 mobility restrictions may cause disruptions to spring-planted grain production and increase corn imports though the country’s abundant grain reserves will keep national food security largely intact. This may disrupt the transportation of planting inputs and farmers’ mobility, reducing the production of spring-planted grains

• There is a likelihood of limited availability of corn for downstream industries, owing to reports on 250,000 to 400,000 tons of Brazilian corn being kept in reserve instead of being distributed domestically

Global Demand by Application –Corn Starch

• Based on the product type, the global corn starch market is segmented into modified starch, native starch, and sweeteners

• Of these, sweeteners are leading the global market with a mammoth share of over 50 percent in the overall market

• The burgeoning demand for High Fructose Corn Syrups (HFCS) in a range of food and beverages is anticipated to be pivotal to the rising demand for corn starch-based sweeteners in the near future

• China is very significant, with respect to the corn starch market

• Therefore, the key regions to focus on for the suppliers are the US, China, as well as major producing countries in the EU, and parts of Asia, other than China

• The most dominant region among these is North America, both in terms value and volume

• The Asia Pacific corn starch market is expected to expand at the highest CAGR of 6.4 percent over the forecasting horizon