Starch Category Intelligence
Report Coverage
- Global Demand by Application–Corn Starch
- Corn Pricing Analysis – US
- Global Corn Starch Supplier Market Share
- Global Tapioca Supply-Demand Analysis
Starch Market Trends
Category Intelligence on Starch covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
Global Starch Market Outlook
The contract period for starch procurement by the food and pharmaceutical industry varies from 3-6 months
Price locking for a bulk quantity in December would be an ideal month, since prices are expected to escalate marginally post this period
- The total starch production is ~85 MMT, of which, 53 percent goes into sweeteners, 36 percent into native starches, and 11 percent into modified starches. Of these, corn accounts for 68 percent of modified starches and the bulk of sweeteners as feedstock. The market for modified starch is projected to reach a value of $ 11.1 billion by 2020, at a CAGR of 4.1 percent from 2015
- 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 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
- It is estimated that approximately 64.6 MMT of corn starch was produced in 2017. The potential suppliers are located in the US, China, certain regions of the EU and Asia. The global corn starch market is expected to grow staggering 4.85 percent in the forecast period
- 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 and 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, such as Cargill, Roquette, and ADM, utilize corn starch to manufacture sorbitol
- Therefore, the key regions to focus are the US, China, as well as major producing countries in the EU, and parts of Asia, other than China
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
Starch Market Frequently Asked Questions
- Who are the key contributors to the global corn starch production market?
- The corn starch production in the US forms about 30 percent of the total market. Thailand contributes to 35.7 percent of the total tapioca starch market, while Europe's contribution towards wheat starch forms 20 percent of the global market.
- Who are the major players in the global starch market?
- The leading suppliers of corn starch are ADM, Cargill. Siam Quality starch and General starch are the major suppliers of tapioca starch. For wheat starch, ADM and Roquette Freres make a significant contribution to the global market.
- What are the key cost drivers for the starch production market?
- 60 percent of the total cost incurred for starch production goes to the raw materials. Therefore, raw materials are the number one factor in the cost determination of starch. Other major price drivers include the impact of feedstock prices and downstream demand escalation.
- What is the market size of global starch production?
- It is estimated that the market for modified starch will reach a valuation of $11.1 billion by 2020. The global starch production is estimated to be 85 MMT, out of which, 53 percent goes into sweeteners, 36 percent into native starches and 11 percent into modified starches.
