Food, Beverage Driving Global Starch Market

SAN JOSE, Calif.Global starch consumption is projected to reach 133.5 million metric tons by the year 2018, driven primarily by the diversity and sheer number of end-use applications in both food and non-food industries, according to a new report from market researcher Global Industry Analysts, Inc. (GIA).

According to the Starch: A Global Strategic Business Report",  economic recovery, rise in per capita consumption, and growing demand for starch products from developing nations translates into a bright outlook for the sector. Starch end-use applications have grown in number over the years, and now include diverse applications ranging from food and beverages to medicine, cosmetics, pharmaceuticals and more.

The food industry ranks as the largest end-use sector, with sweetener applications representing the largest sub-segment worldwide. The market is moving beyond the traditional sources of starch such as maize, potato and wheat, to consider other economical sources of starch, such as cassava, and sweet potato for starch production.

Although economic development and the rising standard of living have contributed to a significant rise in consumption of starch and related products by non-food sector, the food industry has always remained the traditional sustainer for global starch market. A multitude of promising developments and innovations in biotechnology are also poised to propel the demand from food industry for starch.

Usage of starch by the food industry is being fueled by the increasing number of government policies stipulating the usage of natural substances in food products. With the increasing demand for low fat and low calorie food, many food companies are replacing fats with gums and carbohydrates, such as starches and hydrocolloids.

Growing consumption of liquid starches and modified starches has been one of the key reasons behind the quick recovery of the market post recession. With the global economy gradually improving and resulting in an increased intake of processed and convenience foods, the market for modified starch, which finds substantial usage in these food applications, is finding increased demand, thereby driving the overall market at a compound annual growth rate (CAGR) of more than 7% through 2018.

Developments in the field of biotechnology, which are expected to bring down production costs and serve consumers demand for healthy food products therefore provide new opportunities for novel modified starches. Liquid starch products used in syrup form will continue to retain hold over the market, garnering the largest chunk of the starch market. These starch products include ethanol, isoglucose and other syrup-based products.

According to the report, the United States is the largest supplier of starch in the world, followed by China. Recent growth in the global starch market has been particularly driven by developing markets in Asia-Pacific. In fact, the sector, which includes China, India, Thailand, South Korea and Philippines, is slated to have a growth rate of 9.0% through 2018.

Major players profiled in the report include Archer-Daniels-Midland Co., AVEBE Group B.A., BENEO-Remy NV, Cargill, Inc., Chemstar Products Co., China Essence Group Ltd., Corn Products International, Inc., National Starch Food Innovation, Grain Processing Corp., Penford Corp., PT Budi Acid Jaya, Roquette Frères, SYRAL S.A.S., and Tate and Lyle Plc., among others.