Industrial Starch Market Research Report and Outlook by 2028

The industrial starch market is projected to expand significantly, increasing from US$ 67,353.01 million in 2022 to US$ 98,426.74 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.5% during this period.

Starch is primarily derived from various plant sources, including maize (corn) and wheat. In its unprocessed state, pure starch appears as a white, amorphous powder that is tasteless, odorless, and insoluble in water. Industrial starch is extensively utilized across multiple sectors, including food and beverage, pulp and paper, pharmaceuticals, and animal feed, due to its natural availability and minimal processing requirements. Its properties?being non-toxic, cost-effective, odorless, biocompatible, and widely accessible?make it a preferred choice in these industries.

In recent years, starch manufacturers have experienced a surge in demand from the paper and paperboard sector, largely driven by the rapid growth of the e-commerce industry. Corrugated boards, which are essential for packaging goods, have seen increased usage. The COVID-19 pandemic further accelerated this trend, as consumers shifted their purchasing habits towards online retail for both essential and non-essential items, including packaged foods, clothing, cosmetics, and household appliances. However, the industrial starch sector faced challenges in meeting this rising demand due to the removal of two drying assets from the market, which limited drying capacity availability.

Industrial starch plays a crucial role in animal feed, serving as a primary energy source in the diets of livestock such as beef and dairy cattle, chickens, and swine, thereby enhancing production efficiency. Additionally, it is vital in the textile industry, where it contributes to the development of fabric strength, elasticity, and surface quality, while also reducing friction during the weaving process and improving the overall feel and appearance of textiles. The growing demand for convenience and ready-to-eat food products is further fueling the need for industrial starch. Moreover, the rising use of starch-based adhesives in various industrial applications, particularly in packaging, alongside the rapid expansion of the food and beverage sector, is propelling market growth.

The industrial starch market is categorized by type into native starch and starch derivatives and sweeteners. The starch derivatives and sweeteners segment led the market in 2021 and is anticipated to exhibit the highest CAGR throughout the forecast period. Stringent regulations favoring natural ingredients in food and beverages, textiles, cosmetics, pharmaceuticals, and other end-user industries are driving this trend. The increasing demand for biodegradable and bio-based adhesives, coupled with the need for low-emission alternatives, is expected to further boost this segment's growth.

Geographically, the industrial starch market is divided into North America, Europe, Asia Pacific (APAC), South and Central America (SAM), and the Middle East and Africa (MEA). In 2021, the Asia Pacific region dominated the market, driven by the growth of various end-use industries. The food and beverage sector significantly contributes to the market expansion in this region. Factors such as increasing urbanization, initiatives by governments and private sectors to promote renewable packaging materials, and rising consumer spending are collectively influencing the growth of the industrial starch market in Asia Pacific economies.

The food and beverage industry faced significant challenges during the COVID-19 pandemic, including raw material shortages, workforce limitations, and factory shutdowns due to safety protocols. These operational difficulties adversely impacted the industrial starch market, as lockdown measures disrupted supply chains and production capabilities. While food and beverage production was deemed essential in some countries, many production sites experienced complete or partial shutdowns as part of containment strategies. Conversely, the pharmaceutical sector provided a lifeline for the industrial starch market during the pandemic, as starch is utilized as a binder and disintegrant in pharmaceutical formulations. The successful rollout of mass vaccination campaigns in 2021 led to a resurgence in business activities, and as economies began to recover, the demand for industrial starch began to rise globally, with key manufacturers resuming normal production levels.

Leading players in the industrial starch market include Agrana Beteiligungs-AG, ADM, Ingredion Incorporated, Roquette Fr?res, Tereos Group, Cargill, Incorporated, Tate & Lyle PLC, Grain Processing Corporation, Royal Cosun, and AVEBE. These companies are employing strategies such as mergers and acquisitions and new product launches to enhance their market presence and expand their customer base.

The overall size of the industrial starch market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the industrial starch market.