Starch is considered as one of the most abundant organic compounds available in nature and is used extensively in broad spectrum of applications ranging from food, pharmaceutical, personal care, and industrial. However, starch is structurally weak and is unsuitable or ineffective for use in most of these applications in its inherent forms, thus resulted in modification of its properties. Modified starches are carbohydrates that are derived from native starches through physical, chemical, or enzymatic modification processes.
Market Dynamics
Growth in functional food sector: Supporting the market growth
The growth of modified starch market is mainly attributable to the food and beverage industry. The rising demand for functional foods across the globe is the key factor for the growth of modified starch market. Modified starches are considered as a major functional ingredient in preparation of functional food and beverages, fortified foods, and medical foods. The rising demand for function foods such as yogurt, protein shakes, and fortified salads and the utilization of modified starches as fat replacers in these products is likely to provide a growth. The global functional food market is estimated to witness a lucrative growth of over 8% to reach $480 billion by the end of 2024. Increase in obesity across the world will further drive the functional food market owing to the fat replacing property, in turn driving the modified starch market. The U.S. adult obesity rate stands at 42.4 percent, an increase of 26% from 2008. Furthermore, modified starches are also used as excipient in several pharmaceutical formulations. The high stability and thickening properties of starch made it a key ingredient in cosmetics, textile, paper, and several other industrial applications. The growth of these industries is also supporting the demand for modified starches.
The effect of clean label: Hindering the use of modified starch
The growing consumer demand for clean label product is limiting the growth of modified starch market. Clean label evolved as a critical purchase factor for food and beverages across the globe. According to BENEO-Remy NV, a Belgium based functional ingredients manufacturer, nearly 65% of American consumers are preferring food products derived from natural ingredients over their chemically modified counterparts. This is motivating the food manufacturers to reconsider and eliminate the utilization of modified starch in their food formulations. Furthermore, several modified starch manufacturers are focusing towards innovation of native functional starches that mimic the properties of modified starches. These starches enable food processors to gain clean label claim on their products.
In June 2019, Ingredion Incorporated expanded its NOVATION Lumina functional native starches portfolio with new clean label texturizers. Back in May 2016, the company launched NOVATION PRIMA 340 and 350, two new functional native starches with increased cold shelf-life stability that is suitable for use in frozen and instant foods
In July 2018, BENEO introduced Remypure S52, a new clean label rice starch with improved functional performance as a modif
Market Segmentation
By Type
Pregelatinized Starch
Oxidized Starch
Cationic Starch
Anionic Starch
Cross-Linked Starch
Thinned Starch
Acetylated Starch
Dextrin
Starch Ethers
Physically Modified Starch
Enzymatically Modified Starch
Others
By Source
Corn
Tapioca
Wheat
Potato
Cassava
Others
By Application
Thickening Agent
Stabilizer
Disintegrant
Binding Agent
Emulsifier
Others
By End Use Industry
Food & Beverages
Pharmaceuticals
Cosmetics
Textile Industry
Animal Feed
Plastic Industry
Others
Geographical Penetration
By geography, the global modified starch market is segmented into North America, South America, Europe, Asia Pacific, Middle East and Africa. North America is the leading global modified starch market currently but Asia Pacific if expected to grow at a rapid pace owing to the rise in food industry in this region, especially targeted foods. development and increasing purchasing power and awareness along with the increasing food demand is the reason for expected rapid growth in this region.
USA leads the production of corn, which is the dominant raw material for modified starch, with 360,252 tons in 2020 followed by Chinas 260,670 tons. Along with the development and purchasing power, spending on Innovation and R&D keeps North America on top of the modified starch market. According to AAAS 2018 research, Integration of the Arabidopsis Flowering Locust gene in the genome-editing cassette allowed to accelerate flowering in the ex-situ breeding of GBSS- and PTST1-edited cassava for modified starch. Recent developments in Octenyl succinic anhydride modified starches are yielding a hydrocolloid with amphiphilic properties, finding application in the food industry mainly as emulsifier, encapsulating agent and fat replacer. However, consumer demand for clean label product will hinder the growth in this region
Competitive Landscape
The global modified starch market is fragmented with many local companies but the developed countries markets are dominated by top international companies like Ingredion Incorporated, Cargill, Incorporated, Tate & Lyle PLC, Avebe U.A., BENEO-Remy NV, The Archer Daniels Midland Company, Roquette Frθres. The market is highly competitive in terms new product developments, acquisitions and joint ventures.
