Modified Starch - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Modified Starch Market is expected to register a CAGR of 4.62% during the forecast period.

Key Highlights

• Over the long term, 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. Modified starches are used in the food and beverage industry as thickeners, stabilizers, and emulsifiers. The rising population, urbanization, and shifting dietary patterns all contribute to increased demand for these functional ingredients.
• Technological advancements in the field of modified starch production have led to the development of innovative and high-performance modified starches that cater to specific applications. This has created new market opportunities and expanded the scope of modified starches. Government regulations related to food safety and quality are driving the demand for modified starches as they are considered safe and healthy alternatives to synthetic additives.
• Consumers are becoming more aware of the benefits of using natural and functional ingredients in their food and other products. Modified starches are in high demand in a variety of applications because they are seen as natural and healthy ingredients. The demand for modified starches is helping the rapid development of the food industry. Modified starches offer a tremendous number of functional benefits to various foods, such as bakeries, snacks, beverages, and nutritional foods. While convenience remains a key driver in the market's future, growing consumer calls for healthy alternatives are redefining what it takes to stand out in the category.
• Manufacturers have also been readily inculcating the clean label trend in their products to gain market share. The pharmaceutical and industrial sectors can use modified starches in a wide range of applications. They are used, among other purposes, in cosmetics, papermaking, textiles, and adhesives. The rising use of bio-based materials and environmentally friendly goods is predicted to increase demand for modified starches in these industries.

Modified Starch Market Trends

Increasing Investments in the Starch Market to Strengthen the Growth

• Investments in the starch market are expanding production capacity, which can meet the growing demand for modified starches in various industries. With increased production, manufacturers can take advantage of economies of scale and reduce their costs, resulting in higher profit margins and increased market share.
• For instance, in February 2021, Tate & Lyle PLC completed the acquisition of an 85% shareholding in Chaodee Modified Starch Co. Ltd ('CMS'), a well-established tapioca-modified food starch manufacturer based in Thailand. The investment extended Tate & Lyle's presence in specialty tapioca-based restaurants and established a dedicated production facility in the main tapioca-producing region of Eastern Thailand.
• Ingredient suppliers have been diversifying their starch sources, while starch innovations are centered on elements within baked foods, including sauces in frozen food meals and fruit filling in desserts. According to the European Starch Industry Association (ESIA), The European Starch Industry currently produces more than 11 million tonnes of starch and starch derivatives, as well as more than 5 million tonnes of proteins and fibers annually, from 71 starch-producing facilities in 20 member nations of the European Union (EU). This is mainly extracted from 25 million tones of EU-grown wheat, maize, and potatoes, but also from barley, rice, and peas. EU starch production increased from 8.7 million tonnes in 2004 to over 11 million tonnes in 2021.
• More importantly, a growing number of starch manufacturers have been investing in the starch and sweeteners market in Europe to support the local economy and community while positioning the business for long-term growth. Increasing investments in the starch market can support growth by expanding production capacity, developing innovative products, optimizing the supply chain, and strengthening the brand image and customer relationships. Therefore, the rising investment in modified starch production to cater to the surging demand is expected to bolster the market's growth during the forecast period.

Asia-Pacific Remains the Fastest Growing Region

• The application of modified starch in varied applications is widely contributing to the growth in the Asia-Pacific region. It aids in thickening or stabilizing food products, especially sauces. Thus, with the rising market for sauces and condiments, the industrial starches market is also growing at a faster pace. The booming manufacturing sectors, ranging from textiles to the cosmetics industry, have been pushing the demand for starch in the region. The food industry is one of the major consumers of modified starches in the Asia Pacific region.
• The demand for modified starches in this sector is driven by the increasing demand for processed foods, convenience foods, and functional foods, which require high-quality modified starches as ingredients. The rapidly growing processed food industry and the consumer shift toward snacking have been driving the modified starch market in countries like China and India. The food industry is the most lucrative segment considering liberalized regulations toward using modified starch in food production.
• Government policies supporting the use of modified starches in various industries, particularly in the food and beverage sector, are driving the growth of the modified starch market in the Asia Pacific region. These policies are aimed at promoting the use of natural and healthy ingredients in food products and ensuring food safety.
• The evolving retail landscape, along with the involvement of numerous global and local players producing prepared food, is also projected to boost the demand in the modified starches market in the region.

Modified Starch Industry Overview

The global modified starch market is fragmented. However, few international players are focusing on increasing their market share in developed economies. The leading players, including Archer Daniels Midland Company, Cargill Incorporated, Ingredion Incorporated, Roquette Freres, and Tate & Lyle, are the most active companies in the modified starch market.

New product launches and innovations are the major strategies adopted by companies to strengthen their business. The strategy of forming new agreements and partnerships with local players has helped the companies increase their footprint in foreign countries and release new products according to the consumers' changing preferences, and leverage the expertise of these small regional companies.

For instance, in April 2021, Cargill Inc. partnered with Starpro, a key food-grade tapioca starch producer in Thailand, to expand its specialty tapioca starch offerings in the Asia-Pacific region. The collaboration will support food manufacturers' product processing requirements and meet consumers' sensory expectations.

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