The global native starch market is poised for steady growth, with a projected compound annual growth rate (CAGR) of 4.3% from 2024 to 2032. This rise is driven by the increasing demand for native starch across various industries and its extensive applications in food, paper, textiles, pharmaceuticals, and personal care.
Market Overview
Native starch, a natural carbohydrate, is derived from sources such as maize, cassava, wheat, and potato. It plays a crucial role as a thickening and texturizing agent in the food and feed industries. Native starch accounts for over 35% of starch production, while more than half of the starch output is used as sweeteners, and over 10% is utilized in the production of modified starch.
Key Feedstock Sources
- Maize: Maize is a major feedstock, constituting nearly 72% starch. In 2017, global corn production reached approximately 1,044.6 million tonnes, with the United States leading, accounting for over 35% of the global output.
- Wheat: Global wheat production was around 745 million tonnes in 2017, with significant contributions from the European Union, Russian Federation, China, and Australia.
- Potato: China and India were major producers of potatoes, with global production estimated at 389 million tonnes in 2017.
- Cassava: Predominantly grown in Africa, cassava's global production stood at 275 million tonnes in 2017.
The United States leads the native starch market, followed by the Asia Pacific and Europe. The EU's starch output increased from 8.7 million tonnes in 2004 to 11 million tonnes in 2017. The consumption within the EU stands at about 9.4 million tonnes, with native starch accounting for over a quarter of this consumption.
Market Segmentation
Native starch is classified based on its sources and application sectors. The primary sources include wheat, cassava, potato, maize, high amylose maize, and waxy maize. Its applications span across:
- Food and Beverage
- Paper Industry
- Textile Industry
- Pharmaceuticals
- Personal Care
- Others
Regional Insights
The native starch market is analyzed across key regions, including North America, Latin America, Europe, the Middle East and Africa, and the Asia Pacific. Each region contributes uniquely to the market dynamics, driven by varying demands and production capacities.
Market Drivers
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Extensive Applications: Native starch finds applications in both food and non-food sectors. In the food industry, it serves as a thickening agent, texture enhancer, dough binding agent, stabilizer, and moisture controller. The growing population and rising middle class are also fueling the market growth. The demand for instant and convenient food products is increasing due to busier lifestyles and higher disposable incomes.
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Textile Industry: Native starch is used as finishing agents, color thickeners, and sizing agents in the textile industry, driving its demand.
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Paper and Adhesive Industry: The use of native starch in the paper and adhesive industry is on the rise, contributing to market growth.
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Bioplastics: With increasing environmental consciousness, corn and potato starch are being used as substitutes for traditional plastics, known as organic bioplastics. These bioplastics are utilized in manufacturing disposable plates and cutlery, which can decompose within three months.
Competitive Landscape
The competitive landscape of the global native starch market includes key players like:
- Cargill, Incorporated
- Tate & Lyle PLC
- Ingredion Incorporated
- Tereos Participations
- Roquette Frères S.A.
- Royal Avebe
- AGRANA Beteiligungs AG
- Others
Key Developments
- March 2020: Ingredion expanded its capacity for higher-value specialty ingredients through the acquisition of Western Polymer.
- February 2020: Cargill announced a USD 22.7 million investment in its Sas Van Gent starch production facility in the Netherlands.
Market Analysis
The global native starch market benefits from its extensive application in diverse sectors. In the food sector, native starch is crucial for its thickening, texturizing, and stabilizing properties. The growing population and increasing disposable incomes drive the demand for instant and convenient food products, boosting the native starch market.
The textile industry also plays a significant role in driving market growth. Native starch is used as finishing agents, color thickeners, and sizing agents. The paper and adhesive industries are expanding application sectors for native starch. Moreover, the rise of organic bioplastics made from corn and potato starch as eco-friendly alternatives to traditional plastics supports market growth.
SWOT Analysis
Strengths
- Extensive applications across various industries.
- Increasing demand for convenience foods.
- Rising environmental awareness promoting bioplastics.
Weaknesses
- Dependency on climatic conditions for feedstock production.
- Competition from synthetic substitutes.
Opportunities
- Expansion into emerging markets.
- Innovations in starch-based products.
Threats
- Fluctuations in raw material prices.
- Stringent regulations regarding food additives.
Porter's Five Forces Analysis
Threat of New Entrants
- Moderate: Entry barriers include capital investment and technological expertise.
Bargaining Power of Suppliers
- High: Limited number of suppliers for key feedstocks like maize and cassava.
Bargaining Power of Buyers
- Moderate: Buyers have various alternatives, but the unique properties of native starch maintain its demand.
Threat of Substitutes
- High: Availability of synthetic alternatives and modified starches.
Industry Rivalry
- High: Presence of several key players and continuous innovation drive intense competition.
The global native starch market is set to witness significant growth, driven by its extensive application across food, textile, paper, and other industries. The rising demand for convenience foods, environmental awareness, and innovations in starch-based products are key factors propelling the market. Despite challenges like dependency on climatic conditions and competition from synthetic substitutes, the market offers promising opportunities for expansion and growth. The key players in the market are continuously investing in capacity expansions and innovations, further strengthening the market outlook.
As the demand for native starch continues to rise, it will play an increasingly vital role in various industrial applications, making it a crucial component of the global starch market landscape.
This detailed analysis provides an in-depth insight into the global native starch market, its growth prospects, key drivers, and competitive landscape, offering valuable information for stakeholders and industry participants.