The Food Starch is the source of carbohydrates, which is extracted from various plants such as corn, wheat, potatoes, and rice. Among its various roles in the food industry, it provides multiple services utilizing thickening, stabilizing, binding, and improving texture. Starch molecules comprise chains of interconnected sugars, which assimilate water and expand to form gel when boiled, providing a gummy consistency. The most important characteristic of starch is its use as a thickening agent, for instance, in sauces and soups, gravies, or pudding. Moreover, it might be used to bake and fry foods, yielding a crunchy upper layer. Food starches are unique because of their origin and manufacturing techniques and can play a convenient role in the business of food by rendering a desirable texture and consistency to more food products.

The United States of North America has been leading in the world starch industry and it is made possible by the advancement of the corn production and immense food processing industries of America. The United States considers itself as one of the major producers and exporters of corn starch, which is a component of every made from corn starch.

Player Names

• AGRANA Beteiligungs-AG (Austria)
• Archer Daniels Midland Company (United States)
• Avebe U.A. (Netherlands)
• Cargill, Incorporated (United States)
• Emsland Group (Germany)
• Grain Processing Corporation (United States)
• Ingredion Incorporated (United States)
• Manildra Group (Australia)
• Penford Corporation (United States)
• Roquette Frères (France)
• Sudzucker AG (Germany)
• Tate & Lyle PLC (United Kingdom)
• Tereos S.A. (France)
• Tongaat Hulett Starch (South Africa)
• Universal Starch-Chem Allied Ltd. (India)

Segment Analysis

1. By Type

• Modified Starch
• Native Starch

2. By Source

• Maize
• Wheat
• Potatoes
• Other
• Native Starch

3. By Application

• Animal Feed
• Bakery and Confectionery
• Beverage
• Cosmetics
• Others

4. By Sales Channel

• Online
• Offline

Market Drivers

The growing demand for processed foods, specifically in emerging economies, is a major factor that pushes the food starch market increasingly. Starch is commonly employed as a coupler, stabilizer, and texturizer in processed meals that include soups, sauces, bakeries products and ready-made meals. Such as along with urbanization and my single-use incomes, which happen all over the planet, the demand for convenience foods will keep growing, and so, the needs of food starch. Technological advancements of starch processing have become more beneficial in improving the efficacy of starch extraction and purification methods with higher yields and better attributes of starch products. The advent of science has not only brought about modifications to the original starches but has made it possible to develop starches with special functionalities such as better stability, texture and mouth feel to cope with the diverse needs of food industry. Three factors, the rise of the food and beverage industry which is driven by population growth, urbanization and the changing lifestyle are usually of the most significant contributors to the food starch market. Starch is a multifunctional item present in all kind of food and beverage productions such as sweet goods, dairy products, & drinking beverages and snacks

Market Trends

The transparency in food products is now high on consumer demand shelves, leading to more demand for clean-label starches. Food-producing companies are choosing to use starch from natural sources, such as tapioca and corn and not chemically modified starch. Given the increasing percentage of gluten allergies and celiac disease, there is now a spike in gluten-free whole grain and pasta demand. Starch from corn, potato, tapioca or rice are alternative to wheat for gluten-free baking of bread, pasta or cakes. Amongst the functional starches, the most common are those that improve the consistency, mouthfeel and contributing to the prolonged shelf-life of food. Functional starches such as modified starches, resistant starches and pre-gelatinized starches are being widely used in the food industry to meet not only the sensory aspect but also health requirements as well.

Market Challenges

The costs of the main materials for food starch production vary depending on the interaction of different elements such as global demand, output performance from crops and government policy. Rapid increase in raw material costs may not have a chance to be planned and considered when making forecast for producer of the food starch. High or low raw material prices might be a risk for the profitability of manufacturing of the food starch. Starch food makers has to follow food safety and quality regulations established by government agencies, especially the labeling. A proper monitoring of the legislation update considering the different regions, is a hard task, and often involves the introduction of significant research and development efforts as well as the possible modification of production processes.

Market Opportunities

The popularity of gluten intolerance and the celiac disease has answered the demand for gluten-free products. Obtaining equivalent textures in gluten-free foods is usually more challenging since food starches such as corn starch, tapioca starch, or rice starch, commonly used to replace wheat flour, do not possess the protein components that give that elasticity and blast textures in bakery products. Since the gluten-free trend is getting wider, the initial chance is created for the manufacturers of starch to cater to these segments as well as to provide them with high quality of gluten-free starches. Applying the food starches beyond the stages of food quality is also seen, especially in the field of pharmaceuticals and cosmetics. In pharmaceuticals, starch acts as a binder, and disintegration excipient in tablet formulations and aids in providing flow properties, besides. On the other hand, poli and sugar compounds are used in cosmetics as a thickening agent, filler, and mattifying ingredient. The forthcoming flourishing pharmaceutical as well as cosmetic industries are appealing for producers of food starch, who can diversify their line of products as well as target new prospects.

Regulatory Factors

The FDA, of the United States, sets up regulations and standards for food starch products. An FDA task is to set labeling standards, which guarantee the safety of all consumers when it comes to ingredients, nutrition, the list of allergens, and many other components. The FDA’s also regulates the safety of food starch additives by setting small max acceptable levels of certain ones that could be applied and ensuring the health of them as well. In Australia, the NHMRC may give out the guidelines and recommendations to the food producers as to the usage of the food starches for their products. It involves researching and evaluating safety data and will make a decision about and maintaining the safe consumption of food starch for the Australian population.

Competitive Landscape

The global food starch market is highly competitive and concentrated with major key players such as Avebe U.A., Cargill, Incorporated, Emsland Group, Grain Processing Corporation, Ingredion Incorporated, and Manildra Group. The prime food starch industry businesses are carried out through concentration on product quality, variation and innovation in order to take pride in their brands and guarantee better experience for the customers with highest grade starchy product to match every need. Hence, all launch their investment in R&D for new starch genotype and improve the methods on the starch production. In the same way players also focus on cutting cost (price competitiveness) and create efficient supply chain. Getting goods to the right location and dealership networks at the right time might be regarded as a spotlight issue for the companies to stick to the head of the industry competition.