Starch Derivatives Market

Starch Derivatives Market: Snapshot

As per a report by Transparency Market Research, the global starch derivatives market is estimated to rise at a CAGR of 5.90% in the course of forecast period (2015-2021). In 2014, the starch derivative market stood at value of US$ 45.3 bn. With the expected CAGR, the market value is projected to reach valuation of US$ 68.7 bn by 2021. The growth is attributed to widening application range of starch derivatives.

Earlier, the use of starch derivatives was limited to food sector. However, with rising awareness about several properties of starch, it is being used in cosmetics, paper, feed, and pharmaceutical industries. Starch derivatives are also used in bioethanol and biofuels. Moreover, increasing use of starch in fermentation sectors, glue production, and textile finishing and weaving is fueling expansion of starch derivatives market.

Increasing Raw Material Cost May Interfere with Market Growth

Meanwhile, price of raw materials is also increasing. This may hinder growth of the starch derivative market in coming years. Implementation of bio-fuel is another factor anticipated to restrain growth of the market.

Food and beverages industry has emerged as the leading application segment in recent years. The segment accounted for major share in terms of revenue. Growing demand for convenience food, energy drinks, and non-carbonated drinks are few factors influencing the demand for starch derivatives in the food and beverage industry. Registering the trend, the demand for starch in the industry is anticipated to prevail in coming years as well.

As per estimation given by market analysts, demand for starch derivatives in food and beverage industry will chart at a CAGR of 5.80% in the course of forecast period. The food and beverage segment is likely to contribute US $ 40.7 bn by 2021. The segment contributed US $ 27.1 bn in 2014 to the global starch derivative market.

Demand for Convenience Food and Beverages Drives Growth of Starch Derivative Market in Asia Pacific

In 2014, Asia Pacific emerged as major consumer of starch. The region contributed 30% to the global share in terms of revenue. As per market analysts of Transparency Market Research, the region will continue to lead in the duration of forecast period, as well. This is due to increasing demand for starch in emerging economies such as India and China. Growth in demand for starch in the region is attributed to people’s inclination toward consuming convenience drink and food.

Starch derivative market value was approximately US $ 14 bn in the year 2014, which is estimated to reach US $ 21 bn by end of 2021. The market is anticipated to chart at a CAGR of 5.50% in the course of forecast period.

Global starch derivative market is a concentrated one. Players involved in the production of starch derivatives production are trying to improve the quality of starch. So that that can have an edge over their competitors. As a result, the market is anticipated to witness inflow of investment. This, in turn, will drive growth of the global starch derivative market in coming years.

Few companies are also undertaking merger and acquisition strategy to strengthen their foothold in the global market.

For example, in 2013, Cargill and Arasco collaborated with the Kingdom of Saudi Arabia (KSA) to increase production of starch and sweeteners. The collaboration was named as Center East for Food Solutions Co (MEFSCO). Furthermore, in 2014, Cargill established another corn sweetener and starch plant of 500,000 ton in Castro, Brazil.

Some of the pioneers in the global starch derivatives market are Ingredion Incorporated, Global Bio-chem Technology Group Company Limited, Roquette Frères, Grain Processing Corporation, Emsland Group, Tate and Lyle PLC,Avebe U.A., ADM, Cargill Inc., and Agrana Group.

Rising Applications by Paper and Pulp Industry to Augment Growth of Starch Derivatives Market

Starch derivatives were earlier used on food products only and therefore had a high demand from the food industry solely. In recent times, applications of starch derivatives have increased from food to paper and pulp, pharmaceuticals, feed, cosmetics, and other industries as well. Expanding interest for comfort food and refreshments in agricultural nations, ascend in populace, and growing per-capita pay are a portion of the key variables moving the development of starch derivatives market.

Major organizations are investing a lot of their capital on innovative technology and trends. These improvements are bettering the possibilities of starch subordinate items in the worldwide market. Also, starch projects a significant part in the bio-fuel, stick creation, material weaving and completing, and the maturation enterprises. Notwithstanding, execution of bio-fuel arrangements and expanding crude material costs are a portion of the components frustrating the development of the starch derivatives market.

The market for starch derivatives is undergoing critical development because of expanding consolidation in a wide scope of food applications and cost-viability offered by them, alongside the improved functionalities they give in contrast with local starch. The developing interest for handled and comfort food among buyers is provoking the interest for starch derivatives. With the headway of new advances and imaginative trials in the food and refreshment area the joining of starch derivatives across different ventures is expanding. Asia Pacific portion will rule the market, because of its high creation of prepared food.

Food and refreshments industry has arisen as the main application portion lately. The fragment represented significant offer as far as income. Developing interest for comfort food, caffeinated drinks, and non-carbonated beverages are not many variables affecting the interest for starch derivatives in the food and refreshment industry. Enlisting the pattern, the interest for starch in the business is expected to win in coming a very long time too.

Expansion in populace, flooding request in regards to accommodation food and beverages in agricultural countries, and the rise in per-capita pay are among the significant perspectives boosting the advancement of worldwide starch derivatives market. Besides, starch holds a huge spot in the paste creation, material completing and weaving, bio-fuel, and maturation areas.