The global native starch market is on a steady upward trajectory, expected to grow at a Compound Annual Growth Rate (CAGR) of 4.3% from 2024 to 2032. Native starch, derived from various feedstocks such as maize, cassava, wheat, and potato, plays a crucial role in multiple industries worldwide, primarily as a thickening, binding, and stabilising agent. In this blog, we explore the key factors influencing the market’s growth, its diverse applications, and the regional dynamics shaping the industry’s future.
What is Native Starch?
Native starch is a carbohydrate ingredient obtained through a simple extraction process from plant sources such as maize (corn), cassava, potato, wheat, and other starch-rich plants. Unlike modified starch, which undergoes chemical treatments to alter its properties, native starch remains in its natural form, retaining its essential characteristics. This makes it a versatile ingredient, particularly in food and industrial applications where it is valued for its ability to enhance texture, stability, and shelf life.
Native starch accounts for more than 35% of global starch production, with a substantial portion used in the food sector as well as other industries like textiles, pharmaceuticals, and paper production. It is a critical raw material in the production of sweeteners, with over half of the starch output used in this category. Moreover, more than 10% of starch production is allocated to the creation of modified starch.
Key Feedstocks for Native Starch Production
Native starch is primarily produced from several types of starch-rich crops, each contributing a significant portion to global production:
- Maize (Corn): Maize is the dominant source of starch, accounting for approximately 72% of its total composition. In 2017, global maize production reached 1044.6 million tonnes, with the United States leading as the largest producer, contributing more than 35% of the global output.
- Cassava: Widely grown in Africa and Southeast Asia, cassava is another major feedstock for native starch production. Global cassava output in 2017 was approximately 275 million tonnes, primarily used in food and industrial applications.
- Wheat: The global wheat production in 2017 stood at around 745 million tonnes, with the European Union, the Russian Federation, China, and Australia being the leading producers.
- Potato: With global potato production estimated at 389 million tonnes in 2017, countries like China and India are major producers. Potatoes are an essential feedstock for starch production, especially in the food industry.
Applications of Native Starch
The versatility of native starch makes it suitable for a wide range of applications, from food to industrial uses. Its expanding role in several key sectors is a significant driver of market growth.
1. Food and Beverage Industry
Native starch plays a vital role in the food industry, primarily as a thickening agent, texture enhancer, dough binding agent, and stabiliser. It is used in various processed food products, including:
- Instant food products like dry mix soups, salad dressings, processed meats, spreads, and pudding powders.
- Bakery products such as bread, cakes, and pastries, where starch helps improve texture and shelf life.
- Beverages where it stabilises emulsions and thickens liquids.
The growing demand for processed, convenient, and ready-to-eat foods, driven by busy lifestyles and higher disposable incomes, is expected to further boost the use of native starch in the food sector.
2. Textile Industry
In the textile industry, native starch is widely used as a finishing agent, colour thickener, and sizing agent. It provides the necessary stiffness and durability to fabrics, particularly in the production of cotton and synthetic textiles.
3. Paper Industry
The paper industry utilises native starch for coating and binding, helping enhance the strength, durability, and smoothness of paper products. As the demand for high-quality paper products continues to rise, the application of native starch is expected to expand.
4. Pharmaceuticals
Native starch is used as an excipient in the pharmaceutical industry, where it serves as a binder, disintegrant, and filler in the production of tablets and capsules.
5. Personal Care
In the personal care industry, native starch is employed in a variety of applications, including cosmetic formulations, hair care products, and skin care creams. It serves as a thickening and stabilising agent, enhancing the texture of these products.
6. Bioplastics
With the increasing demand for sustainable materials, native starch derived from corn, potato, and other plants is gaining popularity as an alternative to traditional plastics. Known as organic bioplastics, these starch-based plastics are biodegradable and used in products such as disposable plates and cutlery. They can decompose fully within three months, contributing to environmentally friendly solutions.
Regional Market Insights
The native starch market is geographically diverse, with key regions contributing significantly to global production and consumption.
1. North America
The United States is the dominant player in the global native starch market, both in terms of production and consumption. The U.S. is home to several large-scale starch producers, including Cargill and Ingredion, which drive innovation and market growth. The country also leads in the production of maize, the primary feedstock for starch production.
2. Europe
Europe is another significant market for native starch, with the European Union (EU) experiencing a steady rise in starch production. From 8.7 million tonnes in 2004, the EU’s starch output reached 11 million tonnes in 2017. The region is also witnessing increased consumption of starch-based products, with native starch accounting for over 25% of the total starch consumption. The trend towards sustainability is driving the demand for native starch in bioplastics and eco-friendly packaging.
3. Asia-Pacific
The Asia-Pacific region, particularly China and India, is a rapidly growing market for native starch, driven by increasing industrialisation and demand for processed foods. China, a major producer of both maize and potato, plays a pivotal role in the market’s expansion.
4. Latin America and the Middle East & Africa
The Latin American and Middle Eastern markets are also witnessing growth, primarily driven by agricultural outputs like cassava and maize, which are essential for native starch production.
Market Drivers and Challenges
Drivers:
- Growing Demand for Processed Foods: The increasing consumer preference for convenient, ready-to-eat meals is propelling the demand for native starch in the food and beverage sector.
- Sustainability Trends: The shift towards sustainable alternatives to conventional plastics is driving the use of native starch in bioplastics, packaging, and other eco-friendly applications.
- Industrial Applications: Expanding use of native starch in textiles, pharmaceuticals, and paper industries further strengthens the market.
Challenges:
- Dependency on Climate Conditions: The production of native starch is highly dependent on the availability and yield of feedstocks like maize, cassava, and potato. Any adverse weather conditions, such as droughts or floods, can significantly impact production.
- Price Fluctuations: The prices of raw materials like corn and wheat can be volatile, influenced by factors such as supply chain disruptions, global demand shifts, and climate change.
Competitive Landscape
The global native starch market is highly competitive, with several key players dominating the market. Some of the leading companies include:
- Cargill, Incorporated
- Ingredion Incorporated
- Tate & Lyle PLC
- Roquette Frères S.A.
- AGRANA Beteiligungs AG
- Others
These companies are focusing on expanding their product offerings, acquiring smaller players, and investing in sustainable production practices to gain a competitive edge.
In recent developments:
- Cargill invested USD 22.7 million in its starch production facility in the Netherlands to expand its production capacity.
- Ingredion acquired Western Polymer to enhance its portfolio of specialty ingredients in March 2020.
The global native starch market is poised for steady growth, driven by its extensive applications in various industries, including food and beverage, textiles, pharmaceuticals, and bioplastics. As demand for processed food products and sustainable materials increases, native starch will continue to play a vital role in meeting the needs of modern industries. While challenges like climate dependence and price volatility remain, ongoing innovations and regional growth in key markets offer a positive outlook for the future of native starch.
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