The global modified starch market reached a value of USD 11.8 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 5.3% from 2022 to 2030. This growth is fueled primarily by the increasing global population, which in turn drives demand for processed and convenience foods. Modified starch is a valuable ingredient in ready-to-eat food products because it improves texture, stability, and shelf life. As the demand for processed foods continues to rise, the modified starch market is anticipated to see significant growth in the coming years.
The COVID-19 pandemic affected the modified starch market both positively and negatively. During the pandemic, consumers stocked up on processed and packaged foods with longer shelf lives, resulting in increased demand for modified starch. However, the widespread closure of restaurants and food service outlets, coupled with disruptions in the global food and beverage supply chain due to lockdowns, posed challenges for the market. As supply chains stabilize and food service establishments resume operations, the modified starch market is expected to return to pre-COVID levels, with steady demand from both consumers and foodservice sectors.
Gather more insights about the market drivers, restrains and growth of the Modified Starch Market
In terms of regional consumption, convenience foods are especially popular in North America and Europe. Rapid lifestyle changes, including increasingly busy schedules and smaller households, have reduced the time available for home cooking, increasing the demand for convenient, ready-to-eat food options. Additionally, globalization has introduced new eating habits worldwide, notably in Asian markets, where demand for convenience foods is rising, further boosting the need for modified starch in these regions.
Modified starch is used across a wide range of industries beyond food, including papermaking, cosmetics, personal care, and textiles, due to its versatility and beneficial properties. In personal care and cosmetics, modified starch serves as a multi-functional additive. With the growing consumer preference for natural and organic products, cosmetic manufacturers are increasingly incorporating organic ingredients, such as modified starch, to meet demand for eco-friendly and sustainable products, thereby driving further growth in this sector.
End-use Segmentation Insights:
In 2021, the food and beverage sector held the largest share of modified starch market revenue, accounting for over 45.0%. This sector is expected to continue leading the market throughout the forecast period. Modified starches are used in food and beverage products as effective flavor carriers and as thickeners to add a smooth texture to items like coffee, slushies, and smoothies. In baking applications, modified starch improves product quality in items like pasta, soups, and mayonnaise. Additionally, modified starch aids in emulsifying, making it a crucial ingredient in products containing flavored oils across various industries.
The paper segment was valued at USD 2.5 billion in 2021. After essential materials like fiber, water, and fillers, modified starch is among the most used ingredients in paper manufacturing. In the papermaking process, starch contributes to strength, smoothness, and print quality, enhancing the paper's functionality. Paper mills use starches derived from sources like waxy maize, regular corn, tapioca, wheat, and potato to improve the structural integrity and smoothness of paper, making it more suitable for writing and printing. Starch also serves as a binder in paper coatings, enhancing the paper’s firmness, whiteness, and printing characteristics, all of which are important in producing high-quality paper products.
In summary, the modified starch market is poised for steady growth as it supports a range of industries. Driven by an increasing population, rising demand for convenience foods, and the versatility of modified starch applications, the market will likely see continued expansion in sectors ranging from food and beverages to cosmetics, personal care, and papermaking.
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