The global modified starch market was worth USD 13.0 Billion in 2020 and is further projected to reach USD 15.2 Billion by 2027, at a CAGR of 2.2 % during 2021-2027 (forecast period). Because modified starch is increasingly being used in a wide range of foods and beverages, the sector is booming rapidly. Additionally, the cost-effectiveness of modified starch, as well as other superior features such as pre-gelatinization and cold-water solubility, which are not present in native starch, are also contributing to the growth of the modified starch market worldwide.
Consumer demand for processed, quick, and convenience foods has risen dramatically in recent years, resulting in an increased need for modified starch. Furthermore, the development of newer varieties and the advancement of new technologies in the food and beverage industry have resulted in a growing demand for modified starch, thereby propelling the market growth.
The Growth of the Food Industry
The popularity of convenience food or fast food has skyrocketed, especially among college students and working professionals. This rising popularity has resulted in the widespread use of modified starch in food processing facilities, where it is utilized as a thickener, emulsifier, and fat substitute, among other things. Furthermore, because the working population leads a hectic lifestyle, they rely heavily on convenience foods and prefer ready-to-cook food to home-cooked meals. Modified starch is also used in many convenience food products such as ready mixes & meals, and bakery products, and much more. Thus, the rising demand for convenience food is boosting the demand for modified starch, thereby accelerating its market growth.
The Growth of the Textile and Cosmetic Industry
Modified starch is used in the textile industry for textile sizing. Cotton yarn manufacturing especially requires modified starch. Because the properties of modified starch can be tailored to meet specific requirements and its chemical properties are similar to those of cotton and rayon, modified starch is used as the adhesive component in the size mix process. Thus, modified starch is indispensable in the textile industry. Owing to the rising fashion trends there has been a massive surge in the textile industry, which in turn has increased the demand for modified starch, thereby aiding its market growth.
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Consumers nowadays choose products that do not cause bleaching or tanning effects; hence, cosmetic companies that value customer preferences are increasingly using modified starches for manufacturing innovative cosmetic products that are skin-friendly. The use of modified starches in the cosmetics industry is rising exponentially, thereby powering the growth of the global modified starch market.
Starch is extracted from a variety of sources, including cassava, wheat, potato, and rice. These are highly limited resources. The availability of these resources is influenced by agricultural and climatic conditions. For instance, cassava production depends highly on climatic conditions. Cassava production is disrupted by unfavorable weather circumstances, resulting in price fluctuations. Additionally, these crops are not just used for manufacturing starch. For example, more than 40% of corn production is used for non-food applications like the production of ethanol, which negatively impacts the food sector. Thus, these factors pose a restraint for the modified starch market.
Impact of Covid-19
The ongoing crisis around COVID-19 has impacted all walks of life. Modified starch is made from crops. COVID-19 is wreaking havoc on the world's leading raw material producers, including India, China, Russia, the United States, and others as these countries had to declare lockdowns to combat the pandemic. Thus, the production of crops has been highly affected due to the dearth of manpower. Manufacturers of modified starch are also experiencing a significant shortage of raw materials as a result of lower agricultural production and limited international trade, which has weakened the supply chain. These factors may leave a short-term impact on the growth of the global modified starch market during the forecast period.
Global Modified Starch Market by Product
Based on products, the modified starch market is divided into starch esters & ethers, resistant, cationic, pre-gelatinized, others. The starch esters & ethers segment holds the largest market share due to its extensive application as a thickener in the food industry. Because of its potential to improve food texture and shelf life, it is widely utilized in bread, dairy, and convenience foods, contributing to its market growth. Cationic starches, on the other hand, are the fastest-growing segment. The unique property of emulsification of sizing agents and dry strength, which has led to its widespread use in the paper sector, is contributing to the growth of the cationic starch segment. These factors, coupled with the superior retention and drainage properties of modified starches, are expected to augment the demand for cationic starches in the paper industry over the coming years.
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