The Asia-Pacific starch derivatives market is projected to witness a CAGR of 5.89% during the forecast period (2020 - 2025).

  • Starch derivatives include cyclodextrinm maltodextrin, and modified starch. The growth in functional food products, clean label demand, and achieving cost reduction in the production process in Asian-Pacific countries particularly China, India, and Bangladesh are the major factors driving the applications of starch derivatives in the region.
  • Moreover, the paradigm shift of consumers towards low-calorie food products is another factor that has resulted in the number of food and beverage processing companies to incorporate modified starch to meet the propelling demand of functional/low-calorie food products. Such factors enabled ingredient manufacturers to develop products that can support food companies to cater to the growing demand, thereby increasing the market value for the starch derivatives in the country.

Key Market Trends

Textile Industry: Growth Engine of Starch Utilisation?

The main use of starch and starch derivatives is for sizing yarns of pure cotton and its blends with other fibers. For these yarns, a large number of sizing formulations are used which consist either exclusively or principally of starch or starch derivatives.

Considering this fact, the developing countries in the region like India, China, and Bangladesh, are dependent on the textile industry in the country, which is expected to increase the application of starch derivatives in the country.? The consumption of starch is also increased for the printing and finishing of manufactured garments.

The production of cornstarch has increased massively in the country like Bangladesh, due to its multi-functionalities, such as thickening and adhesive. These properties of starch make it an essential ingredient for the textile industry. Thus, the growth of starch derivatives is paralleled to the growing textile production in these Asian countries.?

Growing Food Processing Sector

The food processing sector in Asian countries comprises of processing of fruits and vegetables, cereals, bakery and confectionary, pulses, oilseeds, dairy, carbonated beverages, fruit juices, and other food items.?

There has been a significant increase in the demand for all forms of ready-to-eat or convenience food and beverage products, owing to increasingly busy lifestyles and the rising working population in countries like India and Japan. ?The food processing industry is expected to have significant growth and generate new opportunities for investment and exports for the country thus increasing the application of starch derivatives in the country. The use of modified starch as a stabilizer, thickening agent, and emulsifier in manufacturing bakery, confectionery, noodles, and other convenience food products is fuelling the demand for derivative starch among food and beverage manufacturers in these Asian countries. ?

According to the food consumption survey conducted by the Food and Agriculture Organization of the United Nations (FAO) in Bangladesh in 2018, young children in the country are provided with starchy food prepared with sago, semolina, rice, and noodles. The rising trend of starch derivatives in these developing Asian country is fuelling the demand for modified starches. Modified starch helps in improving the stability of starch and starch derivatives products.?

Competitive Landscape

Some of the major companies manufacturing their starch derivatives in the Asian-Pacific region are Cargill, Incorporated, Ingredion Incorporated, Tate & Lyle, and AGRANA Beteiligungs-AG. The Asia-Pacific derivative starch market ingredient market is highly fragmented with many local and international players competing for market share.

These companies, in order to retain their position within the market or gain an advantage over its competitors, have set their focus on research and development, expansion, partnership, and innovation. In October 2018, Tereos announced the official opening of the Tereos Asia R&D Centre, in collaboration and supported by the Singapore Economic Development Board. the newly established R&D Centre will leverage the Group’s extensive portfolio of products to address the regional demand for noodles, bakery products, confectionery, teas, sauces, snacks, and beverages.

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