Increasing Consumption of Processed and Convenience Food Drives the Modified Starch Market

Northbrook, IL, USA, 2019-Nov-5 — /EPR Network/ — The modified starch market is projected to grow at a CAGR of 4.1% from 2018, to reach a value of USD 12.67 Billion by 2023. Modified starch refers to a starch product that is modified chemically to withstand the processes it is subjected to for use in various applications; this is witnessing significant growth due to increasing incorporation in a wide range of foods and cost-effectiveness offered by them, along with the enhanced functionalities they provide in comparison to native starch.

Growing demand for adhesives in a range of industrial applications

Modified starch specifically provides maximum adhesive performance and superior strength at a low cost for a wide range of applications. It can be used in a variety of viscosities to meet the needs of diverse applications and end-use requirements. Modified starch is one of the major raw materials used in the paper industry. It is used as a starch paste adhesive in laminating paper-to-paper and poly-to-paper. A single sheet of paper contains as high as 8% of modified or unmodified starch in it. The industry uses modified starch in both, dry strength and wet end sizing. It acts as a water retention agent, which also binds the pulp and improves the surface of the paper.

Increasing land pollution and diseases in animals caused due to ingestion of plastic bags have encouraged the use of paper bags. With the increasing usage of paper bags, the paper industry is expected to experience growth due to the increase in the frequency of recyclability of paper. This forms a major driver for the modified starch market.

The demand for modified starch is growing in industrial applications as they offer cost benefits and enhanced functionalities in comparison with native starches. Thus, there is an increasing need for modified starch as a renewable raw material in the production of packaging materials and biodegradable plastics.

Growing gum arabic market

The application of starch derivatives is growing in the food & beverages sector. The global beverages sector is witnessing growth as an application of modified starches. However, the growth and preference of gum arabic over modified starch act as a restraint for the growth of this market. Studies have shown that beverages stabilized with sources of gum arabic attain better stability than those with modified starches. Apart from beverages, gum arabic is also rising as a threat for modified starches in confectionery, where it is utilized to prevent sugar crystallization.

Unfavorable climatic conditions hamper the overall production and ultimately the supply chain of cassava. The prices of cassava fluctuate according to the overall production. The prices are also affected by a decline in demand. For instance, according to the Cambodia Daily, in February 2016, cassava export prices fell to a new low amid the decreasing demand from international markets, particularly China. These conditions affect the modified starch production from cassava leading to an increase in the demand for substitutes such as gum arabic.

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Asia-Pacific: Growing Market Whereas North America Leads The Way

North America leads the global modified starch market with wide availability of corn, which has broad array of food, non-food, and feed applications. The consumption pattern and developed economy in North America played a special role in triggering the modified starch market as well. There is a considerable inflow of money in the region and all the industries be it food, pharmaceutical, drilling, paper, cosmetics etc., are monetarily strong. The growing application industry also forms a major driver for the growth of ingredient industry. Hence, the case is same with modified starch. The application industries in the region focuses on quality, therefore uses modified starch in all possible applications.

Asia-Pacific is estimated to experience a high growth rate due to its aim of commercializing and widening the application of cassava across the globe

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