22 January 2018

The competitive landscape of the global starch derivatives market demonstrates a highly fragmented structure. In 2014, the top three participants, namely, Archer Daniels Midland Co., Ingredion Inc., AGRANA Group, and Tate & Lyle Plc, jointly held a share of only 22.3% in the overall market.

Currently, the leading producers of starch derivatives are focusing on improving the quality of their offering in order to strengthen their market presence. However, over the coming years, these companies are likely to enter into strategic agreements with regional players in order to expand their reach. BENEO-Palatinit GmbH, Cargill Inc., Roquette Frères S.A., Emsland-Stärke Gmbh, Avebe U.A., and Grain Processing Corp. are some of the other prominent starch derivatives producers across the world.

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The hyperactive lifestyle of people all over the world has left them with little time for proper meals, resulting in the soaring demand for convenience food and beverages. While the demand for starch derivatives is already high in developed nations such as the U.S., the U.K., and Germany, the rapid urbanization is expected to fuel their demand in emerging economies, such as China, India, and Brazil. The rising demand for these derivatives in natural sweeteners and their growing industrial application is also propelling the opportunities in them significantly.

On the $@!#% side, the high volatility in prices of raw materials utilized to produce starch derivatives is a major hindrance to the growth of this market. The shortage of these raw materials, owing to their increasing utilization in other industrial processes, the dearth of customized starch derivative products, and the availability of alternatives, such as gum, may also limit the application of these derivatives during the forecast period, states TMR.

In spite of these hindrances, the opportunity in starch derivatives, worldwide, is likely to report a healthy rise from US$45.3 bn in 2014 to US$68.7 bn by 2021, expanding at a CAGR of 5.90% during the period from 2015 to 2021.

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Asia Pacific is estimated to remain the leading regional market for starch derivatives throughout the forecast period. The APAC starch derivatives market is expected to grow from nearly US$14 bn in 2014 to US$20.6 bn by the end of 2023. The soaring demand for starch derivatives in China and India is the key factor behind the strong position of Asia Pacific in the global market for starch derivatives. Analysts at TMR estimate this trend to remain the same over the forecast period.

These derivatives will continue to find most application avenues in the food and beverages sector and glucose syrup will retain its position as the segment witnessing the highest demand during the forecast period.

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