Corn Starch Market

Introduction:

A seemingly common ingredient, cornstarch supports a significant and growing market segment. Cornstarch, obtained from the endosperm of corn kernels, finds application in many industries beyond its well-known role as a thickener in food production. This introductory paragraph sets a formal tone and emphasizes the importance of the market beyond its culinary use.

This blog provides a detailed overview of the corn starch market. We look at its current size and projected growth path, while breaking down the sectors driving demand. We present the versatile applications of corn starch, from the food and beverage industry to medical applications. In addition, the competitive situation is examined and the major market players and their strategies are highlighted. Through this in-depth analysis, we try to shed light on the importance of the Corn Starch market in the global economy.

Market overview: 

Corn starch market is a multi-billion-dollar powerhouse experiencing significant growth. Valued at around USD 14 billion in 2023, it is projected to reach a staggering USD 49 billion by 2031-2032, reflecting a healthy CAGR of 14.9%. This growth is primarily driven by the food ingredient segment, where corn starch plays a crucial role in thickening, binding, and sweetening processed foods and beverages. Geographically, North America reigns supreme due to its robust food and beverage industry, but regions like Asia Pacific are catching up fueled by rising disposable incomes and increasing urbanization. Interestingly, corn starch's influence extends beyond culinary delights. It finds applications in paper production, textiles, pharmaceuticals, adhesives, and even industrial processes like oil-well drilling. The market itself is a competitive landscape with established global players like Cargill, Archer Daniels Midland, and Ingredion vying for dominance alongside regional participants. Mergers and acquisitions, coupled with a focus on new product development, are key growth strategies employed within this dynamic market.

Corn Starch Market

Size, by Product, - (USD Billion)

Native Starch

Modified Starch

Sweeteners

Other Products

The Market will Grow

At the CAGR of:

14.9%

The Forecast Market

Size for in USD:

$49 billion

Key players:

1. Cargill Incorporated
2. Archer Daniels Midland Company
3. Ingredion Incorporated
4. Tate & Lyle PLC
5. Associated British Foods PLC
6. Roquette Frères SA
7. Sudzucker AG
8. Egyptian Corn Starch Company
9. DFE Pharma
10. AGRANA Beteiligungs AG
11. Bio-chem Technology Group Company Limited
12. Tereos Syral S.A.S
13. Kent Corporation
14. Riddhi Siddhi Gluco Biols Ltd
15. Manildra Group
16. Avebe
17. Ingredion Inc.
18. MGP Ingredients, Inc.
19. American Key Products
20. Penford Products Company

Corn Starch Market

Share, by end user, (USD Billion)

%

Food manufacturers & processors

Pharmaceutical companies

Paper mills & packaging companies

Textile manufacturers

Other End-Users

Total Market Size

USD (Billion),

14.9%

CAGR

-

Market segmentation:

By Type:

Native Starch

Modified Starch

Sweeteners

By Application:

Food & Beverages

Pharmaceuticals

Paper & Corrugated Products

Textiles

Animal Feed

Other Industrial Applications 

By End User:

Food manufacturers & processors

Pharmaceutical companies

Paper mills & packaging companies

Textile manufacturers

Animal feed producers

Industrial manufacturers

By Type:

Native Starch: This is the purest form, extracted directly from the corn kernel without any chemical modification. It possesses basic thickening and binding properties.

Modified Starch: This is the larger segment, where native starch undergoes various treatments to enhance its functionality.

Sweeteners: Derived from corn starch through enzymatic conversion, this segment includes high-fructose corn syrup (HFCS), a widely used sweetener in processed foods and

beverages.

By Application:

Food & Beverages: This is the dominant segment, with corn starch playing a critical role as a thickener, binder, and texturizer in a wide range of processed foods, bakery items, confectioneries, and beverages.

Pharmaceuticals: Corn starch finds applications as a binder, disintegrant, and bulking agent in tablets and capsules. Its hypoallergenic nature makes it suitable for various pharmaceutical formulations.

Paper & Corrugated Products: Corn starch acts as a sizing agent in paper production, enhancing its strength and printability. It also plays a role in corrugated cardboard, improving its rigidity and foldability.

Textiles: Corn starch finds use in textile sizing, providing strength and smoothness to fabrics. It's also used in printing textiles and creating specific finishes.

Animal Feed: Corn starch serves as a binding agent and energy source in animal feed pellets.

Other Industrial Applications: Corn starch has applications in various industries, including adhesives, bioplastics, and oil-well drilling fluids.

By End User:

Food manufacturers & processors: These companies utilize corn starch as an ingredient in their various food products.

Pharmaceutical companies: They use corn starch in the formulation of tablets, capsules, and other drug delivery systems.

Paper mills & packaging companies: These entities rely on corn starch to enhance the properties of paper and cardboard products.

Textile manufacturers: They utilize corn starch for sizing and finishing fabrics.

Animal feed producers: These companies incorporate corn starch as a binding agent and energy source in animal feed.

Industrial manufacturers (various sectors): Corn starch finds applications in various industries ranging from adhesives to bioplastics.

Corn Starch Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

14.9%

The Forecast Market

Size for in USD:

$49 billion

Recent developments:

East Java, Indonesia, 17 May 2024 – Cargill, Cempaka Foundation, and USAID IUWASH have announced their collaboration in launching Climate Action and Sustainable Landscape (CITASAMA) to preserve the ecosystem of Mount Arjuno in East Java, Indonesia.

WESTCHESTER, Ill., (April 30, 2024) – Ingredion Incorporated (NYSE: INGR), a global provider of specialty ingredients and innovation leader in plant-based sugar reduction, today announced the launch of PURECIRCLE™ Clean Taste Solubility Solution (CTSS)

Market growth factors:

Growing demand for processed foods. An important factor is the growing popularity of convenience and processed foods worldwide. Cornstarch serves as a versatile thickening, binding and texturing ingredient in a variety of processed foods, from soups and sauces to baked goods and snacks. This trend is particularly evident in emerging economies with increasing disposable income and urbanization.

Benefit of Pure label: Consumers are increasingly looking for natural and recognizable ingredients in their food. Plant source cornstarch fits well with this "clean label" preference. This change in consumer behaviour is creating demand for corn starch as a natural alternative to synthetic thickeners and stabilizers.

Expansion of Pharmaceutical Applications: The hypoallergenic and binding properties of corn starch make it valuable in the pharmaceutical industry. It is used as a disintegrant in tablets to allow controlled release of drugs. Additionally, its ability to absorb moisture makes it ideal for capsules. As the pharmaceutical industry grows, the demand for corn starch is expected to grow accordingly.

Industrial applications are growing: In addition to food and medicine, corn starch is used in several industries. It is used as an adhesive in textiles, as a binder in adhesives and even as a bioplastic material. As these industries look for sustainable and eco-friendly alternatives, corn starch is a viable option that will drive market growth.

Growth in disposable income and urbanization: Emerging economies in the Asia-Pacific region are witnessing growth in disposable income and rapid urbanization. This means changing eating habits and favouring processed and convenient foods. This trend coupled with increasing demand for corn starch-based industrial products in these regions is expected to significantly boost market growth in the coming years.

Market trends:

Growing demand for Clean Label ingredients: Consumers are increasingly health conscious and prefer natural, recognizable ingredients. This increases the demand for clean labelled corn starch, encouraging producers to develop alternatives without artificial modifications or additives.

Growth of GMO-free and gluten-free options: As awareness of dietary restrictions increases, the market is seeing non-GMO and gluten-free starch options that meet the specific needs of consumers.

Innovations in product composition: Manufacturers are constantly innovating to create new features and serve different applications. This includes the development of corn starch with improved heat resistance, freeze-thaw resistance and special textural properties.

Expansion to new applications: The versatility of cornstarch is being explored in new ways. We are seeing the development of bioplastics, biodegradable packaging materials, and even cornstarch-based films for food.

Focus on sustainability: Environmental concerns drive the focus on sustainable manufacturing practices. This includes the use of renewable energy sources and the minimization of waste in the processing of corn starch.

Regional Growth Potential: While North America currently dominates the market, regions such as Asia Pacific are expected to witness significant growth due to disposable income and growing middle class.

Corn Starch Market TO (USD BN)

CAGR OF

14.9%

Corn Starch Market

49 billion%

Market Opportunities:

Growing demand for convenience foods: The growing popularity of processed and convenience foods is further increasing the demand for corn starch, which is a key ingredient in thickening, binding and texturing of these products.

Growth in developing economies: As disposable incomes in developing economies increase, the demand for processed foods and medicines that use corn starch will increase.

Focus on functional starches: The development of new modified starches with specific functions such as fat reduction, clean labels and improved shelf life offer significant opportunities for market expansion.

Bioplastics and sustainable packaging: growing environmental concerns are increasing the demand for bioplastics made from corn starch as a sustainable alternative to traditional plastic packaging.

Non-food applications: Cornstarch's versatility extends beyond food, with applications in the production of biodegradable films, adhesives and even biofuels.

Expansion of e-commerce: The rise of e-commerce platforms creates new opportunities to sell cornstarch-based products directly to consumers, especially in the personal care and industrial sectors.

Market Restraints:

Availability of substitutes: Consumers are increasingly health conscious and the rise of alternative starches such as pea starch and rice starch is a threat. These options may be considered healthier or meet certain dietary needs (e.g. gluten-free).

Concerns about high-fructose corn syrup (HFCS): A sub-segment of the corn starch market, HFCS has drawn criticism for its potential link to health problems such as obesity and diabetes. This negative perception may affect the overall demand for corn starch.

Fluctuation of price of raw material: Maize is the main raw material for production of corn starch. Fluctuations in corn prices due to weather or geopolitical conditions can significantly affect the production costs and profitability of cornstarch producers.

Labor shortage: Corn starch industry needs skilled labor at various stages of production and processing. Lack of skilled labor can disrupt production and slow market growth.

Limited awareness about optimal consumption: In some regions, there might be a lack of understanding regarding the appropriate use of corn starch, potentially leading to underutilization or misuse.