The global modified starch market is estimated to be valued at USD 13.9 billion in 2022. It is projected to reach USD 16.4 billion by 2031, recording a CAGR of 3.3% during the forecast period.
Modified starch is a versatile raw material that can transform the basic properties of natural starch to meet the specific needs of various industries. Modified starch with excellent properties such as bulky water absorption, emulsifying and thickening properties has opened up a wide range of applications. Acting as texture modifiers, fat substitutes and emulsifiers, modified starches have become key ingredients in product formulations across different sectors. Due to the advanced processing techniques used to develop modified starches, it has become possible to create tailor-made ingredients that can solve a variety of formulation challenges.
Modified starches specifically provides maximum adhesion performance and superior strength at low cost for a wide range of applications. Available in a wide range of viscosities to meet different application and end-use requirements. Modified starch is one of the most important raw materials for the paper industry. Modified starch is used as a starch adhesive in paper-to-paper and poly-to-paper lamination. Each sheet of paper contains up to 8% modified or unmodified starch. The industry uses modified starch for both dry strength and wet end sizing. It also acts as a water retention agent that binds the pulp together and improves the surface of the paper. Due to the increase in soil pollution and animal diseases caused by ingestion of plastic bags, people are encouraged to use more paper bags. With the increasing use of paper bags, the paper industry is expected to grow due to the increasing frequency of paper recycling. This has become a key driver of the modified starch market.
Modified starch also serves as an excellent fermentation base for the mass production of various biotech products such as organic acids, antibiotics, vitamins and hormones. As the only carbon source that provides energy to maintain biological function, starch-derived carbohydrates have a very high commercial value. Starch-derived glucose can be fermented to produce lactic acid, which can be polymerized to produce biodegradable films and bioplastics. Similarly, potato starch waste can also be used as starting material for fermentation reactions. Several polymers can be made using various starch-based starting materials.

Applications of starch derivatives are increasing in the food and beverage sector. The global beverage sector is experiencing growth as an application for modified starch. However, the growth and preference for gum arabic over modified starches is restraining the growth of modified starch market. Studies have shown that gum arabic stabilized beverages are more stable than beverages with modified starch. In addition to beverages, gum arabic also poses a threat to modified starches in confectionery, which are used to prevent sugar from crystallizing.
The raw materials of processed starch mainly include raw materials. Natural resources such as corn, wheat, tapioca and rice are also used as raw materials to produce modified starch and its derivatives. These raw materials are widely used in the production of modified starches used in bioethanol products. Increased consumption of modified starch in segments such as food and beverages, animal feed, pharmaceuticals, cosmetics, and paper will lead to increased demand for modified starches, leading to higher raw material prices. The high cost of raw materials is mainly due to the high cost of transporting raw materials to various industrial plants in different regions of the world. Rising fuel prices are a major concern in the current scenario, which is having a negative impact on the economy. Such cases demonstrate fluctuations in price analysis as they directly affect raw material prices in the industry. Rising raw material costs are therefore posing challenges to the global processed starch market. Cassava is the fastest growing raw material segment in the global processed starch market.

Source Insights
The cassava sub-segment is expected to dominate the market share until 2031. Cassava is one of the most important starch crops in the world. It has a long starchy root and is an essential ingredient in many Latin American and Caribbean cuisines. Cassava is a widely cultivated tuber in most African and Asian countries and is the most economical source of starch in the world.

 
Application Insights
The food and beverage sub-segment is expected to have the highest market share in the forecast period. Modified starches thicken well and absorb moisture from other cooking liquids. Therefore, it is suitable for dishes such as soups, sauces, and baked goods that require ingredients to be entwined and thickened. Starch is also used as a base to make sugar substitutes called dextrose fructose or fructose dextrose syrups. These syrups are chemically similar to sugar and taste almost identical. The advantage of syrup is that it is a liquid, unlike crystallized table sugar, so it is easy to mix with other ingredients in creams, ice creams, beverages and other liquid or semi-liquid food products.

 
Regional Insights
The use of modified starch in various applications is a major contributor to the growth of the Asia-Pacific region. It helps thicken and stabilize foods, especially sauces. Therefore, with the growth of the market for sauces and condiments, the market for industrial starch is also growing rapidly. A burgeoning manufacturing sector, from textiles to cosmetics, is driving the demand for starch in the region. The rapidly growing processed food industry and consumer shift towards snack foods are driving the processed starch market in countries such as China and India. The food industry is the most profitable segment considering liberalized regulations on the use of modified starch in food manufacturing. The evolving retail environment, along with the participation of numerous global and local convenience food manufacturers, is expected to boost the demand in the modified starch market in the region.

 
Key Companies Insights
Key players are developing various strategic initiatives to expand their business footprints and gain competitive advantage. They are also focus on strategic initiatives such as mergers and acquisitions, collaborations, partnerships, fundraising and investments, and innovative product development and launches to expand expertise and product portfolio. Moreover, competition in the global market is increasing as companies focus on expanding their product offerings, entering new markets, and acquiring new customers. For instance, in April 2021, Cargill Inc. partnered with Starpro, Thailand's leading manufacturer of tapioca starch for food, to expand its specialty tapioca starch offering in the Asia Pacific region. This collaboration supports the product processing needs of food manufacturers and meets the sensory expectations of consumers.

Some prominent players in the global modified starch market include:
• Emsland-Stärke GmbH
• Grain Processing Corporation
• Global Bio-Chem Technology Group Company Limited
• Ingredion Incorporated
• Roquette Frères
• ADM
• Agrana Beteiligungs AG
• Avebe U.A.
• Cargill, Incorporated
• Samyang Genex Corp.
• Beneo-Remy N.V.
• Siam Modified Starch Co., Ltd.
• China Essence Group Ltd.
• PT Budi Starch & Sweetener Tbk
• Tate & Lyle PLC
• ULRICK&SHORT
• KMC (Kartoffelmelcentralen) Amb
• Other Players

Segments
By Source
• Corn
• Wheat
• Cassava
• Potato
• Other Sources

By Type
• Etherified Starch
• Pre-gelatinized Starch
• Resistant Starch
• Esterified Starch
• Other Types

By Application
• Food and Beverage
o Bakery and Confectionery
o Beverages
o Dairy
o Meat and Meat Products
o Soups, Sauces, and Dressings
o Other Foods and Beverages
• Animal Feed
• Personal Care Products
• Others

By Geography
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Russia
• Asia-Pacific
o Japan
o China
o India
o Australia
o South Korea
o ASEAN
• Latin America
o Brazil
o Argentina
o Colombia
• MEA
o South Africa
o Saudi Arabia
o UAE
o Egypt