The growing preference for ready-to-consume food and beverages across the world is influencing the demand for starch derivatives significantly. The rising popularity of non-carbonated and energy drinks is complimenting this demand, as these beverages utilize natural sweeteners, of which these derivatives are important components. Apart from this, starch derivatives also have significant application in textile weaving and finishing, and the production of biofuels and glue due to which their demand is increasing by leaps and bounds.

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Going forward, the market is likely to witness a remarkable inflow of capital, as starch derivative producers are increasing their focus on improving the quality of their products in order to gain a competitive edge. Additionally, the demand for starch derivatives is anticipated to register a steady rise in the coming years due to the rapid expansion of the food and beverages industry. The usage of these derivatives in cosmetics as emulsifiers, in medicines as binders, and in animal feed and fiber additives is also projected to provide potential opportunities for market growth in the near future.

The global opportunity in starch derivatives stood at US$45.3 bn in 2014. Rising at a CAGR of 5.90% between 2015 and 2021, it is estimated to be worth US$68.7 bn by 2021.

Opportunity for Starch Derivatives in Food and Beverages to Reach US$40.7 bn by 2021

Starch derivatives are in high demand in pharmaceuticals, cosmetics, feed, food and beverages, paper, and various other products such as biofuels and bioethanol. They also find significant application in the production of glue and other industrial applications.

Most of the demand for these derivatives arises from the food and beverages segment. The growing popularity of convenience food and non-carbonated and energy drinks has fueled their application in this segment and the trend is expected to prevail in the long term. The opportunity for starch derivatives in food and beverages is expected to expand at a CAGR of 5.80% during the period from 2015 to 2021 and increase from US$27.1 bn in 2014 to US$40.7 bn by 2021.

Asia Pacific to Remain at Forefront of Starch Derivatives Market

Regionally, the global market for starch derivatives is segmented into Asia Pacific, North America, Europe, and Rest of the World. With a share of more than 30%, Asia Pacific emerged as the key consumer of starch derivatives in 2014. Analysts at TMR predict the region to remain at the forefront throughout the forecast period, thanks to the soaring demand for these derivatives in China and India, propelled by the growing preference for convenience food and beverages in these nations.

The opportunity in starch derivatives in Asia Pacific is likely to increase from approximately US$14 bn in 2014 to almost US$21 bn by 2021, growing at a CAGR of 5.50% during the period from 2015 to 2021.

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AGRANA Group, Ingredion Inc., Archer Daniels Midland Co., and Tate & Lyle Plc are the key producers of starch derivatives across the world. Other prominent market participants are Avebe U.A., Emsland-Stärke Gmbh, Roquette Frères S.A., Cargill Inc., BENEO-Palatinit GmbH, and Grain Processing Corp.