The global modified starch market is estimated to grow at a CAGR of 4% during the forecast period. Significant R&D investment in the food and beverage industry has been reported over the years coupled with the consumers’ demand for innovations in the food and beverage products and rising presence of key manufacturers of food products across the countries. For instance, in March 2019, Nestlé declared the inauguration of a new R&D center in Beijing and a System Technology hub in Shenzhen. This new R&D center will allow the company to leverage trend-based innovation in China to meet rapidly changing consumers’ demand. Nestlé R&D center in Beijing emphases on the development of new food and beverage products especially for Chinese consumers, however, for other Asian consumers. The R&D center comprises more than 40 R&D specialists that are functioning across several product categories, with proficiency in food technology, sensory sciences, and nutrition.

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In addition, Nestlé partners with innovation partners and local universities to make suitable innovations in food products as per the consumers’ needs. The site includes the Nestlé Food Safety Institute in China. Nestle uses multiple food ingredients in their products that can provide nutritional benefits to their consumers. For instance, RESOURCE THICKENUP, instant food and drink thickener for patients with dysphagia that utilizes 100% modified cornstarch. It is a neutral?tasting modified starch powder which is utilized to thicken food and drink instantly and is used in the dietary management of dysphagia. Therefore, this significant rise in the opening of the R&D center for food and beverage products is anticipated to drive the demand for modified starch as a thickening, gelatinizing, binding and stabilizing agents and improve the quality of food products. This, in turn, will likely boost the global modified starch market.

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Furthermore, there is certain government initiative reported to boost the food processing sector, which in turn, is offering significant opportunities for R&D investment in the country. For instance, as per the International Brand Equity Foundation (IBEF), the food processing sector in India has received nearly $7.54 billion worth of Foreign Direct Investment (FDI) during the period, April 2000-March 2017. At present, 100% FDI in food processing sector is allowed in India for the establishment of a manufacturing unit. Therefore, the major food manufacturers of food products are planning to open and double their manufacturing and R&D facilities in the country.

For instance, in March 2019, the Coca-Cola Co. shared a desire to establish an R&D center in India, which is a part of their mission to make India one of the top three markets of the company. The three pillars identified by the company as major drivers of growth in India include fruit-based products, Sparkling beverages, and innovation. The company uses modified corn starch and modified food starch as a thickening agent and improves texture properties. This allows the company to stabilize flavor oils in their beverages and syrups. This focus on setting up of new R&D plant in the country will facilitate the innovation in their beverages and thereby is anticipated to drive the global modified starch market.
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Modified Starch Market Segmentation
By Application
• Food & Beverages
• Paper
• Pharmaceuticals
• Animal Feed
• Cosmetics
• Others (Textile)
By Raw Material
• Corn
• Cassava
• Wheat
• Rice
• Others (Potato)
By Type
• Physically Modified Starch
• Enzymatically Modified Starch
• Chemically Modified Starch

Modified Starch Market – Segment by Region
North America
• US
• Canada
Europe
• Germany
• UK
• France
• Spain
• Italy
• Rest of Europe
Asia-Pacific
• China
• Japan
• India
• Rest of Asia-Pacific
Rest of the World

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