Starch derivatives are extracted from starchy foods like potatoes and cassava. These are used as a thickening agent when making various types of foods. They can be used to emulsify, stabilize, and thicken various types of food and hence are very valuable. Many foods need these derivatives to be processed to the desired consistency.
COVID-19 is a novel virus. Its unique properties are part of what makes it dangerous. Most people who got this virus recovered but a few found themselves deathly ill. Some even died because of the virus.
Governments realized that this virus was deadly early on. They imposed quarantines and lockdowns because they wanted to stop its spread. These were not very effective and hence were short-lived. In any case, the effect that this had on most industries around the world was far from short-lived. Most industries found that they had to either shut down or dramatically halt operations.
The novel COVID-19 virus disrupted global supply chains. Thus, it was harder for food manufacturers to source and use starch derivatives. It accounted for the higher food prices that the world is currently experiencing.
Starch Derivatives Market Dynamics:
People around the world want to eat healthier. As they want to do this, they want to make sure that their foods taste better. This is part of what’s driving demand in the global starch derivatives market.
Another key driver of demand in the global starch derivatives market is the fact that people want ready-to-eat meals. These require the usage of starch derivatives to make them correctly. The masses around the world are also becoming increasingly conscious of their weight. They want to eat foods that are lower in calories. This is another factor that’s propelling growth in the global starch derivatives market.
The growing demand for starch derivatives is pushing manufacturers to look to other starchy plants like cassava and tubers for newer sources. These tubers have different properties which are creating new opportunities in the starch derivatives market. These differences and properties are also leading to new applications. For example, glucose can be extracted from starch and can be converted to lactic acid which has many interesting applications in various bio-plastics products.
Extracting starch from various tubers is expensive. Therefore, starch derivatives tend to be rarer in nature. This factor has forced many food and beverage manufacturers to make synthetic starch derivatives.
The prices of various starchy crops and tubers are rising dramatically. It’s attributed to the fact that these crops and tubers are being used more extensively in producing starch derivatives and bio-ethanol fuels. Thus, the biggest challenge that companies in the starch derivatives market face lie in trying to produce foods that need starch derivatives to be processed correctly while keeping the end prices for these foods in a range that the masses can afford.
Archer Daniels Midlands Company is a major American player in the starch derivatives market. It is an industry leader because it invested heavily in research and development. Thus, ADM was able to develop and market new products that made it more profitable and gave it a sustainable competitive advantage.
The type of segment can be divided into the following sub-segments:
This segment can be divided into the following sub-segments
The food and beverage industry currently commands the largest starch derivatives market share. It can be further grouped into baked goods and confectionaries, soups, sauces and dressings, dairy products, drinks, and others.
This segment can be divided into the following sub-segments
Corn is expected to have the largest share in this segment since it can be processed into corn starch which is used to thicken many gravies and soups.
The global starch derivatives market can be grouped into the following regions:
The North American region can be grouped into the following nations: The United States of America, Canada, and Mexico. The European Union consists of the following nations: Germany, France, Italy, Spain, the United Kingdom, and the rest of Europe. The Asia-Pacific region consists of the following nations: China, India, Japan, Australia, and New Zealand, and the rest of the Asia-Pacific region. The rest of the world consists of the following regions: Africa, South America, and the Middle East.
The Asia-Pacific region currently has the largest starch derivatives market share. This is expected to continue for the time that this report covers. The reasons for this are that the middle classes are growing rapidly in these nations, especially in India and China. This should continue for the time that this report covers. As these classes grow wealthier, they want to have access to better tasting and more nutritious food. Hence, the demand for food that has been processed with starch derivatives is growing in the Asia-Pacific region.
The cosmetics industry also uses starch derivatives. As the middle classes explode in the Asia-Pacific region, the demand for cosmetics is increasing rapidly as well. The same is true in the various nations in the Latin American region.
The middle classes in the Asia-Pacific region are increasingly leading busier lifestyles. Hence the demand for readymade food is growing. This requires starch derivatives to make. It’s expected to be another driver of growth in the
The North American region has a high starch derivatives market share. This is primarily because corn is plentiful in the Mid-Western part of the United States of America. Starch and its derivatives have many uses in the processing of foods. There is increasing awareness of this and hence, the demand for starch derivatives has been growing rapidly.
There are also new advancements in microencapsulation. This is driving growth in the starch derivatives industry throughout the world. It’s primarily the case in the North American and Asia-Pacific regions.
Many of the major companies in the global starch derivatives industry have been investing heavily in the Asia-Pacific region. They have been lured there by the growing middle classes and their rapidly increasing purchasing power.
Starch derivatives are increasingly being used for non-food applications. This is accounting for its rapid growth in the North American region.
The starch derivatives industry is highly competitive. It’s also fairly fragmented. There are many reasons for this. The first is that the industry has a higher CAGR. The second is that it’s fairly lucrative. The third is that there are few barriers to entry into the industry. Hence, the global starch derivatives market is very attractive to many companies, especially to those larger companies with bigger treasuries.
Companies in this industry are finding that they have to invest heavily in research and development if they want to create the sustainable competitive advantage that they need to remain financially viable. Investment in research and development allows them to develop newer products that will allow them to continue to have an ‘edge over the competition.’ These new products will also allow them to justify charging customers a much higher price point.
Other companies are merging with and acquiring other companies. They are also interested in acquiring more resources so that they can do better and more research and development. These companies are interested in positioning themselves in such a way that they become leaders in the industry and that they create a sustainable competitive advantage.
Entering strategic partnerships with other successful companies accomplishes the same thing that mergers and acquisitions do.
Grain Processing Company is a major American company. It is an industry leader because it invested heavily in innovation. Thus, the company was able to create a sustainable competitive advantage that would make it profitable and give it an edge in relation to the competition.
List of Companies
The Asia-Pacific region has the highest starch derivatives market share. It also has the highest starch derivatives market growth rate. The key reasons for this are that the middle classes in this region are exploding and they’re becoming dramatically richer in the process. Thus, they are demanding to eat healthier foods that don’t need much cooking beforehand.
The North American region is seeing respectable growth primarily because it is developing new applications for starchy foods. Another reason for this is that many of the major companies in the starch derivatives market are in this region.
Frequently Asked Questions (FAQ) :
Demand for functional food & beverages and growing awareness about the health benefits of natural ingredients are the key factors driving the starch derivatives market.
High R&D cost for product development may limit the starch derivatives market growth.
Starch derivatives have wide applications in pharmaceutical and nutraceutical, animal feed, personal care, food and beverages, and others.
The Asia Pacific will dominate the starch derivatives market.
Key players profiled in the starch derivatives market include Tate & Lyle PLC (UK), Roquette Frères (France), Ingredion Incorporated (US), Grain Processing Corporation (US), Emsland-Stärke GmbH (Germany), Cargill, Incorporated (US), Beneo GmbH (Germany), Avebe U.A. (The Netherlands), Agrana Group (Austria), and Archer Daniels Midland Company (US).