Cassava Starch Market Size, Share & Industry Analysis, By Type (Native Starch, Modified Starch, and Sweeteners), End-Use (Food & Beverages, Paper and Board, and Others), and Regional Forecasts, 2019-2032

The global cassava starch market size was valued at USD 40.53 billion in 2018 and is projected to reach USD 99.91 billion by 2032, exhibiting a CAGR of 6.70% during the forecast period based on our analysis in the existing report. North America dominated the cassava starch market with a market share of 27.02% in 2018. Moreover, the cassava starch market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 14.6 million by 2032, driven by the growing demand for gluten-free products.

Starches are used in the textile industry for various purposes such as warp sizing, printing, cloth finishing, and for other uses. In warp sizing, cassava starch is one of the major ingredients that is being added. The textile industry offers various customized solutions, which leads to significant growth in the industry. Cassava starch is considered as an effective starch solution by the textile manufacturers in various textile operations. It is also being used for cloth printing and to place a particular design on a smooth surface on the fabric. There is a viable growth of the textile industry in the global marketplace, which creates a demand for various starch solutions.

MARKET TRENDS

"Rising Consumption of Functional Foods Triggers the Demand for Cassava Starch"

The global cassava starch market is changing rapidly and pursuing a strong growth, owing to its benefits on offering products to consumers along with the taste and sensorial effects in the food. The consumers are becoming more aware and health-conscious across the globe that is driving its demand which aims to promote better health, increase longevity, and prevent the onset of chronic diseases. Foods fortified with nutritional and disease eluding properties are stimulating the world's nutritional food sector. The changing consumer’s food eating patterns and their evolving taste preference have necessitated the manufacturers to introduce and innovate new functional food and beverages in the global market place.

Japan is one of the major consumers of functional food. The rising hectic lifestyle and increasing fitness trends have led to increased consumption of on-the-go functional foods such as bakery products, fortified beverages, smoothies, and others in their workplace. The manufacturers are trying to produce new food products that meet the ‘functional’ definition to answer its growing demand all across the world. The functional food sector holds an important place in the overall fortified food pyramid, which shows and reflects its increasing popularity among consumers across the world.

Tapioca starch is used in various functional food products as an ingredient as it possesses natural dietary fiber properties, thus driving the growth of the global market.  

MARKET DRIVERS

“Rising Gluten-intolerant Population to Spur Demand for Cassava Starch in Food Products ”

Cassava starch is utilized by various food and beverage manufacturers as it contains various natural properties such as antioxidants. It is predominantly used in a variety of food products such as meat products, bakery, ready-to-eat food products, dairy, functional food & beverages, cereals, snacks, sweet potato and others.  The starch is a naturally gluten-free product, which is utilized in various gluten/celiac-free food products. Gluten intolerant population is one of the major factors for the growth of the starch market.

According to Beyond Celiac Organization, around 18 Million population in the U.S. are sensitive towards gluten/celiac, and the condition is expected to grow at a rate of 3.6%

“Incorporation of Manioc Starch in Various Cereals & Snacks Triggers the Growth of the Market ”

Manioc starch is one of the very vital ingredients that are added to the food products by the manufacturers. Dairy, bakery, and snack products are one of the major categories that are utilizing manioc starch. Among which the major food products consumed by the people are snacks and cereals. In order to enhance the quality of the food product, manufacturers are incorporating the usage of manioc starch in it. The starch helps to attain the desired viscosity in snack products when compared to the other starch products. It is used as a natural binding agent and a texturizer in the food products. The high water-holding, viscosity, and binding properties make it more suitable for the manufacturing of snack products. Since the demand for extruded snacks, ready-to-eat cereals, and pretzels are growing, the demand for manioc starch is also expected to grow. Freeze-thaw stability is used to measure the total effect of temperature changes on an emulsion.

MARKET RESTRAINT

“Price Fluctuations of Tapioca Starch is expected to hinder the growth of the Global Market”

The production of tapioca starch majorly depends on the availability and prices of raw materials. The impediments such as increasing price, low-quality raw materials, and others in the sourcing of raw materials has a direct impact on the overall production of tapioca starch in a global level. As the economic condition of the world is improving, the price of the various raw materials and other commodities is also increasing in the current marketplace. The increased prices of the raw materials impact its consumption and utility pattern in the market negatively.

For instance, the price of cassava starch or manioc starch in 2015 was USD 421 per tonne and it decreased in the following two years to USD 328 per tonne in 2017. In 2018, the price again rose up to USD 378 per tonne.

The higher prices and affected quality of raw materials due to the seasonal fluctuations, soil diseases, and other crop diseases are expected to hinder the overall tapioca starch market during the forecast period (2015-2026). The increasing price of raw materials also results in the manufacturing process of tapioca starch. An increase in the imports of tapioca starch will help get over the restraint.

SEGMENTATION

By Type Analysis 

“Sweeteners Type is expected to hold the Largest Market Share Globally, Due to the demand for it in Various Industries” 

Globally, sweetener derived from cassava starch is expected to hold the largest market share as it is being used as a natural sweetener in various food and beverage products across the world. The rising trend for clean-label and natural food ingredients among the consumers has led to the increased demand for sweeteners in several food and beverages sector such as bakery, health drinks, carbonated drinks, convenience foods, and others. The consumers are becoming more health-conscious and aware of the benefits of natural sweeteners such as low calorie, sugar-free intake, a rich source of energy, and others. The increasing demand for non-caloric and natural sweeteners is the primary factor that are encouraging the food and beverage manufacturers to innovate new and effective replacements of sugar.

The sweetener manufacturers are reinforcing their capability to procure raw materials from the grower's such cassava to produce sweeteners. The abundant availability of cassava is the main raw material that is utilized by the manufacturers. The functional benefits and convenience of sweeteners are some of the factors behind the rapid acceptance among the manufacturers. The portability factor, convenient packaging, high solubility, and assured long shelf-life of various sweeteners are creating its huge demand and popularity among the several food manufacturers.

By End-Use Analysis 

“Food & Beverages holds the Largest Market Share, Owing to the Rapid Growth of the Convenience Food Products” 

The food and beverages end-use is expected to hold the largest market share throughout the forecast period, owing to the increase in the busy lifestyle. The increasing consumer awareness and rising concerns over their health are the major factors governing the demand and trends for healthy additives & ingredients in food and beverage products. The manufacturers are intensively concentrating on the development and innovations of clean-labeled foods and food ingredients that have promoted the demand and acceptance of starch as a natural product in the global food and beverage sector. The factors that are influencing the demand for cassava starch globally include industrial development, technical advancements, and rising population growth. The sub-optimal tapioca starch production is providing immense potential and opportunity for the new entrants to serve their new and innovative starch products in the market.

However, tapioca starch is also utilized in different non-food industries such as paper, packaging, textiles, pharmaceuticals, and others. The increasing demand in various food sectors such as processed food, packaged foods, beverages, convenience foods, and others is influencing the food and beverage industry positively.

The paper and packaging industries are utilizing a significant quantity of tapioca starch for the purpose of binding agents, consistency, and to produce biodegradable packaging substance. On the other hand, the pharmaceutical is also utilizing a huge quantity of starch to formulate their medicines with the healthier effects of cassava and adding sweetness to reduce the bitterness and sourness of the products.

REGIONAL ANALYSIS

“Asia Pacific Cassava Starch Market is expected to hold the Largest Market Share, Owing to the High Production and Utilization of Cassava in the Region”

Asia Pacific is one of the major market places in the world with immense potential for the utility and consumption of cassava starch in several applications, such as functional food, dietary supplements, nutritional drinks, medicinal applications, and others. Asia Pacific is one of the leading producers of cassava and its starch, followed by the Middle East and Africa. The region has a larger population with various working professionals. The fast pacing and busy lifestyle are one of the major reasons for the growth of the cassava starch market in cassava starch market in nigeria and rest of the region. The improving economic conditions of several countries such as India, China, Indonesia, and others with increasing awareness of healthy diets among the consumers have influenced their buying behavior positively. Abundant availability of raw materials in the region is the main factor that creates opportunities for cassava starch manufacturers to grow in the market place.

North America is the fastest-growing region with immense potential for cassava starch and witnessed for the fastest growth rate across the world including Latin America. The rapid expansion of the food and beverage sectors is a major pillar that drives the cassava starch market across the region. The region has the largest gluten intolerance population, which directly helps in the growth of the market as cassava is gluten-free. Cassava starch is low in calories and a rich source of fibers and antioxidants and helps to reduce fat & cholesterol of the human body. The manufacturers are highly utilizing such opportunities by launching new and innovative cassava starch based-food and beverages in countries such as the U.S., Canada, and Mexico to meet the demand from the obese population across the region.

KEY INDUSTRY PLAYERS 

“Highly Fragmented and Consolidated Industry Structure of Cassava Starch”

The global cassava starch market is highly consolidated and fragmented, due to the emergence of several domestic and local players in the global market. The cassava starch manufacturers are capitalizing on reinforcing the distribution network, implementation of cost reduction techniques, and placement of varied cassava starch products in the global marketplace. Private label and region-dominant players such as Tate and Lyle, Ingredion Incorporated, Cargill Inc., and others have set new standards for innovation and development of specialized cassava starch with new formulations. This is further encouraging natural ingredient giants to scale up their product launch and expand their product portfolios in the foreseeable future.

LIST OF KEY COMPANIES PROFILED:

• Tate & Lyle


• Cargill, Inc


• Ingredion


• AGRANA Starch


• The Dutch Agricultural Development & Trading Company BV


• Visco Starch


• Vaighai Agro


• Aryan International


• Psaltry International Limited


• Ekta International


• Chorchaiwat Industry Company Limited

Report Coverage 

The starch and sweeteners industry has witnessed significant growth in cassava starch sales. The increase in the world population is expected to create various opportunities for cassava starch. Diet conscious consumers across the globe gain awareness regarding the health benefits of the products. These are certain factors that aid in the growth of the market.

The report provides qualitative and quantitative insights into the cassava starch market. It also offers a detailed analysis of its utility, applications, availability of raw materials, types of cassava starch, their market size and growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation

INDUSTRY DEVELOPMENTS:

• In November 2018, Chorchaiwat Industry Company Limited launched its new product names Sava Flour in the Thai market. The product is gluten-free and is an all-purpose starch that is made using cassava as the raw material. The product is free from gluten, nut, grain, and dairy, hence can be used by the people suffering from celiac/gluten intolerance condition.


• In July 2019, Ingredion Incorporated announced the launch of its tapioca-based clean-label starch which is a dry powder, high-water mix. It is used as a co-texturizer in various food products such as soups, hot drinks, and desserts. This product will meet the natural ingredient criteria in places like Ireland, U.K., France, and the associated EU legislation. This will help the manufacturers to tap the natural and lucrative clean label trends.