The global Hydrolyzed Starch market is poised to reach a value of USD 13,890.2 million by 2024 and is projected to reach a value of USD 24,180.1 million by 2034, reflecting a compound annual growth rate of 5.7% over the assessment period 2024 to 2034.
The global business landscape is expanding all over the world due to various factors that are playing in the industry. The need that originates from industries such as the food and beverage, cosmetic, as well as the pharmaceutical industries has prompted manufacturers to aim at boosting production capacity.
The industry leaders such as Cargill Inc., BASF group, and Roquette America Inc. are becoming more production capable and are opening new plants or intend to expand their existing production facilities. Consumer health consciousness has also played a key role in the advancement toward functional ingredients especially starch derivatives, demand for which is growing rapidly because of their multi functionality.
Consumer trends toward natural and clean label products have dictated change and manufacturers subsequently began creating starch based ingredients. In the current world where people are becoming conscious of the food they take and personal products they use, the market demand for natural plant base ingredients especially starch as against synthetic material has increased. Furthermore, the increase in the global trends towards healthy eating makes functional ingredients more popular, as a result, stimulating the demand for target products in such applications.
There is also increased innovation amongst manufacturers with more coming up with new products that will serve a number of customer needs. For instance, it is liberating the shares of growing gluten-free and diabetic consumption interests from the section of health-conscious consumers.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 13,890.2 million |
| Projected Global Industry Value (2034F) | USD 24,180.1 million |
| Value-based CAGR (2024 to 2034) | 5.7% |
More so, sustainability is getting into the list of driving forces where organizations are adapting to environmental issues through taking environmentally friendly practices. The more sustainable ingredient trend is making starch derivatives to become more attractive and allowing the sector to expand further.
The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 5.1% (2023 to 2033) |
| H2 2023 | 5.5% (2023 to 2033) |
| H1 2024 | 5.6% (2024 to 2034) |
| H2 2024 | 5.9% (2024 to 2034) |
The global industry's predicted compound annual growth rate (CAGR) over a semi-annual period from 2024 to 2034 is shown in the above table. The business is anticipated to grow at a CAGR of 5.1% in the first half (H1) of 2023 and then slightly faster at 5.5% in the second half (H2) of the same year.
The CAGR is anticipated to increase somewhat to 5.6% in the first half of 2024 and continues to grow at 5.9% in the second half. The industry saw a decline of 35 basis points in the first half (H1 2024) and an increase of 46 basis points in the second half (H2 2024).
The Versatility of Hydrolyzed Starch for Green Label Product formulation
Every day, customers around the globe are getting more conscious of the environment, and thus the need for cleaner label or green ingredients in food, beverages, and cosmetics. The target product which perfectly fits this trend, which is produced from renewable plant materials.
There has been growth in the emphasis on sustainable procurement of the raw materials and minimizing impacts on the natural environment by adopting environmentally sound production. Today, companies involved in the production of starch are considering farming methods that are environmentally friendly as well as production methods that can be disposed of naturally.
It is also in the limelight in clean-label products because of its highly processed ingredient from plant origin with emphasis on consumers wanting to see natural and clean labels on products. It has also extended starches from non-GMO crops and will help in the formation for an eco-friendly long-term in the rear view mirror of the sector.
Gluten Free Nature: Attracting the consumers in developed regions
In the last decade, the share of gluten-free food products is rapidly rising mainly in the USA and European countries due to growing awareness of celiac disease and gluten intolerance. In these products, starch is used since it is as a gluten-free thickener, emulsifier, as well as a stabilizer. Food industry prepared gluten-free products have been prepared with target product to enhance the texture, structure and mouthfeel.
This development makes it even possible for starch producers to think afresh as they establish themselves to capture promising market for gluten-free products for health conscious customers. It stands a better chance of growing in this market segment and expands in the future years as more businesses embrace it.
Infusion in Functional Foods Elevating the sales
The functional foods market that highlights added value products defined as having and written health appeal beyond basic foodstuff is growing rapidly. Hydrolyzed starch, which is an excellent source of easily digestible glucose is widely incorporated into functional foods mainly for use in weight control, energy enhancement and sports nutrition products. Product is being incorporated in energy bars, smoothies, and drinks because it offers a stable readily digestible carbohydrate source for manufacturers.
The flexibility of application across segments like probiotics, prebiotics, and fiber products is positively driving the functional foods market. The demand for such products are therefore expected to remain high especially owing to the fact that consumers target improving their general wellbeing.
Starch Hydrolysates for Use in Cosmetic and Personal Care Products
Hydrolyzed starch in particularly has become a common ingredient in personal care products over the recent past attributed to the increased preference for natural formulations on the skin. This has been widely observed especially in products that include shampoos, conditioners, face masks and moisturizers since it enhances the products texture and its abilities to retain moisture.
It is an ideal ingredient for any delicate skin as it does not cause any irritation, which is a golden rule of contemporary cosmetic products entering the market when people are opting for environmentally friendly and soft on skin healthy products. It is being used for formulating for related reasons such as improvement of the feel of the finished product, smoothness, and increased viscosity. This trend should also be expected to grow further amid heightened awareness for clean beauty brands and environment friendly packaging.
Prescribed More Frequently in the Pharmaceuticals
Hydrolyzed starch is becoming popular in the pharmaceutical industry because of versatility and its uses as binder, disintegrant and stabilizer in tablet preparation. They used mostly in the manufacture of oral dosage forms especially for the effect of improving the disintegration of tablets and the total availability of the drug in the body. Also its nontoxic effects along with the compatible solubility with other excipients make it suitable also for pharmaceutical applications.
Current requirements for even more individualized and better performing pharmaceutical goods are the primary movers of advancement in starch-based excipients. Since the novel, patient-friendly and functional pharmaceuticals are on the rise, it can soon expect to expand its use in formulations.
Advancements in Extraction technology: Enhancing the efficiency in Global Supply Chain
Continued developments in the engineering of starches to be used in the production of hydrolyzed starch are enabling producers of the commodity to increase on their production rates as well as quality of this product. Recent developments in enzyme technology, fermentation techniques, and biotechnological procedures have led to improvement in the control over the molecular weight and functionality of the hydrolysed starch products.
This has brought greatly new opportunities to manufacture new forms of starch with more specific characteristics such as more solubility, viscosity and stability. This is making it easy for hydrolyzed starch to grow and fulfil other diverse industries’ needs such as food and beverages, pharmaceuticals, and cosmetics among others.
Global sales increased at a CAGR of 5.2% from 2019 to 2023. For the assessment period of 2024 to 2034, the projections showcase that value will expand at a CAGR of 5.7%.
In recent years, slow and steady sales of different varieties of starches can be attributed to the rising fitness and nutrition industry. With consumers' rising consciousness about health and wellness and the expanding nutrition industry, the demand for such components including starch has skyrocketed. The limited protein sources for vegetarians have also propelled sales.
With the evolving methods and the rise of advanced processing techniques, it has become easier for companies to produce high amounts of good quality starch in a shorter period, catering to diverse consumer demands. In addition, collaborating with wholesalers and retailers helps the brands to better position their products in the business landscape and make them available on shelves of convenience stores. This ensures the availability for not only retail purposes but also industrial applications.
Tier 1 companies comprise industry leaders with revenue of above USD 10 million capturing a significant share of 50% to 60% in the global business landscape. High production capacity and a wide product portfolio characterize these leaders. These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Cargill Inc., BASF, DowDuPont, Archer Daniels Midland, Roquette Freres S.A., Rettenmaier & Sohne GmbH & Co. KG and few others.
Tier 2 companies include mid-size players with revenue of USD 1 to 10 million having a presence in specific regions and highly influencing the local commerce. These are characterized by a strong presence overseas and strong business knowledge.
These players in the arena have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Lanxess Aktiengesellschaft, Mitsui Chemicals, Shell International, Covestro, Stepan Company, Sweetener Products Company, SPI Polyols, Inc., and others.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche economies having revenue below USD 1 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized ecosystem, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The following table shows the estimated growth rates of the significant three geographies sales. USA, Germany and India are set to exhibit high consumption, recording CAGRs of 4.3%, 4.9%, and 6.2% respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 4.3% |
| Germany | 4.9% |
| India | 6.2% |
In the USA, ‘better-for-you’ products - that is, foods and beverages containing functional ingredients - remain a key growth factor. Due to a growing trend in the population’s health-consciousness, they demand not only nutritional value for their products but more health benefits. This trend has spiralled into increased usage of starch derivatives such as hydrolyzed starch in an attempt to improve texture and functionality of foods.
The increase in the number of people observing gluten-free, low calorie, and no sugar diets has seen an upgrade of starch based products for thickening and sweetening. Moreover, it is currently being used in the beverages and snacks for enhancing mouth feel and get longer shelf life on the products. From this, analysts foresee a further propelling in the sector due to this demand for functional ingredients.
There has been a good trend towards sustainability especially more observed in the food industry and the personal care segment which customers are insisting on clean label products. Manufacturers in the region are trying to adapt to impact by using more sustainable material like sourcing of starch from renewable and eco-friendly sources. The consumers in the German market are becoming more conscious of the environmental repercussions of the products they buy resulting in lots of demand for ingredients that are organically sourced.
Being derived from renewable resources such as corn, hydrolyzed starch is becoming increasingly popular owing to its environmental friendly properties. In the same measure, the consciousness of environmentally sensitive consumption has taken a driving seat; the German manufacturers fall in line to offer clear value chains regarding sourcing of raw materials and their processing hence straining the demand for virgin starch in the food and cosmetics Industry.
One of the new trends in the Indian market is the desire for healthy food and cosmetic products, which will contribute to the development of hydrolyzed starch. Owing to the increasing population density and expanding economy, people have gradually put more focus on the food and drinks with physiological function. It is being used in diabetic products, obesity management products, and nutrient fortified foods.
The size of the middle class and the consumption of healthy food products have expanded the call for lower sugar, lower calorie, and gluten free products infesting starch derivatives within these products. Also, it is gradually entering traditional Ayurvedic and natural health supplements markets of India and stays popular. Based on this trend towards wellness and preventive medicine, there is also a corresponding and growing need in the country.
| Segment | Moisture Retainer (Functionality) |
|---|---|
| Value Share (2024) | 42.3% |
Among the various key drivers associated with increased utilization of hydrolyzed starch, is the role it plays as a water absorber. This characteristic hence makes it suitable to be used in foods, cosmetics and pharmaceutical industries where water content is crucial for the products stability and texture. It swells and retains moisture in the product to reduce the risk of it evaporating reducing the shelf life of the product.
The essential function in food is that it improves mouthfeel and moistness in baked products, sauces, and vinaigreases. Likewise, in cosmetics target product which is used in lotions creams and mask to give a slippery feel and moisture content to the end products. Because of its versatility in now enabling the formulations to retain moisture, it has become a favourite of companies that seek to enhance the sensory characteristics and functions of the products.
| Segment | Personal care (End-Use) |
|---|---|
| Value Share (2024) | 29.6% |
Hydrolyzed Starch has recently gained popularity in many products within the field of personal care. Due to change in consumer preference and trend in choosing natural and environmentally friendly products and components to use in their consumption as well as GMI, the need for organic and skin-friendly compositions for the production of these products has experienced a commendable upturn.
Starch which has been hydrolyzed is emerging on the market in products such as shampoos, conditioners, face masks, and moisturizers because of its mild cationic nature, its non-irritating property, and its ability to improve the body of a product. Some of its functions include: acting as a binder, thickener and stabilizer of personal care formulations enhancing feel. It also has excellent moisture retention characteristics which make it well suited for use in refreshing other skin care products.
Further, in relation to its efficacy, new better-said clean beauty and environmental friendly formulations are preferred to be derived from natural sources like target product. This trend is expected to further enhance its usage throughout the whole personal care industry.
The business landscape around the world is growing and is backed by some vital actions of the leading players active in the market. Industries like Cargill, Ingredion, ADM and Roquette are shifting towards the expansion of their portfolio in natural and clean label product which is currently on higher demand as a result of rising health consciousness among people and increasing interest from food producers on usage of natural and transparent food resources.
The suppliers are diversifying their product range and invest in further development of enzymatic hydrolysis to enhance properties. Also, sustainability remains a major reason with many companies pledging responsible sourcing practices of sustainable agricultural inputs besides working to minimize the effects on the environment.
The players are also enhancing their industry dominating capabilities through the formation of strategic business ties and partnerships with sectors such as the food and pharma plus, feed sector. It also assists in the development of their technological skills, formulation of the products offered, and satisfying various industries.
In addition, the performance is further being supported by the diversification into the emerging segments like processed food, personal care, and animal feed where the demand is experiencing growth. The market is also changing due to the increasing demand for functional ingredients in the various sectors such as the formulation of medicines, starch hydrolyzed in this manner, for animal feed for enhanced digestive system.
By Nature, Industry Has been categorised into Organic and Conventional
Different functionalities like Sweetening, Moisture Retainer, Texturizing are included in the report.
Different end uses like Bakery, Confectionary, Dairy, Jams and Spreads, Beverages, Pharmaceuticals, Personal care & cosmetics and Others are considered after exhaustive research.
Key sources like Rice, Wheat, Potato and Others considered after the research.
Three forms which Powder, Coarse-Grain and Granulated are included in the report
Industry analysis has been carried out in key countries of North America, Latin America, Europe, Middle East and Africa, East Asia, South Asia, and Oceania
The market is expected to grow at a CAGR of 5.7% throughout the forecast period.
By 2034, the sales value is expected to be worth USD 24,180.1 million.
Increased product innovation and demand for new products with nutritional balance are expected to boost sales.
Europe is expected to dominate the global consumption.
Some of the key players in manufacturing include Lyckeby, Cargill Inc., BASF, DowDuPont, Lanxess Aktiengesellschaft, Mitsui Chemicals, Shell International, Covestro, Stepan Company, Sweetener Products Company, SPI Polyols, Inc., Roquette America Inc., Tereos Starch & Sweeteners, Archer Daniels Midland, Tongaat Hulett Starch SunOpta Inc, Grain Processing Corporation, Roquette Freres S.A., Rettenmaier & Sohne GmbH & Co. KG, and Others.
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