INDUSTRIAL STARCHES MARKET ANALYSIS

Market Challenges And Opportunities

Global Industrial Starches Market- Impact of Coronavirus (COVID-19) Pandemic

Due to the growing e-commerce industry, starch manufacturers in the market have seen huge demand from the paper and paperboard industries. This industry uses corrugated boards to package goods. In addition, after the coronavirus pandemic, consumers shifted their online shopping habits to online shopping channels for various basic and non-basic goods such as packaged food and drinks, clothes, cosmetics and personal care products, and appliances. However, industrial starch manufacturers were unable to meet the increasing demand as two drying assets were removed from the market, which led to a shortage of drying capacities.

Global Industrial Starches Market: Growth Drivers

• Increasing investment by key players in starch production: Increasing investment by key players in starch production to meet the growing demand is driving growth of the industrial starches market. For instance, in April 2021, Cargill Inc., a global food corporation, announced its plans to expand its specialty tapioca starch offerings for the Asia Pacific region. Cargill partnered with Starpro, the food-grade tapioca starch producer in Thailand. With this, it plans to expand in the Asia Pacific region in order to support the product processing requirements of food manufacturers and the expectations of consumers.
• Growing demand from bio-plastic industry: Growing demand from the bio-plastic industry is again propelling growth of the market. Starch-based films, when used in conjunction with PLA films as an outer layer, are used in different food packaging applications. For instance, in 2022 Mars Incorporated replaces BOPP (biaxially oriented polypropylene) in its candy packaging by incorporating a new compound made of the starch derived from potato cutting waste.

Global Industrial Starches Market: Market -Restraints

• Fluctuating price of raw materials: Fluctuating prices of raw materials such as corn, wheat, rice, and others and high initial investment are expected to hamper the growth of the industrial starch market. The cost of raw materials fluctuates according to its availability, source, and production.
• Growing prevalence of lifestyle disorder: The global consumers have been cutting down on sugar and sweetener intakes, such as high-fructose corn syrup, due to health and weight management reasons, which is expected to hinder market growth. Moreover, the rise in prevalence of lifestyle disorders such as obesity and diabetes is reducing the consumption of starch-based sweeteners, which is again restricting market growth. However, Sustainable and advanced products Can help industrial starch market to grow.