MODIFIED STARCH MARKET ANALYSIS

Regional Analysis

Asia Pacific is the fastest growing market for modified starch. This is due to increasing population in India and China boosting demand for food, beverages, and pharmaceuticals. These countries are also growing as manufacturing hubs for pharmaceuticals due to low cost of labor and raw material. According to International Monetary Fund, Asia Pacific accounted for 50% of the world’s GDP in 2015, and is slated to become a prime consumer hub in the forecast period. In India, the government has allowed 100% Foreign Direct Investment (FDI) in food processing industries, which is expected to result in market growth. According to the Confederation of Indian Industry (CII), the food processing sector of India is expected to attract investments worth US$ 33 billion during 2017-27, which is expected to boost growth of the modified starch market over the forecast period.

According to United Nation Department of Economics and Social Affair, the pharmaceutical industry in India and China is thriving due to a population boom in these countries. The countries together accounted for 36% of the world’s population in 2016. The low cost of labor and raw materials for pharmaceuticals has resulted in India becoming a hub for pharmaceutical manufacturing. According to the Indian Brand Equity Foundation (IBEF), India accounted for 20% of the world’s supply of generic drugs in 2016. Moreover, with government initiatives such as Pharma Vision 2020, the pharmaceutical industry is slated to witness significant growth in India, which in turn is expected to boost the modified starch market growth over the forecast period.