Modified Starch Market Size, Trends, and Forecast Analysis 2034

Modified Starch Market Size, Share, and Growth Analysis 2034

The global modified starch market size was calculated at USD 15.40 billion in 2024 and is predicted to increase from USD 16.12 billion in 2025 to nearly USD 24.38 billion by 2034, growing at a CAGR of 4.7% over the forecast period from 2025 to 2034. The market growth is attributed to the increasing demand for convenience and processed foods.

Key Highlights

• By region, North America dominated the modified starch market in 2024 due to the increasing consumer awareness towards health advantages.
• By region, Asia Pacific is expected to grow fastest during the forecast period driven by increasing favorable government agricultural policies.
• By product, the starch esters and ethers segment dominated the market share in 2024 due to the increasing consumption of bakery products.
• By product, the cationic starches segment is expected to grow fastest during the forecast period. The segment is driven by increasing demand for the paper industry.
• By material, the corn segment dominated the market in 2024 due to the increasing widespread availability.
• By material, the cassava segment expects significant growth in the market during the forecast period, which is propelled by high paste clarity and stability.
• By function, the thickeners segment dominated the modified starch market in 2024 which is attributed to the growing food and beverage industry.
• By function, the emulsifier segment is expected to grow fastest during the forecast period due to the increasing presence of an emulsifier to form a complex with unique properties.
• By end-use, the food and beverage segment dominated the market share in 2024 due to the increasing demand for ready-to-drink food items.
• By end-use, the paper segment is expected to grow fastest during the forecast period due to the improvement in the whiteness and firmness.

Beyond the Numbers: A Comprehensive Exploration of Future Growth Drivers and Emerging Market Trends

The modified starch market is used in practically all starch applications, especially in the food and beverage industry such as emulsifiers, stabilizers, thickening agents, and more. They are also used to enhance performance in various applications. The global market is witnessing rapid growth due to the increasing demand across various industries, such as textiles, paper, pharmaceuticals, and food and beverages. In addition, increasing consumer preference towards gluten-free and clean-label products, increasing market adoption rate, rising technological advancements in food processing, growing pharmaceutical industry, and increasing consumer demand for processed foods are further expected to drive the growth of the market.

One of the significant factors driving market growth is the increasing sustainability and environmental concerns. A rising presence in reducing carbon footprint and environmental sustainability is expected to drive the modified starch market. The use of modified starch in making biodegradable plastics provides a sustainable additive to conventional plastics. These modified starch-derived bioplastics are utilized in several applications, such as disposable cutlery, agricultural sectors, and packaging. In addition, the demand for eco-friendly additives is expected to rise, as the government has stricter regulations on plastic use across the globe. These innovative trends create major avenues for the market which are further anticipated to drive the market.

Market Trends

• Growing paper and textile industry: to enhance the strength of yarns, modified starch caters as a sizing agent during the weaving process, which contributed to driving the market growth.
• Increasing demand for adhesive: modified starch particularly provides superior strength and maximum adhesive performance at a low cost for a various range of applications, which is expected to drive the growth of the market.
• Increasing demand for cooked and processed foods: Cooked and processed meals need extensive preparations and processing, which is improved by using innovations in the areas of materials, freezing, packaging, and storage, further propelling market demand.
• Increasing environmental concerns: There is increasing preference towards sustainable and biodegradable materials, with rising environmental awareness anticipated to enhance the growth of the modified starch market during the forecast period.

Market Opportunity

Rising Technological Advancements

The usage of modified starches has increased and marks a significant turning point in the way of packaging, production, and various industrial applications. Modified starches offer a spectrum of applications and functionalities that cater to diverse consumer needs and have undergone a remarkable transformation. Modified starches are recognized for their gelling and thickening properties. Scientists have successfully engineered starches with resistance to shear forces, freeze-thaw stability, and improved heat stability by tailoring starch properties through technological advancements. Modified starch technology has responded by natural modification processes and innovating cleaner, with the demand for clean-label and natural products, which is further expected to revolutionize the growth of the modified starch market in the coming years.

Market Challenge

Price Fluctuations in Raw Materials

Fluctuations in prices of raw materials such as rice, tapioca, wheat, and corn are expected to hamper market growth. Due to the changing climatic conditions and increasing transportation costs, the cost of raw materials increases. In addition, strict regulatory frameworks and supply chain disruptions are also a major challenge, which are further expected to restrain the growth of the modified starch market.

Regional Insights

North America dominated the modified starch market in 2024.

The market growth in the region is attributed to the increasing new product development and innovation, increasing diverse applications of modified starch products, and increasing consumer awareness of the health advantages of eating low-fat foods. In addition, rising biodegradable and biofuel plastic industries, increasing adoption of clean-label and gluten free products, and growing pharmaceutical industry are further anticipated to drive the market in the region. The U.S. and Canada are dominating countries driving the market growth. The U.S. dominated the market growth due to the increasing demand for modified starches.

Asia Pacific expected to grow fastest in the market during the forecast period.

The market growth in the region is driven by the increasing demand for convenience and processed food, increasing consumer shift towards lifestyle changes, and increasing favorable government agricultural policies. China, India, Japan, and South Korea are the fastest growing countries driving the market growth. India is the second largest country in the food and beverage industry. The increasing need for stability and texture in food products, higher disposable incomes, growing urbanization and increasing government initiatives are expected to drive the modified starch market growth in India.

Segmental Insights

Product Insights

The starch esters and ethers segment dominated the modified starch market in 2024.

The segment growth in the market is attributed to the increasing consumer demand for advanced and innovative medicines, significant growth in the pharmaceutical industry, and the growing food and beverage industry. The segment improves the modified starch applications and plays an important role in altering the structure of starch granules.

The cationic starches segment is expected to grow fastest during the forecast period. The segment growth in the market is driven by the increasing demand for the paper industry, growing various drainage and retention properties, and unique properties of products of sizing dry strength and agent emulsification.

Material Insights

The corn segment dominated the modified starch market in 2024.

The segment is witnessing significant growth due to the increasing production of corn syrups and sugars and increasing production of textiles. Corn starch has many industrial applications such as adhesives and anti-sticking agents in the papermaking industry. They can be easily modified and are versatile, further contributing to accelerating the segment demand.

The cassava segment expects significant growth in the market during the forecast period. The segment growth in the market is propelled by increasing high paste clarity and stability. Textiles, building materials, pharmaceuticals, food and beverage, adhesives, and confectionery all need intensive use of starch, which drives the segment growth. In addition, the demand for cassava starch is increasing rapidly due to the unique functional, low-cost features and availability.

Function Insights

The thickeners segment dominated the modified starch market in 2024.

Thickeners are continuously used in the food and beverage industry, especially in gravies, soups, sauces, puddings, and others, without compromising taste. Modified starch work as a thickening agent, which further enhances segment growth. The segment acts as an emulsifier to keep ingredients well-mixed including oil and water and increase crispiness or create a smooth mouthfeel. Modified food starch is regularly used as a thickener in various kinds of food formulations, such as shelf stable and frozen options.

The emulsifier segment is expected to grow fastest during the forecast period. The segment growth in the market is driven by the increasing use of emulsifiers in various food products and increasing preference towards convenience foods. Modified starch is commonly used as an emulsion stabilizer. Various kinds of modifications are made that change its ability to stabilize and emulsify, in order to improve its properties. In addition, by suspending oil droplets in water and encasing them, modified starch acts as an emulsifier in various food applications, which further drives segment growth.

End-Use Insights

The food and beverage industry dominated the modified starch market in 2024.

The segment growth in the market is attributed to the increasing consumption of ready-to-drink mixes and the increasing use of artificial and natural sugar substitutes. Modified starch helps enhance quality of baking products industry when added to mayonnaise, soup, pasta, and others.

The paper segment is expected to grow fastest during the forecast period.

The segment growth in the modified starch market is attributed to the growing paper making industry. Modified starch such as potato, wheat, tapioca, regular corn, waxy maize, and others used to make the paper smoother and stronger to write on. Modified starch is also used to improve the whiteness and firmness of the paper, further contributing to propel the segment growth.

Recent Developments in the Modified Starch Market

KMC

• Launch: In July 2024, Danish ingredient supplier, KMC announced the launch of a new gelling agent made from potato starch. This modified starch enables the production of plant-based confectionery with a soft but chewy texture.

Omnia

• Announcements: In June 2024, a globally operating specialty Starch and Derivatives manufacturer to Food, Omnia Europe SA announced strategic investments in diversifying its solutions and product portfolio in response to the evolving market demands for cost efficient, healthier, nutritional and plant-based solutions in a sustainable, responsible and safe way.

Modified Starch Market Leading Companies

• Ingredion Incorporated
• Roquette Frères
• ADM
• Agrana Beteiligungs AG
• Avebe U.A.
• Cargill, Incorporated
• Grain Processing Corporation
• Global Bio-Chem Technology Group Company Limited
• China Essence Group Ltd.
• PT Budi Starch & Sweetener Tbk
• Tate & Lyle PLC
• ULRICK&SHORT
• Samyang Genex Corp.
• Beneo-Remy N.V.
• Siam Modified Starch Co., Ltd.
• KMC (Kartoffelmelcentralen) Amb

Segments Covered Covered in the Report

By Product

• Starch Esters & Ethers
• Resistant
• Cationic
• Pre-gelatinized
• Others

By Material

• Corn
• Cassava
• Wheat
• Potato
• Others

By Function

• Stabilizers
• Thickeners
• Emulsifiers
• Binders
• Others

By End-Use

• Food & Beverage
• Animal Feed
• Paper
• Pharmaceuticals
• Textiles
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)
• Latin America