The global modified starch market continues to expand steadily, driven by evolving consumer preferences, technological innovation, and rising demand across industries. Valued at USD 13.7 billion in 2022, the market is projected to reach USD 15.9 billion by 2027, growing at a CAGR of 3.1%. Both macroeconomic and microeconomic developments in key regions are shaping this growth trajectory and strengthening market opportunities for manufacturers worldwide.

Clean-Label Trends Boost Demand for Modified Starch

As consumers gravitate toward natural, plant-based, and clean-label foods, the role of modified starch in the food industry has grown significantly. Modified starch enhances the texture, stability, and appearance of food products—delivering improved smoothness, hardness, gloss, and whiteness.

Food manufacturers are also leveraging modified starch as a thickener, stabilizer, and binder, making it an essential ingredient in soups, sauces, bakery fillings, dairy products, and convenience foods. With the global shift toward healthier and more transparent ingredient lists, modified starch derivatives are becoming increasingly valuable.

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Emerging Opportunities in the Feed Industry

Although still a relatively small segment, the animal feed market presents untapped potential for modified starch suppliers. Modified starch is widely used in feed as:

• A milk replacer for young livestock
• A source of energy to improve digestibility
• A performance enhancer to promote weight gain

In swine feed, potato starch is often used as a substitute for corn, helping weaning pigs improve growth performance. For ruminants, modified starch serves as a digestible carbohydrate source, supporting weight gain and overall health. However, care is required—excessive intake can cause acidosis in cattle.

As companies advance extraction and processing technologies, new feed applications for modified starch are expected to emerge, creating promising growth avenues.

Strengthening the Paper Industry

Modified starch plays a crucial role in the paper manufacturing process, offering both functional benefits and process efficiency. It is used extensively as a wet-end additive, as well as in surface sizing and coating.

Key benefits include:

• Enhanced internal strength
• Improved fiber bonding
• Better surface quality
• Increased printability and writing properties
• Superior adhesion for paper edges
• Support in minimizing quality deterioration in recycled paper

Different paper categories typically use the following starch percentages:

• Printing & writing paper: 4.1%
• Paperboard: 2%
• Domestic & industrial papers: 1.9%

With the global rise in recycled paper usage, the demand for starch derivatives is expected to grow further.

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North America: A Key Regional Driver

North America is projected to reach USD 3,301.0 million in market value during the forecast period. In 2021, the region accounted for 21.6% of global market share, with the US dominating regional demand.

Technological advancements and diversified applications fuel the US modified starch industry. In the food sector, modified starch is widely used in:

• Canned soups
• Ready-to-eat meals
• Pastry and pie fillings
• Instant puddings
• Confectionery as a gelling base

The rising consumption of processed and convenience foods continues to strengthen regional market demand.

Leading Modified Starch Companies:

Several global companies lead the modified starch landscape with strong portfolios, innovation capabilities, and extensive geographic reach. Major players include:

• Tate & Lyle (UK)
• Emsland (Germany)
• Ingredion Incorporated (US)
• Avebe (Netherlands)

These companies are actively investing in R&D, product diversification, and sustainable sourcing to meet the evolving needs of food, feed, and industrial sectors.