Pregelatinized Starch Market Size, Share & COVID-19 Impact Analysis, By Source (Corn, Wheat, Potato, Others), Application (Food & Beverage, Pharmaceutical, Cosmetics, and Others), and Regional Forecast, 2021-2028

The global pregelatinized starch market size was USD 1.72 billion in 2020. The market is projected to grow from USD 1.77 billion in 2021 to USD 2.38 billion by 2028 at a CAGR of 4.3% during the 2021-2028 period. The global impact of COVID-19 impact has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited higher growth of 3.22% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Pregelatinized starch is a carbohydrate that is cooked and dried, then converted into powder or flaked form. These starches are produced from potato, wheat and arrowroot. It is highly digestible and primarily used in food and beverage products such as soups, beverages, baby food, and bakery products. These starches are biodegradable, and thus do not pose any threat to the environment. Moreover, pregelatinized type of starch is also considered a non-GMO ingredient.

COVID-19 IMPACT

Supply Chain Disruptions amid COVID-19 to Hamper Performance

The COVID-19 pandemic has severely affected the food and beverages industry. The situation caused by the pandemic will certainly have an impact on the state of the industry globally. Grain processing enterprises have already encountered specific difficulties since this type of raw material (especially wheat) is increasing steadily in price, despite measures taken by the government. Disruptions in the supply of raw materials in connection with the closure of the borders of the regions are noted by producers who do not have their own storage facilities and who obtain raw materials in small quantities for specific orders.

LATEST TRENDS

Growth of Textile Industry to Foster Industry Progress

Growing application in the textile industry is also projected to drive the industry growth in future. Increasing applications, including starch graft copolymers, starch esters, starch ethers, and cationic starches will increase the penetration of the product in the textile industry. The starches are utilized in printing and wrapping textile applications and have substituted polyvinyl alcohol. The modified product is used in the textile industry for textile sizing. Cotton yarn manufacturing especially requires modified starch. As the properties of pregelatinized starch can be tailored to meet specific requirements and its chemical properties are similar to those of rayon and cotton, it is used as the adhesive component in the size mix process. Thus, it is indispensable in the textile industry. Attributed to increasing fashion trends, there has been a massive surge in the textile industry, which, in turn, has surged the demand for products, thereby aiding the pregelatinized starch market growth.

DRIVING FACTORS

Rising Demand for Pregelatinized Starch in Processed and RTE (Ready-to-Eat) Food to Support Market Growth

Pregelatinized starches are highly functional, native or modified, granular food starches, which dissolve instantly in cold water. They have been dried, precooked, and ground into flake or powder form. The starches dissolve quickly and thoroughly, developing their full viscosity without cooking. This provides convenience for consumer foods. The global rising population is increasing the demand for processed and convenience food. It is a primary ingredient that is utilized in ready-to-eat food products. The growing demand for processed food is resulting in the increased demand for modified starch, which is expected to boost the market growth. It also offers valuable properties such as appearance, taste, and consistency in processed foods, which help increase the shelf life of food products.

Ease of Product Incorporation in a Wide Range of Applications to Stimulate Product Demand

The market is growing faster as the product improves the sensory and textural characteristics of samples while cross‐linked starch affects the baking properties of the product in numerous applications such as personal care, food and beverage, textile, pharmaceuticals, and others. It is used as one of the constituents for the manufacturing of tablets. These starches act as a binding agent or a diluting agent during tablet manufacturing. The increasing old age population and growing demand for medicines are boosting the market growth. Other properties, such as self-lubricating, use in high shear wet granulation process, usage as a disintegrating agent, and others, are propelling the market growth for pregelatinized starch. Moreover, improvement in the healthcare infrastructure among developing nations such as Brazil, India, Australia, Singapore, and others is helping the pharmaceutical sector grow, which will ultimately boost the market growth.

RESTRAINING FACTORS

High Energy Requirement for Disintegration Process of Starch Molecules Is Restraining Market Growth

Pregelatinized starch goes through various processes before they are consumed or delivered to the end-user. The process requires heat treatment where the molecules of starch-containing hydrogen atoms need to be separated, which requires a high amount of energy. Since this starch is precooked to avoid a longer duration for post-cooking, they need to go through the healing process. Upon heating and dried, this starch is again converted into powder source to be served to the end-users. The loss of a large amount of energy in such a conversion process is expected to hinder the market growth.

SEGMENTATION

By Source Analysis

Corn Hold Largest Market Share, Owing to Most Highly and Readily Available Raw Materials.

Corn is a staple food, and it is preferred across the globe due to its importance in the diets of several countries. The prices of corn starch are highly dependent upon its feedstock. Corn or maize accounts for nearly three-fourths of the total starch production globally.  Corn starch is major source of starch used in food industry as a thickening agent or binder. It is used extensively in soups and liquid-based foods such as sauces, gravies, and custards.

On the other hand, the wheat segment grows at a highest CAGR. Pregelatinized wheat starch can be used as a thickening agent in instant food products to eliminate heating stage in the production or in manufacturing of the products sensitive to high temperature.

By Application Analysis

Food and Beverage Sector to hold Largest Market Share due to Increasing Demand for Processed Food

The global food and beverage sector is continuously evolving due to the emerging trends of premiumization, functionality, convenience, and sustainability.  It is extensively used in the food industry since it enhances the consistency of liquid medium at ambient temperatures. Therefore, it is suitable for instant foods products such as soups, baby foods, sauces, desserts, dry mixes, and cake powders. The increasing demand for processed and ready-to-eat food among consumers is creating a demand for the product. With the advancement of novel technologies and innovative experiments in the food and beverage sector, incorporating this starch across various industries is increasing.

REGIONAL INSIGHTS

Europe is a significant region due to the presence of the cosmetic industry where the market held revenue of USD 0.40 billion in 2020.

The North America pregelatinized starch market is expected to grow at 3.5% during the forecast period. The demand for the product is estimated to provide a good opportunity for several market players, including new entrants. The growing demand across various industries, such as pharmaceutical, chemicals, and food and beverages, and particularly in cosmetic industries, is projected to bolster market growth. Owing to the constant demand for the starch in food and beverages industry, the market is expected to grow at a rapid pace in this sector. Moreover, various factors, such as rise in demand for cosmetic products, the trend for packaged food items is providing ample opportunities for the market to grow. North America is estimated to be the prominent region, owing to the presence of major key players in the food and beverages industry such as Nestle, Kraft Heinz, and others. These food and beverage companies always seek the product to increase their production.

Asia Pacific will tend to show a considerable growth rate during the forecast period, owing to the rise in pharmaceutical sectors and development in the industrial infrastructure. Furthermore, Asia Pacific is projected to grow at an approximate CAGR of 5.0% during the forecast period.

KEY INDUSTRY PLAYERS

Companies to Focus On Growth in Their Production Capacity to Meet Global Demand

The pregelatinized starch market is consolidated owing to the presence of limited number of established and regional players. Key companies, such as Cargill Incorporated, Tate & Lyle, Visco Starch, and Grain Processing Corporation, are the prominent players in this market. These players are focusing to increase their production capacity to meet the global demand.

LIST OF KEY COMPANIES PROFILED:

• Cargill Incorporated (Iowa, U.S.)


• Tate & Lyle (London, U.K.)


• Visco Starch (Gujarat, India)


• Galam (Ma'anit, Israel)


• Banpong Tapioca Flour Industrial Co Ltd. (Bangkok, Thailand)


• Crest Cellulose (Andhra Pradesh, India)


• DFE Pharma (Tamil Nadu, India)


• Karandikars Cashell Private Limited (Maharashtra, India)


• Grain Processing Corporation (Iowa, U.S.)


• S A Pharmachem Pvt Ltd. (Maharashtra, India)

KEY INDUSTRY DEVELOPMENTS:

• January 2020: Cargill Incorporated started using pregelatinized maize starch as a binding agent in the granulation of active ingredients. The development suggests that pregelatinized starches are excellent bioadhesives and can be used as a matrix for slow release. The developed brand was named as C-PharmGel.

REPORT COVERAGE

 The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate of all possible segments in the market. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key pregelatinized starch industry trends.

Report Scope & Segmentation