Modified Starch Market Size (2026 – 2030)

The Modified Starch Market was valued at USD 14.23 Billion in 2025 and is projected to reach a market size of USD 17.64 Billion by the end of 2030. Over the forecast period of 2026-2030, the market is projected to grow at a CAGR of 4.39%.

Starch is classified as a complex carbohydrate. When native starch undergoes physical, enzymatic, or chemical modification, its characteristics are altered, resulting in what is known as modified starch. In the production of ready-to-eat food items, modified starch serves as an essential and high-value component. Owing to its superior functionalities, such as high water-holding capacity, emulsifying capability, and thickening performance, modified starch is utilized extensively not only in the food and beverage sector but also in the textile and paper industries. It functions as a thickening agent, texture enhancer, fat replacer, and emulsifier. These modifications strengthen its ability to maintain the structural integrity and consistency of food products.

Key Market Insights:

For production to remain economically viable, food manufacturers must determine a high-value use for pea starch, which accounts for roughly 60 percent of the pea’s volume yet remains underutilized in pea protein–derived products. When the protein is marketed but the starch is either unsold or sold at a minimal price, the overall process becomes financially challenging. Consequently, producers can achieve profitability from the protein only if the starch does not generate losses.

In China, swift advancements in starch and starch-derived materials have supported progress across the food and beverage, healthcare, biotechnology, and chemical industries. With an annual output of approximately 30.1 million tonnes of starches and 16.3 million tonnes of deeply processed starch products, key raw materials, such as corn, cassava, potato, sweet potato, and wheat, are commonly used in producing pre-gelatinized starch, chemically modified starch, polyols, and ethanol.

Market Drivers:

Increasing levels of investment are contributing significantly to the market’s expansion.

Starch-related innovations increasingly target key components of baked products, including sauces used in frozen entrées and fruit fillings in desserts. Ingredient manufacturers are expanding their range of starch sources. Given the rapid evolution of industrial applications and processing technologies, the starch sector has become one of the fastest-growing markets. A rising number of companies are incorporating modified starch into their manufacturing operations and finished goods, boosting its overall adoption. Furthermore, major industry players, including Ingredion, ADM, Cargill, and others, have been increasing their investments in the Asia-Pacific region in response to its substantial market potential.

Expanding industrial utilization within the paper and textile sectors is broadening the market’s overall reach.

Industrial uses of modified starch are extending beyond conventional sizing and coating functions to help address new sustainability demands within the paper and textile sectors. Cationic starches, in particular, are emerging as eco-friendly substitutes for synthetic polymers in paper manufacturing, where they enhance fiber retention and lower wastewater pollution. The EU Starch Industry Decarbonization Roadmap highlights modified starches as critical contributors to lowering greenhouse gas emissions in paper production, providing regulatory momentum that supports broader adoption. Within the textile industry, modified starches are increasingly being utilized in place of petroleum-based sizing agents, enabling manufacturers to comply with stricter environmental regulations while improving operational performance. This growing industrial adoption is establishing more consistent demand compared with consumer-driven markets, prompting targeted investments from producers aiming to expand beyond the more unpredictable food ingredient segment.

Market Restraints and Challenges:

Fluctuations in the cost of raw materials act as a significant constraint on market expansion.

The modified starch industry relies on both conventional and organic raw materials, including cassava, wheat, maize, tapioca, sweet potato, potato, and rice, to produce modified starch and its derivatives. These foundational ingredients are broadly utilized in the development of products containing modified starch as well as bioethanol. Rising demand across the food and beverage, animal feed, pharmaceutical, cosmetic, and paper sectors has contributed to an escalation in raw material prices. Modified corn starch, derived from chemically treated maize endosperm for rapid solubility, remains one of the most widely used thickening and binding agents.

Price increases in key raw materials such as corn, wheat, and potatoes have compelled manufacturers to shift toward more economical starch sources, ultimately slowing market growth. The rising cost of natural feedstocks directly elevates the production expenses associated with modified starch derivatives, leading to higher final product prices. Additionally, adverse weather conditions have disrupted cassava production, contributing to supply instability and ongoing price volatility.

Market Opportunities:

Broad application potential supported by diverse functional attributes is generating new opportunities within the market.

Food starches can be modified to create distinct functional advantages for a wide range of applications. These functionalities include texturizing, binding, thickening, gelling, and stabilizing. Understanding the use of industrial starches as adhesives in paper and packaging is essential for identifying future growth prospects. Modified starches are also extensively incorporated into baked products, soups, confectionery items, and salad dressings due to functional enhancements such as improved solubility, gelatinization behavior, pasting properties, and resistance to retrogradation. To develop flours and pre-gelatinized starches with long-term stability and ease of use, modified starches are commonly subjected to drying processes. Their reduced paste viscosity at both low and high temperatures makes hydrolyzed starches (acid-modified starches) particularly suitable for mayonnaise and salad dressings. Modified starches serve multiple roles across numerous applications, including acting as adhesion and binding agents in battered and breaded foods, formed meat products, and snack seasonings; functioning as dusting agents for chewing gum and bakery goods; providing crisping effects for fried snacks; replacing fat and improving moisture retention in ice cream and salad dressings; serving as flavor encapsulants in beverage emulsions; and offering emulsion stabilization in beverages, creamers, and various dairy products.

MODIFIED STARCH MARKET REPORT COVERAGE:

Modified Starch Market Segmentation:

Modified Starch Market Segmentation By Source:

• Wheat
• Corn
• Cassava
• Potato
• Other Sources

The corn segment represents the largest contributor to the market. For products intended for immediate consumption or that do not require long-term storage, native corn starch is typically preferred. However, certain limitations, such as insolubility in water and susceptibility to heat, acid, or shear, restrict the applications of native starch, necessitating modifications to improve performance. Consequently, the properties of native starch are altered to enhance functionality and tailor it to specific food processing requirements. Waxy maize starch, characterized by low amylose content and high stability, is commonly used by manufacturers in the production of modified starch.

Modified wheat starch is derived from wheat starch that has undergone enzymatic, physical, or chemical modifications for targeted applications. In certain food products, modified wheat starch exhibits superior emulsifying properties, which can be attributed to its higher lipid content. Starch modification provides functional advantages in food products, including improved moisture retention and extended shelf life. Modified wheat starch is widely used in batters, breakfast cereals, soups, sauces, icings, and jellies. Most modified starches are gluten-free, except those directly derived from wheat starch.

Modified Starch Market By Applications:

• Food and Beverage
• Personal Care Products
• Animal Feed
• Other Applications

The food and beverage segment is the leading contributor to the market. Within the confectionery industry, modified starch not only acts as a sweetening agent but also fulfills multiple functional roles. Corn starch, in particular, plays a critical role beyond basic sweetening, helping regulate moisture retention, control viscosity development, inhibit browning, prevent sucrose crystallization, and reduce microbiological spoilage.

Maltodextrin is another key ingredient widely used in confectionery production. It can be derived through various processes, with corn-based maltodextrins being the most prevalent, followed by those from potato, rice, and tapioca. Additionally, artisanal baked goods are gaining popularity, particularly among consumers who seek premium products with distinctive flavors and textures.

The use of starch is also expanding in the animal feed and health-oriented product sectors. Market growth has increased pressure on feed manufacturers to meet elevated consumer expectations. Starch serves multiple functions in animal nutrition, including its use in pig and poultry feed, starter feeds for ruminants and rabbits, aquafeed, and pet food, all supporting healthy growth and development. Given that cassava is primarily recognized for its starch-rich tubers rather than as a conventional feed ingredient, it presents significant opportunities within the animal feed market.

Modified Starch Market By Form:

• Powder
• Liquid

The powdered form of modified starch currently leads the market, owing to its stability, ease of handling, and versatility across multiple applications. Its prevalence is especially notable in food processing, where accurate dosing and uniform dispersion are essential to ensure consistent product quality. Nevertheless, liquid modified starches are gaining traction due to their advantages in specific processing contexts, offering instant solubility and mitigating dust-related handling issues.

Recent developments in liquid-modified starch formulations have enhanced both stability and shelf life, overcoming previous limitations that restricted their broader adoption. These improvements are particularly beneficial in continuous processing systems, where eliminating powder handling steps can enhance operational efficiency and reduce contamination risks. This evolution in product form demonstrates that even mature markets can achieve new growth by addressing process integration challenges in addition to product functionality. It also creates opportunities for collaborative innovation between ingredient suppliers and equipment manufacturers.

Modified Starch Market By Type:

• Pre-gelatinized Starch
• Etherified Starch
• Esterified Starch
• Resistant Starch
• Other Types

The esterified starch segment is projected to be the leading contributor to the market during the forecast period. In its native form, starch exhibits limited functionality and restricted applications. Advances in chemistry and biotechnology, however, have enabled the modification of starch for a wide range of uses. Starch can undergo reactions such as hydrolysis, etherification, and oxidation, producing modified starches suitable for applications in baked goods, confections, soups, and salad dressings. Esterification is a key technique that alters the structure of starch granules, enhancing their functional properties. These starches are employed in diverse processes, including film formation, binding, thickening, adhesion, stabilization, texturizing, and food formulation.

Within the food and beverage sector, etherified starch contributes to the texture, consistency, and sensory qualities of ready-to-eat meals, providing crunchiness, mild flavor, transparent pastes, and smooth, creamy textures. It also helps maintain high viscosity, ensures consistent product quality, reduces syneresis, adds gloss, and imparts a creamy or mild texture to dairy products. Such properties make etherified starch particularly suitable for products requiring refrigerated storage. Beyond food applications, etherified starches find uses in flocculants, coatings, pharmaceutical delivery systems, papermaking, and several other industrial applications.

Modified Starch Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

North America currently leads the modified starch market, supported by its advanced food processing and pharmaceutical manufacturing sectors. The region’s leadership is further strengthened by a robust agricultural base, particularly in corn production, which offers cost advantages for local manufacturers. Recent regulatory developments, such as the USDA’s technical guidelines on cornstarch handling, have emphasized the growing importance of non-GMO and organic variants, creating premium market segments. Innovation in the region is increasingly focused on sustainability and clean-label solutions, with manufacturers investing in physical modification methods that maintain the natural status of ingredients while enhancing functionality. These regulatory-driven advancements are reshaping competitive dynamics, where expertise in non-chemical modification is emerging as a key differentiator over traditional scale economies.

The Asia-Pacific region is emerging as the fastest-growing market, propelled by rapid industrialization, expanding food processing capabilities, and a growing pharmaceutical manufacturing base. Significant investments in starch processing technologies in China are enhancing production capacity, while India’s expanding pharmaceutical sector is driving demand for specialized excipient-grade modified starches. The region’s diverse agricultural resources, including cassava in Southeast Asia and potato in China, provide opportunities for sourcing diversification beyond reliance on corn.

Modified Starch Market COVID-19 Impact Analysis:

The COVID-19 pandemic had both positive and negative effects on the modified starch market. During the pandemic, demand for processed and packaged foods surged as consumers stocked up on products with longer shelf lives, driving increased consumption of modified starch. Conversely, the closure of restaurants and food service establishments, combined with disruptions to the global food and beverage supply chain due to lockdowns and restrictions, negatively affected market activity. As supply chains stabilize and food service operations gradually resume, the market is expected to return to pre-pandemic levels.

Latest Market News:

March 2025: Cargill inaugurated a new corn milling facility in Gwalior, Madhya Pradesh, operated in collaboration with Indian manufacturer Saatvik Agro Processors. The plant was established to address the rising demand for starch-based products in India’s confectionery, infant formula, and dairy sectors.

August 2024: Roquette introduced its CLEARAM® TR hydroxypropylated tapioca starch range, featuring four grades specifically designed to enhance texture across various food applications. These starches improve viscosity, consistency, and elasticity in products such as sauces, dairy desserts, and bakery fillings. Additionally, they provide a clean taste, excellent clarity, and are both allergen- and gluten-free, catering to diverse consumer requirements.

August 2024: Al Ghurair Foods commenced construction of its Corn Starch Manufacturing Plant at Khalifa Economic Zones Abu Dhabi (KEZAD). The facility will produce native and modified starches, glucose syrups, and maltodextrin, aiming to support local food production and strengthen the UAE’s food security initiatives.

Latest Trends and Developments:

The trend has increasingly extended into industrial applications, with paper manufacturers replacing synthetic additives with modified starches to improve sustainability while maintaining performance. The use of physically modified starches in paper production has enhanced paper strength, surface quality, and printability, while simultaneously reducing environmental impact. This shift has led to a unique pricing dynamic, where physically modified starches command higher prices despite simpler processing methods, reversing conventional ingredient market pricing patterns. The premium pricing reflects both the growing consumer demand for clean-label products and the specialized equipment necessary for physical starch modification processes.

Key Players in the Market:

1. Emsland-Stärke GmbH
2. Global Bio-Chem Technology Group Company Limited
3. Grain Processing Corporation
4. Roquette Frères
5. Ingredion Incorporated
6. Agrana Beteiligungs AG
7. Cargill, Incorporated
8. Siam Modified Starch Co., Ltd.
9. China Essence Group Ltd.
10. Samyang Genex Corp.
11.