Global Modified Starch Market, By Type (Etherified Starch, Cationic Starch, Resistant Starch, Pre-Gelatinized and Esterified Starch), By Raw Material (Cassava, Corn, Wheat, Potato and Others), By Application (Food & Beverages, Animal Feed and Others), By Function (Thickeners, Emulsifiers, Stabilizers, Binders and Others), By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 14.21 Billion
CAGR (2026-2031)	5.41%
Fastest Growing Segment	Pre-Gelatinized
Largest Market	Asia Pacific
Market Size (2031)	USD 19.49 Billion

Market Overview

The Global Modified Starch Market will grow from USD 14.21 Billion in 2025 to USD 19.49 Billion by 2031 at a 5.41% CAGR. Modified starch consists of native starch that has been treated physically, enzymatically, or chemically to improve its functional characteristics, such as solubility, texture, and stability. The primary driver supporting market growth is the essential requirement for robust thickening and emulsifying agents in the processed food industry, which ensures product integrity during rigorous manufacturing and storage conditions. Additionally, the increasing reliance on high-performance binders in the paper and pharmaceutical sectors further reinforces demand, creating a sustained trajectory for industry expansion that functions independently of transient consumer trends.

Despite this growth, the market contends with the significant challenge of raw material price volatility, which complicates pricing strategies and threatens supply chain stability. This heavy reliance on agricultural inputs is evident in recent industrial statistics regarding sector scale and consumption. According to Starch Europe, in 2024, the European starch industry processed agricultural raw materials into 9.8 million tonnes of starch products, with modified starches specifically accounting for 18 percent of the total starch consumed within the European Union.

Key Market Drivers

Escalating global demand for processed and convenience foods acts as a primary catalyst for the modified starch sector, necessitating ingredients that ensure consistent texture and extended shelf life under varying processing conditions. Manufacturers increasingly rely on these starches to withstand high-shear processing, acidic environments, and freeze-thaw cycles common in the production of ready-to-eat meals, sauces, and bakery products. This reliance is reflected in the performance of major suppliers who are optimizing their portfolios for textural solutions. For instance, according to Ingredion Incorporated, February 2024, in the '2023 Annual Report', the company reported that specialty ingredient net sales rose by 4 percent, a performance primarily driven by double-digit growth in starch-based texturizers. This trend highlights the critical role functional starches play in enabling the mass production of convenience foods that meet modern consumer standards for mouthfeel and stability.

Rising consumer preference for gluten-free and low-fat alternatives further accelerates market adoption, as modified starches allow formulators to replicate the mouthfeel and viscosity of gluten or fats in "free-from" products without compromising sensory quality. This shift toward healthier, functional ingredients has spurred significant trade volume and innovation strategies across the industry. According to Tate & Lyle, June 2024, in the 'Annual Report 2024', revenue from New Products—which address healthier lifestyle needs—accounted for 16 percent of their Food & Beverage Solutions revenue. The scale of this shift is also evident in export data from key producing regions. According to the Thai Tapioca Starch Association, in 2024, the total export volume of modified starch from Thailand reached 1,060,392 tonnes, underscoring the robust global trade flows supporting this expanding application landscape.

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Key Market Challenges

The substantial volatility of agricultural raw material prices represents a critical bottleneck hampering the growth of the Global Modified Starch Market. Since the industry heavily relies on crop feedstocks such as corn, cassava, wheat, and potatoes, unpredictable fluctuations in the cost of these inputs directly undermine financial predictability and operational stability. Manufacturers face constant difficulty in establishing long-term pricing contracts with end-users in the food and pharmaceutical sectors, as rapid shifts in input costs can erode profit margins or necessitate frequent, disruptive price adjustments. This economic instability forces market players to adopt conservative inventory strategies, thereby limiting their capacity for aggressive expansion or capital investment.

This pricing instability is clearly evidenced by recent industrial data. According to the Thai Tapioca Trade Association, in 2025, the export price of tapioca starch demonstrated significant fluctuation, declining from $405 per ton in January to $350 per ton by December. Such erratic movements in feedstock valuation complicate supply chain management and create a high-risk environment that deters new market entrants and stifles the consistent supply requisite for sustained industrial growth.

Key Market Trends

Manufacturers are increasingly adopting physical and enzymatic modification techniques, such as heat-moisture treatment and annealing, to replace traditional chemical modification methods. This shift is necessitated by the clean label movement, where brands seek to remove "modified starch" and E-numbers from ingredient lists while retaining the critical process tolerance of the additive. This technological transition enables the labeling of functional texturizers as simple "starch" or "flour," adhering to stricter consumer transparency standards without compromising viscosity or shear resistance. This demand for label-friendly functional ingredients is robust; according to Ingredion Incorporated, February 2025, in the 'Fourth Quarter and Full-Year 2024 Results', the Texture & Healthful Solutions segment delivered double-digit sales volume growth in the fourth quarter, reflecting the accelerated uptake of these specialized texturizing solutions.

Simultaneously, the market is expanding into the non-food sector through the integration of starch-based materials into biodegradable and compostable packaging. Modified starches, particularly thermoplastic starch (TPS), are being blended with biodegradable polyesters to produce eco-friendly alternatives for single-use films, loose-fill packaging, and agricultural mulches. This trend is driven by global sustainability mandates aimed at reducing reliance on fossil-fuel-based plastics in short-lifecycle applications, positioning modified starch as a key component in the circular economy. The scale of this application is significant; according to European Bioplastics, December 2024, in the 'Bioplastics Market Development Update 2024', packaging applications accounted for 45 percent, or approximately 1.12 million tonnes, of the global bioplastics market, underscoring the critical role of starch-based polymers in the sustainable materials economy.

Segmental Insights

The Pre-Gelatinized segment currently represents the fastest-growing category within the global modified starch market, driven by its ability to thicken formulations immediately in cold water without heating. This distinct property enables manufacturers to enhance processing efficiency for instant soups, sauces, and ready-to-eat meals. Additionally, the pharmaceutical sector increasingly utilizes this starch as a reliable binder and disintegrant for tablet production. Compliance with safety regulations from the U.S. Food and Drug Administration further validates its extensive use, encouraging industrial sectors to adopt these texturizers for products requiring rapid viscosity development.

Regional Insights

Asia Pacific dominates the global modified starch market, driven by the rapid expansion of the food and beverage sector in major economies such as China and India. This regional leadership is primarily supported by the abundant availability of cost-effective raw materials, specifically cassava and corn, which facilitates large-scale local production. Additionally, the rising consumer demand for processed and convenience foods increases the requirement for starch-based thickeners and stabilizers. The parallel growth of industrial applications, including paper and textile manufacturing, further strengthens the market position, establishing the region as a central hub for modified starch supply.

Recent Developments

• In May 2025, KMC announced a new partnership with Daymer Ingredients to distribute its portfolio of potato-based solutions in the United Kingdom. This collaboration focused on expanding the availability of KMC's specialized ingredients, including its range of modified potato starches, to UK food manufacturers. The partnership was established to provide technical support and tailored ingredient solutions that address functional challenges such as binding, gelling, and texturizing in various food applications. By joining forces with a local distributor, KMC aimed to strengthen its market position and meet the increasing consumer preference for plant-based and clean-label food products in the region.
• In December 2024, Ingredion entered into a strategic joint venture with the Austrian industrial group Agrana to expand starch production capabilities in Romania. Under the agreement, Ingredion acquired a 49% stake in Agrana’s starch manufacturing facility, and the partners committed to a joint investment of approximately €35 million to modernize and increase the plant's capacity. This collaboration was designed to boost the production of both native and modified starches to meet the rising demand for texture solutions across the European, Middle Eastern, and African markets. The alliance leveraged the complementary strengths of both companies to enhance supply chain resilience and manufacturing efficiency.
• In November 2024, Tate & Lyle completed the acquisition of CP Kelco, a prominent provider of pectin and specialty gums, effectively combining two major players in the texturizing market. This strategic collaboration, valued at approximately $1.8 billion, significantly broadened the company's ability to offer comprehensive mouthfeel and stabilization solutions alongside its existing modified starch portfolio. By integrating CP Kelco’s nature-based ingredients, the company aimed to accelerate innovation and better serve global customers seeking healthier and more sustainable food and beverage formulations. The completion of this transaction marked a significant step in the company's transformation into a leading specialty food and beverage solutions business.
• In August 2024, Roquette expanded its texturizing portfolio with the launch of four new grades of tapioca-based modified starches under the CLEARAM TR range. These new ingredients were specifically developed to address diverse texture requirements, such as viscosity, elasticity, and consistency, in food applications including sauces, dairy desserts, and bakery fillings. The company highlighted that these modified starches offer superior functional properties, such as high tolerance to heat and shear as well as freeze-thaw stability, ensuring optimal performance in challenging processing conditions. This product introduction aimed to support food manufacturers in creating novel sensory experiences while meeting the growing consumer demand for plant-based solutions.

Key Market Players

• Cargill
• Ingredion
• Tate & Lyle
• Roquette
• ADM
• Emsland Group
• Avebe
• Global Bio-Chem
• Lyckeby Starch

By Type	By Raw Material	By Application	By Function	By Region
Etherified Starch Cationic Starch Resistant Starch Pre-Gelatinized and Esterified Starch	Cassava Corn Wheat Potato and Others	Food & Beverages Animal Feed and Others	Thickeners Emulsifiers Stabilizers Binders and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Modified Starch Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Modified Starch Market, By Type:

• Etherified Starch
• Cationic Starch
• Resistant Starch
• Pre-Gelatinized and Esterified Starch

• Modified Starch Market, By Raw Material:

• Cassava
• Corn
• Wheat
• Potato and Others

• Modified Starch Market, By Application:

• Food & Beverages
• Animal Feed and Others

• Modified Starch Market, By Function:

• Thickeners
• Emulsifiers
• Stabilizers
• Binders and Others

• Modified Starch Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE