• In November 2024, Tate & Lyle completed the acquisition of CP Kelco, a leading provider of pectin and speciality gums, creating a global speciality food‑solutions leader and enhancing its “mouthfeel” ingredient capabilities.

• In March 2024, Roquette finalized the purchase of IFF Pharma Solutions, broadening its modified‑starch portfolio into pharmaceutical excipients and reinforcing its drug‑delivery excipient expertise.

In this report, the Modified Starch Market has been segmented by Raw Material, Product, Form, Application, and Geography.

Modified Starch Market, Segmentation by Raw Material

The Modified Starch Market has been segmented by Raw Material into Corn, Cassava, Potato, and Wheat.

Corn
Corn is the most widely used raw material in the modified starch market, accounting for over 55% of the global production. Its abundant availability, low cost, and high starch content make it a preferred choice for food, paper, and textile industries. Modified corn starch enhances texture, stability, and shelf life in processed foods, contributing to its high demand.

Cassava
Cassava, also known as tapioca, represents around 20% of the modified starch segment. It is valued for its high purity and neutral taste, making it suitable for use in gluten-free food products. The growing demand in developing countries and the rise in clean-label food products have further propelled cassava’s role in this market.

Potato
Potato-based modified starch holds approximately 15% share of the global market. Known for its excellent thickening and binding properties, it is used in ready-to-eat meals, soups, and sauces. The increasing popularity of natural and plant-based ingredients supports the growth of potato starch in both food and non-food applications.

Wheat
Wheat contributes to nearly 10% of the modified starch market, especially in regions with high wheat production. It is favored for its easy processing and functional benefits such as viscosity enhancement and moisture retention. Modified wheat starch finds applications in bakery, snacks, and personal care products.

Modified Starch Market, Segmentation by Product

The Modified Starch Market has been segmented by Product into Starch Esters & Ethers, Resistant, Cationic, Pre-Gelatinized, and Others.

Starch Esters & Ethers
Starch esters and ethers are the most commercially significant product type, accounting for around 35% of the modified starch market. These products enhance properties such as viscosity, thermal stability, and freeze-thaw resistance. They are extensively used in processed foods, pharmaceuticals, and industrial applications including paper and textiles.

Resistant Starch
Resistant starch holds nearly 20% market share due to its growing use in functional food and health supplements. It resists digestion and functions as dietary fiber, supporting gut health and aiding in blood sugar management. Increasing consumer demand for low-glycemic and fiber-rich foods is driving this segment’s growth.

Cationic Starch
Cationic starch represents approximately 15% of the product market, primarily used in the paper and textile industries. Its positive ionic charge enhances bonding with cellulose fibers, improving paper strength and printability. The segment is also gaining traction due to rising demand for eco-friendly industrial additives.

Pre-Gelatinized Starch
Pre-gelatinized starch accounts for around 20% of the global share. It is pre-cooked and dried for instant solubility in cold water, making it ideal for applications in instant foods, bakery mixes, and pharmaceutical formulations. Its easy-to-use nature and functional versatility fuel its demand across sectors.

Others
The Others category, comprising less common derivatives, contributes roughly 10% to the modified starch product market. These include oxidized starches, acid-thinned starches, and cross-linked starches, which find niche applications in cosmetics, adhesives, and drilling fluids.

Modified Starch Market, Segmentation by Form

The Modified Starch Market has been segmented by Form into Dry and Liquid.

Dry
Dry modified starch dominates the market with a share of nearly 65%, owing to its longer shelf life, ease of transport, and cost-effectiveness. It is widely used in industries such as food processing, paper manufacturing, and textiles where dry powders are preferred for blending and formulation. Its lower moisture content ensures better stability and storage.

Liquid
Liquid modified starch holds approximately 35% of the market and is favored in applications requiring instant dispersion and uniform viscosity. It is commonly used in dairy products, beverages, and industrial coatings due to its fast reactivity and ease of handling in continuous processes. However, its shorter shelf life and higher transportation costs limit its dominance.

Modified Starch Market, Segmentation by Application

The Modified Starch Market has been segmented by Application into Food & Beverages, Animal Feed, and Industrial.

Food & Beverages
Food & Beverages is the leading application segment, capturing nearly 55% of the modified starch market. Modified starches are widely used in this sector to improve texture, stability, thickness, and shelf life in products such as dairy, bakery, sauces, and confectionery. The demand is driven by the growing consumption of processed and convenience foods worldwide.

Animal Feed
Animal Feed accounts for approximately 20% of the market. Modified starch is incorporated into feed formulations to enhance digestibility, act as a binding agent, and improve the overall nutrient absorption in livestock. The rising awareness about animal nutrition and the expansion of commercial farming are key growth drivers.

Industrial
Industrial applications contribute around 25% to the global market. This includes uses in paper manufacturing, textiles, adhesives, and pharmaceuticals. Modified starch plays a vital role in enhancing coating strength, film formation, and viscosity control, making it indispensable in various industrial processes.

Modified Starch Market, Segmentation by Geography

In this report, the Modified Starch Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Modified Starch Market Share (%), by Geographical Region

North America
North America holds a significant share of approximately 30% in the modified starch market. The region benefits from a highly developed processed food industry and strong demand from sectors such as paper, textiles, and pharmaceuticals. The U.S. leads in both production and consumption due to the availability of corn-based starches and advanced processing technologies.

Europe
Europe accounts for nearly 25% of the market, driven by stringent regulations favoring clean-label ingredients and a shift toward plant-based food alternatives. Countries like Germany, France, and the U.K. have well-established industries for modified starch applications in food, cosmetics, and personal care products.

Asia Pacific
Asia Pacific dominates the global market with a share exceeding 35%, led by rapid industrialization, increasing food processing activities, and a large consumer base. China, India, and Southeast Asian countries are major contributors, benefiting from abundant raw material supply like cassava and corn, and expanding manufacturing capabilities.

Middle East and Africa
Middle East and Africa hold a smaller share of about 5%, but the market is growing steadily due to rising demand in the food and beverage sector and import substitution policies. The region is seeing increased adoption of processed food products and gradual development of local starch processing facilities.

Latin America
Latin America contributes around 5% to the modified starch market. Brazil and Argentina are key players due to their agricultural output, particularly corn and cassava. The market is expanding with growth in confectionery, snacks, and paper industries.

This report provides an in depth analysis of various factors that impact the dynamics of Modified Starch Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rising demand for processed convenience foods
• Growth in functional food and beverages
• Wider applications in paper and textile industries

• Technological advancements in starch modification - The development of specialized products tailored to specific industrial and food applications. Innovations in chemical, physical, and enzymatic methods allow producers to alter starch properties such as viscosity, gelatinization, solubility, and stability for diverse end-uses. These technologies are helping manufacturers meet the evolving performance and functional demands of sectors such as pharmaceuticals, textiles, paper, and food processing.

  Advanced techniques are improving the quality and consistency of modified starches, making them more suitable for complex formulations. Cross-linking, oxidation, and dual modifications have significantly expanded the product range, resulting in starches that perform under extreme pH, heat, or shear conditions. These innovations support better shelf life, improved mouthfeel in food, and enhanced film-forming properties in industrial uses.

  With rising demand for eco-friendly and high-performance ingredients, modified starch derived through green processing is gaining traction. Enzymatic conversion processes offer cleaner modification routes without harmful byproducts, aligning with sustainability goals and regulatory requirements. Continuous R&D investments are expected to fuel the launch of more versatile, cost-efficient, and environmentally safe modified starch variants.

  Such technological progress is enhancing global competitiveness and opening up new growth avenues across applications where high-performance and clean-label compatibility are now essential.

Restraints

• Volatility in raw material supply prices
• Stringent food safety and labeling regulations
• Limited consumer awareness in developing regions

• Dependency on specific crop-based starch sources - The major restraint on the market’s scalability and cost-efficiency. Most commercial modified starches are derived from corn, potato, tapioca, wheat, or rice. This reliance creates vulnerability to weather patterns, crop diseases, and geopolitical issues that affect agricultural supply chains. Any disruption can lead to significant fluctuations in availability and price of raw starch materials.

  Volatility in raw material costs can directly impact the pricing of modified starch products, making them less attractive for price-sensitive industries. Moreover, regional dependence on a single crop, such as corn in North America or cassava in Southeast Asia, further increases exposure to supply shocks. These challenges can hinder long-term contract agreements and industrial adoption, particularly in emerging markets.

  Concerns related to genetically modified organisms (GMOs) in source crops like corn and soy create resistance in markets prioritizing non-GMO or organic certification. The rising consumer demand for clean-label and transparent sourcing is prompting companies to seek alternative sources or invest in traceability programs, increasing overall production costs.

  To overcome this restraint, diversification of raw material sources and development of multi-crop supply chains are crucial for ensuring sustainable and cost-effective growth of the modified starch industry.

Opportunities

• Expansion in biodegradable packaging applications
• Emerging demand in pharmaceutical formulations
• Growth in clean-label and gluten-free products

• Innovation in enzymatic and green modification methods - The strong opportunity for the modified starch market. Unlike traditional chemical modifications, enzymatic processes offer milder reaction conditions, better product specificity, and eco-friendly byproducts, making them ideal for industries targeting sustainability and clean-label trends. These methods can help reduce environmental impact while maintaining or enhancing starch functionality.

  Enzymatic technologies are especially useful for producing specialty starches used in pharmaceuticals, cosmetics, and functional foods, where purity, traceability, and safety are paramount. With increasing demand for gluten-free, allergen-free, and non-GMO ingredients, enzyme-modified starches offer a viable solution that aligns with evolving consumer preferences and industry standards.

  These green processes also support the industry's broader efforts to reduce carbon footprint, water usage, and chemical waste. As regulatory bodies tighten controls on chemical use and emissions, enzymatic modification can provide a competitive advantage by simplifying compliance and enabling cleaner supply chains. This could encourage partnerships between ingredient companies and sustainability-focused brands across the globe.

  The ability to create customized starch profiles using green innovation positions enzymatic technologies as a catalyst for long-term market differentiation, creating valuable opportunities for product expansion and brand positioning.

Key players in Modified Starch Market include:

• Archer Daniels Midland Company
• Cargill
• Ingredion Incorporated
• Tate & Lyle PLC
• Roquette Frres
• Avebe U.A.
• Grain Processing Corporation
• Emsland-Strke GmbH
• Agrana Beteiligungs-AG
• SMS Corporation Co. Ltd
• Global Bio-Chem Technology Group Company Limited
• Spac Starch Products (India) Ltd.
• Qingdao Cbh Co., Ltd.
• Samyan Genex Co.
• Beneo Remy N.V.
• China Essence Group Ltd
• PT Budi Starch & Sweetener TBK

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis