Press release
Cassava Starch Industry Outlook: Projected to Hit USD 5.2 Billion by 2025, Driven by Rising Demand in Food and Beverage
Overview of the Cassava Starch MarketThe global cassava starch market is poised for robust growth, with a projected market size of US$ 5.2 billion by 2025. This market is expected to expand at a compound annual growth rate (CAGR) of 5.9%, reaching US$ 7.9 billion by 2032. The growing demand for cassava starch in various industries, particularly food and beverage, is driving this upward trajectory. Cassava starch, derived from the cassava root, is increasingly being used in food processing due to its versatile applications, including as a thickener, stabilizer, and gluten-free alternative to traditional starches.
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The food and beverage sector is estimated to account for 55% of the market's revenue, largely due to the rising demand for clean-label, gluten-free, and allergen-free products. This shift in consumer preference towards healthier, natural ingredients has further fueled the market for cassava starch. Additionally, cassava starch is gaining traction in other sectors such as paper, textiles, adhesives, and bioplastics, where its eco-friendly properties and cost-effective nature offer several advantages. Innovations in cassava processing technologies are also expected to improve efficiency, reduce costs, and expand its industrial use.
Key Highlights from the Report
• The global cassava starch market is predicted to grow at a CAGR of 5.9% from 2025 to 2032.
• The food and beverage sector is the largest revenue generator, contributing to 55% of the market.
• Modified cassava starch is expanding into industries such as paper, textiles, and adhesives.
• The bioplastics segment presents significant growth potential as a sustainable raw material.
• E-commerce platforms are expected to boost cassava starch sales by 20%, improving accessibility.
• The Asia Pacific region is projected to experience a CAGR of 6.1% due to the presence of major cassava starch-producing countries.
Market Segmentation
The cassava starch market can be segmented based on product type, application, and end-user industries. In terms of product type, the market is divided into native and modified cassava starch. The native starch segment is the dominant category, expected to account for 63% of the market share in 2024. Native starch is valued for its natural properties, making it a preferred choice in food applications such as thickening agents in sauces and soups, as well as in gluten-free baking products.
Modified cassava starch, on the other hand, is gaining popularity due to its enhanced functionalities. This variant is treated to improve its thermal stability, viscosity, and other properties, making it suitable for a wide range of industrial applications, including in the paper, textile, and adhesives industries. Modified starch is increasingly being used to meet the needs of sectors looking for cost-effective and environmentally friendly materials.
In terms of application, the food and beverage sector holds the largest share, representing 43% of the market in 2024. The demand for cassava starch in processed foods, snacks, and convenient meal options is growing rapidly, driven by changing consumer lifestyles and urbanization. Additionally, the paper, textile, and adhesive industries are expected to capture a significant portion of the market, with these sectors collectively accounting for 35% of the total demand in 2024.
Regional Insights
The cassava starch market exhibits different growth patterns across regions. The Asia Pacific region, which houses several of the world's leading cassava starch-producing countries, is expected to experience a strong CAGR of 6.1% through 2031. This growth is primarily driven by the widespread cultivation of cassava in countries like Thailand, Indonesia, and Vietnam, as well as the increasing demand for cassava-based products both domestically and internationally.
In North America and Europe, cassava starch is becoming more popular as a sustainable alternative to traditional starches. As the demand for gluten-free and allergen-free products rises, particularly in the food and beverage industry, cassava starch is gaining traction. The bioplastics and eco-friendly materials sectors in these regions are also contributing to the overall market growth. In particular, the rise of e-commerce platforms in these regions has made it easier for small buyers and niche industries to access cassava starch products, further expanding its market reach.
Market Drivers
The cassava starch market is driven by several key factors. One of the main drivers is the increasing consumer demand for clean-label, gluten-free, and allergen-free products. As more consumers opt for healthier, natural ingredients, the food and beverage industry has responded by incorporating cassava starch as a versatile ingredient in everything from snacks and processed foods to gluten-free bread and pastries. Cassava starch, being a natural and non-GMO ingredient, fits perfectly into this demand for more transparent and healthier food options.
Additionally, the rising awareness of environmental issues is driving the demand for eco-friendly materials. Cassava starch, being biodegradable and sustainable, is being used as a raw material for bioplastics, which is becoming an important segment within the market. The growing adoption of circular economy practices, such as using cassava by-products for bioenergy or animal feed, is further contributing to the demand for cassava starch.
Market Restraints
Despite its positive growth trajectory, the cassava starch market faces several challenges. One of the primary constraints is the limited production of cassava in certain regions. Although cassava is widely grown in Asia and parts of Africa, it is less commonly cultivated in other parts of the world. This geographic limitation can restrict the global availability of cassava starch, particularly in emerging markets where demand is growing rapidly.
Another restraint is the price volatility of cassava starch. The price of cassava is susceptible to fluctuations due to factors such as weather conditions, labor costs, and supply chain disruptions. These factors can lead to unpredictability in the cost of cassava starch, making it difficult for manufacturers to maintain stable pricing, especially in competitive markets.
Market Opportunities
The cassava starch market presents several opportunities, particularly in the bioplastics segment. As consumers and industries continue to seek sustainable alternatives to petroleum-based plastics, cassava starch offers an eco-friendly option for producing biodegradable plastics. With growing interest in green materials, the bioplastics segment is expected to experience significant growth in the coming years.
Furthermore, advancements in starch modification technologies offer new opportunities for product innovation. Modified cassava starches with improved properties, such as enhanced thermal stability and viscosity, are increasingly in demand for industrial applications in the paper, textile, and adhesives sectors. As these industries look for cost-effective, high-performance materials, modified cassava starch is well-positioned to meet their needs.
Reasons to Buy the Report
✔ Gain comprehensive insights into the cassava starch market, including its growth prospects and forecasts.
✔ Understand the key drivers, challenges, and opportunities shaping the cassava starch industry.
✔ Explore market segmentation, including product types, applications, and end-users.
✔ Stay updated on the competitive landscape and key players driving innovation in the market.
✔ Access regional market trends and growth opportunities, particularly in the Asia Pacific and bioplastics segments.
Company Insights
Key players in the cassava starch market include:
• Cargill, Incorporated
• Ingredion Incorporated
• Tate & Lyle PLC
• Thai Flour Industrial Co., Ltd.
Recent Developments
1. In 2023, Cargill expanded its cassava starch production capacity to meet growing demand in the bioplastics and food industries.
2. In 2024, Ingredion introduced a new line of modified cassava starch products with improved thermal stability, targeting industrial applications in the paper and textile sectors.
By understanding these dynamics and developments, stakeholders in the cassava starch market can better position themselves to capitalize on emerging trends and opportunities, driving growth and innovation in this expanding sector.
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