Specialty Starch Market Size, Share, Opportunities, And Trends By Product Type (Native Starches, Modified Starches), By Application (Food And Beverages, Pharmaceuticals, Personal Care Products, Industrial Applications), By Source (Corn Starch, Potato Starch, Cassava Starch, Wheat Starch, Others), And By Geography – Forecasts From 2025 To 2030

Description

Specialty Starch Market Size:

The Specialty Starch Market will witness robust growth at a CAGR of 3.66% during the forecast period, to be worth US$23.868 billion in 2030 from US$18.960 billion in 2025.

The Specialty Starch Market is a dynamic and rapidly evolving segment within the global food and industrial ingredients industry, catering to the increasing demand for tailored specialty food ingredients that enhance product functionality across diverse applications. Specialty starches, derived from sources such as corn, potato, tapioca, wheat, and rice, are modified or naturally sourced to meet specific performance requirements, distinguishing them from commodity starches. These starches, encompassing native starch, modified starch market products, functional starch, starch derivatives, and industrial starches, serve as critical food texturizers, stabilizers, binders, and excipients in industries ranging from food and beverage to pharmaceuticals, cosmetics, and paper production. The market’s growth is driven by consumer demand for clean-label, health-focused, and sustainable products, alongside advancements in starch modification technologies.

Specialty Starch Market Overview:

The specialty starch market is experiencing robust growth in different sectors, especially in industrial applications. This starch is utilized in the bonding of packaging grades and to improve the sheet brightness of fine paper. It is used as a base for corrugating adhesives, specialized plasterboard products, etc. It is further used in cosmetic and pharmaceutical products, such as dry shampoos, creams, lotions, decorative cosmetics, sun protection, fillers, and carriers etc. There has been an observed trend in the environmentally friendly manufacturing needs and the sustainability of the products in the specialty starch market.

Increased need for potato and rice starch in food processing has driven market growth. In May 2024, Brenntag expanded its partnership with Cooperatie Koninklijke Avebe U.A., distributing Avebe's potato starch products in the UK and Ireland. BENEO has also seen growing demand for its pre-cooked starch ingredients in Europe over the past five years.

Innovations in specialty starch for cosmetics, offering unique textures and sensory experiences, are fueling market expansion. The booming cosmetics industry in the Asia-Pacific has further increased demand for specialty starch. The market is propelled by demand from the food and beverage, pharmaceuticals, personal care, and industrial sectors. The region's massive construction industry also significantly boosts specialty starch applications. Rapid urbanization and construction in China, India, and Southeast Asia drive market growth.

Some of the major players covered in this report include Cargill, Incorporated, Archer Daniels Midland Company, Ingredion Incorporated, Tate & Lyle PLC, AGRANA Beteiligungs-AG, Grain Processing Corporation, and Roquette Frères, among others.

Specialty Starch Market Trends:

The Specialty Starch Market is undergoing a significant transformation, driven by evolving consumer preferences and technological advancements. Clean label starch is a leading trend, as consumers demand natural, minimally processed plant-based ingredients free from artificial additives. This shift aligns with the growing popularity of gluten-free formulations, particularly in bakery and snack products, where starches like tapioca and rice enhance texture without gluten. In May 2024, Brenntag partnered with Avebe to distribute clean-label starch derived from potatoes, catering to the demand for transparent labeling in Europe.

Sustainable sourcing is another key focus, with manufacturers prioritizing non-GMO and organic crops like corn and cassava to meet eco-conscious consumer demands. Food texture innovation is advancing through resistant starch and prebiotic fiber, which improve gut health and product stability. In 2024, Ingredion launched a resistant starch line for gluten-free formulations, enhancing freeze-thaw stability in frozen meals. Freeze-thaw stability ensures product quality in convenience foods, driving adoption in ready-to-eat meals. These trends highlight the market’s shift toward health, sustainability, and innovative plant-based ingredients.

Specialty Starch Market Drivers:

• Rising Demand for Clean Label Starch and Plant-Based Ingredients: The Specialty Starch Market is propelled by growing consumer demand for clean-label starch and plant-based ingredients, driven by preferences for natural, non-GMO, and minimally processed foods. Clean-label starch, derived from sources like tapioca, potato, and rice, meets the demand for transparent ingredient lists, particularly in bakery, snacks, and dairy products. The surge in vegan and gluten-free diets further boosts the use of plant-based ingredients for gluten-free formulations. In May 2024, Brenntag expanded its partnership with Avebe to distribute clean-label starch from potatoes in the UK and Ireland, addressing consumer demand for natural specialty food ingredients. This trend aligns with health-conscious eating habits, encouraging manufacturers to innovate with functional starch that enhances texture and shelf-life while maintaining clean-label appeal, driving market growth across food and beverage sectors.
• Growth in Functional Starch for Health-Oriented Applications: The increasing focus on health and wellness fuels demand for functional starch, such as resistant starch and prebiotic fiber, which offer digestive health benefits and support low-calorie or low-glycemic diets. Functional starch is widely used in functional foods like yogurts, beverages, and baked goods, addressing consumer interest in gut health and diabetes management. In 2024, Tate & Lyle launched a new resistant starch product to enhance prebiotic fiber content in plant-based dairy, catering to health-focused consumers. The rise in gluten-free formulations further drives adoption, as functional starch improves texture and nutritional profiles in gluten-free products. This trend is supported by growing awareness of dietary health, particularly in developed markets, where consumers seek specialty food ingredients that align with wellness goals, positioning functional starch as a key driver of market expansion.
• Expansion of Industrial Starches in Non-Food Applications: The versatility of industrial starches drives the Specialty Starch Market by expanding applications in non-food sectors like pharmaceuticals, cosmetics, paper, and textiles. Starch derivatives, such as maltodextrin and cyclodextrin, serve as excipients in drug delivery systems, while modified starch enhances paper strength and textile sizing. The push for sustainable alternatives, such as biodegradable packaging, further boosts demand for industrial starches. In 2024, Agrana introduced a modified starch for eco-friendly adhesives, reducing reliance on synthetic materials. This trend reflects the market’s alignment with global sustainability goals, encouraging manufacturers to develop industrial starches for environmentally friendly applications. The pharmaceutical and cosmetic industries’ need for high-performance starch derivatives further supports market growth, as companies innovate to meet diverse industrial requirements.

Specialty Starch Market Restraints:

• Volatility in Raw Material Prices: The Specialty Starch Market faces significant challenges due to volatility in raw material prices for crops like corn, potato, tapioca, and wheat, which are critical for producing specialty starches. Fluctuations driven by weather conditions, supply chain disruptions, and geopolitical factors increase production costs, impacting pricing strategies and profitability. For instance, in 2024, challenges in maintaining stable costs for native starch and modified starch due to agricultural supply constraints in the Asia-Pacific was noted. This volatility affects the cost-effectiveness of specialty food ingredients and industrial starches, particularly for smaller manufacturers, limiting their ability to compete. Price instability also deters investment in R&D for innovative starch derivatives, constraining market growth as companies struggle to balance cost and quality in a competitive landscape.
• Stringent Regulatory Compliance for Specialty Food Ingredients: Stringent regulatory requirements for specialty food ingredients and modified starch pose a significant restraint on the Specialty Starch Market. Regulatory bodies like the FDA and EFSA impose strict safety, labeling, and quality standards, particularly for clean-label starch and functional starch used in food and pharmaceuticals. Compliance involves rigorous testing and documentation, increasing production costs and complexity. In 2024, Roquette highlighted the challenges of meeting EU clean-label regulations for starch derivatives in food applications, requiring significant investment in compliance processes. These regulations, while ensuring consumer safety, can delay product launches and limit innovation in the modified starch market, particularly for small and mid-sized companies with limited resources, hindering market expansion in highly regulated regions.

Specialty Starch Market Key Developments:

• At the AAHAR 2025 exhibition in India (March 2025), Cargill showcased a range of innovative functional starch blends primarily for the snacks, bakery, confectionery, dairy, and ice cream industries. These specialty blends included a first-of-its-kind dent corn-based modified starch designed to improve the color, taste, and smooth texture of sauces. Another innovation was a cost-effective pectin replacer that substitutes for more expensive pectin in gummies and jellies, offering an alternative for value-conscious manufacturers while maintaining product quality and meeting diverse requirements.
• In February 2025, Ingredion Incorporated announced a $50 million investment in its Cedar Rapids, Iowa, facility to significantly modernize and expand the production of specialty industrial starches for the packaging and papermaking industries. This capacity expansion addresses the growing demand for functional solutions that support the circular economy, specifically those delivering against more stringent requirements for strength, biodegradability, and recyclability in applications like containerboard and natural polymer-based food packaging.
• In August 2024, Al Ghurair Foods, a major food processing company in the UAE, broke ground on its new, state-of-the-art Corn Starch Manufacturing Plant in the Khalifa Economic Zones Abu Dhabi (KEZAD). While not a new ingredient launch, the opening of this large-scale, cutting-edge facility represents a major capacity and product availability development in the specialty starch market, enhancing regional supply for high-quality corn starch and its derivatives, which are crucial ingredients in numerous food and industrial applications across the Middle East and surrounding regions.
• In February 2024, Ingredion Incorporated expanded its portfolio of clean-label texturizers with the introduction of NOVATION® Indulge 2940 starch. This is a non-GMO functional native corn starch, the first of its kind from the company. It is specifically designed to provide a more enjoyable sensory experience in applications like gelling and co-texturizing dairy, dairy substitute items, and desserts. It allows manufacturers to achieve indulgent textures while meeting the growing consumer demand for clean-label, minimally processed ingredients without compromising flavor or performance.

Specialty Starch Market Segmentation:

• By Product Type
  • Native Starches
  • Modified Starches
• By Application
  • Food And Beverages
  • Pharmaceuticals
  • Personal Care Products
  • Industrial Applications
• By Source
  • Corn Starch
  • Potato Starch
  • Cassava Starch
  • Wheat Starch
  • Others
• By Region
  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East & Africa

Table Of Contents

Companies Profiled

Ingredion Incorporated

Cargill, Incorporated

Tate & Lyle PLC

Roquette Frères

Avebe U.A.

Agrana Beteiligungs-AG

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