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Email: [email protected] MarketResearch.com MODIFIED STARCH MARKET BY RAW MATERIAL (Corn, Tapioca, Potato, Wheat, and Others), BY APPLICATION ( Food, Feed, and Non-Food) — Global Trends & Forecasts To 2018
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Modified Starch Market - by Raw Material, by Application
— - Global Trends & Forecast to 2018
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MarketsandMarkets 2 Modified Starch Market - by Raw Material, by Application
— - Global Trends & Forecast to 2018
1 INTRODUCTION
1.1 MARKETS COVERED
FIGURE 1
MODIFIED STARCH MARKET SCOPE & SEGMENTATION
Modified Starch Market
By Geography By Source By Application
North America Corn Food - Confectionery Asia-Pacific Tapioca - Beverages - Processed food Europe - Others Potato Rest of World Animal Feed Vitamins - Swine - Poultry Wheat - Ruminant - Others Others Non-Food - Medicine & pharmaceutical - Weaving & textile - Paper making - Cosmetics - Others
Source: MarketsandMarkets Analysis
MarketsandMarkets 3 Modified Starch Market - by Raw Material, by Application
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1.2 STAKEHOLDERS
The intended audience of this report includes:
• Modified starch manufacturers
• End consumers such as petrochemicals, glass, cement, iron, and steel manufacturers
• R&D (research and development) institutions
• Distributors
• Raw material suppliers
MarketsandMarkets 4 Modified Starch Market - by Raw Material, by Application
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1.3 RESEARCH METHODOLOGY
FIGURE 2
MODIFIED STARCH MARKET RESEARCH METHODOLOGY
• Geographical markets with their market shares • Market trends • Market classification • Value chain Secondary Research • Key players • End-use applications • Annual reports of key industry players • Technological developments
• Number validation • Competitive landscape validation • Market dynamics validation Primary Research
• To p -Down approach • Bottom-Up approach • Data triangulation • Qualitative and quantitative analysis • Market segmentation Market Crackdown • Market estimates • Market forecasts
Source: MarketsandMarkets Analysis
In the extensive secondary research process, several secondary sources like certified publications, articles from recognized authors, annual reports of companies, directories, and databases were used to identify and collect information useful for this extensive technical and commercial study of the market. The secondary research was mainly used to obtain key information about the industry’s value chain, total pool of key players, market classification
MarketsandMarkets 5 Modified Starch Market - by Raw Material, by Application
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and segmentation according to industry trends, regional markets, and key developments in the modified starch market.
MarketsandMarkets 6 Modified Starch Market - by Raw Material, by Application
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2 EXECUTIVE SUMMARY
FIGURE 3
GLOBAL MODIFIED MARKET SHARE, BY APPLICATION, 2013-2018
2013 2018
37.7%XX% 37.1%XX% Food Food Feed Feed Non-Food Non-Food 56.7%XX% 57.5%XX%
5.6%XX% 5.4%XX%
Source: MarketsandMarkets Analysis
The market for modified starches was estimated to be $XX million in 2013 and is estimated to reach $XX million by 2018, growing at a rate of XX% by 2018. Food acquired the largest share of XX% in 2013 and is expected to reach XX% by 2018, growing at a rate of XX% for the period of five years. The non-food segment is expected to show a high growth of XX%. Paper- making forms a major segment in non-food applications of modified starch.
MarketsandMarkets 7 Modified Starch Market - by Raw Material, by Application
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3 TOTAL ADDRESSABLE MARKET
3.1 INTRODUCTION
TABLE 1
ADDRESSABLE MARKETS FOR MODIFIED STARCH, 2013-2018 ($ BILLION)
Market 2013 2018 CAGR (%)
Confectionery Xx Xx Xx
Beverages Xx Xx Xx
Processed Foods Xx Xx Xx
Animal Feed Xx Xx Xx
Pharmaceuticals Xx Xx Xx
Paper Xx Xx Xx
Textile Xx Xx Xx
Cosmetics Xx Xx Xx
Glues & Adhesives Xx Xx Xx
Total Xx Xx Xx
Source: MarketsandMarkets Analysis
The total addressable market for modified starches is estimated to have stood at a value of $XX billion in 2013, and is expected to reach $XX billion by 2018, growing at a CAGR of XX%. The major application markets for modified starches have been taken into consideration for the obtained estimation. Modified starches find wide opportunities in the food and industrial sectors. Therefore, some of the major food and industrial applications have been covered for
MarketsandMarkets 8 Modified Starch Market - by Raw Material, by Application
— - Global Trends & Forecast to 2018
the analysis. Processed food forms a major addressable market for modified starches with a revenue generation of $XX billion in 2013.
MarketsandMarkets 9 Modified Starch Market - by Raw Material, by Application
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4 INDUSTRY ANALYSIS
4.1 GLOBAL MARKET SHARE ANALYSIS
FIGURE 4
GLOBAL MARKET SHARE ANALYSIS, BY COMPANY, 2012
XX%
XX% Cargill ADM XX% Penford XX% Ingredion Tate & Lyle XX% XX% Roquette XX% Others
Source: MarketsandMarkets Analysis
4.1.1 CARGILL: A MAJOR PLAYER IN THE GLOBAL MODIFIED STARCHES MARKET
The six major players in the modified starches market that have been considered for the study include Cargill(U.S.), ADM(U.S.), Ingredion (U.S.), Penford(U.S..), Tate & Lyle (U.K.), and Roquette(France).The rest (large, medium, and small-scale organizations) are categorized as others. Cargill holds the highest share, i.e., XX%. The others segment holds more than half of the global market with a share of XX%.
MarketsandMarkets 10 Modified Starch Market - by Raw Material, by Application
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4.2 REGIONAL MARKET SHARE ANALYSIS
4.2.1 NORTH AMERICA
4.2.1.1 Ingredion: Acquires Major Share of the Market in North America
Ingredion (U.S.) holds the major share in the North American modified starches market. Penford, being a U.S.-based organization, holds XX% of the North American modified starch market.
4.2.2 EUROPE
FIGURE 5
EUROPE: MARKET SHARE ANALYSIS, BY COMPANY, 2012
XX%
Cargill ADM XX% Tate & Lyle Ingredion XX% XX% XX% Penford XX% Others
Source: MarketsandMarkets Analysis
MarketsandMarkets 11 Modified Starch Market - by Raw Material, by Application
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4.2.3 ARCHER-DANIELS MIDLAND COMPANY
FIGURE 6
ADM: SWOT
STRENGTHS WEAKNESS
. XX . XX . XX
ADM . XX . XX . XX . XX . XX
OPPORTUNITIES THREATS
Source: MarketsandMarkets Analysis
MarketsandMarkets 12 Modified Starch Market - by Raw Material, by Application
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5 MARKET OVERVIEW
5.1 GLOBAL MARKET ESTIMATIONS
5.1.1 BY SOURCE
FIGURE 7
GLOBAL MODIFIED STARCH MARKET VOLUME SHARE, 2013-2018
2013 2018 XX% XX%
Corn/Maize XX% XX% Cassava XX% XX%
Others
Source: MarketsandMarkets Analysis
In terms of volume, corn acquired the largest share—XX%—in 2013 and is expected to slightly lose its holding in the market by 2018, falling to a share of XX%. Cassava is an emerging competition for corn and is expected to grow at a rate of XX% by 2018. The other raw materials include potato, wheat, rice, etc.
MarketsandMarkets 13 Modified Starch Market - by Raw Material, by Application
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5.2 MARKET DYNAMICS
5.2.1 IMPACT ANALYSIS
FIGURE 8
MODIFIED STARCH: MARKET DRIVERS AND RETRAINTS
XX XX XX
XX
XX XX
XX
XX
XX XX
XX XX D1: XX R1: XX D2: XX R2: XX D3: XX R3: XX XX XX XX XX XX XX
Source: MarketsandMarkets Analysis
The above figure shows the impact of various drivers and restraints at different time intervals. According to the figure, increase in the convenience food sector will have a high short-term impact, but its effect will regularize in the long run. The functional properties of modified starch as a driver will have a medium impact at all time intervals. growth in paper industry will have a strong impact in long term.
MarketsandMarkets 14 Modified Starch Market - by Raw Material, by Application
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The rise in prices of raw material is majorly due to their usage in bio-fuel production; hence this will have a high short-term impact and will decrease in the long term. An increase in the market for raw material will have a strong impact on modified starches as it is expected to replace the usage of modified starch.
5.3 BURNING ISSUE
5.3.1 IMPACT OF CONSUMER PERCEPTION TO E-NUMBERS (GENETICALLY MODIFIED IMPLICATION)
TABLE 2
LIST OF E-NUMBERS AND INS NUMBERS FOR MODIFIED STARCHES
FunctionCodex Committee on INS E-Number Name Food Additives & Number Contaminants(CCFAC)
XX Dextrins, white and yellow Stabilizer, thickener, binder
XX Acid-treated starch Stabilizer, thickener, binder
XX Alkaline-modified starch Stabilizer, thickener, binder
XX Bleached starch Stabilizer, thickener, binder
E1404 XX Oxidized starch Emulsifier, thickener, binder
XX Enzyme-treated starch Thickener
E1410 XX Monostarch phosphate Stabilizer, thickener, binder
XX Distarch glycerol Stabilizer, thickener, binder
E1412 XX Distarch phosphate Stabilizer, thickener, binder
E1413 XX Phosphated distarch phosphate Stabilizer, thickener, binder
E1414 XX Acetylated distarch phosphate Emulsifier, thickener
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FunctionCodex Committee on INS E-Number Name Food Additives & Number Contaminants(CCFAC)
Acetylated starch, mono starch E1420 XX Stabilizer, thickener acetate
Acetylated starch, mono starch XX Stabilizer, thickener acetate
E1422 XX Acetylated distarch adipate Stabilizer, thickener, binder
XX Acetylated distarch glycerol Stabilizer, thickener
E1440 XX Hydroxypropyl starch Emulsifier, thickener, binder
E1442 XX Hydroxypropyl distarch phosphate Stabilizer, thickener
XX Hydroxypropyl distarch glycerol Stabilizer, thickener
Stabilizer, thickener, binder, E1450 XX Starch sodium octenyl succinate emulsifier
E1451 Acetylated oxidised starch
Source: International Starch Institute, CCFAC International Numbering System, and MarketsandMarkets analysis
Today, modified starch is a food additive and the limits of its modification, use, and labeling are clearly defined in the U.S. Code of Federal Regulations. The European Directive on food additives allows only the above-mentioned starches in food products.
As given in the table above, modified starch has been assigned E-numbers and INS numbers as part of the food labeling requirement in the European Union. The association with E- numbers results in the consumer perception towards genetically modified ingredients. Although GM starch is technically different from chemically modified starch, the legislative requirements make it mandatory to carry E-numbers on the product labels.
Although the E-number is an indication that the ingredient has passed the European safety standards of being added to the food product, lack of knowledge regarding modified starch results in it being misinterpreted as a genetically modified ingredient. Such association
MarketsandMarkets 16 Modified Starch Market - by Raw Material, by Application
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negatively impacts the consumer perception and would, in turn, affect the demand for the same. European legislation also demands strict protocol with respect to the chemicals used for the modification procedure of the starch. Manufacturing thus need to be altered to meet the demands of the legislation and also faces the onerous task of being misinterpreted as a genetically modified food product.
Thus, the challenge can be seen in genetically as well as chemically modified starches. European views on modified starch are not too favorable due to the negative perception of its categorization as an ‘E-number’. Moreover, consumer acceptance of modified starch is slow.This issue, coupled with the EU’s GM labeling requirements is obstacles, and, therefore, has an impact on its growth. Finally, GM-labeling requirements in Europe are currently perceived as non-manufacturer-friendly.
MarketsandMarkets 17 Modified Starch Market - by Raw Material, by Application
— - Global Trends & Forecast to 2018
5.4 PORTER ANALYSIS
FIGURE 9
PORTER’S FIVE FORCES ANALYSIS
Suppliers’ Power
1. XX 2. XX XX
Buyers’ Power Threat of Substitutes Degree of Competition 1. XX 1. XX 2. XX 2. XX 1. XX 2. XX XX XX XX
1. XX 2. XX
XX
Threat from New Entrants
Source: MarketsandMarkets Analysis
MarketsandMarkets 18 Modified Starch Market - by Raw Material, by Application
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FIGURE 10
MODIFIED STARCH: SUPPLY CHAIN
Innovations & Distributors productdevelopments
Stakeholders Target Market • Modified Starch Customers Manufacturers Modified • End consumers Marketing Business Starch strategies Process such as papers, Products textile, chemicals, Raw material processed food, supplier and feed • R & D institutions Collaboration & license agreement
Source: MarketsandMarkets Analysis
As mentioned above, starch is obtained from various raw material such as corn, cassava etc. These starches are converted to modified starches with various chemical and enzymatic processes. Various strategies, business ideas, product developments are involved in converting starches to modified starches. Although food industry has been analyzed as major application industry for modified starch, however the process of modification has increased the application area of starch in non-food industry. It is used in drilling industry, paper industry, chemical industry and many more.
MarketsandMarkets 19 Modified Starch Market - by Raw Material, by Application
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6 COMPETITIVE LANDSCAPE
6.1 NEW PRODUCT LAUNCH; MOST PREFERRED STRATEGIC APPROACH
6.1.1 AVEBE U.A (THE NETHERLANDS), CARGILL INC (U.S.): MOST ACTIVE COMPANIES
The market of modified starch is a highly competitive market. It has many small as well as medium size companies. Few big players are also present which have stiff competition in the market. As the local and regional markets are developing, there is a notable change in modified starch worldwide and hence maximum development is recorded in U.S. Europe takes the second position in this market.
FIGURE 11
MODIFIED STARCH: DEVELOPMENT SHARE, BY COMPANY, 2010-2013
XX% XX% AVEBE U.A Cargill XX% Ingredion XX% Penford XX% XX% Tate & Lyle Plc Others
Source: MarketsandMarkets Analysis
The above figure depicts the percentage share of modified starch companies by developments. The total developments by Cargill Inc (U.S.) and AVEBE U.A were XX% each and have the
MarketsandMarkets 20 Modified Starch Market - by Raw Material, by Application
— - Global Trends & Forecast to 2018
majority stake, while Ingredion (U.S.) is at the third position with XX% of developments. Other companies are moving aggressively towards achieving the competitive edge in modified starch market.
MarketsandMarkets 21 Modified Starch Market - by Raw Material, by Application
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7 COMPANY PROFILEE
7.1 AVEBE U.A.
Company at a Glance Recent Financials
2012 Total Revenue ($Million) XX XX Founded : 1919 XX XX XX XX XX Headquarters : Veendam, The Netherlands XX Employees : 1,308 XX Revenue : $XX Million XX
Ownership : Private XX 2009 2010 2011 2012 2013
Total Revenue ($Million)
Geographic Revenue Mix Business Revenue Mix
XX XX XX% Starch
Derivatives
By-products
XX% XX
7.1.1 OVERVIEW
Founded in 1919 and based at Veendam, The Netherlands, AVEBE U. A. is engaged in production and marketing of potato-based starch and proteins to the food, feed, paper, building, textiles, and adhesives industries. The company markets its products in The Netherlands as well as in other European countries with production sites in The Netherlands, Germany, and Sweden. It had a headcount of XX as on July 2011. The company competes with Tate & Lyle (U.K.), Roquette Freres, (France), and Emsland-Stärke GmbH (Germany).
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