South America Starch Market Outlook, 2028

South America's population is steadily growing, with a significant portion residing in urban areas. Urbanization often leads to changes in dietary habits, with an increased demand for processed and convenience foods that frequently contain starch-based ingredients. The snack food industry is experiencing significant growth in South America. Many popular snack products, such as potato chips, corn chips, and extruded snacks, are primarily starch-based. This demand for snack foods contributes to the growth of the starch market. South America has witnessed substantial growth in its food processing sector. Starches are essential ingredients in various processed foods, including sauces, soups, and ready-to-eat meals. As consumer preferences for convenience foods increase, so does the demand for starches. Starch is widely used in industries beyond food, such as paper, textiles, pharmaceuticals, and biofuels. These industries are experiencing growth in South America, further fueling the demand for starch as a raw material or additive. Starchy foods often feature prominently in South American ceremonies and festivals. Traditional cooking methods for starches include steaming, boiling, grilling, and baking. These methods vary from region to region and are an integral part of South American culinary traditions. Starchy ingredients are used creatively in South American desserts. Examples include the Peruvian dessert mazamorra morada, a purple corn pudding, and the Brazilian delicacy beijinho, a sweet made from condensed milk and grated coconut. Many South American indigenous cultures have agricultural rituals and ceremonies tied to the cultivation of starchy crops. These rituals honor deities or spirits associated with agriculture and ensure a bountiful harvest. Fermentation is a common technique in South America for preserving and enhancing the flavor of starch-rich foods. Fermented maize and cassava products are popular and are used in traditional dishes. Starchy ingredients are sometimes used in artistic and craft creations. For instance, corn husks are used to make decorative items, and cassava starch may be used to create adhesive for handicrafts. According to the research report, “South America Starch Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add more than USD 1.15 Billion market size from 2023 to 2028. Consumer demand for clean and natural ingredients has driven the use of native and unmodified starches. These starches are perceived as more natural and less processed, aligning with the clean label trend in food products. Modified starches continue to be popular due to their versatility in various food applications. They are used to improve texture, stability, and shelf life in processed foods, including soups, sauces, and bakery products. With the rise in gluten intolerance and allergies, there is an increasing demand for gluten-free and allergen-free starches in the food industry. Tapioca starch and cornstarch are commonly used as alternatives. Starches with specific functional properties, such as resistance to high temperatures and shear, are in demand, particularly in the processed food and beverage industries. These starches help maintain product quality during processing and storage. The growing demand for plant-based and vegan food products has led to increased use of starches as binders, thickeners, and stabilizers in plant-based alternatives to meat, dairy, and egg products. The demand for organic products continues to grow. Organic starches, sourced from organically grown crops and produced without synthetic chemicals, are gaining popularity in the organic food sector. As consumers become more health-conscious, there's a growing awareness of the nutritional benefits of resistant starch, which can have positive effects on gut health. This may lead to an increased demand for foods enriched with resistant starch. Climate change can impact crop yields and starch production. Producers and farmers may adopt climate-resilient agricultural practices and invest in technologies to mitigate the effects of changing weather patterns. The development of starch-based beverages, including plant-based milk alternatives and sports drinks, could create new opportunities for starch utilization.

Based on country, Colombia is expected to the highest CAGR during the forecast period. Colombia boasts a diverse range of climates and ecosystems, which are conducive to the cultivation of various starch-rich crops such as cassava, maize (corn), and potatoes. The country's favorable agro-climatic conditions make it well-suited for starch production. Colombia has experienced urbanization and a rise in disposable income levels. This has led to increased consumer demand for processed foods and snacks, which often contain starch as a key ingredient. The growth of the food industry can boost the demand for starch. As consumers become more health-conscious, there may be a shift towards healthier food options. Starches can be used in the development of low-fat and low-sugar products, aligning with health and wellness trends. Colombia has several traditional dishes that feature starch-rich ingredients. For example, "patacones" are twice-fried green plantains, and "yuca frita" is fried cassava. These dishes highlight the country's rich culinary heritage. Some traditional Colombian beverages, such as "agua de panela," are made by dissolving panela (unrefined cane sugar) in hot water. Starch can be added to help thicken these drinks. Breakfast in Colombia often includes starch-rich foods such as "arepas," "tamales," or "pandebonos." These dishes provide a hearty and filling start to the day. Starch derivatives have a broad range of industrial applications, making them highly versatile. They are used in sectors beyond the food industry, including pharmaceuticals, textiles, paper and packaging, and adhesives. This versatility drives demand from multiple industries in South America. Starch derivatives undergo various chemical modifications, which impart specific functional properties to them. These modifications can include hydrolysis, oxidation, esterification, and cross-linking. As a result, starch derivatives offer value-added functionalities such as improved stability, solubility, and viscosity control, making them indispensable in many industrial processes. Starch derivatives can be customized to offer specific functionalities required in various applications. For example, they can be modified to withstand high temperatures, resist acidity, or provide enhanced thickening and gelling properties, depending on the intended use. Some starch derivatives, like modified tapioca starch, are naturally gluten-free and allergen-free. As awareness of gluten intolerance and food allergies increases, the demand for these derivatives in gluten-free and allergen-free formulations grows. Starch derivatives are used in the pharmaceutical industry to manufacture tablets and capsules. They facilitate the binding of active pharmaceutical ingredients (APIs) and ensure proper disintegration and dissolution.

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Manmayi Raval

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South America is a significant producer of cassava, with countries like Brazil, Colombia, and Venezuela being among the top cassava producers in the region. The abundance of cassava as a source crop ensures a stable supply of cassava starch. Cassava is known for its high starch content, with starch accounting for approximately 60-80% of its dry weight. This high starch content makes it an efficient and cost-effective source for starch production. Cassava starch is versatile and can be used in a wide range of applications, including food and beverages, industrial processes, and textiles. Its versatility makes it an attractive choice for various industries in South America. The South American food and beverage industry is a major consumer of cassava starch. It is used as a thickening agent, stabilizer, and texturizer in a variety of products, including soups, sauces, snacks, and desserts. Cassava starch is naturally gluten-free and allergen-free, making it suitable for individuals with dietary restrictions or allergies. This is particularly important as the demand for gluten-free products rises. Cassava starch is well-suited to cater to regional preferences in South American cuisines and food products, allowing for customization to meet local tastes and demands. The market is divided into Food & Beverage, Industrial, Weaving & Tectile, Animal Feed, Ppaer Industry, Pharmaceuticals & cosmetics and others (adhesives, foundry). South America has a thriving livestock industry, with significant production of cattle, poultry, swine, and aquaculture. The growth of this industry requires a consistent supply of animal feed to meet the increasing demand for meat, dairy, and seafood products. Starch is an essential component of animal feed as it provides a concentrated source of energy for livestock. It serves as a carbohydrate source, promoting growth, milk production, and weight gain in animals. Starch is highly digestible by animals, ensuring efficient utilization of nutrients from feed ingredients. This improves the overall health and productivity of livestock, reducing feed wastage. Many animal feed formulations incorporate starch-based rations to balance the diet and provide a source of easily digestible energy. These rations can be customized for different livestock species and growth stages. Poultry and swine production are significant contributors to the South American livestock industry. Starch-based feed ingredients are commonly used to formulate cost-effective and nutritionally balanced diets for these animals. In aquaculture, starch-based feed is used to raise fish and seafood species. Starch provides the necessary energy for growth and development in aquaculture systems, supporting the expansion of this industry. Starch-based feed ingredients are known for their role in improving feed conversion ratios. This means that animals can convert feed into body weight more efficiently, resulting in cost savings for farmers. The South American food and beverage industry is a significant consumer of gelling agents, including starch-based ones. These agents are crucial for creating the desired texture and structure in a wide range of products, such as jams, jellies, desserts, confectionery, and gummy candies. Many South American cuisines have a rich tradition of using gelling agents in desserts and traditional sweets. These products, often made from fruits and starch-based gelling agents, are popular among both local consumers and tourists. South America is known for its abundant production of tropical fruits like mangoes, guavas, and passion fruits. Gelling agents are essential in the production of fruit preserves, jams, and fruit-based desserts, which are widely consumed and exported. Gelling agents are integral in the confectionery industry for producing gummy candies, marshmallows, and other chewy or gel-like sweets. The demand for such products remains strong in South America. Starch-based gelling agents are used to create the desired texture and consistency in desserts and puddings. These products are enjoyed in households and are also served in restaurants and bakeries. Starch-based gelling agents play a key role in the preparation of traditional South American sweets, pastries, and desserts like Brazilian brigadeiros, Colombian cocadas, and Argentine dulce de leche. Gelling agents are crucial in ensuring the consistency, texture, and shelf life of products. Quality assurance is essential for meeting consumer expectations and regulatory standards.

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Companies Covered in this report: The Archer-Daniels-Midland Company, Tate & Lyle PLC , Cargill, Incorporated, Ingredion Incorporated ,Associated British Foods plc, The Agrana Group , Croda International plc, Roquette and Südzucker AG. Considered in this report • Geography: South America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South America Starch market Outlook with its value and forecast along with its segments • Country-wise Starch market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Country covered in the report: • China • Japan • India • Australia • South Korea By Types • Starch Derivatives • Native By Source • Corn • Cassava/Tapioca • Wheat • Potatoes • Waxy Maize • Others (Pregelatinized Starch, Rice Bran, Sweet potato, Pea etc.) By Application • Food and Beverage • Industrial • Weaving & textile • Animal Feed • Paper Industry • Pharmaceuticals & cosmetics • Others (adhesives, foundry) By Function • Thickening Agent • Stabilizing Agent • Binding Agent • Gelling Agent • Film-Forming Agent • Emulsifying Agent The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Starch industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.