Modified Starch Market Size, Share, Growth, Report 2026 To 2035

Modified Starch Market Size and Growth 2026 To 2035

The global modified starch market size accounted for USD 15.92 billion in 2025 and is expected to surpass around USD 27.24 billion by 2035, exhibiting at a compound annual growth rate (CAGR) of 5.52% over the forecast period 2026 to 2035. The modified starches market is expanding as food manufacturers require more innovative and useful ingredients for modern food manufacturing. Modified starch creates improved texture, thickness, density, and shelf stability for many foods, thereby allowing for high volume production of food items. The bulk of the use of modified starches is found in processed food, like canned or packaged foods, baked goods, dairy products, sauces, and snack foods, where the manufacturers are seeking consistent quality and extended shelf life. The increasing demand for ready-to-eat and convenience foods within the urban population.

The expanding use of modified starches beyond the food industry, in other industries, including paper making, textiles, pharmaceuticals, and adhesives, has also created a lot of opportunities for the modified starch market. Many companies are starting to employ modified starches in their processes due to the added benefit of better binding, coating, thickening, and film-forming properties relative to conventional starch. The rapid and continued growth of the packaging and paper industry is also increasing demand for modified starch, since it can improve strength and print quality of both these types of products. In addition, as developing nations continue to industrialize and as starch modification processes improve through advances in technology, the modified starch market will see continuous growth.

Report Highlights

• By Region, North America dominated the market with a revenue share of 34.2% in 2025.
• By Raw Material, the corn-based modified starch held the largest share in 2025 with 48% in 2025.
• By Type, the starch esters and ethers dominated the market with a share of 38% in 2025.
• By Function, the thickeners held the largest market share of 45% in 2025.
• By Application, the food and beverages dominated the market with a share of 51% in 2025.

Role of Modified Starch in Expanding Pharmaceutical Applications

Market growth is being driven by an increase in the use of modified starch for pharmaceutical applications because of its important function in both drug delivery and excipients. It serves as a binder, disintegrant and stabilizer in the formulation of tablets and capsules-allowing for improved tablet strength, uniformity and controlled release of the drug. In addition, modified starch enhances the solubility and bioavailability of active pharmaceutical ingredients, which allows for the medicine to be more effective in the body. As pharmaceutical manufacturers continue to develop advanced drug delivery systems such as sustained-release or targeted delivery, more and more companies are turning to modified starch because of its low cost, very low toxicity, and excellent level of biocompatibility. The rapid development of the worldwide pharmaceutical industry and increasing investments in R&D have also created a significant increase in demand for modified starches in pharmaceuticals, thereby supporting the growth of the modified starch market.

As improved starch has attained a steady increase both in market value and adoption share, supported by the growing trend for improved starch to become one of the preferred excipients used in drug formulation. The rise of the pharmaceutical industry is causing significant growth in the modified starch market due to the increased demand for modified starches from pharmaceutical manufacturers. Also, pharmaceutical manufacturers have been encouraged to increase production, invest resources in research and development, and manufacture specific grades of starch to cater towards enhanced drug delivery systems.

Recent Major Milestones

1. Genetic- & enzyme-based starch modification for tailored functionality

For the last several decades, the food industry has been using modified starches from corn and other crops, primarily through chemical modification (e.g. acid hydrolysis, oxidation), as a way to improve their quality. However, advances in molecular genetics have given way to a variety of new methods that enable researchers and manufacturers to genetically engineer starches at their source (e.g. through the use of enzymes) to create starches with entirely new properties. In turn, these approaches have opened the door to new types of high-value starches with the ability to be tailored for specific applications, including bioplastics, specialty food additives, and pharmaceuticals.

2. Progress in biodegradable and sustainable packaging - starch-based bioplastics and films

Recent studies have demonstrated that modified starch provides a viable option for producing biodegradable plastic packagings and bioplastics through the blending of modified starch with other natural polymers or additives that improve water resistance, mechanical strength, and barrier characteristics. For example, recently, "starch polymeric films" have been created by combining modified starch with other bio-polymers or nanomaterials to provide packaging with decreased water vapour transmission rates and greater durability. This innovation has contributed to the growth of the modified starch market, with increasing concern about the environment and increasingly stringent regulations regarding plastic usage. The modified starch packaging industry is appealing to a rapidly growing number of environmentally conscious manufacturers and consumers looking for biodegradable, renewable alternatives.

3. Adoption of novel processing technologies to enhance starch performance

Along with chemical and genetic modifications, new and innovative ways of processing starch (including new drying/forming processes and hybrid modification technologies) are being developed to enhance starch's thermomechanical and functional characteristics. New and improved physical methods of treating starch result in a consistently uniform product that is easy to work with (process) and stable when subjected to freezing or high-temperature processes that are typical in today's industries. This leads to a much wider, more comprehensive array of modified starch choices for food, packaging, pharmaceutical and industrial end-users taking advantage of modern processing equipment.

Report Scope

Market Dynamics

Market Drivers

• Growing demand from processed and convenience food industries: The increase in the number of processed and ready-to-eat foods is one of the leading causes of growth in the modified starch sector. As well as increasing the shelf-life, texture, and stability of the finished product, modified starch will also provide a thickening agent in processed foods. As a result of a busy lifestyle (due to increased urbanisation), there has been an increase in the consumption of packaged and frozen foods and a subsequent increase in the quantity of modified starch used in food products.
• Increasing industrial applications beyond food: Modified starch has many applications within different industries, including paper, textile, pharmaceutical, adhesive, and packaging. With the growth of the sustainable packaging trend and increased interest in developing biodegradable packaging products, modified starch is becoming a popular and environmentally friendly alternative to synthetic polymer applications. This diversification from traditional food-based applications into the non-food industry is a major factor contributing to the growing modified starch market and overall increase in demand.

Market Restraints

• Health concerns and perception of processed ingredients: Certain consumers tend to avoid modified starch due to their association of modified starch with artificial or highly processed foods, even though the use of modified starch is safe. The increasing demand for minimally processed or natural ingredients is limiting the use of modified starch in many food products. This association may reduce the amount of modified starch used, particularly in markets that are health conscious, and slow the pace of market growth.
• Fluctuations in raw material prices: Modified starch is made using crops including corn, potato, wheat, and cassava that tend to experience price fluctuations based on weather conditions, crop diseases, and global supply disruptions. Fluctuations in crop prices lead to higher production costs and possible reduction in profit margins for manufacturers, limiting the market's growth potential.

Market Opportunities

• Growth of biodegradable and sustainable packaging solutions: As environmental awareness rises, coupled with stringent legislative restrictions placed upon the use of plastics, there is a move by businesses toward environmentally friendly materials which can biodegrade. Modified starch is emerging as one of the leading materials utilised in both biodegradable packaging and bioplastics. Therefore, this presents an exceptional opportunity for existing market players to develop modified starch-sourced packaging materials, coatings and films which in turn may allow them access to a completely new customer base as well as expand the global modified starch market.
• Rising pharmaceutical and nutraceutical applications: The pharmaceutical and healthcare sectors have been increasing their investment, providing new avenues for use of modified starch. Modified starch has long been employed in the production of tablet formulations as excipients, disintegrants, and binders. In addition to current applications, modified starch is under development for controlled release drug delivery systems, and as a result of recent increases in both drug production and investment in healthcare, this segment of the marketplace has tremendous potential to increase demand for modified starch.

Market Challenges

• Strong competition from alternative ingredients and polymers: The modified starch industry is in constant rivalry with many other hydrocolloids, such as xanthan gum, guar gum, cellulose derivatives and synthetic polymers, that frequently produce equal or superior performance to that of modified starch. Because of the lower cost of these options, their greater availability and unique functional benefits, many manufacturers within the modified starch market face significant challenges in sustaining or expanding their respective market shares.
• Technical complexity in production and application: Producing high-quality starch with modification can be complex, requiring high technology, special equipment, and complex processing conditions. Starch is customized to meet the specific properties that different industries need, making it very costly and complex to create customized starch. Small manufacturers cannot compete with the larger manufacturers due to the technical nature of the products produced. Therefore, there is great limitation on innovation and new entry into the modified starch industry.

Regional Analysis

The modified starch market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

North America Modified Starch Market: Strong Processed Food Industry and Advanced R&D Driving Growth

The North America modified starch market size valued at USD 5.44 billion in 2025 and is expected to hit around USD 9.32 billion by 2035. North America has become one of the largest market, due to its highly productive food processing, pharmaceutical, and packaging sectors. Modified starches are in high demand in North America as a result of the growing use and popularity of convenience foods, ready-to-eat meals, and clean label products. In addition, North America's robust physical presence of Major Manufacturers, as well as its advanced research resources, allow for continued development and improvements in modified starch products. With the emergence of new alternative biodegradable packaging and pharmaceuticals with starches, the North American modified starch market continues to be of great importance both regionally and globally.

Recent Developments:

• Increased use of modified starches in the production of "plant-based" and "clean label" food products.
• Increased investment in biodegradable packaging produced from starch.
• Innovations in resistant starch (a starch form that provides functional benefits in many foods) being included in functional low calorie products.

Asia-Pacific Modified Starch Market: Rapid Industrialization and Expanding Food Processing Sector Driving Market Growth

The Asia-Pacific modified starch market size accounted for USD 4.08 billion in 2025 and is forecasted to grow around USD 6.97 billion by 2035. The Asia-Pacific region is experiencing the most rapid growth currently, due to the rapid pace of industrialization along with the increasing pace of urbanization in this region, plus the growth of the food and beverage industry. Key countries producing and consuming modified starch include China, India, Thailand, and Indonesia; these countries have strong agricultural resources that provide the raw materials (corn for example) for producing modified starch. Growth in consumer disposable income (rising middle class), along with changes in dietary habits and preferences, will increase processed food consumption, thus increasing the amount of modified starch required for this application. Additional growth in paper, textile and pharmaceutical markets will also contribute to market growth in this region.

Recent Developments:

• Southeast Asia is expanding production of cassava-based modified starch. 
• Pharmaceutical and processed food industries are driving the growth of modified starch in China and India. 
• The textile sizing and paper manufacturing industries are using more modified starches than in previous years.

Europe Modified Starch Market: Sustainability Regulations and Clean-Label Demand as Key Drivers

The Europe modified starch market size estimated at USD 4.60 billion in 2025 and is projected to surpass around USD 7.87 billion by 2035. Europe market has seen significant growth, due to stringent regulations on the environment and an increasing number of consumers interested in sourcing their products from a sustainable and natural source. Many European countries are focusing on moving away from synthetic additives to plant-based alternatives for food, packaging and related industries. Consequently, an increase in the number of new uses of modified starch can be expected in biodegradable materials, paper production and medicinal formulation.

Recent Developments

• Increasing interest in Starch-based Biodegradable Packaging to help achieve the EU's sustainability goals.
• The increased use of organically grown and non-GMO modified starch for food-based applications.
• The increased use of modified starch in pharmaceutical tablet formulation.

Modified Starch Market Share, By Region, 2025 (%)

LAMEA Modified Starch Market: Agricultural Resources and Emerging Industrial Growth Fueling Demand

The LAMEA modified starch market size valued at USD 2.20 billion in 2025 and is anticipated to reach around USD 3.76 billion by 2035. The LAMEA is seeing steady progress due to the continued development of industry and food processing. Corn and cassava are two of the most abundant crops produced in the Latin America region, therefore, producing starch from these crops offers an excellent opportunity for growth in this sector. Starch demand in the Middle Eastern and African regions has primarily been supported by the growing importance of the food manufacturing and food packaging industries. In addition, the availability of adequate infrastructure, the increase in urban populations, and government interest in food security has led to an increase in modified starch usage and consumption in these regions.

Recent Developments:

• The expansion of starch processing plants throughout Brazil and other Latin American nations.
• An increase in the importation of modified starch for use in food and pharmaceutical applications by countries in the Middle East region.
• The increased use of modified starch by local food processors in Africa.

Segmental Analysis

The modified starch market is segmented into raw material, type, function, application, and region. 

Raw Material Analysis

Corn is the leading raw material in the market due to its widespread cultivation in all major agricultural regions, along with its low cost and high productivity. Its well-established supply chain and easy accessibility make it the preferred feedstock for large commercial processors in the food, paper, and adhesive industries. Corn's modified starch has stable functional characteristics (e.g. excellent thickening, binding, and film-forming properties), thus allowing for widespread industrial application.

Modified Starch Market Share, By Raw Material, 2025 (%)

Cassava has the fastest growth rate of any raw material segment and is expected to continue on this path because it is becoming increasingly grown and harvested in tropical and subtropical regions and can be used for both food and industrial uses. Cassava has a high starch content, is naturally gluten free, and is becoming increasingly popular for the production of clean-label products and allergen-free products. The increased focus on sustainable agriculture and the rapidly growing demand from developing regions of Asia and Africa are major factors driving the growth of cassava based modified starch products in markets.

Type Analysis

Starch esters and ethers account for the majority of the global modified starch industry, as they offer significantly greater heat, acid, and mechanical durability than their native starch counterparts. Starch esters and ethers are particularly beneficial in many applications that use the emulsifying and thickening properties of starches. Starch esters and ethers are used regularly in a variety of processed foods, in coatings for paper products, and in various textile uses. Their versatility across many different industries makes starch esters and ethers the most widely used modified starches globally.

The resistant starches are fastest-growing segment due to an increased awareness of gut health, blood sugar control, and digestive health among consumers. Resistant starches provide the same benefits as dietary fibers and are becoming increasingly prevalent in functional food applications, low-calorie products, and nutritional supplements. The rise in demand for healthier and fiber-rich food products worldwide is contributing to the rapid growth of the resistant starch segment. 

Function Analysis

Thickeners represent the largest portion of the modified starch market. Due to their extensive use as thickeners and other ingredients in a wide variety of applications including soups, sauces, ready-to-eat meals, bakery fillings and dairy products. They are crucial for sustaining viscosity, texture and mouthfeel of processed foods during large scale food manufacturing. As the processed food industry continues to expand, so too will the demand for thickeners.

Modified Starch Market Share, By Function, 2025 (%)

Stabilizers will be the fastest growing segment due to their increasing use in frozen foods, dairy drinks, and ready-to-drink products where product consistency and shelf life are paramount. They help to stabilize products from separation, syneresis, and loss of texture during storage and transportation. The increase in demand for convenient foods with extended shelf lives will continue to grow the use of modified starch as a stabilizer.      

Application Analysis

The food and beverage segment is anticipated to have the largest market share due to the large volume of modified starch that it uses to improve the texture, stability, and shelf-life of its processed food products. It is utilized primarily in bakery products, snacks and dairy items, although it is also used in sauces, instant foods, etc. Global demand for packaged and ready-to-eat food products continues to grow rapidly, keeping this segment as the current and ongoing leader in the modified starch market.

Modified Starch Market Share, By Application, 2025 (%)

The pharmaceuticals segment is expected to have the highest growth rate due to the increased usage of modified starch as a binder, filler, disintegrator, and drug-release agent in drug formulations. The properties of modified starch such as biocompatibility, low toxicity, and low cost of production will allow manufacturers to shift away from traditional excipients (inactive ingredients) to modified starches. The increase in global healthcare spending, as well as the overall increase in pharmaceutical production, are projected to continue supporting the growth of this segment of the modified starch market.

Modified Starch Market Top Companies

• Archer-Daniels-Midland Company
• AGRANA Beteiligungs-AG
• Cargill Incorporated
• Grain Processing Corporation (Kent Corporation)
• Emsland-Stärke GmbH
• Tate & Lyle PLC
• Ingredion Incorporated
• Roquette Frères
• Novidon B.V. (Duynie Group)
• The cooperative Royal Avebe U.A.
• SMS Corporation
• Tereos

Recent Developments

• In 2024, Roquette launched CLEARAM® TR, a new product line of hydroxypropylated botanical tapioca starch that improves the texture, flexibility, and allergen-free functionalities in food products. CLEARAM® TR can create better viscosity, uniformity and sensory profile in sauces, baked goods and desserts, enabling food brands to create great tasting high-quality products consistently.
• In June 2025, AGRANA and Ingredion announced the establishment of a joint venture in Romania with a EUR 35 million investment to expand their production capacity for starches. The increasing production capacity of starches is to improve the cost-effectiveness, competitiveness and supply of starches within the European starch market, and this is a further example of their expansions into increased production capacity of modified starches and the additional availability of the related modified starch products.
• In February 2024, Ingredion introduced a new clean-label native starch that has superior gelling and texture capabilities and is ideal for use in dairy, dessert and plant-based frozen foods, which is a commercial reflection of the industry's move towards cleaner-label (less-processed and non-GMO, etc.) ingredients.

Market Segmentation

By Raw Material

• Corn
• Wheat
• Potato
• Cassava
• Others

By Type

• Starch Esters and Ethers
• Cationic
• Pre-gelatinized
• Resistant
• Others

By Function

• Thickeners
• Binders
• Emulsifiers
• Stabilizers
• Others

By Application

• Food and Beverages
• Paper
• Animal Feed
• Textiles
• Pharmaceuticals
• Others

By Region

• North America
• APAC
• Europe
• LAMEA