India Corn Starch Market – By Product Type , By Application,By Geography – India Opportunity Analysis & Industry Forecast, 2024-2030
India Corn Starch Market Overview:
India Corn Starch Market size is estimated to reach $4,759.8 million by 2030, growing at a CAGR of 5.2% during the forecast period 2024-2030. The Indian corn starch market has experienced significant growth, driven by its diverse applications across various industries. Corn starch, a versatile carbohydrate extracted from the endosperm of corn, is widely utilized in food and beverages, textiles, pharmaceuticals, and paper and packaging industries. In the food sector, it serves as a thickening agent, stabilizer, and ingredient in confectionery products. The growing demand for processed and convenience foods has further fueled its consumption.
In the textile industry, corn starch is used in fabric finishing and as a sizing agent, enhancing fabric strength and quality. The pharmaceutical industry leverages corn starch as a disintegrant in tablet formulation, ensuring proper dissolution and bioavailability of medications. Additionally, its role in biodegradable packaging solutions aligns with the increasing emphasis on sustainable practices.
The market is characterized by the presence of key players such as Cargill India, Gujarat Ambuja, and Roquette India, who are investing in technological advancements and capacity expansions to meet rising demand. Challenges include fluctuating raw material prices and competition from alternative starch sources. However, government initiatives promoting agro-based industries and the expansion of the food processing sector are expected to sustain market growth, making India a prominent player in the global corn starch market.
Market Snapshot:
India Corn Starch Market - Report Coverage:
The “India Corn Starch Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the India Corn Starch Market.
COVID-19 / Ukraine Crisis - Impact Analysis:
- The COVID-19 pandemic disrupted the Indian corn starch market, causing supply chain interruptions and labor shortages, which led to decreased production and distribution. Demand fluctuated, with significant declines in the food service and textile sectors, while pharmaceutical and packaged food sectors saw increased demand. Post-pandemic recovery has been steady, driven by the resurgence of industrial activities and a growing focus on processed and convenience foods.
- The Ukraine crisis has disrupted global supply chains, leading to increased corn prices and raw material costs for India's corn starch market. This has strained production and profitability for manufacturers. Additionally, heightened geopolitical tensions have resulted in logistical challenges, further impacting import-export dynamics. Despite these hurdles, India's domestic corn production and government support measures are helping to mitigate the adverse effects on the market.
Key Takeaways:
Native Corn Starch Type is Leading the Market
Native Corn Starch type accounted for the largest share in 2023 and is estimated to reach $1,741.2 million by 2030. In the Indian corn starch market, native corn starch holds a dominant position, commanding the largest market share. This prominence is attributed to its extensive utilization across various industries due to its natural properties and cost-effectiveness. Native corn starch is favored in the food and beverage sector as a thickening and stabilizing agent, enhancing the texture and consistency of products. Its applications extend to the textile industry for fabric sizing and finishing, and to the paper industry as a surface coating and adhesive component. The pharmaceutical sector also relies on native corn starch as an excipient in tablet formulations. The versatility, affordability, and wide availability of native corn starch underpin its leading market share in India's corn starch market.
Pharmaceuticals to Register Highest Growth
Pharmaceuticals segment is analyzed to grow with the highest CAGR 6.9% in the India Corn Starch Market during the forecast period 2024-2030. Corn starch is essential in pharmaceutical formulations, acting as a disintegrant, binder, and filler in tablet production. Its role in ensuring proper tablet dissolution and bioavailability is critical for effective medication delivery. The growth is propelled by rising healthcare awareness, expanding pharmaceutical manufacturing capabilities, and increased investment in research and development. India's drugs and pharmaceuticals industry received US$21.22 billion in FDI equity inflows from April 2000 to December 2022, accounting for nearly 3% of total FDI across all sectors. Additionally, the trend towards more natural and cost-effective excipients further boosts the demand for corn starch in the pharmaceutical industry, solidifying its rapid market expansion.
Growing Demand from Food & Beverage Industry is Driving the Market Growth.
One of the major drivers of the India corn starch market is the burgeoning food and beverage industry. With an increasing urban population, rising disposable incomes, and changing consumer lifestyles, there is a heightened demand for processed and convenience foods. According to India Brand Equity Foundation, India's food processing business is one of the world's largest, with revenues estimated to reach $535 billion by 2025-26. Corn starch, used extensively as a thickener, stabilizer, and emulsifier, is integral in the production of sauces, soups, bakery items, and confectionery products. Its ability to enhance texture, improve shelf life, and maintain consistency makes it indispensable for food manufacturers. Moreover, the trend towards ready-to-eat meals and the expansion of the fast-food sector further amplifies its demand, positioning the food and beverage industry as a key growth catalyst for the corn starch market in India.
Fluctuating Raw Material Prices is a Major Challenge
A major challenge facing the India corn starch market is the fluctuation in raw material prices. Corn, the primary raw material for corn starch production, is subject to price volatility due to factors such as seasonal variations, weather conditions, and geopolitical events. For instance, adverse weather can significantly reduce crop yields, driving up prices. Additionally, global market trends and demand-supply dynamics influence raw material prices. Maize, which has diverse applications beyond starch production, such as animal feed and biofuel, further intensifying competition and price instability. These fluctuations create challenges for starch manufacturers in forecasting costs, managing inventory, and setting competitive prices, ultimately impacting profitability and hindering market growth. According to Professor Jayashankar Telangana State Agricultural University, Maize Outlook December 2022 report, maize prices increased in November 2022 compared to October 2022 due to lower arrivals from the previous year. In November 2022, the average monthly loose price for Kharif Maize at the Gulabbagh benchmark market was US$ 29.6 per quintal. The price of loose maize in Devangere, Karnataka increased to US$ 26.5 per quintal from US$ 25.9 in October 2022. Such type of price fluctuations is impeding the starch market growth. To mitigate this challenge, companies must implement strategic sourcing, diversify suppliers, and adopt advanced agricultural practices, but these measures often entail additional investment and complexity.
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Key Market Players:
Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the India Corn Starch Market. The top 10 companies in this industry are listed below:
- Gujarat Ambuja Exports
- Roquette India Private Limited
- The Sukhjit Starch & Chemicals Ltd.
- Bluecraft Agro
- Sayaji Industries
- Gulshan Polyols Ltd.
- Sanstar
- Universal Starch-Chem Allied
- HL Agro
- Tirupati Starch & Chemicals Ltd.
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