INDONESIA INDUSTRIAL STARCH MARKET REPORT

KEY FINDINGS

• The Indonesia Industrial Starch Market is projected to grow at a CAGR of 5.2% from 2024 to 2030, driven by increasing demand in the food and beverage sector.

• The growing utilization of starch in paper and packaging industries is a key driver for market growth, with the packaging industry alone accounting for 25% of starch consumption.

• One of the major trends is the shift towards bio-based and eco-friendly starch alternatives, particularly as environmental regulations tighten.

• Key challenges include volatile raw material prices, particularly in cassava and corn, which account for over 65% of starch production in Indonesia.

• Technological advancements, such as enzymatic starch modification, are enhancing the efficiency and quality of starch products, making them more competitive in global markets.

• The food industry dominates the market, contributing over 50% of the total starch demand, with applications in bakery, confectionery, and processed foods.

• Future trends suggest a growing interest in specialty starches for pharmaceutical and cosmetics applications, creating new investment opportunities.

• Rising disposable income and urbanization in Indonesia are expected to further boost starch demand in packaged foods and beverages, projected to grow by 6.1% annually.

• The industrial starch market faces a significant challenge in meeting sustainability goals due to the energy-intensive nature of production processes.

• Investment opportunities are emerging in starch-based biodegradable plastics, especially as global plastic bans drive the demand for sustainable packaging solutions.

INDONESIA INDUSTRIAL STARCH MARKET OVERVIEW

The Indonesia Industrial Starch Market has witnessed steady growth over the past decade, largely due to the increasing demand from the food and beverage, textile, and paper industries. Starch, primarily derived from cassava, corn, and sago, is extensively used as a thickener, stabilizer, and binder in various industrial processes. Government initiatives promoting local production have also contributed to market growth, making Indonesia one of the leading starch producers in Southeast Asia.

Technological advancements are transforming the starch industry, with innovations in enzymatic modification improving the quality and functionality of starches. This has opened up opportunities in the pharmaceutical and biodegradable plastics sectors. However, the market faces challenges such as fluctuating raw material prices and the need for sustainable production practices. With increasing environmental concerns, companies are focusing on producing eco-friendly and bio-based starch alternatives.

INTRODUCTION TO INDONESIA INDUSTRIAL STARCH MARKET

The Indonesia Industrial Starch Market refers to the production, distribution, and use of starch in various industries, such as food and beverage, paper, textiles, and pharmaceuticals. Industrial starch, sourced from crops like cassava and corn, is a key ingredient due to its binding, thickening, and stabilizing properties.

There are several types of industrial starches available in the market, including native starch, modified starch, and specialty starch. Native starches are unprocessed and extracted from plants, while modified starches undergo chemical or enzymatic processes to enhance their functionality. Specialty starches are tailored for specific applications, such as biodegradable plastics or pharmaceuticals.

Industrial starch is widely used across multiple sectors. In the food industry, it is essential in baked goods, snacks, and sauces. In the paper industry, it improves paper strength and quality. In textiles, starch is used for sizing and finishing fabrics. Its versatility makes it a critical component in various industrial processes.

While industrial starch offers numerous benefits, including cost-effectiveness and versatility, there are challenges. The volatility in raw material prices and the environmental impact of starch production are major concerns. However, the growing demand for sustainable, bio-based products is pushing the industry toward greener solutions.

INDONESIA INDUSTRIAL STARCH MARKET SIZE AND FORECAST

The Indonesia Industrial Starch Market was valued at USD 1.2 billion in 2023 and is expected to reach USD 1.8 billion by 2030, growing at a CAGR of 5.2%. This growth is primarily driven by rising demand from the food and beverage industry, as well as increasing applications in biodegradable plastics. The rapid urbanization in Indonesia, coupled with increased consumption of processed foods, will continue to boost market demand. Future projections indicate that the paper and packaging sectors will also see significant growth, with starch consumption expected to rise by 4.8% annually in these industries.

INDONESIA INDUSTRIAL STARCH MARKET TRENDS

Technological advancements, such as the development of enzymatically modified starch, are enhancing the performance and efficiency of starch products. This has led to increased adoption in various high-performance applications, such as biodegradable packaging and pharmaceuticals. Additionally, the shift toward bio-based starches is in line with global sustainability trends, offering new avenues for growth.

The rising consumer preference for plant-based and organic products is another trend influencing the starch market. This is particularly noticeable in the food and beverage industry, where demand for clean-label products is growing. Regulatory pressures to reduce plastic waste are also encouraging the development of starch-based biodegradable plastics.

NEW PRODUCT DEVELOPMENT

• BioStarch-Plus -BioStarch-Plus is a modified starch developed by PT Indostarch, designed for use in biodegradable plastics. This eco-friendly product reduces reliance on petrochemical-based plastics, meeting sustainability targets. It has already gained traction in the packaging industry, and analysts believe it will drive growth in bio-plastics over the next five years.
• EcoThick 45 -Launched by Jakarta BioProducts, EcoThick 45 is a high-performance thickening agent for the food industry. It offers improved viscosity and heat resistance, making it ideal for sauces and soups. This product is expected to capture a significant share of the food starch market due to its superior functionality.
• PharmaStarch Q -PharmaStarch Q, developed by IndoPharma Starch, is tailored for pharmaceutical applications, offering enhanced stability in drug formulations. This specialty starch is poised to become a key ingredient in the growing pharmaceutical sector, driven by the need for high-quality excipients.
• Textura Starch-10 -This product, designed for the textile industry, provides superior fabric stiffness and smoothness. Produced by IndoTex Co., Textura Starch-10 is expected to dominate the textile starch market, especially in export-driven regions of Indonesia.
• GreenStarch X-A bio-based starch product by GreenBioTech, GreenStarch X targets the eco-friendly packaging market. With its biodegradable properties, it is set to capitalize on the global shift towards sustainable packaging solutions.

INDONESIA INDUSTRIAL STARCH MARKET SEGMENTATION

By Source:

• Cassava
• Corn
• Sago
• Others

By Application:

• Food & Beverage
• Paper & Packaging
• Textile
• Pharmaceutical

By Type:

• Native Starch
• Modified Starch
• Specialty Starch

By End-User:

• Industrial
• Retail
• Institutional

TOP PLAYERS IN INDONESIA INDUSTRIAL STARCH MARKET

1. PT Budi Starch & Sweetener
2. PT Sorini Agro Asia Corporindo
3. PT Tereos FKS Indonesia
4. Archer Daniels Midland (ADM)
5. Cargill Indonesia
6. Roquette Asia Pacific
7. PT. Bumi Sari Prima
8. Tate & Lyle Indonesia
9. PT Sinar Unigrain Indonesia
10. Ingredion Incorporated

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What are the key drivers behind the growth of the Indonesia Industrial Starch Market?
2. What are the major challenges faced by the industry?
3. How is the market segmented, and what are the leading segments?
4. Which industries consume the most starch in Indonesia?
5. What are the most recent innovations in the industrial starch market?
6. How is the regulatory environment shaping the market?
7. What are the key sustainability trends impacting the market?
8. What investment opportunities exist in the market?
9. How is technology influencing the production of starch?
10. Which companies are the key players, and what are their market shares?
11. What is the forecasted market growth rate through 2030?
12. What role does Indonesia play in the global starch market?