MEXICO INDUSTRIAL STARCH MARKET REPORT

KEY FINDINGS

• The Mexico industrial starch market is valued at USD 1.8 billion in 2023 and is expected to grow at a CAGR of 5.3% from 2024 to 2030, driven by increasing demand from the food, paper, and textile industries.

• One of the key takeaways is the rising consumption of modified starch, particularly in the food and beverage sector, which accounted for nearly 40% of the market share in 2023.

• The paper and packaging industry is another major growth driver, with starch being widely used as a bonding agent. This sector is expected to grow at a CAGR of 4.5% over the forecast period.

• A significant challenge in the Mexico industrial starch market is the fluctuating raw material prices, particularly corn, which forms a large part of starch production.

• Growing awareness about clean-label products has led to increased demand for organic starch, with a forecasted growth of over 6% annually.

• The textile industry has seen increased adoption of industrial starch in fabric finishing processes, contributing 20% to the overall market demand.

• Technological advancements, such as enzymatic modification of starch, are reducing production costs and enhancing product quality, further driving market growth.

• The future trend indicates a growing shift toward biodegradable starch-based products, particularly in the packaging sector, to address environmental concerns.

• Investment opportunities are ripe in starch-based bioplastics, as industries seek sustainable alternatives to synthetic materials.

• The industrial starch market is seeing consolidation, with several key players expanding their operations through mergers and acquisitions to capture larger market shares.

MEXICO INDUSTRIAL STARCH MARKET OVERVIEW

The Mexico industrial starch market is experiencing robust growth, driven by its diverse applications across industries such as food and beverages, paper, and textiles. The demand for starch, particularly modified starch, is on the rise due to its versatility as a thickening, stabilizing, and binding agent. Key drivers include the growing food processing industry, which uses starch extensively in confectionery, dairy, and bakery products. Additionally, the paper and packaging industry is increasing its reliance on starch for its biodegradable and adhesive properties.

Technological advancements are reshaping the landscape of the industrial starch market. Enzymatic modification, for instance, is enabling producers to create high-performance starch variants that cater to specific industry needs, such as water-resistant starch for paper products. However, the market also faces challenges, including price volatility of raw materials like corn and cassava, which are the primary sources for starch production. Moreover, environmental concerns are pushing the industry toward developing eco-friendly, starch-based products, which could reshape the competitive landscape.

INTRODUCTION OF MEXICO INDUSTRIAL STARCH MARKET

The Mexico industrial starch market plays a pivotal role in the country’s industrial and manufacturing sectors. Industrial starch is derived from sources like corn, wheat, and cassava and is widely used as an additive, stabilizer, and thickener across various industries. With its growing applications, this market has emerged as a significant contributor to Mexico’s economy.

Industrial starch can be classified into various types, including native starch, modified starch, and starch derivatives. Native starch, extracted directly from raw materials, is widely used in food processing, while modified starch, which undergoes chemical or enzymatic changes, finds applications in industries such as pharmaceuticals, textiles, and paper. Starch derivatives, like glucose syrups and maltodextrin, are primarily used in the food and beverage industry.

Industrial starch is widely applied in sectors such as food, pharmaceuticals, textiles, and paper. In the food industry, it acts as a thickening and stabilizing agent. In the paper and packaging industry, it is used as a bonding agent and coating. The pharmaceutical industry uses it as a binder in tablet formulations, while in textiles, it is used in fabric finishing.

Despite its broad range of applications, the industrial starch market in Mexico faces challenges. One key benefit of starch is its renewable nature, making it an environmentally friendly option. However, its dependence on raw materials like corn leads to price fluctuations and supply chain disruptions. Additionally, modified starches face regulatory hurdles regarding food safety and labeling.

MEXICO INDUSTRIAL STARCH MARKET SIZE AND FORECAST

As of 2023, the Mexico industrial starch market is valued at USD 1.8 billion, and it is expected to grow to USD 2.7 billion by 2030, registering a CAGR of 5.3%. The food industry is the dominant end-user, contributing over 40% to the overall demand for starch, with the paper and packaging sector following closely behind. The increasing demand for biodegradable and sustainable packaging solutions is a key driver of growth, while innovations in starch modification technologies are expected to support market expansion.

MEXICO INDUSTRIAL STARCH MARKET TRENDS

The most notable trend in the Mexico industrial starch market is the increasing adoption of modified starches due to their versatility across various industries. In the food industry, clean-label and non-GMO products are gaining traction, leading to a higher demand for organic and native starch. The textile industry is also embracing starch as a sustainable alternative to synthetic chemicals in fabric finishing.

Technological advancements, such as enzymatic modification, are enhancing the functional properties of starch, making it more suitable for specific industrial applications. Moreover, the push toward eco-friendly products is creating a growing demand for starch-based biodegradable plastics, especially in the packaging sector.

NEW PRODUCT DEVELOPMENT

• StarchTech Bio-Packaging Solutions
  StarchTech recently launched a line of biodegradable packaging made from industrial starch. These products are gaining popularity due to their environmental benefits, particularly in reducing plastic waste. Analyst’s view: The increasing focus on sustainability is expected to drive demand for such eco-friendly alternatives, giving StarchTech a competitive edge in the market.
• MexiStarch Modified Food-Grade Starch
  MexiStarch introduced a modified food-grade starch that enhances the texture and shelf life of processed foods. Analyst’s view: This product caters to the growing demand for better-quality food products, positioning the company as a key player in the food processing industry.
• CassaBio Textile-Grade Starch
  CassaBio has developed a starch specifically for the textile industry, enhancing the durability and finish of fabrics. Analyst’s view: This innovation is likely to see strong adoption in the textile sector, where sustainability and performance are critical.
• CornPro Paper Adhesive Starch
  CornPro’s new starch-based adhesive for the paper industry improves bonding strength and reduces the need for synthetic chemicals. Analyst’s view: This product could reshape the paper and packaging industry, aligning with the trend of reducing synthetic material use.

MEXICO INDUSTRIAL STARCH MARKET SEGMENTATION

By Source: 

• Corn
• Wheat
• Cassava
• Potato

By Type: 

• Native Starch
• Modified Starch
• Starch Derivatives

By Application:

•  Food & Beverage
• Paper & Packaging
• Textile
• Pharmaceuticals

By End-User Industry: 

• Food Processing
• Textile Manufacturing
• Pharmaceutical
• Paper & Packaging

KEY PLAYERS IN MEXICO INDUSTRIAL STARCH MARKET

1. Ingredion
2. Cargill
3. Archer Daniels Midland (ADM)
4. Tate & Lyle
5. Roquette Frères
6. Grain Processing Corporation
7. MexiStarch
8. StarchTech
9. CassaBio
10. CornPro

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS

1. What is the current size of the Mexico industrial starch market?
2. What are the key drivers of growth in the market?
3. Which sectors contribute the most to industrial starch demand in Mexico?
4. How are technological advancements impacting the market?
5. What are the emerging trends in the starch-based bioplastics segment?
6. What challenges does the market face due to fluctuating raw material prices?
7. Which are the major players dominating the market?
8. How is the demand for clean-label products affecting the industrial starch market?
9. What are the key investment opportunities in the Mexico industrial starch market?
10. What role does modify starch play in the food processing industry?
11. How will the market grow through 2030?
12. What is the competitive landscape of the market?