Market Scenario 

Asia Pacific cassava starch market was valued at US$ 1,965.2 million in 2023 and is projected to hit the market valuation of US$ 3,357.0 million by 2032 at a CAGR of 6.35% during the forecast period 2024–2032.

Primary factor propelling growth of cassava starch in the Asia-Pacific region is its use in various industries like food and beverage, textiles, pharmaceuticals and biofuels. Cassava starch is becoming increasingly popular as a wheat or corn starch substitute for those looking to avoid gluten within the food and drink sector. This trend is particularly prevalent throughout areas such as the Asia-Pacific where around 10 million people suffer from gluten intolerance or celiac disease as at 2024. The food and beverage industry in Asia-Pacific, which consumes roughly 25 million metric tons of starch, make its use to offer unique texture and viscosity properties.

The Asia Pacific textile market generated a revenue of over US$700 billion, thus contributing to the soaring requirement of cassava starch market. Textile production giants such as India, Vietnam, and China use cassava starch mainly for textile sizing and finishing as it offers better stickiness. The consumption of cassava starch has equally grown with expanding textile sector in these countries. This notwithstanding, pharmaceutical industry worth about US$400 billion in Asia Pacific uses it as a stabilizer and binder in making tablets. Demand for this product has also been fueled by growth in health consciousness as well as healthcare infrastructure development especially within Japan and South Korea.

In 2024, the biofuel industry is expected to produce 80 billion liters of biofuels in the Asia-Pacific region by using cassava starch as a feedstock for bioethanol production. This is because cassava-based bioethanol is considered to be a feasible and sustainable substitute for fossil fuels, which coincides with the area’s goal of adopting renewable energy sources. According to International Energy Agency (IEA) forecasts, countries in the Asia Pacific cassava starch market will be producing 100 billion liters of bioethanol by 2030. Wherein, Cassava Starch will contribute largely towards the production rise. 

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Market Dynamics 

Driver: Booming Demand for Cassava Starch Across Several Industries 

The versatile applications of cassava starch in the Asia-Pacific region such as food and beverage, textiles, paper, pharmaceuticals are responsible for its unprecedented growth in the cassava starch market. This was mainly driven by the food and beverages sector which accounted for 34.72% only considering that people consume more processed foods where it is used widely as an ingredient. This demand has also been stimulated by wealthier consumers who have spent about 7.2% more over last year alone on goods within this area.

In 2023, cassava starch accounted for 18% of the market demand in the textile industry. They can also serve as adhesives in paper making, which occupies 12% market share. Its role as a binder and disintegrant in tablets led to a growth rate of 4% among pharmaceutical companies this year employing them. Thailand is one such country that produces it; together with Vietnam and Indonesia they make up two-thirds (65%) of regional production output by volume as at 2023. For these three nations alone, exports were worth $2.,9bn during this same period showing an increase from last year’s figure by 6.3%.

Trend: The Rise of Clean Label Products

The clean label movement has become extremely popular throughout the Asia-Pacific cassava starch market and this is changing the demand for cassava starch. People want goods that have natural components which are easy to identify as they are said to be healthier than artificial ones hence prompting manufacturers to change how they make these items. In terms of percentages; among all newly launched food and beverage products in 2023 under a clean label claim were about 55%. This organic allergen-free ingredient fits perfectly well into such criteria where its use within clean labeling increased by 7% in 2023. The market value for clean labels ingredients used in Asia Pacific was estimated at $4,300 million during 2023 and is projected to keep growing at a CAGR of around 6% from 2024 till 2032.

Health-conscious consumers are driving this trend, with 68% of consumers in the region expressing a preference for products with no artificial additives. The demand for gluten-free products, where cassava starch is a key ingredient, surged by 8.4% in 2023. In the baby food segment, the inclusion of cassava starch in formulations increased by 6.7%, reflecting parents' preference for natural ingredients. The cosmetic industry also saw a 5.9% increase in the use of cassava starch in clean label products. Additionally, the clean label trend has led to a 4.2% rise in the adoption of cassava starch in meat alternatives and plant-based products.

Challenge: Supply Chain Disruptions is A Major Challenge for the Cassava Starch Market in Asia-Pacific

In APAC, the cassava starch market is experiencing hard times amid soaring consumption. The supply chain disruptions are to blame for this situation. These challenges were worsened by COVID-19 which led to a 12% decrease in cassava production in 2021. However, the market witnessed some recovery as evidenced by a 3% rise in 2023. However, the transport system remains delicate because logistics costs have gone up by 7%, mainly due to congestions at ports of major producing countries such as Thailand and Vietnam. In addition, delays in shipping were experienced by 45% exporters of cassava starch which affected timely delivery of goods in key markets.

Climate change is also a very important cause of disruption in the supply chain. Erratic weather patterns that could not be foretold have affected the cultivation of cassava thereby reducing its productivity by 9% per hectare within the previous year. It has been observed that pest infestations now happen more often than before. This has resulted into 15% of Indonesian farms growing Cassava reporting severe damage to their crops in 2023 alone. Agricultural inputs have become expensive following a 6.8% increase in their prices last year, which has further strained an already stressed supply chain. With this information, it is only right to say that some manufacturers producing starch from Cassava must invest about 30% more into advanced farming methods as an attempt towards overcoming these challenges. Moreover, 4.5% rise in cost of raw materials cannot be ignored as it leaves direct impact on profit margins and poses great difficulties for growth within cassava starch market in Asia Pacific region.

Segmental Analysis 

By Product Type 

Based on product type, Asia-Pacific region is dominated by native cassava starch which contributes to 42.80% of the total market. Culturally, economically and industrially, this can be attributed to a number of factors. It is used as an ingredient in many traditional Asian dishes including noodles, dumplings and desserts among others thereby making it a dietary staple product. Cassava starch’s affordability and flexibility also makes it most preferred thickening agent for both domestic and industrial cooking purposes thus solidifying its wide usage. Additionally, the agricultural setting in some parts of Asia-Pacific particularly Thailand and Vietnam support large scale cassava farming hence ensuring constant availability of raw materials for starch manufacturing industries. Since 2024 when Thailand alone produced more than 30 million metric tons yearly, this advantage has been further enhanced. This is due to the realization that there are vast areas within this region where cassavas can be grown on commercial basis with ease.

The main force behind the need of native cassava starch in the cassava starch market is its use in other fields than food such as textiles, paper and adhesives. For example, Chinese and Indian economies highly depend on textile industries for their growth hence they use a lot of starch from cassavas in finishing fabrics and sizing materials. Also, paper companies require this kind of starch because it adds value to papers through coating them or treating their surfaces so as to improve quality. Equally important is adhesive enterprises which base their production on eco-friendly products made from natural cassava starches mainly found in Malaysia and Indonesia among others. 

It can be dominated by economic scalability as well as multifunctional attributes native to it being derived out from a plant called manioc; these properties are very important during dominant times. More than 50,000 SMEs scattered all over Asia Pacific region have incorporated this product into their production processes. Thus, it is making demand still high even though over 10 million tons worth of goods gets exported yearly from that part alone. This widespread use highlights the role played by locally produced tapioca flour in Asia-Pacific's economy and culture.

By Nature 

Based on Nature, In the Asia Pacific cassava starch market, the conventional segment accounts for 87.28% market share. This is due to its wide range of usage in different sectors and low cost compared to other types of starches. In 2023, the Asia-Pacific region, led by countries such as Thailand, Vietnam, and Indonesia, remains the world's largest producer and consumer of cassava starch. As a thickening agent, stabilizer or texturizer in food industries alone can push demand for cassava starch as they use it more frequently than any other sector. As a thickener, stabilizer and texturizer used by the food industry, cassava starch is driven by this sector. Noodles, snacks and confectioneries require cassava starch in their making because of the large numbers of people living in this area with different cooking cultures. Moreover, sizing and coating agents used in textile mills as well as paper factories depend highly on cassava starch hence consuming it greatly too. For example; only Thailand produces about 30 million tons per year where most part is allocated for making starch.

Asia-Pacific’s mounting bioethanol industry is one more reason why there’s an increased need for natural conventional cassava starch market. With the growing concerns about the environment, many people have started using renewable energy sources such as bioethanol. In 2023 alone, China and India expanded their capacities of producing bioethanol and used cassava starch as a raw material for this purpose. Another sector that greatly contributes towards this trend is pharmaceuticals where drugs are formulated using cassava starch as an excipient or binder.

By Application 

By application, Food and Beverages segment is leading the Asia Pacific cassava starch market with revenue share of over 34.72% and is also projected to keep growing at the highest CAGR of 6.85% in the years to come. Why Asia Pacific is dominated by cassava starch in the Food and Beverages industry, what makes it so versatile are its various uses as well as being cost-effective and grown widely in this region owing to agriculture. This root vegetable which is a native of South America but widely cultivated throughout Asia provides a type of corn flour used not only for cooking every day but also industrial processing foods where it serves as an essential ingredient. The need for gluten free products has led to increased utilization of tapioca flour instead of wheat flour; moreover, it does not have any taste on its own, has high viscosity levels when mixed with liquids making them stick together or thicken sauces thus acting as binders in soups among other desserts too. The convenience food sector has been fueled by an increasing middle-class population coupled with urbanization thereby leading to more ready meals consumption hence there is higher demand for cassava starch-based snacks.

Every year, Thailand cassava starch market produces more than 30 million metric tons of cassava accounting for some significant amount used in making starch. Indonesia comes second with over a million and a half hectares of land dedicated to growing the crop. Vietnam too has seen its export levels rise significantly by shipping more than two million metric tons of cassava starch each year driven mainly by Chinese and South Korean markets. China itself has been experiencing higher demand within its food and drink industry where consumption levels have risen past three million metric tons annually. This is because bubble tea business booms along with vermicelli noodles production which requires huge amounts of tapioca flour as raw material. Furthermore, the Philippines has seen a notable rise in cassava starch imports to support its growing snack food industry, with imports surpassing 500,000 metric tons annually. 

By Grade 

Based on grade, the food segment is leading cassava starch market with revenue share of over 61.9%. Numerous factors contribute to the dominance of food-grade cassava starch in the Asia Pacific region, which include cost, diet and its use in the food industry. It is a basic component for many traditional Asian dishes due to its neutrality and strong binding abilities. For instance, Vietnam, Thailand and Indonesia heavily makes noodles, bakery products and different snacks from cassava starch. In 2023, over 2 million tons of casava starch was consumed in Thailand showing how much it is important to their culture locally. Furthermore, affordability as compared with other types of starch (such as corn or potato) makes cassava a better choice for producers who want cheaper ways to make their goods.

In addition, the Asia Pacific region is currently overcrowded with over 4.7 billion people, thus creating a huge and expanding cassava starch market. Many convenience foods are consumed in this region due to its rapid urbanization and increasing disposable incomes where most of them contain cassava starch. By 2024, it is expected that the worth of processed foods market alone will exceed $1.5 trillion dollars only in Asia pacific with large numbers coming from those made up using this ingredient. Furthermore, there’s high demand for gluten free cassava starches used by food industries, which has been prompted even more as people become aware about their health conditions or adopt different diets based on need such. Demand can also be gauged through exponential increase seen within last year alone whereby value reached US$ 4.2 billion hence showing just how important food grade cassavas should sought after meet various needs of this locality.

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Country Analysis 

In 2023, China held over 22.24% revenue share of the Asia Pacific market. Several economic, industrial and agricultural factors have led to China becoming the Asia-Pacific’s largest consumer as well as producer of cassava starch market. China's massive population and growing middle class have significantly increased the demand for food products, including those derived from cassava starch, such as noodles, snacks, and confectionery items. In the last five years, the demand for Chinese cassava flour has grown by 12% per annum based on a report released by Food and Agriculture Organization (FAO) in 2023. The use of this particular starch in feedstock and bioethanol production has been instrumental in driving up its consumption rates even higher within China. Moreover, Beijing’s strategic moves towards ensuring food safety as well as sustainable farming practices have prompted greater investments into growing more cassavas which then leads to increased levels of manufacturing them too in the cassava starch market.

China has made massive investments in technology and infrastructure, which has supported its position as the market leader. It has come up with modern processing plants which are used for improving efficiency and quality during the production of cassava starch. The latest study by International Starch Institute (ISI) in 2023 showed that among all nations worldwide, China possesses one of the best technologies when it comes to processing cassava into starch; this is because they have come up with new methods for enzymatic conversion as well as extraction of starches. Furthermore, through Belt and Road Initiative, Beijing has opened up new trade routes thereby enhancing logistic systems. Hence, it is ensuring continuous supply of raw cassavas from Thailand among other neighboring countries such as Vietnam.

China’s control of the cassava starch market is driven by a strategic approach to global trade and expansion. It has positioned itself as a significant supplier of this product, serving the increasing need in various European and North American countries. As per the International Trade Centre report for 2023, China supplied 35% of all cassava starches exported worldwide which indicates that they have been able to compete well when it comes to pricing as well as production efficiency. Additionally, through more research activities coupled with development efforts; there have been realized higher yielding varieties for this crop alongside improved ways meant at boosting farming systems thereby leading into increased performance levels on average too.

Major Players in Asia Pacific Cassava Starch Market 

• ADM
• AGRANA Beteiligungs-AG
• Cargill, Incorporated.
• Chorchaiwat Industry Co., Ltd.
• Ekta International
• Global Sweeteners Holdings Ltd
• Ingredion Inc.
• KengSeng group of company
• SPAC Starch Products (India) Ltd
• Viet Delta
• Visco Starch
• Other Prominent Players

Market Segmentation Overview:

By Product Type

• Native
• Modified
• Sweetener

By Nature

• Organic
• Conventional

By Grade

• Food Grade
• Medical Grade
• Industrial Grade

By Application

• Food and Beverages
• Pharmaceuticals
• Animal Feed
• Cosmetics
• Paper
• Textiles
• Chemical
• Biodegradable Materials
• Adhesives and Glue
• Others

By Distribution Channel

• Online
• Offline
  • Direct
  • Distributors

By Country

• China
• India
• Japan
• South Korea
• Australia & New Zealand
• ASEAN
• Rest of APAC