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S. K. Patil and Associates
Modified Starch Products, Derivatives &
Markets – A Strategic Review - 2015
By: S K Patil & Associates, Inc.
March 2015
Confidential
Do Not Copy or Distribute
Disclaimer: Although the information and data contained in this report
have been produced and processed from sources (including the
originator of this report) believed to be reliable, no warranty, expressed
or implied, is made regarding accuracy, completeness, legality or
usefulness of any information contained herein
1403 Coventry Lane, Munster, IN 46321
(219) 922-1033 Cell 574 210-5876
sakharam@skpatilassociates.com
sakharam@sbcglobal.net
www.skpatilassociates.com
1
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MODIFIED STARCH PRODUCTS DERIVATIVES & MARKETS – A STRATEGIC
REVIEW MARCH 2015
TABLE OF CONTENTS
I.
INTRODUCTION .................................................... ERROR! BOOKMARK NOT DEFINED.
A. REPORT DESCRIPTION ................................................. ERROR! BOOKMARK NOT DEFINED.
B. MARKETS COVERED .................................................... ERROR! BOOKMARK NOT DEFINED.
C. ASSUMPTIONS ............................................................. ERROR! BOOKMARK NOT DEFINED.
II.
EXECUTIVE SUMMARY ........................................ ERROR! BOOKMARK NOT DEFINED.
III. STARCH A BRIEF REVIEW OF STARCH CHEMISTRYERROR! BOOKMARK NOT DEFINED.
A. STARCH EXTRACTION PROCESS A BRIEF REVIEW ............. ERROR! BOOKMARK NOT DEFINED.
B. STARCH CHEMISTRY (BRIEF) ......................................... ERROR! BOOKMARK NOT DEFINED.
IV. STARCH & MODIFIED STARCH ............................ ERROR! BOOKMARK NOT DEFINED.
A. WHY USE STARCH? AND WHY MODIFY STARCH? ............. ERROR! BOOKMARK NOT DEFINED.
B. SELECTED STARCH MODIFICATIONS ............................... ERROR! BOOKMARK NOT DEFINED.
C. ADDITIONAL NEW PRODUCTS FROM STARCH PROCESSING INDUSTRYERROR! BOOKMARK NOT DEFINED.
D. CROSS-LINKING ........................................................... ERROR! BOOKMARK NOT DEFINED.
E. ESTERIFICATION – HYDXYPROPYLATION ......................... ERROR! BOOKMARK NOT DEFINED.
F. VISCOSITY MEASUREMENT TO DETERMINE EFFECTS OF CHEMICAL MODIFICATIONSERROR! BOOKMARK NOT
V. REVIEW OF FUNCTIONS AND APPLICATIONS ... ERROR! BOOKMARK NOT DEFINED.
A. FUNCTIONS OF UNMODIFIED AND MODIFIED STARCHES IN FOODS A BRIEF REVIEWERROR! BOOKMARK NOT
B. FUNCTIONS OF UNMODIFIED AND MODIFIED STARCHES IN INDUSTRIAL APPLICATIONS A
BRIEF REVIEW ................................................................... ERROR! BOOKMARK NOT DEFINED.
C. STARCHES IN PAPER AND PAPER BOARD, USA A BRIEF REVIEWERROR! BOOKMARK NOT DEFINED.
VI. GLOBAL & US MARKETS OVERVIEW .................. ERROR! BOOKMARK NOT DEFINED.
A. GLOBAL MARKET SITUATION AND SIZE ............................ ERROR! BOOKMARK NOT DEFINED.
B. STARCH UTILIZATION BY FOOD AND INDUSTRIAL MARKET SECTORSERROR! BOOKMARK NOT DEFINED.
C. US MARKET SIZE ......................................................... ERROR! BOOKMARK NOT DEFINED.
D. BRIEF SNAP SHOT OF US MARKET SITUATION STARCH DERIVED PRODUCTS FROM CWM
INDUSTRY ......................................................................... ERROR! BOOKMARK NOT DEFINED.
E. MARKET SHARE ANALYSIS – US PLAYERS ...................... ERROR! BOOKMARK NOT DEFINED.
VII. FUTURE WET MILL CAPACITY PERSPECTIVE, ANTICIPATED STARTUP DATE FOR NEW
CAPACITY, PRODUCT MIX. .................................................. ERROR! BOOKMARK NOT DEFINED.
A. CAPACITY UTILIZATION ISSUES - CARBOHYDRATE REFINING OPTIONSERROR! BOOKMARK NOT DEFINED.
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B. FUTURE WET MILLING CAPACITY PERSPECTIVE BASED ON PRIMARY AS WELL AS
SECONDARY SOURCES AND OUR INSIGHTS COMBINED WITH BI (BUSINESS INTELLIGENCE).ERROR! BOOKMAR
C. NEW POTENTIAL CAPACITY ........................................... ERROR! BOOKMARK NOT DEFINED.
D. POTENTIAL CHANGES AND MARKET LEVERS .................... ERROR! BOOKMARK NOT DEFINED.
E. OPPORTUNITIES AND MARKET OUTLOOK ......................... ERROR! BOOKMARK NOT DEFINED.
VIII. MODIFIED FOOD STARCH & MARKET SEGMENTSERROR! BOOKMARK NOT DEFINED.
A. FOOD SEGMENT NEEDS & DESIRABLE PROPERTIES ......... ERROR! BOOKMARK NOT DEFINED.
IX. WAXY STARCH CHARACTERIATICS & MARKETS ............................................... 4
X. MODIFIED STARCHES BY APPLICATIONS AND FOOD & INDUSTRIAL
MARKET SEGMENTS .................................................................................................... 5
A. MODIFIED STARCH VOLUMES IN KEY FOOD AND INDUSTRIAL SEGMENTS – US & GLOBAL ...... 5
B. MODIFIED STARCH DATA BY SEGMENT: VOLUME, VALUE, MARGINS AND FUNCTIONS FOR
SEGMENTS ....................................................................... ERROR! BOOKMARK NOT DEFINED.
C. NEW PRODUCTS .......................................................... ERROR! BOOKMARK NOT DEFINED.
D. INDUSTRIAL STARCHES – GLOBAL BY MAJOR SEGMENTS .. ERROR! BOOKMARK NOT DEFINED.
XI. RESISTANT STARCH - INGREDIENT SITUATIONERROR! BOOKMARK NOT DEFINED.
A. INTRODUCTION ............................................................ ERROR! BOOKMARK NOT DEFINED.
B. DEFINITION .................................................................. ERROR! BOOKMARK NOT DEFINED.
C. RESISTANT STARCH – PROPERTIES ............................... ERROR! BOOKMARK NOT DEFINED.
D. RESISTANT STARCH APPLICATIONS AND PROCESSING ISSUEERROR! BOOKMARK NOT DEFINED.
F. RS & SDS PATENTS .................................................... ERROR! BOOKMARK NOT DEFINED.
XI. STARCH PRODUCTS OPPORTUNITIES .............. ERROR! BOOKMARK NOT DEFINED.
A. STARCH PRODUCTS AND DEVELOPMENTS...................... ERROR! BOOKMARK NOT DEFINED.
B. BIOTECHNOLOGY (MODIFIED STARCHES, EFFECT ON YIELD AND PRODUCTION COSTS)ERROR! BOOKMARK
C. POTENTIAL OPPORTUNITIES FOR DEVELOPMENT USING BIOTECHNOLOGYERROR! BOOKMARK NOT DEFINED
D. HIGHER-VALUE STARCH PRODUCTS ............................... ERROR! BOOKMARK NOT DEFINED.
XII. SELECTED STARCH RESEARCH/TECHNOLOGY PUBLICATIONS AND
PATENTS ....................................................................... ERROR! BOOKMARK NOT DEFINED.
A. STARCH & MODIFIED STARCH SELECTED RESEARCH PAPERSERROR! BOOKMARK NOT DEFINED.
B. MODIFIED STARCH SELECTED PATENTS, 2003 TO 2011 . ERROR! BOOKMARK NOT DEFINED.
XIII. SUMMARY ............................................................. ERROR! BOOKMARK NOT DEFINED.
XIV. REFERENCES ....................................................... ERROR! BOOKMARK NOT DEFINED.
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Abstract
This expanded 2015 report has comprehensive information on various modified starches, market
segments along with review of modified starches manufactured worldwide. This report has new
chapters on Future Wet Mill Capacity and New Starch Capacity Perspective (chapter VII) and a brand
new addition (chapter IX) Waxy Starch Characteristics and Perspective. There is also information on
the modified starch manufacturers in the US, their market share along with the prices. Report provides
details of modifications, applications and markets worldwide. We have provided critical data on the
modified starches by applications and market segments. Modified starch and other derivatives are key
drivers of profitability of major starch players engaged in modified starches. Description of the
capabilities of each US manufactures along with their position in the market is very useful. Global list of
modified starch manufacturers is also provided.
Besides new chapters VII and IX; chapter VI is now enhanced to include modified starch distribution by
modification. Chapter is an enhanced breakdown of present global perspective and market segment
breakdown by food and industrial markets. Several additional data is also provided including market
share of all US players. The position of specialty and commodity starches along with margin effects on
the starch players in the US.
Global markets food and industrial markets are much diversified and there is further fragmentation
within each market sectors. This is also complicated by the fact of food and industrial preferences that
are regional and the industrial practices, products preferences by consumer require that these products
are tailored to fulfill the functional needs. As this recession ends and it will; the opportunities for starch
processing industry going forward remain very bright in view of strong growth of developing economies
and rising population with higher incomes and demands on many food and industrial products. 2013/14
has been good year for all industries including starch derivatives and modified starches. Record corn
crop enhanced margins due to low corn costs and very little new capacity.
Modified starches are utilized in hundreds or even thousands of food, industrial, biofuels, bioplastic
applications. Unmodified starches have limited usage die to its inherent weakness of hydration, swelling
and structural organization. To enhance viscosity, texture, stability among many desired functional
properties desired for many food and industrial applications, starch and their derivatives are modified by
chemical, physical and biotechnology means. Practically every category of food utilizes the functional
properties of starch to impart some important aspect of the final product. Unmodified starches have
limited usage due to its inherent weakness of hydration, swelling and structural organization. To
enhance viscosity, texture, stability among many desired functional properties desired for many food
and industrial applications, starch and their derivatives are modified by chemical, physical and
biotechnology means.
Report provides excellent detail analysis of food and industrial market segment s and distribution of
how the utilization remains dynamic depending on consumer and processing industry segments. There
is more information to clearly understand the total picture of modified starch derivatives markets and the
industry domain. Value added opportunities of modified starches and their multiple derivatives along
with the contribution of biotechnology remain very bright going forward.
Examples of selected chapters:
IX.
WAXY STARCH CHARACTERIATICS & MARKETS
This chapter is a presentation of waxy corn, waxy starches and waxy maltodextrins in the US.
A. Waxy maize corn key points:

Waxy corn is different from typical dent corn because it contains 98-100% amylopectin starch
versus 75% in commodity corn. Elite yellow dent hybrids are converted through traditional
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breeding methods to waxy corn hybrids. Most of the waxy corn acreage is yellow waxy with a
small amount that is white waxy. Newer waxy hybrids are reported to be more competitive with
dents in yield.

The market has been is relatively stable and currently stands at approximately 500,000 acres
(202,000 hectares).

Waxy maize is grown under contract. 2014 waxy corn grower received premiums of
$0.35 per bushel ($5.90 - $11.81 per MT.)

The majority of the contracted acres are located near U.S. domestic processing facilities unless
the grain is destined for the export market.

A few major companies dominate the starch production for food and industrial uses.

Most waxy corn production occurred in Indiana near Hammond, Lafayette, Indianapolis and
Madison. Production also occurred in central Illinois, Kansas City to northwest Missouri,
southwest Iowa and eastern Iowa, southern Minnesota, southern Michigan and a little in
Nebraska, Ohio and Kentucky.
$0.30 –
Figure 35: Modified waxy by modification (mainly for food except cationic), USA 2014
Table 22: Examples of certain food modified searches in food segments, does not include all modified
starches
USA Food Modified Waxy Starch Volumes and Estimate Price – 2014
USA Food Modified Waxy Starch Volumes and Estimate Price – 2014
Application/Segments
Products by
Modification
Volumes
Global **
(mm lbs)
(mm lbs)
Prices Est.
USA
Growth
(avg. $/cwt)
USA *
X.
MODIFIED STARCHES BY APPLICATIONS AND FOOD & INDUSTRIAL MARKET
SEGMENTS
A. Modified starch volumes in key food and industrial segments – US & global
Tables 21 & 22 in the following pages include information (volume, margins, growth, etc.) on Modified
Starch information. The information (volume, margins, growth, etc.) on Modified Starch is estimated
from the sources: CRA, USDA-ERS and Census Bureau Shipment report, and market shares of major
consumer products companies such as GM, Sara Lee, Kraft, etc. During the period 2010 thru 2012 we
estimated the market of 35% for US, 35 % for EU and 30% for Asia and ROW (rest of the world).
During 2013/2014 we have now revised these values to be 30 % for US, 30 % for EU and ~ 40 % for
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ROW (rest of world) because of strong growth in the BRIC countries and the remaining rejoins that are
growing ~ 4 to 5 % annually as the income rise and the demands for process foods rise. We also
utilized individual regions trade and public reports using our search capabilities. The slowdown in 2012
is expected to reduce the growth in China to ~ 4- 5 % compared to 5 – 6 % during previous 5 yrs.
Table 1: Examples of certain food modified searches, does not include all modified starches, 2014
estimates
USA Food Modified Starch Volumes and Estimate Price – 2014
Products by
Modification
Application/Segments
Volumes
Global **
(mm lbs)
(mm lbs)
Prices Est.
USA
Growth
(avg. $/cwt)
USA *
Table 27: Modified food starch volumes aggregate of Table 22 to 29 selected segments, includes corn,
wheat, potato and tapioca
Table 21 A: Modified food starch volumes aggregate of Table 22 to 29 selected segments, includes
corn, wheat, potato and tapioca
USA Food Modified Starch Volumes and Estimate Price – 2014
Products by
Modification
Application/Segments
Volumes
Global **
(mm lbs)
(mm lbs)
Prices
Est. USA
(avg.
$/cwt)
USA *
Table 2: Modified Starch Bakery Segment Global 2013/14
(US 30%, EU 30%, Asia, ROW 40%) Waxy -30%; Wheat - 30%; Potato 20%; Tapioca - 20%. 2013/14
estimates Starch Function in Blue
Market
Segment
Market
size
Size in
GPM*
Gro
wth**
%
Mm $
%
Mm lbs
Unmet needs
Prod.
Barrier
Players
Geography
Frag
ment
ation
To
Suppliers
Food
Entry
Vol.
Includes pre gels
in certain
segments
For
&$
Starch
Manufacturer
s
7
Bakery -Total
675
385
50
3-4
(Starch Function:
Moist. Control
High fiber, low
Cal, shelf
stability,
wholegrain
microwave
Very
high
Quality,
Texture, control
moist migration
Shelf stability
to high
National,
Cargill,
Staley/
Global
players with
many small
Benefit
Amylum,
local players
And cost
Roquette
driven
Avebe,
Low
Visc. Clarity
CPI
Taste, texture
Other
Gelatinization T)
Table 3: USA - Modified Corn Starches in Bakery Segment US
75% waxy, 2013/14 estimate
Market
Segment
Market
size
Size in
GPM
Grow
th *
Unmet needs
%
Mm $
%
Prod.
Barrier
Players
Geography
Fragme
ntation
To
Suppliers
Food
Mm lbs
Manufactur
ers 1
Entry
Vol.
Includes
pre gel
For
&$
Starch
Bakery -Total
225
150
50
Functions:
Same as
Table 4
S K PATIL & ASSOCIATES, INC.
MUNSTER, IN 46321
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2-3
High fiber, low
Cal., shelf
stability,
microwavable
Very
high
Improve.
Texture, control
moist migration
Low
to high
National,
Cargill,
Staley/Amy
lum,
Penford
Roquette
Avebe, CPI
other
March 2015
Global
players
with many
small
local
players
8
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