The Sri Lankan starch and starch derivative market is projected to grow at a CAGR of 5.2% during the forecast period 2020-2025.
- The market is majorly driven by the wide range of applications it provides in different sectors such as detergents, textile, pulp and paper industries, organic synthesis, and biofuel industry, along with the food and beverage industries. The market growth is highly impacted by the growth of the processing food industry and export-import factors.
- Moreover, government support in the country has further fueled the market growth as the Sri Lankan government is supporting foreign investment, and is aiming for the country to be recognized as one of the major corn and rice starch producers in the world.
- However, high dependency on imports to fulfill the growing demand for starch and starch derivatives are restraining the market growth across the country. Thailand is one of the major exporters of modified starches to Sri Lanka, and it contributes a major share of modified starch import in Sri Lanka.
Key Market Trends
Increasing Production Rate Of Maize
The majority of starch and starch derivatives produced in Sri Lanka are derived from rice and maize. Growing production of starch derived from maize is likely to boost the export of starch derivatives, derived from maize, during the forecast period. Maize production in Sri Lanka has been witnessing a CAGR of 13.46% from the past six years and is the second-largest crop in terms of area cultivated, with the country producing approximately 200,000 metric tons of maize annually. But in case of other starches derived from other sources than maize, Sri Lanka hugely depends upon neighboring courtiers. Also, in 2017, Sri Lanka also witnessed a decline in the imports of maize and rice starch, as it has been witnessing a growth in the production of maize and rice starch from the past few years.
Acquisitive Demand of Starch & Starch Derivatives in Food & Beverage Industries
Properties of starch and starch derivatives such as higher viscosity and the associated high binding strength of the starch pastes that are used for numerous applications in processed food, such as baby food, sauces, cake mixes, etc are further driving the market in Sri Lanka. Also, with the growth in demand for processed food in Sri Lanka, native- and physically-modified starch is preferred, to absorb moisture in dry vegetables, fruit preparations, and mixed spices. Modified potato starch is used as a substitute for native corn starch in soups in Sri Lanka, as a thickening agent in soups and sauces. Maize starch is used in powder and canned soups, custard powder, instant desserts, ice cream, gravies and sauces, bakery, snacks, baby foods, and for food encapsulation. In addition, chemically-modified starch, like Alimentamyl, due to its thermal stable properties, is used as preserves, sauces, soups, freezable mayonnaises, ketchup, dairy products, fruit binding agents, frozen foods, etc.
The Sri Lanka starch and starch derivative market is competitive in nature having a large number of domestic players competing for market share. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. The key players dominate the country's market include KMC, Angel Starch & Food Pvt Ltd., Hoang Dang Processing Foodstuff Co., Ltd, Asia Fructose Co., Ltd., and Gulshan Polyols Ltd., among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support