SOURCE: MarketResearch.com

MarketResearch.com

October 04, 2010 08:08 ET

China & India to Become Key Growth Regions for the Modified Starch Market

ROCKVILLE, MD--(Marketwire - October 4, 2010) -  MarketResearch.com has announced the addition of S. K. Patil and Associates' new report "Global Modified Starch Products & Carbohydrates Functional Foods, Derivatives & Markets -- A Strategic Review," to their collection of Agriculture market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2793839

Modified starch remains a very attractive area due to high margins and many universal food and industrial applications. There are excellent opportunities to grow the business in view of changes in the health, nutritional and functional needs of the changing consumer appetite as we move forward in the global economies.

According to the reports by USDA and EU commission, total utilization of starch, sweeteners and their derivatives including ethanol from dry starch from corn, wheat, potato and cassava in the world in 2009 is estimated at 67 million tons and 68 million tons forecasted for 2010.

The report found annualized growth of 2-3% and China/India added positively to this growth in view of slowdown in the US and EU. This is slow compared to growth of starch (from wet milling) usage for ethanol. Whereas the US grew by ~2%/year, EU at ~2%, and Japan at 1-2%, in China and India the growth is strong, expected to be 4-5%; the rest of the world grows at 3-4%.

Both the US and EU will have to compete for this growth in China, India and other regions. There are only a few starch processors left in the US; the major processors from the US, ADM and Cargill are positioning themselves in EU and Asia. A recent announcement agreement between CPI (Corn Products Int.) and National that CPI will acquire National's food portfolio gives CPI an excellent position in modified starches worldwide.

Cassava in SE and S Asia, South America and Africa will become more dominant starch commodity as more production technology is deployed. Cassava is 7.5 % of world starch and this figure will rise as China, India, South America and SE Asia continue to improve their production economics.

For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2793839

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