Bangladesh Starch and Starch Derivative Industry

Bangladesh Starch and Starch Derivative Market Analysis

The Bangladesh Starch and Starch Derivative Market is expected to register a CAGR of 6.21% during the forecast period.

• The country's growing textile and food and beverage industry primarily drives the market. With the growth in the textile industry, the application of tapioca and maize starch is also expected to rise. Additionally, the increasing use of starch and starch derivatives in the country is fuelling the demand for modified starch.
• A wide range of applications of modified starch in the food industry drives demand for modified starch. For instance, modified starch has several functional advantages in various food products, including baked goods, snacks, beverages, and nutritional foods. Rising consumer demand for healthier food options will boost demand for modified starch during the forecast period.
• According to the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) report in 2022, 85% of the total corn produced in the country was harvested in the winter season. Also, the report estimated that about 90% of the total corn produced in the country was used to make starch and flour. Additionally, the country is importing corn and other starch products due to the rising textile and food & beverage demand.

Bangladesh Starch and Starch Derivative Market Trends

Food and Beverage is the Fastest Growing Segment

• The food processing sector in Bangladesh comprises fruits and vegetables, cereals, bakery and confectionery, pulses, oilseeds, dairy, carbonated beverages, fruit juices, and other food items. There is a significant increase in demand for all forms of ready-to-eat or convenience food and beverage products, owing to Bangladesh's increasingly busy lifestyles and rising working population. The food processing industry is expected to grow significantly and generate new opportunities for investment and exports for the country.
• The use of modified starch as a stabilizer, thickening agent, and emulsifier in manufacturing, bakery, confectionery, noodles, and other convenience food products is fuelling the demand for starch among food and beverage manufacturers in the country.
• According to the food consumption survey conducted by the Food and Agriculture Organization (FAO) in Bangladesh, young children are provided with starchy food prepared with sago, semolina, rice, and noodles. Such factors have propelled the demand for starch and starch derivatives over the recent past, thus, driving the market's growth.

Textile Industry Holds the Dominant Share

• Developing countries, like Bangladesh, are dependent on their textile industries. The textile industry forms the second-largest industry in Bangladesh, after agriculture, as it generates 75% of the employment in the country. The majority of the garment workforce includes female workers. Bangladesh is highly dependent on textiles and clothing for merchandise exports (83.5%). The consumption of starch has also increased for the printing and finishing of manufactured garments.
• For instance, tapioca starch is used in the treatment of yarn before weaving. As a result, tapioca production has increased in recent years in Bangladesh. The production of cornstarch has increased massively in the country due to its multiple functions, such as for thickening and as an adhesive. These properties of starch make it an essential ingredient in the textile industry. Thus, the growth of starch and its derivatives is parallel to the textile production in the country.

Bangladesh Starch and Starch Derivative Industry Overview

Bangladesh is a low-income, developing, and import-dependent country. Starch and starch derivatives are imported from India, Vietnam, Thailand, Pakistan, Germany, and a few other countries. The key global players in the market include Cargill Inc., KMC, and Gulshan Polyols Pvt. Ltd., while local prominent players in the market include Maize Advanced Agro Refinery, Bangladesh Maize Products Limited, and Flamingo Agro Tech Limited (FATL).

Bangladesh Starch and Starch Derivative Market Leaders

Bangladesh Starch and Starch Derivative Market News

No Recent Developments were Found Pertinent to the Market Studied.