Procurement Outlook
Corn starch is a carbohydrate extracted from the endosperm of corn. This white powdery substance has a wide range of applications in food and beverages, animal feed, pharmaceuticals, textiles, and paper industries. It has thickening properties. Corn starch is comprised of long chains of starch molecules, which when heated in the presence of moisture, will unravel and swell. This swelling action, or gelatinization, is what causes the thickening to occur. Corn starch is used as a raw material to produce modified corn starch. More than 95% of starch in the U.S. is derived from corn. However, this number decreased to less than 65% in Europe and APAC where corn starch is majorly derived from potato, tapioca, and wheat starch.
Demand Outlook
The global corn starch market is valued at ~USD 26 billion in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2027 owing to increasing demand from the food and beverage industry. Food processing companies reduce production costs by adding a varying amount of corn starch to food. This process is expected to drive the industry over the forecast period. The food and beverages segment accounted for more than 40% of the overall market share. North America is leading the global corn starch industry with more than 30% revenue share followed by APAC and Europe. The abundance of corn as a raw material in North America and the low prices of corn starch is the key driving factor of the industry in the region.
Grab your copy, or request for a free sample of the "Corn Starch Industry Procurement Intelligence Report, published by Grand View Research" for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Cost Drivers
Raw materials cost is the major cost driver of corn starch production. Corn and enzymes are the key raw materials, accounting for more than 70% of the overall corn starch production cost. Other key cost components include corn handling and storage, steeping, germ separation, fiber separation, gluten separation, starch washing, etc. The final mass of the corn starch is 55% of the total corn mass used in the production.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
- Packaging Design Services Market Procurement Intelligence – The packaging design services include the creation of the exterior of a product. This includes designing an exterior that will be capable of storing and protecting a product as well as making it visually appealing to attract customers and perform a top-of-the-mind recall among the consumers. This includes choices in material and form as well as graphics, colors, and fonts that are used on wrapping, a box, a can, a bottle of any kind of container.
- Vegetable Fats and Oil Industry Procurement Intelligence Procurement Intelligence – Vegetable oils and fats are extracted from a wide range of plant sources. Whilst many seeds and nuts are a source of oils, approximately 30 vegetable oils and fats are commercially available. Vegetable oils are usually edible oils, while non-edible oils derived mainly from petroleum are termed mineral oils. Vegetable fats are mixtures of triglycerides. Soybean oil, rapeseed oil, olive oil, palm oil, rice bran oil, and cocoa butter are some of the major fats used globally. In common usage, vegetable oil refers exclusively to vegetable fats which are liquid at room temperature. Fats can be segmented into three major types: saturated fats, unsaturated fats, and Trans fat.
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