The booming trend of the processed food and the increasing usage of modified starch in the same is leading to amplified demand for starch derives in Latin America. Furthermore, titanium dioxide which was a staple entity in food products such as candy, frosting, and the powder on doughnuts is being increasingly swapped with rice starch which is also increasing the Latin America starch derivatives market size. While the economic health and the incrementing disposable income of the working population in this region is turning into a huge revenue source for the bakeries, snacks, beverages, and functional food sectors. Thus, the Latin America starch derivatives market is experiencing enhanced profitability. Apart from that, the application of modified starch as a thickening agent, stabilizers, or emulsifiers in various industries is increasing a significant number of opportunities for the players. Some of the prevalently used starch derivatives are maltodextrin and maltitol.

The pharmaceutical industry is also a huge end-user industry of modified starch, and the growth of the sector in Latin American countries such as Brazil is creating a demand influx in the starch derivatives market. Owing to the growth in market demand, the players are targeting Latin America to increase their starch derivatives market share.

In 2018, Latin America starch derivatives market size was assessed at $8.11 billion and the augmented demand from the food and beverages (F&B) industry and pharmaceutical will lead to an increase in the value at a CAGR of 6.6% during the forecast period 2019-2025.

The growth of the Latin America starch derivative marketplace resonates with the import value of starch in countries of America. While some countries are experiencing a decline because of the indigenous production of starch, some countries reflect an increment in the import value. The table below summarizes the trade activity in the Latin America starch derivatives market.

Table 1 – The Import Value of Starch

Sr. No.


Import Value in 2018


















Costa Rica











Latin America has conspicuously imported starch of humongous quantity. While the import value grew in most of the countries from 2017 to 2018 – Mexico (28%), Chile (23%), and Colombia (13%), the import witnessed a decline in Brazil, Costa Rica, and Argentina. The decline in import value of starch is attributed to the presence of players in the countries and constant supply by them which sufficed the demand during 2018.

For instance, Cargill Incorporated had invested $140 million to expand the production of starch in Brazil way back in 2014. The impact of the expansion is tangible in the decreasing need for import of starch.

Latin America Starch Derivatives Market Growth Drivers:

The growth of Latin America starch derivatives market is predominantly attributed to the blooming prospects in the end-user industries that are making strides in the major markets –

· The Key Application in the Latin America Starch Derivatives Market: Pharmaceuticals -

The application of starch derivatives in Latin American pharmaceutical industries will be growing at a CAGR of 6.2% through to 2025. This is mostly attributable to the pharmaceutical boom in Brazil. The pharmaceutical market size in Brazil was evaluated at $28.4 billion in 2018. While this lucrative marketplace is leading to an increased import of drugs from other countries such as China, India, and the US, the indigenous production with the presence of local players such as Hypera Pharma, Roche Holding AG, Sanofi-Aventis S.A., and Novartis International AG opened up the market for starch derivatives that are used as disintegrant in pharmaceutical manufacturing.

Additionally, the pharmaceutical industry in Argentina witnessed an increment of 15.9% in 2017 as compared to 2016, and the industry will be booming in the upcoming years. The propitious progress of the Argentinian pharmaceutical industry will create prospects to prosper for the players in the Latin America starch derivatives market.

· The Latin America Starch Derivatives Market Scope in Animal Feed Industry –

A major fraction of the Latin American populace is dependent on livestock for food. In this scenario, the animal feed market is booming in countries such as Brazil, Argentina, Costa Rica, and others. Brazil is a huge exporter of livestock, especially beef. In 2019, the country has produced 10.2 million metric tons of beef already – it’s a 3% increase as compared to 2018. Now, the production of beef and other livestock creates the demand for animal feed, and starch is a frequently used ingredient in animal feed. On the other hand, potassium nitrate and potassium sulfate are highly used in agriculture as it increases the starch content in grains and tubers.

· The Booming Biofuel Market Augmenting the Latin America Starch Derivatives Market Demand –

Brazil, Argentina, and Colombia have been leading Biofuel production among all Latin American countries and bio-ethanol can be produced from starch-based crops. Brazil stood second to the U.S. in the production of biofuels including bio-ethanol. Brazil and the U.S. had accounted for 84% of the global ethanol production in 2017, and the production has been propelling in Brazil since then. This has been a major factor for the surge in the Latin America starch derivatives market demand.

· The Growing Demand from the Cosmetics Sector Increasing the Latin America Starch Derivatives Market Size –

Cosmetics sector is proving to be an untapped yet profitable starch derivatives market for Latin America. The rise in disposable income of the working population, the outgrowth in the customer-base due to the aging of a significant fraction of population, and peoples’ affinity towards beauty products is increasing the cosmetics market size in Latin American countries, especially Mexico, Brazil, and Colombia. Now, starch is found to be an effective skin protectant and therefore, it is used in skin-care products. The growing demand for skincare products in this region which is evident in the aging population and the abundance of middle-aged people is creating a profitable scope for the starch derivatives market players to capitalize on.

· The Application of Starch Derivatives in the Paper Industry Generating Revenue Sources in the Market –

In Latin America, 26.87 million tons of paper were consumed as of 2018. Starch is an important component of a myriad of paper grades. The requirement for paper production in Latin America creates a demand for starch derivatives.  

Latin America Starch Derivatives Market Top 10 Companies:

The top 10 Latin America starch derivatives market players that are striving to leverage the increasing demand in various countries are AGRANA Beteiligungs-AG, Archer Daniels Midland Company, Cargill, Incorporated, Emsland Group, Ingredion Incorporated, Roquette Frères, Tate & Lyle PLC, BENEO GmbH, Global Bio-chem Technology Group Company Limited, and Grain Processing Corporation.

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Related Reports:

A. Starch Derivatives Market

B. Industrial Starch Market

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