A recent report released by Fortune Business Insights has revealed that the global cassava starch market is on track to achieve a substantial valuation of USD 40.53 billion by 2026, driven by a robust compound annual growth rate (CAGR) of 6.50% throughout the forecast period.
According to the report, the expansion of the textile industry is a primary catalyst for the heightened demand for cassava starch.
According to the findings, cassava starch is increasingly finding applications in various textile processes, including warp sizing, printing, and cloth finishing.
Citing data from the U.S. Department of Commerce, the report notes that the U.S. textile and apparel industry remains a substantial $70 billion sector, ranking among the world’s top markets with an impressive $23 billion in export value reported in 2018.
This trend is not limited to the United States, with both developed and developing nations experiencing a surge in employment opportunities within the textile sector. The report cites the U.S. textile industry as a prime example, generating approximately 341,300 jobs across various segments.
The report underscored the significant impact of health-conscious consumers on the cassava starch market.
It said that the increasing number of health-conscious individuals is boosting demand for cassava starch due to its perceived health benefits, including the prevention of chronic diseases, better health promotion, and longevity enhancement.
As consumers worldwide adapt their dietary habits and preferences to prioritize health, manufacturers are responding with innovative functional foods and beverages, thereby further propelling market growth.
However, the report also identifies challenges facing the cassava starch market, with a particular emphasis on raw material costs. According to the report, the cost and availability of raw materials are pivotal factors affecting production, with fluctuations in pricing and availability potentially hindering cassava starch production.
The report highlights factors such as rising prices, scarcity of raw materials, and variations in quality as potential obstacles.
Additionally, the report points out that economic fluctuations can influence the prices of raw materials and other commodities, potentially dampening cassava starch market revenues. The escalating costs of raw materials may also limit cassava starch consumption in the foreseeable future.
The report delves into regional growth dynamics, citing the Asia-Pacific region as a hotspot for rapid expansion during the forecast period. This growth is attributed to increased consumption of functional foods and nutritional beverages, coupled with a growing population and expanding medicinal applications.
Meanwhile, the report indicates that North America, boasting a market value of USD 10.90 billion, is likely to retain its dominant position.
The report attributes this to the burgeoning food and beverage industry in North America as well as the implementation of cost reduction strategies by key industry players, which is set to stimulate the cassava starch market in the region.
Comments are closed.