Market analysis of starch in India
The relevance of research
Starch is the main and indirect raw material for various industries. Starch is also sold at retail.
The main markets for starch in India are the pulp and paper industry and the food industry. Also, starch is used in the oil, textile, polymer industries, in the hotel and laundry industries, etc. Experts from various agricultural analytical publications and market operators agree on the key role of the use of starch in the production of paper and cardboard - about 60% of all starch consumed in the country. Estimated share of the food industry ranges from 15 to 25%. The rest of the industries together occupy a share of 15 - 25% (the range of expert assessments of industry analysts and market participants).
Purpose of the study
Analysis of the state of the starch market, assessment of the market volume, analysis of competitors, consumers, as well as identification of factors affecting the market
Content
Part 1. Overview of the Indian starch market
1.1. Main characteristics of the market
1.2. Dynamics of the starch market volume 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Starch Market Life Cycle Stage
1.5. Competition from substitute products
Part 2. Competitive analysis in the starch market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of starch production
3.1. Volume and dynamics of domestic starch production
3.2. Share of exports in starch production
3.3. Segmentation of starch production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of starch
4.1. Volume and dynamics of starch imports
4.2. Import structure
4.3. Volume and dynamics of starch exports
4.4. Export structure
Part 5. Starch Intake Analysis
5.1. Dynamics of consumption of starch
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the starch market until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian starch market
1.1. Main characteristics of the market
Markets
Starch is the main and indirect raw material for various industries. Starch is also sold at retail.
The main markets for starch in India are the pulp and paper industry and the food industry. Also, starch is used in the oil, textile, polymer industries, in the hotel and laundry industries, etc. Experts from various agricultural analytical publications and market operators agree on the key role of the use of starch in the production of paper and cardboard - about 60% of all starch consumed in the country. Estimated share of the food industry ranges from 15 to 25%. The rest of the industries together occupy a share of 15 - 25% (the range of expert assessments of industry analysts and market participants).
...
Diagram 1. The ratio of imported and domestic products in the starch market,%
1.2. Dynamics of the starch market volume 2015-2019 Potential market capacity
The starch market has stable positive dynamics with …% annual growth. In the period under review, a jump in the growth rate was observed only in 2018. Considering the dynamics segmentally, one can see compensation in 2018 for the decline in 2017 in the segment of native starches (…% and …% for the next year at a growth rate of …%). The modified starch segment is showing a spike in dynamics with a high average trend, which is typical for markets that are at the stage of formation and are heavily dependent on imports.
Estimated potential market capacity is estimated to be about … tons: of which … falls on modified starch (now its share is about …%). Capacity assessment is based
...
Diagram 2. Dynamics of the starch market volume, 2015 - 2019, thousand tons
About …% of produced and imported starch in India is consumed by paper and cardboard producers. Different types of starch are used in different stages of paper production:
- The addition of hydrophilic agents, such as starch, during cellulose grinding increases the swelling of the fibers, their flexibility and elasticity, promotes the formation of additional ...
...
Accordingly, the geography of product sales was calculated based on the share of consumption for each Union Territory.
Diagram 3. Revenue (net) from the sale of starch in the union territories for 2015 - 2019,%
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
...
technological
Problems of cargo transportation in India
Starch production in India is concentrated exclusively in the central part of the country. At the same time, the costs of domestic cargo transportation are due to the scale of distances and difficult weather conditions, under which the transportation of goods to remote regions of the country is comparable to the shipment of goods to a distant foreign country. Transport features of starch transportation (requirements for humidity, compatibility with other goods - starch should not be placed together with goods that evaporate moisture and emit odors, etc.) increases the cost of starch transportation over long distances in the cold season.
Shortage of potato raw materials
The production of native potato starch in India is carried out by only 6 enterprises with small production volumes. In 2019, according to an estimate ... about ... tons of potato starch were produced in India. The annual increase amounted to …% (… t in 2018, … t in 2017). However, this amount is still not enough for the domestic market: the needs of Indian enterprises are covered by only …%. A significant part of potato starch is purchased from abroad, while potato starch traditionally occupies the largest share of imports.
...
Table 1. STEP Analysis of Factors Affecting Starch Market
Conclusion on the influence of external factors on market development
In general, the current economic and social situation, the position of India in the world, as well as internal problems and opportunities of a technical and economic nature…
...
Part 2. Competitive analysis in the starch market
2.1. Major players in the market
In the Indian starch market, there are ... manufacturers, which is a low figure for the industry: for example, in the EU there are ... factories. At the same time, the market is characterized by a high concentration: …% of the market is accounted for by … manufacturers; for native starch, the consolidation is even higher – …%, with …% being the market leader. More than five years ago, some experts spoke about the monopoly position of a key player ..., but in recent years there has been an active development of other manufacturers.
Table 2. The main companies participating in the starch market in 2019
2.2. Market shares of the largest competitors
The key starch market operator in general is … with a market share of …% in 2019, while the share of … in the segment of native starches is …%. An increase in the share of the leader is predicted due to its plans to start the production of modified starches. The market shares of other manufacturers and imports in the segment of native starches are significantly inferior to the leader and do not exceed …%.
In 2019, imports were in the lead in the modifications segment, among domestic manufacturers, the largest shares belonged to two manufacturers: …% of … and …% of … The share of the latter increased sharply in 2019 due to an increase in production by …%.
Diagram 8. Shares of the largest competitors in the starch market in 2019
A) Total for native and modified starch
B) Structure by types of starch
inner circle – native starch market
outer circle – modified starch market
...
Part 3. Analysis of starch production
3.1. Volume and dynamics of domestic starch production
Native starch dominates the production, but the rate of production of modified starch is much higher and corresponds to the stage of development of the market in India. The dynamics of native starch production volumes in the period under review has one jump in 2018, which may be due to compensation for the stagnation of the previous year.
The market growth rate in both segments in January-May 2020 is higher than last year. The growth rate of native starch production is higher than the average for the last five years.
Diagram 9. Dynamics of starch production volumes in India for 2015 - 2019, thous.
The growth rate of the total revenue of the largest manufacturers differs from the market average and is explained by a decrease in the consolidation of manufacturers in the market. At the same time, a number of projects to expand production volumes have been announced among the largest manufacturers in the coming years.
...
Diagrams
Diagram 1. The ratio of imported and domestic products in the starch market,
Diagram 2. Dynamics of the starch market volume, 2015 - 2019, thousand tons
Diagram 3. Revenue (net) from the sale of starch in the union territories for 2015 - 2019,%
Diagram 4. Dynamics of India's GDP, 2013 - Q1 2020, % to the previous year
Chart 5. Monthly dynamics of the US dollar against the rupee, 2015-June 2020, Rs. for 1 US dollar
Diagram 6. Population dynamics in India, as of 01 Jan. 2012-2020
Chart 7. Dynamics of real incomes of the population of India, 2013 - Q1 2020
Diagram 8. Shares of the largest competitors in the starch market in 2019
Diagram 9. Dynamics of starch production in India for 2015 - 2019, thousand tons
Diagram 10. Dynamics of the total revenue of the largest producers (TOP-5) of starch in India, 2015-2019
Diagram 11. The share of exports in production for 2015 - 2019
Diagram 12. Segmentation of starch production in physical terms by union territories in dynamics 2017-2019
Diagram 13. Volume and dynamics of starch imports in natural terms
Diagram 14. Volume and dynamics of starch imports in monetary terms
Diagram 15. Dynamics of export of starch in physical terms
Diagram 16. Dynamics of export of starch in monetary terms
Diagram 17. Balance of exports and imports
Chart 18. Structure of exports by country in 2019
Diagram 19. Dynamics of starch consumption in monetary terms, 2015 - 2019
Diagram 20. Comparison of average producer prices for modified starch in the Union Territories according to export data for 2019, Rs/tn
Diagram 21. Forecast of market size in 2020 - 2024
Tables
Table 1. STEP analysis of factors affecting the starch market
Table 2. The main companies participating in the starch market in 2019
Table 3. Profiles of companies participating in the starch market in 2019
Table 4. Dynamics of starch production in India by union territories
Table 5. Starch import structure by importing countries in 2019
Table 6. Data on completed tenders for the purchase of starch, announced in 2019 in the amount of more than 100 thousand Rs.
Table 7. Average producer prices on the starch market in the Union Territories, Rs/t
Table 8. Average consumer prices in the starch market by states of India, Rs./kg
Table 9. Average consumer prices for modified starch by brand in India in 2019, Rs./kg
Table 10. Assessment of factors of investment attractiveness of the starch market
All reports