Sago Starch Market Size, Share, Growth, and Industry Analysis, By Type (Industrial Grade, Food Grade and Others), By Application (Food and Beverages, Paper Making and Textile, Pharmaceuticals, and Others), and Regional Forecast to 2032

SAGO STARCH MARKET OVERVIEW

The global Sago Starch market size was USD 363 million in 2023 and is projected to touch USD 584.4 million by 2032, exhibiting a CAGR of 4.9% during the forecast period.

The Sago starch market is emerging rapidly due to its sources of use in the food and industrial sectors. Made from the starch of stems of different species of palm trees sago is preferable for many uses in a wide variety of dishes starting with Asian sweets and ending with gluten-free dishes in European kitchens. The fact that it is non-GMO and free from gluten makes it popular among consumers across the world who are conscious about their health. Also, the industrial sector in the growing use of sago starch in the manufacturing of adhesives, textiles and the paper industry drive the market further. Since sustainability and diets are shaping the current market of most products especially food, the sago starch market is likely to remain relevant for a long time in the future.

GLOBAL CRISES IMPACTING THE SAGO STARCH MARKETCOVID-19 IMPACT

The Sago Starch Industry Had a Negative Effect Due to supply chain disruption during the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

COVID-19 has harmed the sago starch market in various ways. Disruptions in the manufacturing supply chain, challenges experienced in logistics and timely availability of labour force have reduced the production and distribution rates. The food and hospitality industry has been an area of operation that has been experiencing reduced demand for sago starch especially due to issues of lockdown and restrictions. Furthermore, consumers' hedonistic behavior and fluctuations in the consumer economy have led to the reduction of extra spending on products in the consumer market. With the demand fluctuating further and the strengths and weaknesses presented in the above analysis, it can be said that the sago starch market reverts to the highs and depends on world conditions gradually to be sustainable.

LATEST TREND

"Sago Starch as a Functional Ingredient in Plant-Based Alternatives Drives the Market"

One driving force for the sago starch market is the increasing adoption of functional benefits based on plant protein substitutes. With the increasing trend in the global consumption of plant-based products sago starch is now famous for the rigidity and creamy feel it brings to plant-based foods. For example, to produce meat substitutes or dairy products, the properties of sago starch help in attaining the required texture and mouth feel. This trend not only helps to meet growing consumer demand for plant-based food but also defines sago starch as one of the key players in the emerging market for new forms of alternative food products.

SAGO STARCH MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Industrial Grade, Food Grade and Others

• Industrial Grade: The industrial type of sago starch especially sago starch modified is utilized mostly in the manufacturing industries such as in adhesive and biodegradable products. Because of its high viscosity and thickening effect, it is normally used in industrial processes that require stability and thickness.
• Food Grade: Sago starch that is classified as food grade is widely used in the food and beverage processing Industries. This product is used in food processing as a thickener, stabilizer and gelling agent in preparations of soups, sauces and dessert courses.
• Others: This segment comprises speciality sago starch types which are used in specific activities such as in cosmetics and body products. These variants are used to fulfil certain parameters that are unique to the industry of specialization.

BY APPLICATION

Based on application, the global market can be categorized into Food and Beverages, Paper Making and Textile, Pharmaceuticals, and Others

• Food and Beverages: In the foods and beverages industry, sago starch is used because of its properties such as thickening as well as stabilizing of food products. It has great thickening properties and it can be used in different products – liquid, semi-liquid, dense or thin.
•  Paper Making and Textile: In the paper-making and textile industries sago starch is being used mainly as a sizing agent and also as a binder. That is why it occupies a significant place in the paper industry to enhance the strength characteristic and in the textile industry to enhance the finish characteristic.
•  Pharmaceuticals: In the pharmaceutical industry sago starch is used as a binder as well as a disintegrating agent, which is used in the production of tablets. Its property makes a great contribution to the steady release of active substances, as well as the effectiveness of medication.
• Others: This category deals with the uses of sago starch that do not fit in any of the other categories such as in adhesives and bioplastics. These speciality applications capitalise on the specific characteristics of sago starch to meet special industry requirements. 

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                          

DRIVING FACTORS

"Rising Popularity of Gluten-Free Diets Propel the Market"

A factor in the Sago Starch market growth is the Rising Popularity of Gluten-Free Diets. The Sago starch market is witnessing remarkable growth because of the growing trend toward the consumption of gluten-free products. In a world where an increased number of people abandon foods containing gluten due to health and dietary issues, sago starch appears to be one of the most useful and naturally gluten-free ingredients in the food industry. This is the demand that is driving the market forward, especially in the regions that are experiencing an increase in cases of gluten intolerance. This demand surge is most specifically observed in those parts of the world where gluten sensitivity together with celiac disease is becoming more recognized, the latter compels the consumer to work towards the production of products that avoid the use of gluten in their substances. The same attribute of the product is also very important in expanding its market since it is a versatile item.

"Expanding Application in Industrial Processes Help in Market Growth"

Another peculiar factor that has been fueling the growth of the sago starch market is the increasing utilization of sago starch in industries. In textiles, adhesives and paper industries, sago starch has been used more in the past recent years as an adhesive and as well binder in industries. The environmentally friendly and organic nature of sago starch is in harmony with the current shift towards green products and hence the high demand for sago starch in various processes in industries.

RESTRAINING FACTOR

"Sustainability Concerns Restrain the Market Growth"

A key threat affecting the market for sago starch is the increasing focus on the use of sustainable materials. Although sago starch, the principal raw material, is natural and renewable issues regarding the effects large-scale production and processing have on the environment are raised. Problems include deforestation, habitat perturbation and possible extinction of certain species which might be occasioned by palm growing for sago processing. Hence, it is also important to manage these sustainability issues as consumers and industries opt for sustainable practices to create protection and ensure the steady development and inclusion of sago starch in the market.

OPPORTUNITY

"Natural And Organic Trends Create Opportunity for the Products in the Market "

The global market for sago starch has responded to the natural and organic trend as a key factor for development. It is quite apparent that consumers of the present era are forced to look for healthy and eco-friendly products; therefore, products made from sago starch extracted from the tapioca palm are ideal. This seems to be attributed to its natural origin and organic production process which is likely to attract buyers with health concerns. This development has led to the advancement in sago starch processing and opening up the product for utilization in organic products and gluten-free products as well as a natural source of thickening agents.

CHALLENGE

"Technological limitations Could Be a Potential Challenge for Consumers "

The technological barrier has acted as a great hindrance in the global sago starch market as it has constrained the use of technologies in optimizing the production line. Outdated machinery and lack of improvement in the process of processing technology have resulted in low efficiency and high costs of processing. This detracts from the capacity of manufacturers to deliver to increased international demands while at the same time keeping their prices down. Furthermore, there is a lack of innovation eye witnessed in the extraction and refinement technologies which could impend the quality and general standard of sago starch products; adding reality to market risks.

SAGO STARCH MARKET REGIONAL INSIGHTS

• NORTH AMERICA (U.S.)

The current market for North American sago starch is relatively stable because sago is used in the food and beverage industry, especially as a thickening agent and to add texture. Some of those are increased consumer awareness of gluten-free and natural products that Sago represents. It is also used in speciality products such as baked products and sauces and because of this, the market is well supported. The United States Sago Starch Market has potential because of the increasing demand for plant-based and gluten-free products. The features that have made sago starch to be preferred include high thickening power and suitability for use in a wide range of processing operations. It enjoys the increase in the consumption of natural, organic added, elements as well as food technologies.

• EUROPE

In Europe, the market for sago starch is not very large and this product is used mainly for the food and beverage industry that requires a natural thickening and stabilizing agent. Regional demand is driven by such factors as rising demand for clean-label products and natural ingredients. The market is further supported by the improvements in food processing types of equipment and the increasing trend of focusing on well-being diets.

•  ASIA

Asia region is poised to control the market share of sago starch. This area mainly the countries of South East Asia especially Indonesia and Malaysia are the main producer of sago starch due to the availability of large system plantations. These are the nations that equally contribute to the production of sago starch as well as the exportation of the same product in the international markets. Apart from that Asia plays a significant role in the market of sago palm since it enables a tropical climate and good conditions for the growth of such plants.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Strategic Initiatives and Innovations."

Major stakeholders in the industry are therefore playing a central role in influencing elements of the global sago market by undertaking strategies and inventions. Large organizations are also spending on sophisticated processing techniques and green systems to meet the enhanced consumer expectations of healthy and environmentally sound food. Such measures include boosting production capacity as well as enhancing sales reach especially in the growing markets. Partnerships with stakeholders in the agriculture sector are also essential to achieve a sustainable supply of quality sago. All these strategic initiatives strengthen their market standing while boosting the overall industry development in response to the rising demand for sago’s nutritional value and use in various recipes.

LIST OF TOP SAGO STARCH COMPANIES

• Sampoerna Agro (Indonesia)
• CL Nee Sago Industries (India)
• SVM Tapioca (India)
• Jayavel Sago Factory (India)
• Linga Starch Products (India)
• Agricore CS Sdn (Malaysia) 
• Supada (Thialand)
• Kathiravan Sago Factory (India)

KEY INDUSTRY DEVELOPMENT

October 2021: An industrial development in the sago starch market is its increasing integration into the production of bio-based materials. Sago starch, with its adhesive and binding properties, is finding applications in the manufacturing of bio-based plastics. This development aligns with the global shift towards sustainable and eco-friendly materials, driven by environmental concerns. Industries are exploring sago starch as a renewable resource to reduce dependence on traditional petroleum-based plastics. This innovative application not only diversifies the use of sago starch but also positions it as a promising ingredient in the quest for more sustainable industrial practices.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Sago Starch market is poised for a continued boom pushed by the Rising Popularity of Gluten-Free Diets, and Expanding Application in Industrial Processes. Despite challenges, Natural and Organic Trends support marketplace expansion. Key industry players are advancing via the Strategic Initiatives and Innovations of Sago Starch.