Maize starch market in Asia

Earlier Report Observations

The maize starch market experienced significant shifts between 2018 and 2020, influenced by industrial policy and global events. State subsidies for deep-processing enterprises in key regions, coupled with a national corn de-stocking policy, incentivized major players to build new plants and expand capacity starting in 2017, laying the groundwork for future production. The industry's modernization and structural adjustment in 2018 improved scale and efficiency. A pivotal change came in 2019 when the export tax rebate for maize starch was raised to 13%, directly spurring a historic surge in exports that year. However, the market was then impacted in 2020 by the COVID-19 pandemic, which significantly reduced plant operating rates and pressured industry profits during its initial phase.

Following the pandemic, the market entered a phase of recovery and intensified competition from 2021 to 2023. As operations gradually resumed, rising corn prices and continued capacity expansion by leading enterprises, particularly across Shandong, Heilongjiang, and Henan, characterized the landscape. The year 2022 presented challenges with tight raw material supply and sluggish downstream demand, which kept production growth in check and further consolidated the industry. A turnaround occurred in 2023 as broader economic recovery boosted market demand. Simultaneously, a retreat in corn prices helped repair producer margins, increasing the willingness to operate plants. The growing activity in the maize starch futures market during this period also enhanced the industry's risk management capabilities.

By 2024, the market showed signs of maturation with capacity nearing saturation, leading to only modest output growth. The launch of new facilities, such as Yihai Kerry's 500,000-ton commodity starch plant in Henan, represented targeted expansions amidst a slowing overall capacity build-out. Diversification into high-end specialty starches and biodegradable materials progressed, adding value to the industry. Factors like reduced corn imports, high domestic swine inventory supporting feed consumption, and the evolving maize starch futures market with adjusted delivery standards contributed to a stable supply-demand balance and functional market development.

Production maize starch in Asia

In kind, 2017-2020, K t

Top producers of maize starch, 2017-2020

World map of production of maize starch, 2017-2020

Asia's maize starch production has declined for the second year in a row. In 2020, the region produced 3 873 K t of maize starch, representing a slight decrease of 1.2% compared to the previous year. The largest decline occurred in 2019, when production fell by 3.4%. In contrast, 2018 saw the highest production level at 4 060 K t, which was also the year with the largest increase at 3.1%.

Annual dynamics of production in Asia in kind, 2017-2020, K t

Exports maize starch from Asia

Exports in kind, K t

After increasing for two consecutive years, Asia's maize starch export volume declined in 2020. Exports that year amounted to 246.6 K t, marking a significant drop of 65.9% from 2019. The highest export volume was recorded in 2019 at 722.4 K t, which followed the largest annual increase of 38.7% in 2018. Overall, between 2017 and 2020, exports decreased by 36%, translating to an average annual decline of 13.8%.

Annual dynamics of product's exports from Asia in kind, 2017-2020, K t

From 2017 to 2020, Asia's maize starch exports in kind were highly dispersed across destinations. The top three destinations—Asia, not elsewhere specified (6.0% of exports), Nigeria (5.0%), and Australia (1.1%)—together accounted for only 12.2% of total flows. The remaining 87.8% was distributed among a wide range of other countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Asia in kind, 2017-2020

Exports in value, M $ US

Following a two-year rise, Asia's cross-border shipments of maize starch in value terms declined in 2020. Exports that year totaled 344.1 M $ US, reflecting a moderate decrease of 9.1% compared to 2019. The peak value was reached in 2019 at 378.5 M $ US, after the largest annual increase of 66.7% in 2018. Over the period from 2017 to 2020, exports increased by 93.5%, with an average annual growth rate of 24.6%.

Annual dynamics of product's exports from Asia in value, 2017-2020, M $ US

Between 2017 and 2020, Asia's maize starch exports in value terms were widely dispersed across partner countries. The top three—Asia, not elsewhere specified (6.1% of exports), Nigeria (4.7%), and Australia (1.2%)—collectively represented just 12.0% of total flows, highlighting the broad distribution to numerous other destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Asia in value, 2017-2020

Imports maize starch to Asia

Imports in kind, K t

Asia's maize starch imports have increased for the third consecutive year. In 2020, imports reached 700.9 K t, showing a substantial rise of 26.2% compared to 2019. From 2017 to 2020, imports grew by 111.4%, equating to an average annual increase of 28.3%.

Annual dynamics of product's imports to Asia in kind, 2017-2020, K t

Over the period 2017–2020, Asia's maize starch imports in kind relied on a diverse range of partner countries. The top three suppliers—Ukraine (4.5% of imports), Egypt (2.9%), and Russia (1.5%)—together accounted for only 8.8% of total flows, indicating a highly fragmented import structure.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Asia in kind, 2017-2020

Imports in value, M $ US

Asia's imported maize starch volumes in value terms have risen for the third year in a row. In 2020, imports stood at 421.3 M $ US, reflecting a gradual increase of 3.9% compared to 2019. Between 2017 and 2020, imports grew by 102.5%, with a compound annual growth rate of 26.5%.

Annual dynamics of product's imports to Asia in value, 2017-2020, M $ US

From 2017 to 2020, Ukraine (3.9% of imports in value terms), Egypt (3.0%), and Italy (1.6%) were among the largest suppliers of maize starch to Asia. However, even combined, they represented just 8.5% of total imports, underscoring a broadly diversified partner base for Asia's imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Asia in value, 2017-2020