Starch-manufacture residues market in South Korea

Earlier Report Observations

Between 2018 and 2019, South Korea's starch-manufacture residues market remained heavily reliant on imports, with domestic production capacity weakened by the closure of most sweet potato starch factories, leaving only four major producers. This import dependency kept the market volume high, reaching 1,193 thousand tons in 2019. During this period, local manufacturers began adopting AI-based logistics and eco-friendly processes to enhance competitiveness, while stricter sustainability standards like RoHS and carbon footprint requirements increased production costs, contributing to a rise in the market's value to $281.4 million.

The COVID-19 pandemic in 2020 spurred a boom in e-commerce, which increased demand for industrial starch in corrugated cardboard production by 6% and boosted interest in biodegradable starch-based packaging. This demand helped cushion the market, with volume dipping only slightly to 1,142.5 thousand tons. By 2021, high initial costs for producing starch derivatives acted as a barrier to new entrants, and the industry's push to diversify imports and lower raw material costs coincided with a sharp drop in import volume to 774 thousand tons. This contraction reduced the physical market size to 974 thousand tons, but growing demand from food, pharmaceutical, and paper industries drove the market value higher to $344.1 million, indicating a shift toward higher-value segments.

From 2022, government-led pilot projects to recycle food processing by-products into high-value animal feed, supported by regulatory adjustments for resource recognition and expanded feed material ranges, stimulated market recovery. The market volume rebounded to 1,136.5 thousand tons in 2022, while value jumped to $435.9 million. In 2023, the Rural Development Agency's focus on upcycling agricultural by-products and building a starch separation database further encouraged technological innovation and value addition, leading to a significant rise in domestic production to 251.1 thousand tons and a market value of $455.4 million. Continuing into 2024, industry efforts remained centered on upcycling starch residues, enhancing sustainability, and adopting AI and green processes to strengthen competitiveness amid ongoing import dependence.

Production starch-manufacture residues in South Korea

In kind, 2017-2020, K t

Globally, South Korea ranked as the 13th largest producer of starch-manufacture residues from 2017 to 2020.

Top producers of starch-manufacture residues, 2017-2020

World map of production of starch-manufacture residues, 2017-2020

In 2020, South Korea produced 213.7 K t of starch-manufacture residues, marking a 4.2% decline compared to the previous year. Over the period from 2017 to 2020, production decreased by 4.6%, which translates to an annualized rate of 1.6%. The largest increase occurred in 2019, at 0.3%.

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

In value, 2017-2020, M $ US

Following a two-year decline, starch-manufacture residues production in South Korea increased. In 2020, the output was valued at 122.9 M $ US, showing a slight gain of 1.3% over the past year. From 2017 to 2020, production decreased by 10.6%, with a compound annual growth rate (CAGR) of 3.7%. The minimum value was recorded in 2019 at 121.4 M $ US, which also saw the largest decline of 11.3%.

Annual dynamics of production in South Korea in value, 2017-2020, M $ US

Exports starch-manufacture residues from South Korea

Exports in kind, K t

After a two-year reduction, starch-manufacture residues exports from South Korea increased. In 2020, exports reached 21.5 K t, up by 10.2% compared to 2019. Between 2017 and 2020, exports decreased by 19.9%, equating to an annualized rate of 7.1%. The minimum value was recorded in 2019 at 19.5 K t, which also experienced the largest decline of 21.4%.

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

From 2017 to 2020, the main buyers of starch-manufacture residues from South Korea were Malaysia (37.3% of exports in kind), Japan (36.8% of exports in kind), and Vietnam (21.0% of exports in kind), together accounting for 95.1% of total exports in kind.

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

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

Exports in value, M $ US

After a two-year loss, South Korea's starch-manufacture residues export volume increased. In 2020, South Korea exported 12.3 M $ US of starch-manufacture residues, up by 16.4% from 2019. Between 2017 and 2020, exports decreased by 25%, equating to an annualized rate of 9.1%. The minimum value was recorded in 2019 at 10.6 M $ US, which also saw the largest decline of 30.5%.

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

From 2017 to 2020, Malaysia (38.0% of exports in value terms), Japan (36.4% of exports in value terms), and Vietnam (20.5% of exports in value terms) formed the main group of destinations for South Korea's starch-manufacture residues exports in value terms, with a combined share of 94.9% of total flows.

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

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

Imports starch-manufacture residues to South Korea

Imports in kind, K t

After a two-year uptick, starch-manufacture residues deliveries to South Korea declined. In 2020, imports stood at 950.2 K t, showing a modest drop of 4.0% year-over-year. Over the period from 2017 to 2020, imports increased by 13.5%, with a compound annual growth rate (CAGR) of 4.3%. The maximum value was recorded in 2019 at 989.4 K t, which also saw the largest increase of 9.7%.

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

From 2017 to 2020, China was by far the main source for imports in kind of starch-manufacture residues to South Korea, accounting for 98.7% of total flows.

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

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

Imports in value, M $ US

South Korea's starch-manufacture residues imports increased for the third consecutive year. In 2020, South Korea imported 194.6 M $ US of starch-manufacture residues, reflecting a solid gain of 14.1% year-over-year. Between 2017 and 2020, imports increased by 57.5%, equating to an annualized rate of 16.3%.

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

From 2017 to 2020, China clearly dominated the list of suppliers of starch-manufacture residues to South Korea, taking 97.9% of total imports in value terms.

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

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