Starches market in China

Earlier Report Observations

From 2018 to 2020, the starch market in China expanded from 3 897 thousand tons to 4 436 thousand tons. This growth was initially supported by state subsidies for corn deep processing and an export tax rebate policy for starch sugar, which stimulated production and overseas shipments. The COVID-19 pandemic in 2020 disrupted supply chains and briefly reduced output, but heightened demand from the food and pharmaceutical industries led to increased imports, sustaining overall market volume growth.

Between 2021 and 2022, market volume surged by 29.9% to 6 404 thousand tons. A sharp, price-driven decline in corn starch exports made more product available domestically, while strong demand from paper, food processing, and pharmaceutical sectors continued. Anti-dumping measures on potato starch from the EU protected domestic producers, and ongoing subsidies for corn deep processing helped maintain production despite cost pressures.

In 2023, market volume declined to 5 679 thousand tons, largely due to a 22.8% drop in imports, influenced by the continued anti-dumping measures. However, domestic production saw a slight increase, supported by the rapid growth of new segments such as modified starches for specialty paper and pharmaceutical-grade starches. Industry consolidation progressed, with the top 10 firms producing 62% of corn starch, enhancing operational efficiency.

Production starches in China

In kind, 2017-2020, K t

Globally, China ranked as the third-largest producer of starches from 2017 to 2020.

Top producers of starches, 2017-2020

World map of production of starches, 2017-2020

China's starches production volume declined after two years of growth. In 2020, production reached 2 265 K t, marking a moderate year-over-year decrease of 5.8%. From 2017 to 2020, overall production fell by 2.6%, which translates to an annualized decline of 0.9%. The peak was in 2019 at 2 403 K t, while the largest increase occurred in 2018 at 3.2%.

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

In value, 2017-2020, M $ US

China's starches production volume declined for the second year in a row. In 2020, the output was valued at 868.6 M $ US, reflecting an 8.0% drop compared to the previous year. Between 2017 and 2020, production decreased by 12.7%, with an annualized rate of 4.4%. The highest value was recorded in 2018 at 998.0 M $ US, and the largest increase also occurred in 2018 at 0.3%.

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

Exports starches from China

Exports in kind, K t

The market showed noticeable fluctuations during this period. Exports reached their lowest point in 2017 and peaked in 2019, with a 2.5-fold difference between these years. In 2020, starches deliveries from China totaled 669 K t, indicating a 12.3% decrease year-over-year. The maximum value was in 2019 at 763 K t, while the largest increase was in 2018 at 89.4%.

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

From 2017 to 2020, Indonesia, Malaysia, and the Philippines were the main markets for China's starches exports in kind. Indonesia accounted for 44.5% of exports, Malaysia for 14.5%, and the Philippines for 10.6%, together representing 69.6% of total flows.

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

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

Exports in value, M $ US

The market exhibited volatility during these years. Import levels varied by 2.3 times, with the low in 2017 and the high in 2019. In 2020, exported starches volumes from China totaled 257 M $ US, down by 14.4% compared to 2019. The peak was in 2019 at 300 M $ US, and the largest increase occurred in 2018 at 84.1%.

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

From 2017 to 2020, Indonesia, South Korea, and Malaysia were the principal buyers of starches from China in value terms. Indonesia made up 37.6% of exports, South Korea 14.6%, and Malaysia 12.3%, collectively accounting for 64.5% of total exports.

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

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

Imports starches to China

Imports in kind, K t

China's starches imports increased for the second consecutive year. In 2020, imports amounted to 2 840 K t, showing a 17.0% uptick compared to the previous year. Over the period from 2017 to 2020, imports grew by 18.3%, with a compound annual growth rate of 5.8%. The lowest value was in 2018 at 2 067 K t, where the largest decline of 13.9% occurred. The largest increase was in 2019 at 17.4%.

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

From 2017 to 2020, Thailand and Vietnam were the primary sources for China's starches imports in kind, jointly accounting for 94.6% of total flows, while other partners held significantly smaller shares.

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

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

Imports in value, M $ US

Foreign starches supplies to China increased for the third consecutive year. In 2020, China imported approximately 1 189 M $ US of starches, which is 10.6% higher than in 2019. From 2017 to 2020, imports rose by 43.6%, with a compound annual growth rate of 12.8%.

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

From 2017 to 2020, Thailand and Vietnam served as the dominant destinations for China's starches imports in value terms, jointly taking 92.4% of total flows, with the remainder distributed among other markets.

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

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