Starches market in MERCOSUR

Earlier Report Observations

From 2018 to 2019, the starch market volume in MERCOSUR remained stable at around 1.2 million tonnes, despite economic challenges in the region including recession in Argentina and low growth in Brazil. Discussions to review the bloc's Common External Tariff pointed to ongoing efforts to deepen integration. In 2020, the COVID-19 pandemic reduced market volume to 1.2 million tonnes, disrupting supply chains and demand across the trade bloc.

Post-pandemic, in 2021, the market recovered to 1.27 million tonnes, supported by growing global demand for clean-label starches, which spurred industry investments. In 2022, despite a slight volume dip, market value jumped 24% to USD 864 million, influenced by higher raw material prices following the Ukraine war. By 2023, market volume fell to 1.14 million tonnes and value declined, coinciding with a drop in MERCOSUR's export earnings due to lower international prices and increased external competition.

Production starches in MERCOSUR

In kind, 2017-2020, K t

Top producers of starches, 2017-2020

World map of production of starches, 2017-2020

Starches production in MERCOSUR saw growth for two consecutive years before declining. In 2020, production reached 1 339 K t, marking a slight decrease of 0.8% compared to 2019. Over the period from 2017 to 2020, production increased by 6%, which translates to an average annual growth rate of 2.0%. The highest production level was recorded in 2019 at 1 350 K t, with the largest year-on-year increase of 5.6% also occurring that year.

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

In value, 2017-2020, M $ US

Starches production in MERCOSUR declined for the second year in a row. In 2020, the output was valued at 565.6 M $ US, showing only a minor change from the previous year. The peak value was observed in 2018 at 633.6 M $ US, which also saw the largest increase of 14.0%. In contrast, 2019 experienced the most significant decline of 10.6%.

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

Exports starches from MERCOSUR

Exports in kind, K t

Starches exports from MERCOSUR increased for the second consecutive year. In 2020, export volume totaled 159.5 K t, reflecting a strong growth of 21.3% compared to 2019. From 2017 to 2020, exports rose by 19.1%, with a compound annual growth rate of 6.0%. The lowest export volume was recorded in 2018 at 91.1 K t, which also saw the largest decline of 31.9%. The most substantial increase occurred in 2019, with a jump of 44.2%.

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

Between 2017 and 2020, the country structure of starches exports from MERCOSUR remained highly diversified. The top three destinations—Chile (23.6% of exports in kind), Bolivia (10.3%), and Colombia (8.6%)—collectively accounted for only 42.5% of total flows. The remaining 57.5% was distributed among a wide range of smaller markets.

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

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

Exports in value, K $ US

Starches exports from MERCOSUR increased for the second year in a row. In 2020, exports reached 67 349 K $ US, showing a gain of 22.1% compared to the prior year. Over the 2017-2020 period, exports grew by 14.3%, with a compound annual growth rate of 4.6%. The lowest value was recorded in 2018 at 45 180 K $ US, which also experienced the largest decline of 23.3%.

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

From 2017 to 2020, starches from MERCOSUR were exported to numerous markets, resulting in a diversified trade structure. Even the largest destinations—Chile, Bolivia, and Colombia—together represented only 41.1% of total exports in value terms.

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

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

Imports starches to MERCOSUR

Imports in kind, K t

After two years of decline, starches imports into MERCOSUR increased. In 2020, imports amounted to 25.9 K t, indicating a rise of 9.6% year-over-year. However, between 2017 and 2020, imports decreased by 41.6%, equating to an annualized decline of 16.4%. The lowest import volume was recorded in 2019 at 23.6 K t, which also saw the largest drop of 34.2%.

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

The partner structure of starches imports into MERCOSUR from 2017 to 2020 was fragmented. The top three suppliers—Germany (11.4% of imports in kind), Thailand (8.3%), and Denmark (6.0%)—together accounted for only 25.7% of total flows, with no single country holding a dominant share.

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

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

Imports in value, K $ US

Starches imports into MERCOSUR declined for the third consecutive year. In 2020, import volume totaled 19 319 K $ US, showing a moderate reduction of 3.4% relative to the prior year. Over the 2017-2020 period, imports decreased by 39.3%, with a compound annual decline of 15.3%.

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

During 2017–2020, imports of starches into MERCOSUR in value terms were spread relatively evenly. The leading suppliers—Germany (14.8% of imports in value terms), Thailand (8.0%), and Denmark (7.5%)—jointly accounted for only 30.2% of total flows.

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

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