Starches market in Paraguay

Earlier Report Observations

Starch production in Paraguay gradually increased from 163 thousand t in 2018 to 169.5 thousand t in 2020, while the domestic market volume remained relatively stable, fluctuating between 125 and 129 thousand t. The industry's structure, characterized by four industrial plants and a significant share of production retained on farms, provided stability. However, Paraguay's modest reception of private capital within MERCOSUR, due to its small market size, likely limited more rapid market expansion and the entry of new players.

Growth accelerated in 2021, with production reaching 175.3 thousand t and market volume rising to 132.4 thousand t. This surge coincided with increasing demand for gluten-free cassava starch and its new applications in bioplastics and thermoplastics, driven by the trend for sustainable products. Imports spiked, peaking at 16.7 thousand t in 2022. By 2023, production dipped slightly to 173.9 thousand t and market volume fell to 129.9 thousand t, partly due to heightened international price competition, particularly from Thailand and Brazil, which pressured export volumes despite Paraguay's leading position in cassava starch exports in the Americas.

For 2024 and 2025, while full market size data is unavailable, trade flows show imports dropping to 2.4 thousand t in 2024 before recovering to 7.2 thousand t in 2025, and exports reaching 60.1 thousand t in 2024 then declining to 44.5 thousand t in 2025. This period saw significant financial market reforms, including the enactment of the Securities and Products Market Law No. 7,572 in 2025, which modernized the regulatory framework, strengthened investor protection, and facilitated cross-border capital flows. Paraguay's investment-grade rating from Moody's and growing international investor interest, alongside global trends in starch market digitalization and sustainability, created a favorable environment for potential industry development.

Production starches in Paraguay

In kind, 2018-2021, K t

Top producers of starches, 2018-2021

World map of production of starches, 2018-2021

Paraguay's starch production has grown for the third year in a row. In 2021, the country produced 175.3 thousand tons of starches, representing a 3.4% increase from 2020. From 2018 to 2021, production rose by 7.5%, with an average annual growth rate of 2.4%.

Annual dynamics of production in Paraguay in kind, 2018-2021, K t

Exports starches from Paraguay

Exports in kind, t

Paraguay's foreign starch shipments have increased for the third consecutive year. In 2021, the country exported 50 135 tons of starches, showing a strong year-over-year growth of 11.8%. Between 2018 and 2021, exports surged by 44%, with an average annual growth rate of 12.9%.

Annual dynamics of product's exports from Paraguay in kind, 2018-2021, t

From 2018 to 2021, Colombia, Chile, and Bolivia remained the top buyers of Paraguayan starches by volume. Colombia accounted for 19.8% of exports, Chile for 18.6%, and Bolivia for 13.0%. Together, these three countries represented 51.3% of Paraguay's total starch exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Paraguay in kind, 2018-2021

Exports in value, K $ US

Paraguay's starch export revenues have risen for the third year in a row. In 2021, export value reached 27 951 thousand US dollars, marking a significant 52.6% increase from the previous year. Over the period from 2018 to 2021, export value grew by 56.8%, with an average annual growth rate of 16.2%.

Annual dynamics of product's exports from Paraguay in value, 2018-2021, K $ US

From 2018 to 2021, the distribution of export value remained diverse. Colombia accounted for 20.4% of exports by value, Chile for 14.8%, and the United States for 14.6%. Combined, these three partners made up 49.7% of total export flows, with no single country emerging as clearly dominant.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Paraguay in value, 2018-2021

Imports starches to Paraguay

Imports in kind, t

The market displayed volatility during the observed period. Import volumes reached their lowest point in 2019 at 966 tons and peaked in 2021 at 7 214 tons, representing a 7.5-fold difference. In 2021, starch imports into Paraguay surged by 346.7% compared to the previous year. The largest decline occurred in 2019, with a drop of 18.9%.

Annual dynamics of product's imports to Paraguay in kind, 2018-2021, t

From 2018 to 2021, Brazil dominated Paraguay's starch imports by volume, accounting for 75.4% of total flows. The remaining imports were spread across a range of smaller markets.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Paraguay in kind, 2018-2021

Imports in value, K $ US

Market behavior was marked by volatility in these years. Import value hit its lowest point in 2019 at 906 thousand US dollars and rose to a peak in 2021 at 4 137 thousand US dollars, a 4.6-fold increase. In 2021, import value jumped by 228.1% from 2020. The sharpest decline was in 2019, with a 17.4% decrease.

Annual dynamics of product's imports to Paraguay in value, 2018-2021, K $ US

From 2018 to 2021, Brazil and Argentina together accounted for 82.6% of Paraguay's total starch import value. The rest of the imports were distributed among various smaller markets.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Paraguay in value, 2018-2021