Wheat starch market in Asia

Earlier Report Observations

Between 2018 and 2023, the wheat starch market in Japan saw a slight contraction in total volume from 1.37 million tons to 1.33 million tons, despite a steady increase in domestic production from 1.19 million tons to 1.27 million tons. This was primarily due to a sharp decline in imports, which fell from 209 thousand tons to 88 thousand tons over the period. The growth in production was supported by the diversification of wheat usage and an increased share of domestic wheat for bread and noodles, which boosted the processing of local wheat into starch.

The COVID-19 pandemic in 2020 caused a minor dip in production, but the market recovered quickly in 2021. Rising demand for functional and health-oriented food products, including gluten-free items, drove the use of wheat starch as an ingredient, contributing to market growth in 2021 and 2023. The development of differentiated products and cost competitiveness, influenced by WTO agreements and economic partnership agreements, encouraged domestic innovation and helped offset import declines.

The Russian invasion of Ukraine in 2022 led to a spike in wheat prices, impacting raw material costs. However, production remained resilient as supply chains adapted. The continuous decline in starch imports reflected a broader shift toward domestic sourcing, reinforced by policies promoting local wheat use and quality improvements, which sustained overall market volume despite external shocks.

Production wheat starch in Asia

In kind, 2017-2020, K t

Top producers of wheat starch, 2017-2020

World map of production of wheat starch, 2017-2020

Wheat starch production in Asia experienced a decline following two consecutive years of growth. In 2019, production reached its highest point at 1 209 K t, but then fell to 1 200 K t in 2020, representing a 0.7% decrease from the previous year. Over the period from 2017 to 2020, overall production increased by 3.1%, which translates to an average annual growth rate of 1.0%. The most significant year-over-year increase occurred in 2018, when production rose by 2.4%.

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

In value, 2017-2020, M $ US

Asia's wheat starch production value declined for the second year in a row. In 2018, production value peaked at 773.4 M $ US, but by 2020 it had decreased to 747.6 M $ US, marking a slight reduction of 1.9% compared to 2019. From 2017 to 2020, the total value increased by 4.7%, averaging 1.5% growth per year. The largest annual increase was recorded in 2018, with an 8.3% rise.

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

Exports wheat starch from Asia

Exports in kind, K t

The data shows irregular fluctuations, pointing to a volatile market environment. Export volumes reached their lowest point in 2017 and climbed to a maximum of 35.9 K t in 2018, representing a 2.3-fold increase between these two years. In 2020, wheat starch exports from Asia amounted to 29.9 K t, down 3.1% from the previous year. The most significant decline occurred in 2019, falling by 13.9%, while the largest increase was recorded in 2018, with a substantial 127.0% jump.

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

Between 2017 and 2020, wheat starch exports from Asia were distributed across a wide range of markets. The United States accounted for 1.6% of exports in kind, Canada for 1.2%, and Asia, not elsewhere specified, for 0.8%. Together, these three markets represented just 3.6% of total export flows.

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, K $ US

The market displayed signs of volatility throughout the observed period. Export values bottomed out in 2017 and peaked in 2018, with a 2.4-fold difference between these years. In 2020, the value of wheat starch exports from Asia reached 18 641 K $ US, a decrease of 4.3% compared to 2019. The most notable decline occurred in 2019, dropping by 16.4%, while the largest increase was in 2018, with a dramatic 140.2% rise.

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

From 2017 to 2020, the market base for wheat starch exports in value terms was broad. The United States accounted for 3.5% of exports in value terms, Australia for 2.4%, and Canada for 1.8%. Combined, these three countries represented only 7.7% of total flows, with the remaining 92.3% distributed among numerous other nations.

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

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

Imports wheat starch to Asia

Imports in kind, K t

The market exhibited an unstable trend over this timeframe. Import volumes fell to their lowest point in 2017 and peaked in 2018, with a 1.7-fold difference between these years. In 2020, wheat starch deliveries to Asia were recorded at 143.0 K t, reflecting a moderate drop of 8.6% compared to 2019. The largest decline occurred in 2019, decreasing by 25.1%, while the most significant increase was in 2018, with a 71.0% rise.

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

Between 2017 and 2020, three main markets—Australia, Lithuania, and Argentina—together accounted for 70.6% of total wheat starch imports in kind to Asia.

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, K $ US

Volatility characterized the market behavior during these years. Import values reached their lowest point in 2017 and peaked in 2018, showing a 1.8-fold amplitude between these two years. In 2020, cross-border shipments of wheat starch to Asia amounted to 63 650 K $ US, which is 9.1% less than the previous year. The largest decline was recorded in 2019, falling by 23.7%, while the most substantial increase occurred in 2018, with an 84.7% jump.

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

From 2017 to 2020, Australia accounted for 56.4% of imports in value terms, Lithuania for 6.3%, and Argentina for 4.7%. These three principal destinations together represented 67.4% of total import flows.

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

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