Reliable Corn Starch Procurement for Uncertain Times

The global corn starch market is experiencing rapid growth with promising expansion ahead. According to the “Corn Starch Market Size and Share Analysis – Growth Trends and Forecast Report 2025-2033” by Research and Markets, the corn starch market reached $21.99 billion USD in 2024 and is projected to reach $43.74 billion USD by 2033, with a compound annual growth rate of 7.94%. This corn starch procurement trend makes corn starch a crucial raw material driving business sectors across various industries, including food, beverages, pharmaceuticals, and biomaterials. However, this increased demand comes with increasingly complex procurement challenges, especially in an era where global volatility affects supply chains, potentially causing corn starch supply issues and eventual supply continuity problems.

Recent years have witnessed numerous global situations affecting supply chains and causing corn starch supply issues, including:

India’s changing role in the global market significantly impacts corn starch supply chains. The country has transformed from a major corn exporter to an importer due to aggressive government ethanol production policies aimed at reducing oil import dependence. This shift rapidly increased domestic corn demand in India, reducing global corn supply and driving prices higher.

Climate change severely affects corn cultivation areas worldwide, particularly frequent droughts and floods in the southwestern United States and Brazil – major global corn producers. Severe climate variations create corn starch supply issues with continuity problems due to increasingly uncertain corn yields.

Additionally, farmers must adapt to climate change by switching corn varieties and adopting new cultivation methods. While this adaptation helps address climate challenges, it affects corn quality and yield, making supply chains more volatile.

Raw corn prices continue rising due to multiple factors, particularly demand from the animal feed industry as the main driver, especially growth in Asia’s livestock sector. Meanwhile, the expanding ethanol industry, following clean energy policies, draws corn supply away from food markets. Combined with reduced cultivation areas from climate change, supply tightens and prices rise accordingly.

Corn starch production requires high energy from starch separation to drying processes. When oil and natural gas prices rise, production costs increase accordingly. Additionally, sea transportation costs have risen dramatically from global crises and container shortages, significantly increasing import-export costs.

The rapidly growing bioplastics industry drives higher corn starch demand as a main raw material for biodegradable plastic production. Environmental awareness trends and stringent regulations fuel this industry’s global expansion. Simultaneously, functional foods and clean label products require more high-quality modified corn starch, creating raw material competition between industries and driving corn starch prices higher with increased demand.

In an era where uncertainty becomes normal, SCG International not only supplies quality corn starch meeting standards but also supports customer businesses and production across multiple countries to continue operating despite market volatility, with flexible supply chain networks ready to respond appropriately to demands.

To meet diverse industry demands, SCG International supplies both main corn starch types:

Beyond corn starch, we also specialize in tapioca/cassava starch procurement with quality advantages, providing diverse options for different applications.

With a supplier network covering over 50 countries and long-term relationships with leading global producers, we access high-quality corn starch sources from diverse regions.

A globally distributed supplier network is key to supply risk management. When one production source faces problems – whether from climate change, political conflicts, or technical issues – the ability to promptly source from alternatives ensures uninterrupted business operations.

Additionally, diverse quality supplier options enhance price negotiation power while maintaining consistent starch quality through high-standard supplier selection.

Multiple-country suppliers enable smooth, unhindered business operations:
– Avoid tax collection and trade restriction problems
– Distribute risks through multi-source procurement
– Flexibly adjust sources according to situations

SCG International has expert teams with a deep understanding of global corn starch procurement trends, comprehensively supporting business operators’ needs:

Don’t let uncertainty hinder your business growth. Choose a global corn starch and tapioca starch supplier partner like SCG International. Contact us today to discuss corn starch and tapioca starch procurement solutions suitable for your business, with expert team consultation understanding markets and your needs thoroughly.