Pea Starch Market

Market Overview

The global pea starch market size was valued at USD 118.75 million in 2021. It is projected to reach USD 246.43 billion by 2030, growing at a CAGR of 8.45% during the forecast period (2022-2030).

Yellow peas are used to make pea starch, which is processed differently from pea flour and is the most widely used product made from peas. Peas have 40% starch, naturally present as a white powder with no discernible flavor or color. This starch is a non-GMO, non-allergenic, and gluten-free component. Pea starch has dramatically increased in popularity across the globe in the food and starch sectors. Pea starch is widely employed in various applications because it provides essential performance and functionality advantages, from simple processing to hard gels. Also, consumers are constantly looking for foods with exceptional texture and flavor created with clear labels and recognizable components. Pea starch offers all these desired characteristics without sacrificing the food's color or flavor.

Market Dynamics

Global Market Drivers

Growing Preference of Consumers for Clean-Label Food Ingredients

Clean-label alternatives to modified starches have been created and are now receiving increasing attention as customers worldwide have become more health concerned. Global demand for clean-label starches is driven by a more specific focus on minimally processed food items, more genuine ingredients, no synthetic additives, and food products free of antibiotics. The introduction of processed food products with pea protein as an ingredient has significantly increased in response to the rising demand for healthy products. The availability of alternative pea-based goods based on fiber and starch has expanded due to the requirement for pea protein. Pea starch is a non-GMO, clean-label ingredient that offers a variety of consumers gluten-free, allergen-free, low-calorie, low-fat options.

Pea starch has many distinctive qualities that are advantageous to the food business, particularly as an alternative to chemically modified starch, such as the ability to create pastes with high viscosities and stronger gels. The increasing acceptance of flexitarianism and veganism and the growing need for dietary supplements are the primary forces propelling expansion in the global pea starch market. The rising trend of vegetarianism and the influence of social media significantly impact the market expansion as more people become aware of the potentially harmful effects of eating meat and dairy products.

Global Market Restraint

High Availability of Low-Cost Alternatives

One of the key factors impeding the expansion of the market is the prevalence of corn, cassava, and potato starch in both emerging and developed nations due to their low cost and high starch-yielding ability. One of the most popular cereal grains, corn, has the highest starch content of all cereals. For instance, 25.7 grams (18.2% by weight) of starch are present in 1 cup (141 grams) of maize kernels. Corn, tapioca, and potato starches are inherently gluten-free, economically practical, and have a sizeable starch-yielding capacity, leading to their increased use in gluten-free food products such soups, sauces, custards, snack foods, processed meats, baked goods, noodles, and shredded cheese.

The increased demand for convenience foods due to changing consumer lifestyles has resulted in the widespread use of potato starch as a primary component in baked goods and the vast majority of processed foods. In addition to being widely accessible, potato starch is also less expensive than other options. A wide range of food industries, including bakery and confectionery, meat and fish, and pet food, use potato starch. Numerous qualities of potato starch can be employed to create savory and well-textured dishes. Potato starch producers use strategic partnerships or alliances with local food producers.

Global Market Opportunities

Extensive Application with Functional Value

Pea starch is used in food processing, cosmetics, and animal feed. Its multi-functionality, such as gelling, texturizing, binding, coating, thickening, and film-forming, has helped manufacturers launch a large number of products across end-user industries. This has dramatically sped up the market's growth over the review period. Consumers' continued preference for low-carb and high-protein diets is hastening the use of pea starch in a variety of processed foods, including functional goods. A third of customers in the European Union purchase foods containing sports nutrition to meet their daily energy needs, according to a Roquette Frères poll. Meanwhile, customers focusing on their health are actively looking for alternate sources of carbohydrates in functional food items, such as active nutrition items with a low glycemic index.

Regional Analysis

The global pea starch market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Europe Dominates the Global Market

Europe is the most significant shareholder in the global pea starch market and is expected to grow at a CAGR of 9.00% during the forecast period. Due to Spanish consumers' heightened health consciousness, there is a greater demand for low-calorie, nutritious food, which has led to an increase in the use of healthy food ingredients like pea starch. Another element influencing the use of pea starch in the nation's food and beverage industry is the increasing demand for vegan food that has been observed in the country. For instance, Lidl introduced a vegan burger in 2020 under their new own label, Next Level Meat. This company imitates the recipe of Spain's now-famous Beyond Meat brand and uses pea starch as a binder in the burger.

North America is anticipated to grow at a CAGR of 9.50%, generating USD 78.22 million during the forecast period. Food producers are increasingly using pea starch in their food and beverage items. These goods include breading, nutritional bars, ready-to-drink drinks and powders, pasta, and batters. Due to their clean-label claim and anti-allergic qualities, pea-based components are becoming increasingly popular among many end-user industries, such as sports nutrition and weight management. The growing understanding of pea starch's adaptability and multifunctional qualities (low carb, low calorie, high amylose content, binding/thickening) in human and animal food formulation is one of the main factors fueling the expansion of the pea starch market.

Asia-Pacific has seen a sharp rise in demand for food goods with clean labels and natural ingredients. Additionally, over the past 25 years, the amount of investment in the food and beverage sector has expanded throughout the Asian and Pacific areas, particularly in China, supporting that country's rapid economic development. The demand is projected to hold steady and grow rapidly since pea starch is quickly replacing mung beans as one of the Chinese consumers' new favorites and because it makes an excellent raw material for bean vermicelli. There has been an increase in flour blending when starch from various sources, including peas, cassava, and potatoes, is combined with flour. This has encouraged an alternate expansion of pea starch in the nation.

Brazil's economy is one of the fastest-growing in Latin America. Therefore, the rising market value of pea starch is anticipated in the upcoming years, especially among the vegan and vegetarian population. Argentina also controls most of the local pea production and exports. The Province of Cordoba and Argentina's northwest are the main chickpea-growing regions, according to the Food and Agriculture Organization of the United Nations (FAO). Due to the effective distribution of plant-based products through retail sales and the widespread understanding of the advantages of pea starch, the vegan movement is turning away the population of Argentina. As a result, pea starch is expected to experience rapid expansion in the following years.

Segmental Analysis

The global pea starch market is segmented by source and application.

Based on the source, the market is classified into organic and conventional.

The conventional segment owns the highest market share and is expected to grow at a CAGR of 7.95% during the forecast period. The demand for traditional pea starch is driven by the need for gluten-free goods, making it a more popular ingredient choice with producers. The use of typical pea starch is more likely to be required by various applications because it is a less expensive source of starch than rice, wheat, and cassava and has less carbohydrate content than well-known starches like maize and potato. It can be used in place of conventional gluten-free components such as potato starch, tapioca starch, and rice flour without affecting the final product's quality. Products that go through an extrusion process are in extremely high demand. For example, goods like crackers, cookies, and snacks designed to be convenient have a high starch content. Pea starch also performs well in applications for soft candies.

The market for organic pea starch is anticipated to grow due to product adoption across most consumables and manufacturers' determination to boost investment in getting peas from organic acreages. A Texas-based company called Viachem provides organic pea starch made from non-GMO yellow peas. The product is sustainably used in beverages, clean-label bars, baked goods, and other products. The company's starch is well-liked by manufacturers due to its highly high amylose concentration, gel strength, and neutral flavor and color. Vegan, gelatin-free gummies that use organic pea starch as their main ingredient offer a clean-label, highly functional substitute for gummies made of animal gelatin.

Based on the application, the market is bifurcated into food and beverage, animal feed and pet food, and clinical nutrition and cosmetics.

The food and beverage segment is the highest contributor to the market and is expected to grow at a CAGR of 8.40% during the forecast period. Demand for artisan baked goods is rising, particularly from customers who desire distinctive, premium goods with sumptuous flavors and textures. The emerging clean labeling trend has encouraged the key players to produce pastry shop products with minimal ingredients that are recognized and perceived as natural and healthy by consumers, which is further accelerating the use of pea starch in bakery products and making it one of the fastest-growing segments of the market studied. Pea starch contributes to process stability for a variety of bakery goods, including baked snacks, breakfast cereals, and fruit fillings. A New Jersey-based company called American Key Food Products has a broad product line of starches derived from several sources.

The feed industry has acknowledged the advantages of feeding peas to animals globally. Peas and their derivatives are commonly consumed throughout Europe, particularly in nations like Spain, France, Germany, England, Belgium, the Netherlands, and Denmark. Peas and their constituents in animal feed have spread to various nations in Asia and Latin America, keeping up with current demand and an increase in raw pea supply. Pea starch is used as a supplement and a source of carbohydrates due to its great digestion after processing. Pea starch's high viscosity aids in improving pellet quality and reducing dust generation in the finished product.

Research and development by manufacturers have grown increasingly important as active consumers become more demanding to track their intake during their busy schedules. Most health-conscious shoppers look for goods that will benefit them while including low-glycemic-index foods and alternatives in their diets. Pea starch aids in providing long-lasting energy while assisting users in controlling their blood sugar levels. An industry pioneer in pea-based products, Roquette created the pea starch LN 30. This product is designed to supply your busy lifestyle with fuel, and it comes in two forms: snack bars and powder shakes. The LN 30 provides long-lasting energy and is only hardly digested. The product has a variety of uses in maternal nutrition, sports nutrition and weight management, senior and clinical nutrition, as well as nutraceuticals and functional foods. It is also label-friendly and gluten-free.

Recent Developments

• September 2022- AGT Food and Ingredients Inc. (AGT), one of the largest suppliers of value-added plant-based food products and ingredients derived from pulses, and Equinom announced an agreement to accelerate the development, validation, and commercialization of co-branded functional ingredients made from Equinom ultra-high protein yellow pea varieties. The companies will collaborate to develop a portfolio of minimally processed plant protein ingredients, optimized from the source crops themselves, to enhance the flavor, nutrition, accessibility, and carbon footprint of various foods and beverages. This partnership represents a significant commitment to building an efficient and sustainable supply chain for plant-based products for the food industry.
• August 2022- A leading global provider of specialty ingredient solutions to the food and beverage manufacturing sector, Ingredion Incorporated, released the findings of its most thorough environmental life cycle evaluation of stevia. The goal of the global study was to better understand the environmental performance of PureCircleTM by Ingredion's stevia portfolio and the sustainability of stevia compared to full-caloric options like cane sugar and beet sugar, and high fructose corn syrup throughout its product life cycle.