Pea starch is a plant-based thickening and binding agent obtained from yellow peas. It is commonly used in foods to improve texture, moisture retention and as a gluten-free alternative to wheat flour. Pea starch has several advantages over other starches such as corn starch as it is highly digestible, contains dietary fiber and has a neutral taste. The growing health and wellness trends have increased the demand for plant-based and gluten-free ingredients in recent years.

The Global Pea Starch Market is estimated to be valued at US$ 157.88 Bn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024 to 2030. Key players operating in the Pea Starch market are Tesla Inc., First Solar Inc., Hanergy Thin Film Power Group, and Suntech Power Holdings Co., Ltd.

Key Takeaways

Key players operating in the Pea Starch are Tesla Inc., First Solar Inc., Hanergy Thin Film Power Group, and Suntech Power Holdings Co., Ltd. Pea starch is widely used in food thickening and texturizing applications due to its ease of use, clean label and nutritional profile. Major food manufacturers are increasingly adopting pea starch in products such as soups, sauces, gravies, meat analogues and gluten-free baked goods. The global food and beverage industry has been growing steadily which is increasing the demand for plant-based ingredients.

The demand for pea starch is further growing due to the expanding vegan and vegetarian consumer base globally. Several consumers are switching to vegan diet for health, ethical and environmental reasons increasing the demand for plant-based substitutes for meat and dairy products. Pea starch is commonly used as a binder and thickener in meat analogues and alternative dairy products. With rising health consciousness, the demand for processed and packaged food is also on the rise especially in developing countries of Asia Pacific and Latin America propelling the pea starch market growth.

Leading pea starch producers are actively expanding their production facilities across major markets to cater to the growing global demand. For instance, in 2022, Roquette announced plans to set up a new pea processing plant in Portage la Prairie, Canada to increase its pea starch production capacity. Other key players are also investing in research and development to improve the functionalities of pea starch and tap new application areas. The global expansion of major food companies and evolving consumer trends are expected to drive continued demand for pea starch over the forecast period.

Market Drivers

The primary driver driving the growth of the Pea Starch Market Share  is the rising demand for plant-based and gluten-free ingredients. With increasing health awareness, consumers are shifting towards low-calorie and low-fat diets. Pea starch contains relatively fewer calories and virtually no fat content. It is easily digestible and makes a healthy substitute for wheat and corn starch. Moreover, the number of people with celiac disease or gluten sensitivity has increased rapidly creating robust demand for gluten-free alternatives like pea starch. The market is further aided by the increased vegan and vegetarian population globally seeking sustainable and ethical plant-based options. Pea starch acts as an important binder and thickener in processed vegan products. Overall, the shifting dietary preferences and wellness trends are expected to propel the demand for pea starch over the coming years.

Geopolitical Impact on Pea Starch Market Growth

The current geopolitical environment is posing challenges for the global pea starch market growth. Various conflicts and economic sanctions between major trading partners are disrupting global supply chains of pea starch. The ongoing Russia-Ukraine war has significantly impacted the pea starch supply from these two regions, which are among the leading producers and exporters of peas. This has put upward pressure on global pea starch prices. Manufacturers are facing increased supply risks and volatility in raw material costs. They will need to diversify their sourcing strategies and develop alternative supplier networks in other regions to mitigate the impact of geopolitical risks on future supplies. Supply chain transparency and longer term pricing agreements with farmers will help ensure sustainable raw material procurement. Companies must also focus on capacity utilization and cost efficiency to offset rising input costs. Investing in R&D for new product formulations and applications can open up new market opportunities and revenue streams to sustain profits in the current challenging environment.

Pea Starch Market Concentration in Europe

Europe dominates the global pea starch market in terms of value, accounting for over 30% market share currently. Countries like France, Germany, and United Kingdom are among the major producers and consumers of pea starch in this region. This is attributed to extensive cultivation of field peas across European countries, coupled with strong demand from food processing and industrial sectors. Starchy food applications such as soups, sauces and gravies are driving pea starch consumption. Its usage is also high in animal feed industry which has a sizeable presence in Europe. In addition, the growth of plant-based food products in the region is providing opportunities for pea starch incorporation.

Fastest Growing Region - Asia Pacific

Asia Pacific region is witnessing the fastest growth in the global pea starch market supported by expanding food industry and rising health awareness among consumers. Countries like India and China are emerging as highly lucrative markets. Increasing adoption of pea starch as a gluten-free, non-GMO and sustainable alternative to various starches is propelling the demand. Rapid urbanization, rising health expenditure and growth of middle class population are fueling the sales of processed and convenience food products incorporating pea starch. The escalating demand from paper, textile and pharmaceutical sectors also contributes to market revenues. With growing exports from major producing countries like Canada and France, the pea starch market in Asia Pacific is likely to Continue exhibiting double digit growth over the forecast period.

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