Guangzhou, Guangdong -- (SBWire) -- 03/17/2011 -- China as the second largest starch market in the world, its native starch market is facing overcapacity and the modified starch market is emerging, according to CCM's new report the Profiles of Key Starch Enterprises in China.
Starch, including native starch and modified starch, is close to people's life for its wide application in food, paper, textile, feed, oil exploration, etc. Thanks to the strong demand for starch, China's starch industry has developed rapidly in recent years.
With strong governmental support, it has become the second largest starch producer in the world.
According to CCM's new report, the Profiles of Key Starch Enterprises in China, released in Mar 2011, more than 1000 producers are engaging in this industry to meet the market demand. With abundant supply of raw materials and low manufacturing cost, corn starch has become the most important native starch variety in China. Other native starch varieties, such as tapioca starch, potato starch and wheat starch, have much smaller market demand than corn starch.
CCM's report also points out, though China ranks high up in the list in view of production scale, the native starch market is facing its dilemma. Its easy access leads to intense competition among producers, which traps the industry into overcapacity. For the whole starch industry, with tightened environmental protection requirements, small-scale producers with little investment in waste treatment have been gradually phased out, while large-scale producers will continue to dominate the market with advantages in production cost and technology in the future.
As overcapacity lurks in the native starch market, more and more enterprises are engaging in or diverting to modified starch and derivatives market. As cost, output and revenue factors influence their strategic decisions, key starch enterprises lead the trend of the whole industry in the future.
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Overcapacity Lurks in China Starch Market