Summary:
In 2025, China’s starch industry faces higher corn costs and falling operating rates, while demand splits: food growth slows, but biodegradable plastics consumption is set to exceed 1.2M tonnes (+18% YoY). Rising inventories and regional supply shifts highlight pressure, yet high-value segments like medical-grade cassava starch are expanding rapidly.
1. Market Characteristics: Cost Pressures and Diverging Demand
From January to August 2025, China’s starch industry showed steady overall growth with structural divergence. National output is expected to exceed 13 million tonnes, with corn starch accounting for 68%, remaining dominant, followed by potato starch (15%) and cassava starch (10%).
On the price side, raw material costs are a major driver. In early September, corn prices rebounded to USD 397/bushel, up 4.55% MoM, directly squeezing processing margins for corn starch. Some producers saw operating rates drop to 45.46%, the lowest level this year.
Demand showed sharp contrasts. Traditional food industry consumption still accounted for 45% but growth slowed. In contrast, biodegradable materials demand surged, with starch-based degradable plastics expected to exceed 1.2 million tonnes in 2025, up 18% YoY. Inventories remained high: by end-August, national starch stocks reached 1.339 million tonnes, up 25.6% YoY, reflecting weaker-than-expected restocking from food and paper industries.
2. Supply Chain Restructuring: Policy Push and Layout Optimization
Raw material supply underwent deep adjustment. In July, corn imports were only 60,000 tonnes, down 94.7% YoY; cumulative imports from January to July fell 93% YoY, forcing production to cluster in Northeast and North China, the main corn-producing regions. Leading producers in Shandong invested in a 300,000-tonne plant in Gansu, adopting “local processing” to cut logistics costs, with smart production line penetration exceeding 60%.
Policy provided dual support:
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The Ministry of Commerce extended anti-dumping duties on EU potato starch until 2030, protecting domestic producers.
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The Phosphorus Resource Utilization Plan strictly controls new capacity, pushing by-product utilization up to 88.7%.
Technological substitution accelerated: modified starch’s share rose from 32% to 42%, while high-purity resistant starch and medical-grade starch achieved over 70% import substitution.
3. Emerging Trends: High-Value Segments Drive Growth
Bio-based materials became the strongest growth driver. Starch-based films modified with nano-composite technology reached a tensile strength of 35 MPa and entered supply chains of multinationals such as Walmart and Unilever.
Cassava starch also performed strongly in premium markets. In 2025, its market size is projected to exceed USD 625M, with medical-grade products enjoying a 200% premium, and annual procurement for slow-release formulations and medical dressings growing at 41%.
Industry concentration is rising, with CR5 market share expected to expand from 38% to 45%. Ahead of the September–October peak season, restocking may drive short-term demand recovery. However, under dual pressures of high raw material costs and environmental compliance, the industry is shifting from “scale expansion” to “green premium.” Functional starches and low-carbon processes are emerging as the key competitive barriers.
More information can be found at CCM Starch China Database.
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