INDONESIA CORN STARCH MARKET

Indonesia corn starch market is projected to grow at a steady CAGR of 6.5% between 2025 and 2032 driven by the growing demand from major industries coupled with the increasing consumer recognition about the health benefits linked to organic ingredients.

Major Market Drivers and Emerging Trends

Indonesia corn starch market size has experienced consistent growth in recent years fueled by increasing demand from sectors including food and beverage along with cosmetics. Corn starch serves primarily to be a food thickening agent or a gluten free baking ingredient. Its major consumption in Indonesia comes from the bakery industry along with its use in animal feed. With Indonesia’s industrial growth on the rise, corn starch has become a key component in sustaining multiple industries. The surge in need for processed foods coupled with industrial growth is making corn starch a preferred option because of its low cost and versatility.

The government has been promoting domestic corn starch production to reduce reliance on imports while implementing policies to boost agricultural output particularly in corn farming. These initiatives benefit local farmers while also ensuring a more reliable corn starch production and distribution chain. However, significant consumption levels in the country make imports an indispensable part of meeting the local demand. Across different industries corn starch is favored for its flexible properties which improve the quality and performance of end products.

Increasing understanding about the health benefits from organic ingredients has further driven Indonesia corn starch market growth. Consumers are increasingly choosing products free from chemicals which organic products are often fresher because they lack preservatives that can extend their lifespan. Additionally organic farming practices are generally more beneficial for the environment. Companies with organic labels are positioning themselves to take advantage from the shift toward healthier consumer preferences.

However manufacturers in this sector struggle with rising raw material costs owing to volatile global commodity prices and fluctuating currency exchange rates which hinder their ability to maintain stable pricing over extended periods. Additionally competition is intense in domestic markets with numerous regional and international competitors providing similar products which makes it difficult for new entrants to gain a foothold without compromising on margins.

Based on type the Indonesia corn starch market is classified into two segments which are native and modified starch. The native starch is experiencing rapid growth fueled by the rising interest in clean labels along with its versatility in industrial applications which supports sustainable production and meets changing consumer trends. Meanwhile, modified starches deliver better functionality than unmodified starch especially regarding viscosity and stability. Modified starch finds extensive application in Indonesia’s bakery products and snacks where it helps improve texture and increase shelf life while enhancing mouthfeel. Additionally, modified starch has become increasingly popular in the Indonesian market as a thickening agent owing to its ability to mimic the textural properties of animal proteins all while keeping the product’s quality intact without increasing fat or calorie content.

Based on application, the food and beverage segment are the leading corn starch user in Indonesia as this ingredient is essential in making sauces or bakery products. Urbanization coupled with evolving consumer habits are fueling the need for processed foods which results in a strong market for corn starch. Corn starch is also utilized in the textile segment to be a sizing agent which helps to add flexibility to yarns for a more efficient weaving process. The growing corn starch demand in the textile industry is propelled by its strong market presence in these sectors.

Top Market Players

Major players within the market include Cargill, Tiga Pilar Sejahtera Food, Gery Boga, IndoFood Agri Resources, Archer Daniels Midland (ADM), Tereos FKS Indonesia, PT Sorini Agro Asia Corporindo Tbk among others.

Key Developments

• • In 2022, Cargill opened its newly established corn wet processing facility in Indonesia designed to fulfill the growing need for starches and feed in Indonesia along with Asia.

Segments covered in the Report:

The Indonesia Corn Starch Market has been segmented on the basis of Type and Application. Based on Type, the market is segmented into Native Starch and Modified Starch. Based on Application, the market is segmented into Food and Beverage, Animal Feed, Pharmaceuticals, Textile, Paper and Corrugated and Other Applications.

Market Segmentation

Indonesia Corn Starch Market by Type

• • Native Starch
  • Modified Starch

Indonesia Corn Starch Market by Application

• • Food and Beverage
  • Animal Feed
  • Pharmaceuticals
  • Textile
  • Paper and Corrugated
  • Other Applications

Indonesia Corn Starch Market Leading players

• • Cargill
  • Tiga Pilar Sejahtera Food
  • Gery Boga
  • IndoFood Agri Resources
  • Archer Daniels Midland (ADM)
  • Tereos FKS Indonesia
  • PT Sorini Agro Asia Corporindo Tbk