South America Starch Derivatives Market Industry: Market Size & Forecast 2026

South America's starch derivatives market is closely tied to the region's large agricultural base, particularly cassava, maize, and to a lesser extent potato, which supply native starches for downstream modification and hydrolysis. The market reached approximately USD 80.08 billion in 2026, continuing its steady expansion from the prior year. Demand is broadest in food and beverage applications, with paper, board, textiles, and bio-based industrial uses providing additional volume.

• •Cassava and maize are the dominant feedstocks, with Brazil, Colombia, Paraguay, and Argentina as key processing hubs.
• •Food and beverage applications account for the largest share of regional consumption.
• •Modified starches and sweeteners (glucose, maltodextrin, high-fructose) are the highest-value product categories.

Demand growth is being propelled by rising consumption of processed and functional foods, expanding paper and board manufacturing capacity, and the gradual shift toward bio-based and clean-label ingredients. Latin America's projected GDP growth of around 2.4% in 2025 and 2.3% in 2026 supports modest but positive volume growth in consumer-facing starch applications. Continued investment in cassava-processing infrastructure and sweetener capacity is also adding to the regional supply base.

• •Functional-food and clean-label reformulation is increasing the use of modified starches and maltodextrins.
• •Rising paper, packaging, and corrugated-board output in Brazil and the Andean region drives industrial starch demand.
• •CAGR for the South America segment is estimated at roughly 3.4-4.0% through 2030.

The market segments by product type into modified starches, native starches, sweeteners, and other hydrolysates, with sweeteners and modified starches typically capturing the largest value shares. Brazil represents the single largest national market, followed by Argentina, Colombia, Chile, and Peru, while smaller Andean and Central American economies contribute incremental volumes. End-use segmentation is led by food and beverages, followed by industrial applications such as paper, board, adhesives, and textiles.

• •Modified starch and sweetener segments together account for the majority of regional market value.
• •Brazil alone represents the largest share of South American consumption and processing capacity.
• •Industrial end-uses, particularly paper and packaging, represent the fastest-growing non-food segment.

Who are the notable companies in the industry?

## Competitive Landscape The South American starch derivatives market remains fragmented, with participation from global agri-industrial majors alongside regional processors. Among the leaders, Archer Daniels Midland Company and Cargill, Incorporated are positioned as key players, while Tereos S.A. and Ingredion Incorporated round out the top tier of companies operating in this market. Tate & Lyle PLC and Sudzucker Group further extend the competitive field with their international ingredient portfolios. Closer to the regional feedstock base, Molinos Juan Semino SA anchors activity within South America, and AGRANA Beteiligungs-AG adds another multinational ingredient manufacturer to the competitive set. Together, these eight companies define the principal competitive landscape shaping the region's starch derivatives sector, with Brazil standing out as a major cassava processing hub alongside the broader maize-based production corridors across the continent.

• •Market structure is moderately consolidated, with several large integrated producers alongside smaller specialty processors.
• •Wet-milling of cassava and maize is the dominant processing route across the region.
• •Production capacity is geographically concentrated in Brazil, with secondary clusters in Colombia, Paraguay, and Argentina.

What are the recent trends and outlook?

Through the remainder of the decade, the market is expected to track the broader global starch derivatives trajectory, with regional growth running slightly below the global average but supported by structural demand from food and industrial users. Investment in higher-value modified starches, sugar-substitute sweeteners, and more efficient processing technologies is likely to intensify. The outlook remains broadly positive, though sensitivity to commodity-price volatility, currency fluctuations, and shifting trade flows continues to be a notable risk factor for regional producers.

• •Regional CAGR is projected at roughly 3.4-4.0% through 2030, broadly aligned with global growth.
• •Shift toward specialty modified starches and sugar-replacement sweeteners is the key value-add trend.
• •Commodity-price volatility, FX risk, and feedstock variability remain the principal downside risks.