LATAM Maltodextrin Market Key Insights:
- Country wise Supply and Consumption
- Market Analysis & Outlook 2019-2024
- Capacity Addition & Plant Turnarounds
The LATAM maltodextrin market was driven by the growth in the production of maltodextrin, with nearly 0.105 million metric tons being produced between 2017 and 2018. The regional market accounts for 3% of the total global output of maltodextrin. It added to the growth of the global maltodextrin production, which is expected to grow at a CAGR of 5% between 2019-2024, attaining 5 million metrics tons by 2024. The consumption of maltodextrin also increased in the region, attaining a consumption volume of about 0.24 million metric tons between 2017 and 2018.
Globally, maltodextrin finds the majority of its application in the food and beverage industry, which accounts for nearly 65% of its applications globally. The food and beverage sector is followed by health and personal care, pharmaceutical, and agricultural sectors as the major application sectors. It is also used extensively as a bulking agent in artificial sweeteners.
The maltodextrin industry is affected by the climate of its various feedstock market. Corn is the leading feedstock for maltodextrin, accounting for almost 70% of its global production. Corn starch is the major feedstock in countries like Brazil, whose healthy production drove the growth of the LATAM maltodextrin market. Between 2017-2018, Brazil accounted for 9% of the total corn production.
Properties and Applications
Maltodextrin is a polysaccharide that usually appears as a white hygroscopic spray-dried powder. It is derived from starch and finds application as a food additive and carbohydrate supplement. Depending on the extent of polymerisation, it can be either moderately sweet or can be almost devoid of any flavour. It is added to processed foods like infant foods, ice-creams, candy, soft drinks, and energy drinks.
Maltodextrin finds application in the following sectors:
- Food and Beverage
- Health and Personal care
The common feedstock for maltodextrin covered in the report are corn and corn starch, cassava and cassava starch, potato and potato starch, and wheat and wheat starch. The report looks into the consumption and supply of maltodextrin in Brazil, Argentina, and Colombia.
The LATAM maltodextrin market is being driven by the robustly growing food and beverage industry. Maltodextrin finds application as a food thickener in food products such as ice-cream, beer, infant formula, potato chips, jerky, and frozen food. Its powder also finds application as a supplement used by bodybuilder and athletes as well as in sodas and candy. Latin America along with the Caribbean represents about 17.5% of the global beverage industry, generating an annual revenue of USD 17.7 million. The thriving beverage sector in the region is also pushing the maltodextrin industry forward as the polysaccharide finds widespread application in the beverage industry. Maltodextrin is added to beverages to flavour, increase solubility of beverage powders, and to help balance the sweetness of the drinks.
In Latin America, the industry is being aided by a growing middle-class population, which is projected to grow substantially in the coming decade. This growing middle class is leading to a change in consumption patterns with consumers demanding healthier foods, thus, providing an impetus to the maltodextrin market. The expanding sweeteners industry in countries like Brazil is further propelling the industry forward in the region. Processed foods such as instant noodles which contain maltodextrin are also being increasingly consumed in the area. Brazil is one of the leading markets for instant noodles.
Maltodextrin also finds application in the cosmetics and personal care industry where it is used as an absorbent, emulsion stabiliser, binding agent, moisturiser, and film-forming agent. In 2017, Latin America accounted for 11% of the global cosmetics industry with Brazil, Colombia, and Chile as the key markets in the region. Brazil, especially, is a leading cosmetics market in Latin America. The mounting growth of the cosmetics industry is in turn also aiding the maltodextrin industry in the region.
However, the LATAM maltodextrin market is expected to witness a decrease in demand in the coming years. Increasing health concerns about extra fat, blood sugar, allergic reactions, chronic inflammatory diseases, and weight gain might provide a hindrance to the growth of the industry. People with gluten intolerance may start avoiding maltodextrin products which contain traces of gluten.
The prices of the feedstock affect the maltodextrin prices too. In Brazil, the wheat prices are expected to see a hike due to the drought conditions prevailing in Southern Brazil. Thus, wheat prices are estimated to have grown by 3% between 2018 and 2019.
The report by EMR analyses the following key players in the LATAM maltodextrin market, looking into the share, capacity, and latest developments like mergers, acquisitions and investments, expansions of capacity, and plant turnarounds of these major market players:
- Cargill, Incorporated
- The Archer Daniels Midland Company
- Ingredion Incorporated
- Tereos S.A
- Roquette Frères
- Tate & Lyle PLC
- The Agrana Group
The EMR report gives an in-depth insight into the LATAM maltodextrin market by providing a SWOT analysis as well as analysis of Porter’s Five Forces.