Bangladesh Starch And Starch Derivatives Market Size & Share Analysis - Growth Trends And Forecast (2026 - 2031)

Bangladesh Starch And Starch Derivatives Market Trends and Insights

Expanding textile industry dominance

The rapid expansion of Bangladesh's textile and apparel industry is a significant driver for the demand for starch and starch derivatives, which play a crucial role in fabric finishing, sizing, and quality enhancement. In 2024, Bangladesh exported clothing worth USD 38,482 million, positioning it among the leading global apparel exporters, following China and the European Union ^{[1]Source: World Trade Organization, wto.org}. The growing domestic demand for raw materials further highlights the industry's expansion, with cotton consumption increasing to 7.6 million bales in 2024, compared to 6.9 million bales in 2020^{[2]Source: USDA Foreign Agricultural Service, "Cotton: World Market and Trade," usda.gov}. This growth underscores the rising need for starch-based solutions to enhance processing efficiency, preserve fabric integrity, and improve the quality of finished products. The increasing scale and technological advancement of Bangladesh's textile manufacturing sector, supported by cost-efficient labor, upgraded facilities, and the adoption of modern technologies, has driven the utilization of modified starches, hydrolyzed starches, and other derivatives.

Growth in food processing industry

Bangladesh's growing food processing industry is a key driver for the demand for starch and starch derivatives, which are extensively used as thickeners, stabilizers, emulsifiers, and texturizing agents in processed foods. By 2024, the country is home to approximately 1,000 food processing companies, an increase from 700 in 2023, indicating rapid growth in the sector and rising domestic demand for convenience and packaged food products ^{[3]Source: USDA Foreign Agricultural Service, "Exporter Guide Annual" usda.gov} . This expansion in processing activities has heightened the demand for modified starches, glucose syrups, and other derivatives to improve product consistency, shelf life, and functional performance. The diversification of processed food products, including dairy, bakery, confectionery, and ready-to-eat meals, further drives the adoption of starch-based solutions. Factors such as urbanization, shifting consumer lifestyles, and increasing disposable incomes are prompting manufacturers to utilize starch derivatives to enhance production efficiency and meet evolving quality standards.

Ongoing government initiatives in agriculture sector

Bangladesh's agricultural sector plays a crucial role in its economy, contributing 11.2% to the Gross Domestic Product (GDP) and employing 36.9% of the workforce as of 2025, according to the Bangladesh Investment Summit. Government-led initiatives aimed at agricultural modernization and crop diversification have created favorable conditions for starch production. The country primarily derives starch from potato, corn, and cassava, with potato being the dominant source due to its high yield and versatility in both food and industrial applications. These initiatives focus on enhancing crop productivity, improving seed quality, and promoting sustainable farming practices to ensure a steady supply of starch-rich crops. Agricultural development programs prioritize high-value horticulture, crop processing, and seed innovation to address domestic demand and boost export potential. Specific programs, such as the Potato Export & Cold Storage Support initiative, strengthen the raw material base for various starch production types. Meanwhile, maize and cassava production benefit from efforts in crop diversification and climate-resilient agricultural practices. These government measures help mitigate supply risks, stabilize raw material prices, and uphold quality standards in starch processing.

Rapid expansion of poultry and aquafeed industry

The expanding poultry and aquaculture industries in Bangladesh are driving higher demand for starch and starch derivatives, which serve as binders, energy sources, and pelletizing agents in feed formulations. As livestock and fish farming scale up to meet the growing domestic demand for protein, feed manufacturers are increasingly utilizing modified starches and derivatives to enhance nutrient delivery, improve pellet stability, and optimize feed digestibility. The rise in urban populations and increasing per capita consumption of poultry and fish have contributed to the growth of commercial farming, resulting in sustained, large-scale demand for starch-based feed ingredients. Additionally, government initiatives promoting modern farming practices and feed efficiency are further supporting this trend, establishing the poultry and aquafeed sector as a significant driver of growth for the starch and starch derivatives market in Bangladesh.

Exposure to international supply volatility and high international prices

Bangladesh's starch industry continues to face significant challenges due to international supply volatility and elevated global prices, a persistent structural issue despite efforts to enhance domestic production capacity. According to data from the Bangladesh Bureau of Statistics in December 2023, the country exported preparations of cereals, flour, and starch valued at Tk. 2,444.75 million, reflecting a 3.76% increase compared to the previous month. Meanwhile, imports amounted to Tk. 1,527.19 million, representing an 8.64% decline. This reduction in imports aligns with a broader trend in the country's food-grain trade, as wheat and rice imports dropped sharply during the July-February period of fiscal year 2023-24 compared to FY23. Traditionally a major importer of wheat from Ukraine, Bangladesh now sources wheat from Russia, Ukraine, Canada, and Australia, following disruptions in India's wheat exports since 2022. High international prices, coupled with rising domestic inflation and the depreciation of the local currency (taka), have further limited the country's ability to import rice and wheat at competitive costs.

Port/customs delays and bonded-warehouse limits

In 2025, the average import clearance time at Chattogram Port extended to 7 days, 7 hours, and 58 minutes, with some outlier shipments taking up to 19 days. These delays were attributed to factors such as multiple laboratory tests, disputes over harmonized-system classifications, and manual valuation procedures. Bonded-warehouse facilities, which defer duty payments until goods enter domestic circulation, remain predominantly available to ready-made-garment exporters. As a result, starch importers are required to pay the full 67 percent total tax incidence upfront, tying up working capital for extended periods. This liquidity constraint disproportionately impacts small and medium enterprises, which often lack access to trade finance, thereby allowing larger competitors with stronger balance sheets to gain market share by absorbing delayed reimbursements.

Segment Analysis

By Type: Derivatives Drive Value Addition

Starch derivatives accounted for 56.18% of the market value in 2025 and are projected to grow at a rate of 7.37% through 2031. This growth reflects food manufacturers' increasing preference for glucose syrups, high-fructose corn syrup, and modified starches, which provide functionalities not achievable with native granules. Modified starches, developed through processes such as acid hydrolysis, enzymatic treatment, or cross-linking, offer enhanced freeze-thaw stability, shear resistance, and clarity. These properties make them essential in applications like dairy desserts, sauces, and ready-to-eat meals, where texture and shelf life are critical to consumer acceptance.

High-fructose corn syrup remains a niche segment due to limited domestic production capacity and consumer concerns regarding health implications. However, beverage formulators are experimenting with blends of high-fructose corn syrup and glucose syrup to replicate sucrose's sweetness profile while reducing ingredient costs by 10-12%. Potato starch, although a smaller segment, provides the highest hydration and swelling capacity, making it the preferred disintegrant in orally disintegrating tablets. This formulation is gaining popularity in Bangladesh's generic drug industry, particularly as manufacturers focus on pediatric and geriatric populations.

By Application: Pharmaceuticals Outpace Traditional Uses

In 2025, the food and beverage segment accounted for 36.14% of the market value, driven by applications in confectionery, bakery, dairy, and beverages, where starch derivatives are utilized as thickeners, stabilizers, and texturizers. The packaged food sector, with a compound annual growth rate (CAGR) of 15.01% through 2027, is bolstered by urbanization and the expansion of modern retail, leading to increased demand for glucose syrup and modified starch. However, competition from alternative hydrocolloids such as guar gum, xanthan gum, and carboxymethyl cellulose is creating margin pressures, prompting formulators to balance cost and performance effectively.

The pharmaceuticals segment, projected to grow at a CAGR of 9.89% through 2031, represents the fastest-growing application. Local tablet manufacturers are increasingly replacing imported excipients with maize starch and sodium starch glycolate, benefiting from Bangladesh's duty exemptions on pharmaceutical capital machinery and low labor costs ranging from USD 90 to USD 150 per month. This segment consumes several thousand tonnes annually, contributing to improved printability and box strength. Other applications, including construction adhesives, biodegradable packaging films, and oil-well drilling fluids, are still in the early stages but are attracting research and development investments. Government initiatives to phase out single-use plastics and promote jute-starch composite materials for export to environmentally conscious markets in Europe and North America are further driving interest in these applications.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Bangladesh's starch and starch derivatives market demonstrates significant regional concentration, with Dhaka, Gazipur, Narayanganj, and Chattogram accounting for approximately 70 to 75 percent of consumption. This is primarily due to the dominance of these regions in ready-made garments, food processing, and pharmaceutical manufacturing. The Dhaka Division, which includes the capital and surrounding industrial areas, hosts the majority of the country's 5,162 registered garment factories. Additionally, it serves as the main distribution hub for packaged foods, making it the largest regional market. 

The government has initiated efforts to establish economic zones in secondary cities such as Bhola, Jamalpur, and Sylhet to decentralize industrial activity and alleviate the strain on Dhaka's overburdened infrastructure. However, progress in these initiatives has been inconsistent. Port logistics remain a critical factor influencing regional competitiveness. At Chattogram Port, the average import clearance time is 7 days, 7 hours, and 58 minutes, with some shipments taking up to 19 days. These delays impose working-capital challenges, favoring processors with bonded-warehouse access or those capable of negotiating extended payment terms with suppliers.

Mongla Port, the second-largest port in the country, handles a smaller volume compared to Chattogram and faces draft limitations that restrict the size of vessels it can accommodate. Despite these limitations, its proximity to the Khulna industrial belt and lower congestion levels make it an attractive option for bulk corn imports destined for feed mills in the southwestern region. Meanwhile, plans to develop Payra Port as a deep-water alternative have been delayed due to land acquisition disputes and financing challenges. As a result, Chattogram remains the dominant gateway, reinforcing the concentration of starch processing activities in its surrounding areas.