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The modified cassava starch market in Vietnam has experienced steady growth, driven by rising demand from sectors such as food and beverage, pharmaceuticals, paper and packaging, and textiles. Modified tapioca starch, known for its thickening, stabilizing, and emulsifying properties, is in high demand for its versatility and natural origin. In the food industry alone, modified starches are sought for their role in improving texture and extending shelf life. With an increase in processed food consumption, modified starch demand continues to rise.
In addition, Vietnam’s pharmaceutical and textile industries are expanding, contributing further to the demand. This upward trend reflects global shifts, as countries increasingly seek sustainable and natural ingredients in manufacturing processes. The regional shift toward eco-friendly products also positions modified cassava starch as a favorable choice for numerous applications.
Vietnam remains one of the largest cassava-producing countries, and while cassava cultivation has expanded in recent years, several factors challenge production efficiency:
Climate Variability: Irregular weather patterns have affected cassava yield, impacting overall production volumes and sometimes causing supply fluctuations in the market.
Supply Chain Constraints: The logistical costs and limitations in storage infrastructure impact the market by creating gaps between supply and demand. However, increased investment in transportation networks and cold storage is expected to stabilize these challenges over the next few years.
Despite these challenges, the Vietnamese government has been supportive, with initiatives aimed at improving agricultural practices, boosting yield, and addressing these supply chain issues.
Vietnam’s modified cassava starch market is also significantly influenced by export demand, especially from China, Japan, South Korea, and several countries in the Middle East and Europe. China remains Vietnam’s largest cassava starch importer, driven by demand for use in food processing, animal feed, and biofuel production.
In November 2024, trade relations between Vietnam and its trading partners have shown stability. However, competition from other Southeast Asian producers like Thailand remains strong. Vietnamese suppliers are responding with quality improvements and certifications to meet international standards, positioning their products competitively in the global market.
Cassava prices in Vietnam have shown a moderate downward trend, mainly due to cassava season.
If you are looking for a reliable partner in the field of cassava starch or modified tapioca starch, contact us today!
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