Pea Starch Market (2022-2029)

Pea starch is extracted from dry peas and has a wide range of food & beverage applications. The growing demand for convenience and processed food products, increasing prevalence of celiac disease and other food allergies, rising demand for functional food products, and the growing vegan population are the key factors driving the growth of the pea starch market. However, the availability of alternative starches and a decrease in the production of dry peas are expected to hinder the growth of this market to a notable extent.

Furthermore, the future market for pea starch-based bioplastics and a rise in demand from the pet food industry will provide significant growth opportunities for pea starch manufacturers in the coming years.

The COVID-19 pandemic severely affected human health and well-being. To control the spread of the virus, governments worldwide announced partial or complete lockdowns, which severely impacted many industries, including food & beverage, pharmaceuticals, pulp & paper, home & personal care, dietary supplements, animal feed, and textile. The pandemic had both negative and positive effects on the pea starch market.

The COVID-19 outbreak created a severe public health emergency globally. Many countries worldwide announced complete nationwide, state-wide, or citywide lockdowns to combat and control the spread of this disease, halting travel, transport, manufacturing, and non-essential trade.

According to the United States Department of Agriculture (USDA), some major agricultural exporters, such as Russia, Ukraine, and Vietnam, introduced export quotas or outright bans of international shipments, primarily food products. Agricultural production was also hampered due to the low availability of labor during the COVID-19 pandemic. According to the European Parliament, due to the pandemic's impact on the agri-food sector, governments and commissions had to adopt various measures to support producers. People also preferred homemade food over dining out. Additionally, the food demand from hotels and restaurants was reduced due to social distancing practices, which impacted the demand for pea starch in the market.

According to the Organisation for Economic Co-operation and Development (OECD), imports and exports in many countries were stopped, and ports were closed due to regulations and restrictions. Several shipping containers were docked in Chinese ports, and restrictions on their movement led to a shortage that affected the cargo prices, demand for food products, and traffic volume. Air freight costs rose by about 30% in China and North America and 60% on some routes to Europe and North America. Hence, it affected the export market due to higher logistics costs and movement restrictions.

However, the demand and use of pea starch increased in industries such as food & beverage, pet food, and pharmaceuticals due to increased awareness of health & wellbeing. During the COVID-19 pandemic, the demand for ready-to-eat food products increased. The young generation preferred ready-to-cook or ready-to-eat products.

Moreover, there was a rise in the demand for functional & immunity-boosting products as people sought solutions to boost their overall health. During the COVID-19 pandemic, health-conscious customers turned to functional and gluten-free products. Hence, increasing health consciousness and the high demand for functional food products encouraged manufacturers and product formulators to focus on these products. The COVID-19 pandemic also spurred a shift toward healthy living, improving people's food habits. For instance, according to the Food Information Council survey 2021, in 2020, 85% of Americans changed their food habits, and in 2021, 39% followed specific diets. These changing food habits boosted the healthy living trend in the U.S., further driving the demand for functional products in the country. Therefore, strong demand for pharmaceuticals, food & beverage, cosmetics and home care support the growth of the pea starch market. Considering the overall impact of COVID-19 on various industries that use pea starch, the impact of the pandemic on the pea starch market was positive.