Food Ingredients
03 June 2025
Corn starch, a versatile carbohydrate extracted from the endosperm of corn, is widely used across the food, beverage, pharmaceutical, and paper industries. In Singapore, where the food manufacturing sector is robust and export-focused, corn starch serves as a key thickening agent, stabilizer, and texturizer. But since late 2023, corn starch prices have surged across Asia, creating ripple effects in downstream industries.
This article explores the reasons behind the price hike, focusing on post-pandemic demand recovery, agricultural constraints, energy costs, and logistical factors. We also assess the implications for Singapore’s food ingredient sector and provide practical insights for procurement and supply chain teams.
Corn starch is a native starch, meaning it is minimally processed and widely applied in:
Sauces, soups, and gravies as a thickening agent
Confectionery and baked goods for texture and shelf life
Instant noodles and snacks for crispiness
Dairy and plant-based beverages as a stabilizer
Modified starches (e.g., maltodextrin, glucose syrup) for further use in food processing
In Singapore, the use of corn starch is especially significant in ready-to-eat meals, food service applications, and functional food exports.
During the pandemic, demand for packaged food and food ingredients initially surged due to stockpiling. However, as economies normalized, foodservice sectors reopened, and consumer behavior shifted once again.
According to Statista, the Asia-Pacific food market rebounded strongly in 2023-2024, with increased demand for processed and convenience food products that heavily rely on starch derivatives.
Countries like Indonesia, Vietnam, and China saw double-digit increases in urban food consumption, which translated to:
Higher demand for starch-based additives
Increased use in sauces, coatings, and desserts
Strong export demand for processed Asian foods
This broad resurgence led to regional shortages and upward price pressure on raw materials like corn starch.
Corn starch production depends heavily on corn supply, and multiple factors have impacted harvest yields globally:
Drought in China and India
In 2023, widespread droughts in northern China and western India reduced both feed corn and starch-grade corn yields, tightening supply.
Export Restrictions in Argentina and Ukraine
Argentina, a major corn exporter, imposed export controls to protect local supplies, while Ukraine’s war-disrupted farming sector led to lower exports to Asia.
Corn Demand from Biofuel
With rising oil prices, more corn is being diverted toward ethanol production particularly in the US and India, shrinking the volume available for starch processing.
These constraints created a global starch supply shock, especially affecting regions like Southeast Asia that rely on imports of both raw corn and processed starches.
Raw Material Inflation
Corn prices rose globally, with CBOT (Chicago Board of Trade) corn futures reaching over USD 6.20 per bushel in early 2024. This directly increased the input cost of starch processing.
Energy and Manufacturing Costs
Starch processing is energy-intensive. Rising natural gas and electricity prices in Indonesia, China, and Thailand where many starch factories are located have increased conversion costs.
Freight and Logistics
Post-COVID disruptions continue to affect container availability and port delays. According to Drewry Shipping Index, Asia-Europe and intra-Asia freight rates remain elevated, impacting the final landed cost of starch in Singapore.
Export Tariffs
China, the world's largest starch producer, imposed temporary export quotas on corn-based products in Q4 2024 to stabilize domestic prices, further limiting supply in Asia.
Singapore is a major importer of food ingredients, including food-grade corn starch from China, Thailand, India, and the US.
The surge in prices has affected:
Local food manufacturers using starch for instant meals, sauces, and snacks
Bakery and confectionery exporters relying on stable costs for competitive pricing
Nutraceuticals and functional food producers using corn-derived maltodextrin or glucose syrup
Companies are seeing 15–25% price hikes on starch-based input materials. According to Tradeasia International, prices for food-grade corn starch in Singapore rose from SGD 520/MT to SGD 670/MT between Q2 2023 and Q2 2025.
In the face of price volatility, food manufacturers and buyers in Singapore are adopting several strategies:
Diversify sourcing: Explore suppliers in Vietnam or Pakistan where starch production is growing.
Switch to alternative starches: Use tapioca or potato starch in some formulations.
Establish long-term contracts: Lock in pricing to hedge against further surges.
Optimize formulations: Reduce starch inclusion levels using functional blends.
For high-value food products, maintaining ingredient consistency is vital thus making supplier partnerships and forward planning essential.
The corn starch market is expected to remain tight through late 2025, due to:
Persistent climate instability
Ongoing demand from foodservice recovery
Continued tension in global corn trade
However, technological advancements in enzyme-modified starch production and expansion of cassava-based starch alternatives in Southeast Asia may help ease pressure by late 2026.
Singapore’s position as a distribution hub and food innovation center makes it well-equipped to adapt through:
Import substitution programs
Ingredient reformulation
Closer regional collaboration
The surge in corn starch prices in Asia is a result of post-pandemic demand recovery, raw material shortages, energy inflation, and trade restrictions. For food ingredient buyers and food processors in Singapore, the current landscape requires adaptive procurement strategies, diversified supply chains, and R&D innovation to manage rising costs without compromising quality.
As the food sector continues to evolve, businesses that anticipate raw material trends and integrate sustainable, flexible sourcing will be best positioned to weather future commodity shocks. If you are interested in our products for your specific business needs, please do not hesitate to contact us.
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