Dextrin Market Is Gaining Significant Traction With Cargill Inc. Investing Us$ 100 Million In Its Sweetener And Starch Plant In Pandaan, Indonesia

Dextrin

Dextrin is a group of low-molecule-based, low-amylose carbohydrate compounds produced by the dehydration of glucose or starch. Dextrin is often confused with starch to sugar, which is in fact a single-celled algae cell. Dextrin is generally produced from corn or rice starches through the process of transesterification. Dextrin has a variety of applications in numerous end-use industries including cosmetics, food & beverage, pharmaceuticals, and so on. Each of the aforementioned industries has witnessed robust growth in the recent past in both developed and emerging economies. As per the India Brand Equity Foundation (IBEF), the Indian pharmaceutical industry is expected to reach US$ 100 billion by 2025, increasing from US$ 20.03 billion in 2019. White dextrin is widely used for coating capsules and as a nutritive source in antibiotic fermentation in the pharmaceutical industry. Hence, such factors can augment growth of the dextrin market.

Another key feature of dextrin is that it can be used as a fat substitute in a variety of food products such as dairy products, confectionaries, bakery products, chocolates, protection shakes, and so on. Since consumers are increasingly becoming aware of health and fitness, the demand for dextrin is likely to boost in the near future. Besides, dextrin is easily available in powdered form, making it sophisticated to handle, package, and transport. Hence, such factors can potentially stimulate growth of the dextrin market.

Dextrin is produced from different types of carbohydrates. One of the main differences between the various types of carbohydrates is the degree to which they are subject to glycolysis. Low-fat, high-fiber foods are more likely to be classified as complex carbohydrates (which group includes dextrin) than simple carbohydrates. Regardless, there are major concerns over the consumption of dextrin. Consumption of synthetic dextrin could lead to diarrhea and gas. Thus, such complications can potentially limit growth of the dextrin market in the near future.

Developed countries including the U.S. are increasingly adopting dextrin as a fat substitute in bakery and dairy products. This is due to the fact that there is a high prevalence of obesity in the country. As per the Centers for Disease Control and Prevention (CDC), in 2021, around 40% of adults aged 20 to 39 years were obese. Such factors can augment the regional dextrin market growth. On the contrary, Western Europe is exhibiting promising signs in the dextrin market due to expanding food & beverage industry.

Recently, in September 2020, Cargill Inc. expanded its production capacity by investing US$ 100 million in its sweetener and starch plant PT. Sorini Agro Asia Corporindo, in Pandaan, Indonesia.

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