Cassava Market

• The rising consumption of functional foods is driving market growth

The market CAGR for cassava is driven by the rising consumption of functional foods. Consumers are becoming more aware and health-conscious globally, which is driving its demand to promote better health, improved longevity, and prevent the onset of chronic diseases. Foods fortified with nutritional and disease-eluding properties are stimulating the world's nutritional food sector. The changing consumer food eating patterns and their evolving taste preference has necessitated the manufacturers to introduce and innovate new functional food and beverages in the market.

Additionally, growing demand for manioc starch in various cereals and snacks. Manioc starch is one of the vital ingredients added to food products by manufacturers. Dairy, bakery, and snack products are one of the prominent categories that use manioc starch. Among which the prominent food products consumed by people are snacks and cereals. In order to expand the quality of the food product, manufacturers are incorporating the utilization of manioc starch in it. Starch assists in attaining the desired viscosity in snack products compared to the other starch products.

It is a natural binding agent and a texturizer in food products. The viscosity, high water-holding, and binding effects make it more convenient for the manufacturing of snack products. Since the market for extruded snacks, ready-to-eat cereals, and pretzels is growing, the demand for manioc starch is also expected to grow. Freeze-thaw stability measures the total effect of temperature changes on an emulsion.

Moreover, growth in the consumption of functional foods escalates the demand for cassava. Functional foods contain the perfect nutritional balance of health-beneficial properties. Consumers are opting for functional foods to maintain a healthy lifestyle. Functional foods are believed to positively impact health and reduce the risk of certain diseases. Cassava starch contains a sufficient amount of dietary fiber and even has a low glycemic index. A large percentage of the population is suffering from health issues such as obesity and high blood sugar, due to which consumers are adopting functional foods.

High fat and sugar consumption are responsible for obesity and related health problems. As cassava starch contains high fiber content, consumers prefer it, thus, driving the growth of the cassava market revenue.

The Global Cassava Market Industry is poised for substantial growth, with projections indicating a market value of 198.9 USD Billion in 2024 and an anticipated increase to 312.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 4.18% from 2025 to 2035, reflecting the increasing global demand for cassava products. Factors contributing to this growth include rising consumer awareness of health benefits, technological advancements in processing, and supportive government policies. As the market evolves, stakeholders are likely to explore innovative applications for cassava, further enhancing its appeal and market presence.

The Global Cassava Market Industry experiences a notable increase in demand for cassava-based products, driven by their versatility and nutritional benefits. Cassava is utilized in various forms, including flour, starch, and chips, appealing to both food and non-food sectors. The growing trend towards gluten-free diets further propels this demand, as cassava flour serves as a suitable alternative. In 2024, the market value is projected to reach 198.9 USD Billion, reflecting a robust consumer preference for healthier options. This trend is likely to continue, with projections indicating a market expansion to 312.2 USD Billion by 2035, highlighting the potential for sustained growth in the Global Cassava Market Industry.

Emerging markets present substantial opportunities for the Global Cassava Market Industry, as demand for cassava products continues to rise in regions such as Asia and Africa. These markets are increasingly recognizing the economic potential of cassava cultivation, leading to expanded production and export capabilities. Countries like Nigeria and Thailand are already significant players in the global cassava trade, exporting products to various international markets. As global consumption patterns shift, the potential for growth in these regions is considerable, with projections indicating a compound annual growth rate of 4.18% from 2025 to 2035. This growth underscores the importance of cassava as a strategic crop in global agricultural trade.

Government support plays a crucial role in the growth of the Global Cassava Market Industry. Various countries have implemented policies aimed at promoting cassava cultivation and processing, recognizing its potential as a staple food and cash crop. Initiatives such as subsidies for farmers, investment in research and development, and infrastructure improvements contribute to increased production capacity. For instance, in several African nations, government programs focus on enhancing agricultural practices and providing access to markets. These efforts not only bolster local economies but also position cassava as a key player in food security strategies, thereby fostering a favorable environment for market expansion.

The Global Cassava Market Industry benefits from an increasing awareness of the nutritional advantages associated with cassava consumption. Rich in carbohydrates and essential vitamins, cassava is recognized as a vital source of energy, particularly in developing regions. As consumers become more health-conscious, the demand for nutrient-dense foods rises, positioning cassava favorably in the market. This trend is particularly evident in regions where cassava serves as a staple food, contributing to dietary diversity. The emphasis on nutrition is likely to drive further interest in cassava-based products, thereby supporting the market's growth trajectory over the next decade.

Technological innovations in cassava processing significantly enhance efficiency and product quality within the Global Cassava Market Industry. Advanced processing techniques, such as improved drying and milling technologies, allow for better preservation of nutrients and extended shelf life of cassava products. These advancements not only increase yield but also reduce waste, making cassava processing more sustainable. As a result, producers can meet the growing global demand while maintaining profitability. The integration of automation and digital technologies in processing facilities is expected to further streamline operations, potentially leading to a more competitive market landscape in the coming years.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American cassava market will dominate owing to an immense potential for the utility and consumption of cassava starch in several applications, such as functional food, dietary supplements, nutritional drinks, medicinal applications, and others. The improving economic conditions of several countries with increasing awareness of healthy diets among consumers have positively influenced their buying behavior in this region. Further, the US cassava market held the largest market share, and the Canadian cassava market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: CASSAVA MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's cassava market accounts for the second-largest market share due to the expansion of this region's food and beverage sector. Further, the German cassava market held the largest market share, and the UK cassava market was the fastest-growing market in the European region.

The Asia-Pacific cassava Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing demand for cassava starch across various end-use sectors. These sectors include food and beverage, personal care and cosmetics, and medicine formulation, among others. Moreover, China’s cassava market held the largest market share, and the Indian cassava market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the cassava market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the cassava industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the cassava industry to benefit clients and increase the market sector. Major players in the cassava market, including Archer Daniels Midland Company (US), Agrideco Vietnam Co., Ltd. (Vietnam), American Key Food Products Inc. (US), Psaltry International Limited (Nigeria), and others, are attempting to increase market demand by investing in research and development operations.

Cargill Inc (Cargill) is an agribusiness company providing products and services in the food, financial products, agricultural, industrial and risk management fields. It carries out the marketing, processing, and distribution of grains, oilseeds, sugar, meat, other food products, and cotton. It also manufactures natural ingredients for the personal care industry, pet food, animal feed and bio-industrial products. The company provides technical support, data asset solutions, transportation and logistics, risk management, and marketing services. In addition, the company produces and distributes starch and starch sweeteners, fuel ethanol and biodiesel.

Cargill markets its feed and pet food products under several brands, including Nutrena, Provimi, Cargill, EWOS, Diamond V and Purina. In February 2019, Cargill, Incorporated invested US$ 22.5 Mn in its starch production plant in the Netherlands. This investment was done for the expansion of its instant starch capacity. This will also support the increased customer demand for convenience food.

Lemonilo Indonesia Sehat provides packaged food products. The Company offers various healthy products, such as instant noodles, snacks, and other essential ingredients. Lemonilo Indonesia Sehat serves customers in Indonesia. In April 2023, Lemonilo launched Cassamo healthy cassava chips in Indonesia. Cassamo comprises two flavors Smoky BBQ and Spicy BBQ. The new cassava chips are high in fiber and are free from preservatives and flavor enhancers.