Global Cassava Processing Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Cassava Processing Market Insights

• Cassava is a source of rich carbohydrates and is gluten-free; there is an interest in health-conscious food products, especially for gluten-free baking.
• Innovations in processing techniques like improved drying and extraction methods also enhance the quality of cassava products as well as their shelf life but improve market potential in various applications.
• Consumer demographics also show that there is an increasing demand for gluten-free products due to their desire among health-conscious consumers such as millennials and Gen Z for nutritious, allergen-friendly food options.
• The market for the Nigeria processing of cassava is expected to progress at a high CAGR from 2024 to 2032, aiding the growth of cassava processing market.
• The cassava ethanol market would have significant growth in the forecast period from 2024-2032 with a notably observed CAGR during this time period.
• Food industry will be the leader in the market in terms of growth, which would grow with an approximate robust CAGR of 2024-2032.

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Cassava Processing Market Trends

Global cassava demand hinges on production, with Nigeria as the top producer, and Asia Pacific leading imports.

The cassava processing market is hugely dependent on the demand for cassava globally. Nigeria is the world's largest cassava producer with approximately one-fifth of the world's production of cassava, followed by Thailand, Indonesia, Brazil, Ghana, Congo, among others. The major producing states of the product in Nigeria include Benue, Kogi, Enugu, Imo, Cross-River, Ondo, Ogun, Delta, Anambra, Edo, and Taraba, among others. Factors as these help in shaping new trends in the cassava processing market.

The most significant end-use industries include feed and food products, among others. In 2020, the food industry represented the largest end-use market. Cassava starch and flour have the largest share due to their extensive application in bakeries, food, and ice-creams, among others.

The Asia Pacific is the leading region for the market, with China, Japan, and Indonesia, importing huge volumes of cassava products like flour, starch, chips, and pellets. China is the leading importer of such products globally. Asia is the leading continent in both the import and export of cassava products. The leading cassava exporters in the international market include Thailand, Vietnam, United States, Costa Rica, China, the Netherlands, Spain, Egypt, Honduras, and Indonesia.

Industry News

October 2021

The TAAT Cassava Compact and the Togo Presidential Initiative on Cassava, with the Togo Ministry of Agriculture, have set up two commercial processing factories across the two agripoles in Togo: the Notse processing factory and New Life service at Ahosoume. The collaboration aims at producing even more foods, exposing the processors to modern processing machines, as well as employment for youth and women.

August 2024

Emerging market technology group of companies, Cassava Technologies, a fully owned subsidiary of Betway Casino owner Super Group, announced that all its AI activities will operate as a distinct business unit, Cassava AI. Since the advent of Generative AI, Cassava has entered into significant partnerships with industry leaders including Microsoft, Google, AWS, Anthropic, Oracle, Atlas AI, Cerebras, and Palo Alto Networks, which endow it with a competitive position of best-of-breed systems integration and support services to enterprise customers across strategic international markets.

Historical Market Analysis

In the past five years, the cassava processing market has steadily increased through rising demand for cassava products both for food and industrial application. The players in this sector emphasise the capacity for processing and improved quality of the product through technology innovation, accelerating cassava processing demand. For instance, more advanced milling and drying techniques cut costs while increasing efficiency. In addition, supply chain strength has been achieved by local farm partnerships that guarantee a steady supply of raw materials. Market expansion will also result from the fact that gluten-free and health-related products become increasingly popular. A diversification of portfolios was initiated when companies attempted to expand their product ranges in keeping with the evolving tastes of consumers.

Opportunities in the Cassava Processing Market

Opportunities include gluten-free demand, biofuel production, technological advancements, product diversification, and increasing export potential.

Rising demand for gluten-free products: With the advancement of more and more consumers opting for gluten-free diets, opportunities lie in cassava flour and starch for various food applications.
Increasing biofuel production: The trend in green energy initiatives may create space for cassava-derived ethanol as a green alternative to biofuel.
Technological advancements: Advancements in processing techniques will enhance product quality and efficiency and attract investments. It will also help in making it a better competitor in the market, leading to cassava processing market opportunities.
Product diversification: The commodity will expand its product applications in the areas of snacks, beverages, and animal feed products. This opens up potential new streams of income for the processors.
Additional Export Potential: The commodity will benefit from increased foreign demand due to issues in the international market, such as shortages of soybean supplies in Asia and Europe's export barriers.

Market Dynamics

Rising demand in food, textile, and feed industries is driving cassava processing market growth.

The cassava processing market is significantly being driven by its rising applications in the end-use industries. The industry is also being driven by the product's wide use in the textile sector as a stiffening agent and to enhance the weaving efficiency of the threat while protecting it. The rising demand from the feed industry is further aiding the cassava processing market dynamics and trends.

The demand for processed cassava is significantly being driven by the increasing use in the food industry. Cassava flour is widely being used in bakery products, like biscuits, cookies, and bread. The products are also used in the production of confectioneries, including gums, sweets, among others. It also finds applications in soups, sauces, baby foods, gravies, etc. as a thickener. The demand in the industry is also aided by its use as a binder in sausages and processed meats to prevent it from getting dry on being cooked. Moreover, the processed product is used in the making of chips, shrimp sticks, butter cakes, and coconut cookies, among other things.

Growth Drivers

Growth drivers include health consciousness, food industry expansion, biofuel initiatives, technological innovations, and export market opportunities.

• Rising Health Consciousness: Higher awareness of health benefits compelled consumers to consume gluten-free and healthy cassava products.
• Growing Food Industry: Various sectors of the food and beverage industries consume cassava flour and starch during the expansion process, thereby increasing the demand for the market.
• Sustainable Biofuel Initiatives: Renewable sources of energy require cassava-derived ethanol for biofuel production, propelling the growth of the cassava processing market. 
• Technological Innovations: Advances in processing technology improved efficiency, quality, and cost-effectiveness, encouraging investment and raising production capacity.
• Expansion of export markets: The international demand of cassava products such as starchy products and starch ethanol which continues increasing in Asia and Europe will give more opportunities for growing markets.

Market Restraints

Challenges include climate vulnerability, pest issues, price volatility, limited infrastructure, and competition from alternative products.

• There is climate vulnerability to drought and extreme weather, which affects cassava yields.
• Pests and diseases break out, cut cassava production, and destabilise supply, leading to cassava processing market challenges. 
• Cassava price volatility can affect the profitability of processors and farmers due to uncertainty.
• Limited processing infrastructure in some regions limits growth and efficiency in the cassava supply chain.
• The rise of an alternative flour and starch may provide competition for cassava in food products.

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Cassava Processing Industry Segmentation

“Cassava Processing Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

On the basis of type, the market can be divided into:

• Cassava Starch
• Cassava Flour
• Cassava Chips
• Cassava Derived Ethanol

On the basis of application, the market can be segmented into:

• Food
• Feed
• Industrial

Based on region, the market can be segregated into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Cassava Processing Market Share

By Type Analysis

Cassava products are gaining traction in food, snacks, and biofuels, driving market growth.

All types of cassava processing are in very high demand due to the various applications and increasing demand. Cassava starch is increasingly applied to the food industry as a thickener and biodegradable packaging.

As per cassava processing market analysis, cassava flour is highly demanded among gluten-free products among health-conscious consumers, while cassava chips are increasingly being used as a healthy snack alternative in line with the trend of natural snacks. On the other hand, if energy costs eventually increase and the environment continues to degrade, cassava derived ethanol is promising as a biofuel, likely to gain a 3.4% CAGR through 2032. Altogether, these products are creating demand in the cassava processing market and thus driving product development.

End Use Insights

Cassava applications in food, feed, and industrial sectors are growing due to health and sustainability trends.

The cassava processing market is seeing growth in all end use sectors with specific trends. In the food sector, cassava flour and starch are increasingly being used in gluten-free products, snacks, and processed foods mainly owing to the growing health concerns. The application of cassava processing in the food industry is likely to gain a 3.2% CAGR during the forecast period.

As per cassava processing industry analysis, feed application utilises the high nutritional value of cassava to increase adoption in livestock feed formulations as a cost-effective alternative to traditional grains. These applications are contributing to blending the trend of sustainability with industrial applications of cassava starch products in biodegradable plastics and adhesives. Overall, the versatility of cassava is actually driving growth across sectors responsive to changing consumer needs, considering these applications.

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Cassava Processing Market Regional Insights

North America Cassava Processing Market Dynamics

The key factor driving the growth of the North America cassava processing market has been the growing demand for gluten-free products and healthy, sustainable alternatives. Growing health awareness among consumers propels the growth of demand in various applications of cassava flour and starch. Feed industry is increasingly looking at cassava as a cheap source for animals. Innovations in the production technology improve the quality of the product and make the process more efficient. Such investments in sustainable sourcing and production by companies will support the demand of the cassava processing market. This is likely to increase because the demand from consumers for healthy and environmentally friendly food and beverages is on the rise.

Europe Cassava Processing Market Opportunities

Increased demand for gluten-free products, mainly cassava flour and starch, also drives the high growth for Europe cassava processing industry. The opportunity of cassava as a more sustainable alternative is further enhanced by the growing consideration for sustainable ingredients in formulations. Interest in cassava chips and innovation in new foods also comes from the healthy snack trend. There will be opportunities for markets in biofuel production as the search for renewable energy is driven by the European sustainability goals, which are consequently making a wider market potential for cassava.

Asia Pacific Cassava Processing Market Insights

The Asia Pacific cassava processing market has exhibited solid growth in the wake of growing urbanisation and consumption patterns, while Thailand and Vietnam are emerging as production leaders. The food and feed sectors are witnessing increasing demand for cassava-based products in both countries, while the trend towards gluten-free diets and the use of cassava flour for various culinary applications further boost the trend. Innovation in processing technology further enhances product quality and efficiency. The region's focus on use of sustainable practices also results in the increasing use of cassava for biofuels, which in turn enhances the market prospects.

Latin America Cassava Processing Market Drivers

Several factors drive the Latin America cassava processing market. The region alone produced approximately 20 million metric tons of cassava in 2022, with Brazil and Colombia as major contributors. Increasing demand for gluten-free products is driving the sales of cassava flour, which grows annually by 15%. With the growing practice of sustainable growth, one would notice an increased use of cassava-based biofuels, especially with an upsurge that is projected to reach 10% by 2025 in the production of ethanol from cassava, thus expanding the cassava processing market share in Latin America.

Middle East and Africa Cassava Processing Market Trends

The key trends for the development of the Middle East and Africa cassava processing market are several. In 2023, the region accounts for 6 million metric tons of cassava production. Nigeria is the biggest producer in this region. There is an increasing interest in the consumption of cassava as a gluten-free alternative, and demand in urban centres increases annually by 8%. Investment in processing facilities is also gaining momentum with expected increases in cassava-based products, including flour and starch, while the region sees the potential in cassava-based biofuels and aims for 5% annual increase by 2025 to reach sustainability targets, bolstering the cassava processing market growth.

Market Overview of Innovative Cassava Processing Startups

Cassava processing startups are targeting the cassava processing market and value-added products, such as gluten-free flours and snacks, in a bid to capture rising demand from health-conscious consumers. Another significant investment many are making is in advanced processing technologies in order to bolster efficiency and product quality. Some are looking into actual production of biofuels from cassava that adhere strictly to the global sustainability patterns, while also making sure that they engage closely with farmers so the supply chain stabilises.

Founded in 2018 in Lagos, Nigeria, Cassava Harvest is a premium cassava flour and snack company. The startup is committed to sustainable sourcing and innovative processing in a way that offers gluten-free alternatives to traditional products while supporting local farmers and regional economic development.

Farafina Foods was established in 2020, and it is located in Accra, Ghana. The company specialises in processed nutritious cassava products such as flour and snacks. For this young enterprise, health and sustainability are written into its DNA, as it has the options in terms of gluten-free alternatives that the company avails to the health-conscious consumers. Farafina Foods collaborates with local farmers for a reliable supply of good quality cassava; therefore, it contributes to community development.

Competitive Landscape

Cassava processing key players seek to expand their product lines toward innovative and health-oriented products such as gluten-free flours and snacks. Others are looking forward to improving processing efficiency with innovative technologies and sustainable practices. Cassava processing companies are also eyeing big investments that are also placed on research and development for cassava-derived biofuels, environmentally responsive, and increasing the market share. Strategic partnerships with farmers and distributors are also a priority for maintaining consistency in supply and boosting local economies.

Key Market Players

Key industry leaders in this market are:

Ingredion Incorporated is a food ingredient company operating in Westchester, Illinois, since 1901. The company specialises in cassava-derived products, offering high-quality cassava starch and flour for multiple food applications in the food industry, which clearly addresses gluten-free. The company has developed innovative products to cater to health-conscious consumers, enhancing texture and functionality in formulations.

Tereos S.A. is one of the leaders in the agricultural industry, mainly by the production of cassava, since it started its establishment in the year 2000 and has its headquarters at Lille, France. The company joins forces with cassava starch and sweeteners with sustainability from sound sources and quality products to meet a rising demand for fresh new innovative and environment-friendly ingredients in the food and beverages sectors.

Other market players in the cassava processing industry include Sonish Starch Technology, among others.

Recent Developments

April 2024

AATF and its partners implemented a mechanization project of cassava production and processing in Nigeria to add value to the country's largest crop. It was inaugurated by Oyo State Governor Seyi Makinde to equip cassava farmers with modern technologies, knowledge, and skills for sustainable production and utilization.

February 2024

An important move to boost production and marketability of the crop has been taken by TWPC Investment in setting up the US$10 million cassava processing plant at Oddar Meanchey. Officially launched on February 7, this fits into Cambodia's National Cassava Policy for 2020-25, which pursues increasing output and promoting commercial exports.

Cassava Processing Market Report Snapshots

Cassava Processing Market Size

Cassava Processing Market Analysis

Cassava Processing Companies