Tapioca Syrup Market

Tapioca Syrup Market Size (2024 to 2029)

Tapioca syrup market has a value of USD 338.27 million in 2023 and is expected to reach a value of USD 450.33 million by 2029 with a CAGR of 5.89%.

The root of cassava is generally Tapioca which is used to extract Tapioca syrup. Usage as an alternative to sweeteners is the wide application of tapioca syrup. The advantage of this syrup includes high solubility by providing a balanced distribution of the complex and simple carbohydrate components. It also serves as a source of instant energy. It is a trendy syrup in the food and beverage sector with a neutral and natural taste. The aromatic flavor is obtained from food products that are made from tapioca syrup.

The major opportunity for the tapioca syrup market is the usage of tapioca syrup as a substitute for food products where honey and sugar are widely used. The major application of the syrup can be seen as the alternative to the honey in the wine mead. The inexpensive nature and wide availability of tapioca syrup in wide retail sources like supermarkets and grocery stores is a lucrative opportunity for the market to expand the market into various geographic areas. In the vegan end consumers segment also, tapioca syrup is an alternative to honey. Tapioca syrup has gained approval as a grain-free and gluten-free diet, and organically that made a rise in the adoption of various food products.

Tapioca Syrup Market Drivers:

An upsurge in the health consciousness among the people drives the market demand.

People are more preferring products made from natural and healthier sweeteners owing to the increase in health consciousness among consumers, which is driving the demand for the tapioca syrup market. The presence of fewer calories and carbohydrates than sugar in tapioca syrup is because of its plant-based origin. Many other health benefits are associated with this syrup over sucrose and other sweeteners, making it preferred over other available products among health-conscious consumers in the market.

An increase in the usage of tapioca syrup in wide product varieties propels the market growth.

Tapioca syrup is used in various products, and extensive usage is seen as the toppings in numerous bakery products such as cakes, waffles, bread rolls, and others. In many food products like fruit juices, fresh donuts, sausages, baking powder, hot cereals, and corn fritters, tapioca syrup is used in the flavoring in an extensive range. The easy and quick melting nature of tapioca makes it a favorable factor in its usage in beverage products like iced tea and others. The increase in its usage in various products due to its unique features made the tapioca syrup market grow worldwide during the projected period.

Tapioca Syrup Market Restraints:

The major restraint in the tapioca syrup market is the cost-related issues in manufacturing and packaging. There is an increase in the price of packaging and natural additives that is expected to limit the market growth. There are wide fluctuations in the raw materials prices, and the requirement of authorization from various regulatory authorities is the biggest challenge in the market. The imbalance in the cost of the total production of tapioca syrup makes it unfavorable for the market players to continue for the long term.

Impact of COVID-19 on the Tapioca Syrup Market:

The COVID-19 pandemic has shown a negative impact on the tapioca syrup market. The imposition of the lockdown has disrupted the supply chain due to trade restrictions, and demand for the product has seen a downfall as consumption decreased due to lockdowns around the world. The dependency of the food and beverage industries on foreign countries for raw materials also caused a negative impact due to the stoppage of the export and imports between the regions during the pandemic. Scarcity of raw materials is also observed during COVID-19 as transportation has been restricted near the borders. The decrease in income and savings among people caused them to purchase fewer non-essential products, and fear of contamination from manufacturing facilities resulted in a decrease in sales.

REPORT COVERAGE: 

This research report on the tapioca syrup market has been segmented and sub-segmented based on source, form, application, distribution channel and region. 

Tapioca Syrup Market - By Source:

• Organic
• Conventional

The conventional segment is expected to hold a significant share of the tapioca syrup market during the forecast period. The affordability and accessibility of commercial tapioca syrup are driving market growth by price-sensitive consumers. It mostly targets consumers who prefer natural sweeteners but not especially organic or premium-priced products. It has wide application in various industries such as bakery, confectionery, snacks, and other processed foods. The organic segment is expected to grow in the coming years.

Tapioca Syrup Market - By Form:

• Tapioca Syrup
• Tapioca Maltodextrins
• Tapioca Syrup Solids

The Tapioca syrup segment is expected to have a dominant share in the tapioca syrup market owing to the attribute of wide application range in food and beverage industries. In food products such as bakeries, cereals, energy drinks, smoothies, and dressings, tapioca syrup has an application. Additionally, it can also be used in flavored drinks, cocktails, and many others, which is propelling the segment's growth across the market.

Tapioca Syrup Market - By Application:

• Bakery
• Beverage
• Bars & Cereals
• Confectionery
• Snacks
• Dressings and Sauces
• Dairy
• Pharmaceuticals
• Others

In the bakery, tapioca syrup has a wide range of applications, such as baking powder, French toast, waffles, and others resulting in significant growth of the segment in the segment in the tapioca syrup market. Hot cereals, ice creams, corn fritters, baked beans, sausages, and fresh donuts also use tapioca syrup in their manufacturing process. 

Tapioca Syrup Market - By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others

Online channels are expected to have significant growth in the tapioca syrup market owing to the increase in the trend towards the use of the Internet. With the increase in the preference of consumers for an easy and seamless shopping experience, they are moving towards online channels. The supermarket/hypermarket is gaining popularity due to the invasion of big retailers into the market like Walmart, Amazon, and others and making the market move forward.

Tapioca Syrup Market – By Region:

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

Asia-Pacific region is expected to have a dominant share in the tapioca syrup market during the forecast period. Tapioca is mainly produced and consumed in the nations such as Thailand, China, Vietnam, and Indonesia. The growing popularity, changing consumer preferences, population growth, dietary habits, and rise in the health consciousness of consumers are driving the market to witness remarkable growth. North America is expected to capture a fastest growing rate of the market owing to the upsurge in the production and consumption of tapioca syrup and export to many other countries. The flavored syrup is the most demanded product in this region as they prefer the wide range in the breakfast. Tapioca syrup can also be used as a topping on certain snacks contributing to the increase in demand for the syrup in these regions particularly. Certain states like the United States and Canada are at the forefront of the introduction of innovative organic syrups and natural sweeteners for the North American tapioca syrup market.

KEY MARKET PLAYERS:

Key market players of Tapioca Syrup Market are Hunan Er-Kang Pharmaceutical Co., Ltd, Cargill, Incorporated, SPAC Starch Products (India) Ltd , Ingredion, Tapioca Starch Industry Co., Ltd, EIAMHENG TAPIOCA STARCH INDUSTRY CO., LTD, Psaltry International Limited, Dadtco Philafrica B.V. , Tapioca Vietnam , Lentus Foods & Agro Ltd, Keng Seng Group of Company.

RECENT HAPPENINGS IN THE MARKET:

• In 2023, Ciranda launched three new syrups to satisfy the customers’ requirements for less sugar in their diets. Ciranda is a North American supplier of organic and non-GMO ingredients. The three new syrups are Tapioca Syrup AL40, Agave Syrup IN10, and Agave Syrup AL40, which are all organic and free from GMOs.
• In 2022, In Cikande, Indonesia, Cargill increased the processing capabilities of its sweetener facility. It has doubled its ability to produce organic, non-GMO tapioca syrup in to meet the consumer demand for products made from eco-friendly ingredients.