China Cassava Market- Trend Analysis & Forecast to 2030

China cassava demand reached ** million tonnes in 2022 and is projected to grow at a CAGR of **% from 2020 to 2030. The China cassava market is driven by the increasing demand for cassava starch and biofuel production, as well as its diverse applications in food and industrial sectors. China's cassava trade is heavily import-dependent, with minimal exports. Thailand and Vietnam are its primary suppliers, accounting for over 80% of the cassava imported into China. China imported nearly USD 1.71 billion valued cassava starch from exporting nations.

Market/ Product Overview

Cassava, a drought-resistant crop primarily grown in tropical regions, has seen a rising demand in China, driven by its use in food, animal feed, ethanol production, and starch-based industries. While China is not a major producer, it has emerged as one of the largest importers due to its vast demand for cassava derivatives, particularly cassava starch. The country sources cassava primarily from Southeast Asia, such as Thailand and Vietnam, to meet its growing industrial needs. As China looks for alternatives to traditional crops for biofuel and other sectors, cassava's role in the supply chain continues to expand. The Chinese cassava market is expected to witness steady growth by 2030, driven by rising demand from food processing, textile, and biofuel sectors.

China’s Significance in the Global Cassava Supply

China's importance in the global cassava supply chain stems from its position as one of the largest importers of cassava products, primarily starch and ethanol. As a major consumer, China's demand influences production decisions in exporting countries such as Thailand and Vietnam, shaping global trade and market prices.

China Cassava Supply & Demand Trend

China's domestic cassava production is concentrated in regions like Guangxi and Yunnan, but it remains insufficient to meet rising demand. The country relies heavily on imports, especially from Southeast Asia, to fill the gap. The demand for cassava starch, used in food processing and textile industries, has surged, further boosting cassava imports. Ethanol production has also become a significant driver of demand.

China Cassava Market Growth Factors

China's cassava market is driven by several growth factors. The increasing demand for biofuels, in line with China's focus on renewable energy, has been a major catalyst. Cassava's versatility in industrial applications, such as starch and ethanol production, has spurred higher imports to meet domestic consumption needs. Additionally, the expanding food processing sector, where cassava starch is used as a thickener and stabilizer, is fueling demand. Government initiatives aimed at promoting renewable energy, coupled with policies to diversify agricultural inputs, are expected to bolster the cassava market's expansion by 2030. Furthermore, China's growing livestock industry increases demand for cassava-based feed.

China Cassava Market Restraints & Challenges

Despite its potential, China's cassava market faces certain challenges. First, domestic production levels are constrained by unsuitable climatic conditions in many parts of the country, necessitating dependence on imports. This reliance exposes the market to price fluctuations and trade policies in exporting countries. Additionally, competition from alternative feedstocks and starch sources, such as corn and wheat, limits cassava's share in certain industries. Lastly, logistical challenges in sourcing and transporting cassava products from overseas, particularly from Southeast Asia, add complexity to the supply chain.

China Cassava Supply/ Value Chain Bottlenecks/ Challenges

Several bottlenecks hinder the smooth flow of cassava in China's supply chain. Transportation and logistics costs, especially for imports from Thailand and Vietnam, pose a challenge. Fluctuations in cassava crop yields due to climate change affect supply consistency, leading to unpredictable price variations. Furthermore, delays in customs processing and border trade regulations can create bottlenecks, slowing down cassava import flow. The market also faces infrastructure limitations in terms of storage, particularly in regions where cassava is consumed at a large scale for industrial purposes. Additionally, competition from other starch and ethanol sources complicates cassava's role in the supply chain.

Price Setting Power of China in Global Cassava Value Chain

China wields significant price-setting power in the global cassava market due to its position as a leading importer. The country's demand can drive up prices, particularly for cassava starch and ethanol, affecting exporting countries. However, China's reliance on imports also makes it susceptible to price changes driven by external factors like weather and policy shifts in exporting nations.

Cassava End-use Industries

Cassava has become an essential raw material in several key industries across China, owing to its versatility and cost-effectiveness. The primary end-use industries include the starch industry, biofuel production, animal feed, and food processing sectors. These industries listed below collectively drive China's rising demand for cassava, making it a key player in the global cassava supply chain.

■ Starch Industry: Cassava starch is one of the most significant end products, widely used across various sectors. In the food industry, it acts as a thickener, stabilizer, and binding agent in products like noodles, sauces, and processed foods. Additionally, cassava starch is crucial in non-food industries such as textiles and paper production, where it is used for sizing and coating due to its smooth texture and biodegradable nature. Cassava starch also has applications in pharmaceuticals, providing a cheap alternative for excipients and other drug-making processes.

■ Biofuel Production: Cassava is increasingly utilized in biofuel production, particularly for ethanol. As China intensifies its focus on renewable energy sources, cassava-based ethanol has gained traction as a sustainable alternative to fossil fuels. Its high starch content makes cassava an efficient raw material for ethanol, supporting China’s growing energy demands while aligning with environmental goals.

■ Animal Feed: Cassava, particularly its dried chips and byproducts, is used as a carbohydrate-rich feed ingredient in China's growing livestock sector. It provides a cost-effective energy source for animal diets, especially for pigs and poultry. As the demand for animal protein increases in China, cassava’s role in feed formulations has expanded, contributing to the livestock industry's growth.

■ Food Processing: In addition to its use as a thickener, cassava is consumed in processed forms such as tapioca pearls, which are popular in beverages and desserts. The growing popularity of bubble tea, which uses tapioca pearls, has further stimulated demand. Cassava flour, an alternative to wheat flour, is also gaining popularity in gluten-free food products, catering to changing consumer preferences for healthier, allergen-free foods.

China Cassava Trade (Export & Import) Trend

China's cassava trade is heavily import-dependent, with minimal exports. Thailand and Vietnam are its primary suppliers, accounting for over 80% of the cassava imported into China. China imported nearly USD 1.71 billion valued cassava starch from exporting nations. Imports mainly consist of cassava starch and dried chips, which are used in the food processing, textile, and biofuel industries. Over the years, China's cassava imports have steadily increased, driven by industrial demand and the country's focus on renewable energy sources. While domestic production exists, it remains insufficient to meet the surging demand. Import volumes are expected to continue growing, but external factors like trade policies and climate conditions in exporting countries could impact future trends.

China Cassava Market Competitive Analysis

The China cassava market is dominated by a mix of domestic processors and international exporters. Leading companies focus on cassava starch and ethanol production, with significant reliance on imports from Thailand and Vietnam. Intense competition exists among suppliers to capture China’s rising demand, particularly for industrial applications.

■ Global Bio-Chem Technology Group
■ Guangxi State Farms Hengxian Taozhuang Farm
■ China Starch Holdings Ltd.
■ Cargill China
■ China Agri-Industries Holdings
■ Tate & Lyle China

Future Outlook

The outlook for China's cassava market remains positive, with continued growth expected through 2030. Rising demand for biofuels and industrial starch will drive imports, while domestic production may improve modestly with advancements in agricultural practices. China's increasing focus on renewable energy and sustainable industrial inputs will further bolster cassava demand. However, challenges such as reliance on imports and potential disruptions in the supply chain from exporting countries could impact market growth. To mitigate these risks, China may seek to diversify its supply sources and improve local production efficiency over the coming decade.