Ingredion Reports Tapioca Costs Up 65% Amid Thai Shortage
The Asia-based starch maker's third-quarter results reflect record tapioca starch prices driven by limited cassava root supply.
Updated on Nov. 10, 2026 in Inflation
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Ingredion reported higher tapioca starch costs in its third-quarter 2026 results, released on 5 November 2026. Tapioca starch prices rose roughly 45% since January after a cassava root shortage in Thailand drove prices to record levels.
Why it matters
The cost pressure affects manufacturers across the Asia-Pacific region and within ASEAN, which rely on tapioca-based inputs. Ingredion's cost increases are typically passed on to customers through pricing after about one quarter.
Ingredion's Texture & Healthful Solutions segment reported a 10% decline in third-quarter operating income to US$95 million, while tapioca costs rose about 65% year-on-year. The Thai Tapioca Starch Association's export reference price eased from a US$705/tonne peak to US$680/tonne by 3 November, and the company did not provide a forward price outlook in the extraction.
The players
Ingredion
Ingredion is a global ingredients company that supplies starches and sweeteners to food and beverage manufacturers.
Thai Tapioca Starch Association
The Thai Tapioca Starch Association is the industry body that publishes the super-premium export reference price for tapioca starch from Thailand.
The details
The shortage was primarily attributed to adverse weather and reduced crop output in Thailand, limiting cassava root availability. Ingredion's cost increases are passed to customers through pricing after about one quarter, so the effect is expected to reach end customers with a lag.
Timeline
January 2026: Super-premium export reference price started the year at US$480/tonne.
August and September 2026: Reference price peaked at US$705/tonne.
3 November 2026: Reference price eased to US$680/tonne.
5 November 2026: Ingredion reported third-quarter results citing tapioca cost inflation.
Market Dynamics
The Thai Tapioca Starch Association's super-premium export reference price climbed from US$480/tonne in January to a US$705/tonne peak in August and September before easing to US$680/tonne by early November. The pattern shows a supply-driven spike followed by partial retracement, which places tapioca alongside other agricultural commodities where weather shocks in a single producing country can move global input costs sharply.
Manufacturers and food buyers relying on tapioca starch may see higher input costs flow through to retail prices after a lag of about one quarter. Households are affected indirectly through packaged foods and ingredients that use tapioca-derived starches.
The takeaway
Input-cost shocks from single-country crop failures can take a quarter or more to reach consumer prices, so watch upstream commodity reference prices for early signals of packaged-food inflation.
Further reading
Track broader price pressures in our Inflation coverage.
Source note: This article includes information reported by Asia Pacific Food Industry.
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