In 1994 the total EU starch market amounted to 6.1 million tonnes from which 55% has been utilised in the food sector and 45 % in the non-food sector. Starch is used as native starch, as modified starch (thickener, binder, texturizer), as starch hydrolysate, isoglucose (bulk sweetener) or as crystalline dextrose as well as their derivatives like polyols (low caloric/low cariogenic bulk sweetener) for the production of processed food, confectionery, fruit products and beverages. Traditional non-food applications of starches and modified starches are in paper and corrugated board, fermentation & chemical industry and as binders and adhesives. Consumption figures by starch product type as well as by application area (food/non-food) are presented. The industrial raw material starch is available in sufficient amounts and in high purity. Factors influencing physico-chemical properties of native starch are explained. Starch modifications with changes of physico-chemical properties of starch lead to different application properties. In the various application areas, innovative products based on starch have entered/are entering the market thus increasing starch demand. These are health food ingredients, biodegradable, bio-compatible and „COz neutral” detergent components like „APG” surfactants, cobuilder and bleach activators, biodegradable thermoplastic materials for packaging, and tailor-made high performing fermentation feedstocks. Raw material requirements by the industry and options for further research and development are discussed.