Corn has been among the most popular industrial, food, and feed cereal from the past several years. Corn soap, corn syrup, popcorn, corn oil, and corn flour are among the most commonly consumed product across the globe. Corn oil is a pale yellow, tasteless, and odorless oil obtained from the kernel of the corn and is extensively used in industrial applications for the production of hydrogenated oil and is also used as a cooking medium in the food sector. The crop is excessively grown across the globe, making it a readily available raw material for producing corn oil. For instance, the total global exports for corn oil was around USD 29.2 billion in 2016 and USD 30.2 billion in 2017.
| Report Metric | Details |
|---|---|
| Base Year | 2021 |
| Study Period | 2020-2030 |
| Forecast Period | 2023-2031 |
| CAGR | 5.6% |
| Market Size | USD 30.2 billion in 2017. |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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In the last few years, the leading players have been eyeing emerging economies to expand their business operations and gain a competitive edge. Globalization has resulted in embracing technology for better communication, further increasing the number of desk jobs leading towards a sedentary lifestyle. Rising prevalence of cardiovascular diseases and obesity has compelled the customers to change their dietary needs and live a healthy lifestyle. As per the World Health Organization (WHO), around 17.9 million people died due to CVD in 2016. The WHO also suggests that CVD can be prevented by addressing behavioral risk factors such as changing dietary preferences.
Corn oil is rich in linoleic acid, which helps in maintaining the integrity of skin cells, and is highly effective in lowering serum cholesterol and increasing resistance to various diseases. The oil also contains acids that enhance cardiovascular and gastrointestinal functions. The gradual shift towards healthy eating and easy access to information due to technological advancement provides an impetus to the market growth.
Today, customers can easily access information regarding the healthier alternative of cooking products, which has compelled the food oil producers to manufacture and introduce a healthier version of corn oil in their product portfolio to increase the customer base. Thus, the growing demand for food products to aid with the management of cardiovascular diseases drives the market growth.
Corn oil is used in animal feed as it contains almost twice the energy content found in an equal unit of starch. Research trials by various institutes have inferred that technologically enhanced corn oil offers an array of benefits, which include considerable improvement in daily gains, higher feed efficiency, and cost-efficiency. Animal husbandry contributes to around 40% of the global agricultural income and is also a means to livelihood for about 1.3 billion people.
Changing diet, growing population, and increasing spending power have made the animal livestock sector as one of the fastest-growing agriculture sub-segments in the world. This highlights a major growth opportunity for people involved in agribusiness and job creators present across the livestock feed supply chain. In addition to this, surging demand for meat and other animal products is likely to boost the demand for corn oil, further driving the market growth. The support from the government and international authorities are adding fuel to the market growth. For instance, the World Bank has around USD 1.4 billion as active investments in livestock as of January 2019.
Governments across the globe are vying for an environment-friendly alternative for fossil fuels. Corn oil can be used in the production of ethanol, a biofuel, and the U.S. is the largest producer of corn oil-based ethanol. Europe is one of the leading regions in the production and research of alternative fuels and uses rapeseed for manufacturing ethanol. There has been an increase in political demand and economic pressure for the conversion of agriculture surplus into biofuel. This highlights the underlying opportunity for corn oil producers to modify their operations and supply chains to meet the increasing demand for biofuel across the globe. Fossil fuels are extensively used for power supply across the globe, which is further offering lucrative opportunities for market growth.
Europe followed by North America is anticipated to hold the highest share in this market. This is owed to the high technological expertise and the relatively higher consumer power of these regions. Asia Pacific is anticipated to register the highest growth rate in the forecast period. The emerging middle class and the high population growth are expected to be among the drivers leading to a high growth rate in corn oil market.
Europe has been at the forefront of supporting initiatives and policies which will reduce greenhouse gas emission (GHG). The role of bio-energies in Europe’s shift to renewable and eco-friendly energy is crucial in meeting its 20% renewable energy target. In the year 2017, the bioenergy consumption reached around 119,301 kilotonnes (Kt) of oil equivalent, which is more than twice the consumption in 2000. These developments and trends are likely to usher in higher usage of biofuel sources such as corn oil in the years to come driving the demand for corn oil in this region.
The global corn oil market is segmented into by type, application, and distribution channel. Based on type, the market is classified into edible and non-edible. On the basis of application, the market is segmented into food processing, cosmetics, paints and coatings, insecticides, biofuel, and others. On the basis of the distribution channel, the market is segmented into institutional/direct sales and B2C sales.
Agriculture remains at the center of the global economy. As per the Food and Agriculture Organization (FAO), approximately 60% of the global population is dependent on agriculture. As the population increases, it puts more stress on the farmers and other allied occupations supporting agriculture to ensure the timely yield of the product. This also exposes the crop to a higher risk of deterioration by pests leading to economical losses. This is expected to drive the demand for insecticides and pesticides in the near future. Corn oil is used in the production of various agrochemicals which includes the manufacturing of insecticides. International trade treaties and advancements in the transportation of cargo have been among the factors which will be facilitating in the speedy transport of these materials. Higher demand for corn oil for insecticides combined with the subsidies given to the farmers in various economies is likely to drive the corn oil market in the forecast period. However, most of the agriculture is concentrated in economies such as Brazil, Argentina, India, and other developing economies. These countries have been rapidly urbanizing. The lure of a good lifestyle and a high paying job has been driving the youth away from farming activities which are heavily dependent on the climate and is laborious at the same time. This trend is likely to restrict the growth of farming activities and is expected to lower the demand for insecticides having corn oil.
