Global Corn Oil Market Heads to $6 Billion
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The global Corn Oil market was valued at $5.34 billion in 2021. The market is projected to grow from $5.86 billion in 2022 to $9.37 billion by 2029, exhibiting a CAGR of 6.95% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with Corn Oil experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global Corn Oil market exhibited a growth of 7.24% in 2020 as compared to 2019. Corn Oil is a vegetable Oil extracted from Corn germs. The product is traditionally used as a cooking Oil as it has several functional properties such as high smoke point, anti-inflammatory, and unsaturated fatty acids. Furthermore, the product has diversified applications in several industries, including pharmaceuticals, cosmetics, and animal feeds. The product is one of the vital raw materials used to manufacture ethanol. The demand growth is fueled by the product’s consumption for food, fuel, and industrial applications.
Corn Oil has been significantly used across food & beverage applications over the past several years. Furthermore, it is one of the critical raw materials used to produce biodiesel. The supply chain had been interrupted due to the lockdown, production halt, and extended quarantine conditions. The factories reduced their production and supply by minimizing the number of employees in factories for safety purposes. It has negatively impacted its production and interfered with the product’s availability in the market. The lack of availability of the product in the market caused prices to rise. For instance, according to the Foreign Agricultural Service global market analysis article, in the U.S., its price in 2019-20 was $870 per metric ton and increased to $1,193 per ton in 2020-21. Therefore, the global market experienced positive growth in terms of market value during COVID-19.
Based on type, the market is segregated into edible and non-edible. The edible segment is expected to lead as the product has various therapeutic properties, making it one of the preferable edible Oils in cooking, especially frying. The Corn Oil provides multiple health benefits, such as improving heart health, lowering cholesterol, lowering blood pressure, being an emollient for the skin, and others. According to the National Library of Medicine, the product contains high alpha and gamma tocopherols (vitamin E), which protects the Oil from turning rancid. This property of the product makes it effective to use in salads and cooking Oils. People with dietary issues such as heartburn and bloating prefer the product as it is highly digestible and provides energy and Essential Fatty Acids (EFA). Consumers focusing on healthy lifestyles opt for the product, increasing its demand from the edible segment.
North American Corn Oil Market
North America holds a significant Corn Oil market share (valued at $3 billion as of 2021) due to increasing product applications in feedstocks and food industries. The US is the largest Corn-producing and exporting country in the world. According to AgFlow data, the US shipped 4.7 million tons of Corn abroad in Jan-Feb 2023. In January, China ranked as the second largest import market with 0.5 million tons after Mexico (0.9 million tons).
Food manufacturers make significant efforts to promote the consumption of low-calorie and cholesterol-free Oils that help reduce cardiovascular diseases and blood-cholesterol levels and improve digestion and metabolism. Research has shown that phytosterols reduce blood cholesterol by inhibiting its absorption from the intestines. According to the U.S. Department of Agriculture (USDA), the product contains 968 milligrams of phytosterols per 100 grams of Oil. It is the only Oil containing a natural mixture of free phytosterol, phytosterol esters, and phytostarol esters. Thus, the rise in awareness regarding the importance of a healthy lifestyle accelerates the growth of Corn Oil.
Other sources: FORTUNE BUSINESS IN SIGHTS
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