Increasing Demand for Corn Ethanol as Biofuel Drives Dry Milling Market for Corn
by Mit K. SEOThe
global dry
milling market for corn is estimated to be valued at USD 67.73 Billion in
2017. This market is projected to reach USD 88.61 Billion by 2022, growing at a
CAGR of 5.5%. The market is driven by the demand for a variety of corn
dry-milled products from the food industry and also owing to factors such as
the use of corn as one of the main ingredients in feed, and the increasing
demand for corn ethanol as biofuel.
The ethanol segment, by end product, is projected to grow at the
highest CAGR from 2017 to 2022
The
ethanol segment dominated the dry milling market for corn in 2016. Ethanol
production has drastically displaced corn supply for food and livestock feed
applications in the developed countries across the world. Corn millers in the
developed markets prefer producing ethanol from corn, as there have been massive
production of corn in countries such as the U.S. Ethanol is considered a clean
and low-cost octane booster. It provides oil refiners with the lowest-cost
solution to upgrade the octane content of gasoline to the minimum levels
required for sale. Moreover, in countries such as the U.S., Brazil, China, and
other key producers of ethanol, an increasing production of renewable ethanol
has been observed and linked to declining imports of petroleum.
The yellow corn segment accounted for largest market share.
In 2016, the
market was dominated by yellow corn. Yellow corn is widely used to manufacture
ethanol in the developed markets. Yellow corn contributes the bulk of the total
global corn production and international trade. Its abundant production and its
nutrient profile complement its usage for ethanol production of
corn-dry-milling process. High demand for a clean and renewable corn-based
ethanol is estimated to contribute to the market growth for yellow corn.
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Asia-Pacific is projected to grow at the highest CAGR from
2017 to 2022
The
Asia-Pacific region comprises of countries with an abundance of corn
production; hence, the agri industry in this region is well-developed as
compared to the other regions of the world. Corn dry-milled products and by-products
obtained by the corn dry-milling process are used in manufacturing various
food, feed, and biofuel products. The growth of corn dry-milled products in
this region is driven by the presence of potential consumers such as China,
Japan, India, and other developing nations.
China is the second-largest producer and consumer of corn in the world. Companies in this region are focusing on producing quality products by using improved and environmentally friendly raw materials, combined with innovative technical abilities to satisfy the needs and demands of customers. Several joint ventures, acquisitions, and collaborations are taking place between the global key players, which are expected to change the dynamics of the Asia-Pacific corn market. Also, due to low labor cost and execution of new processing methods, most of the production of corn products is carried out in the Asia-Pacific region.
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Created on Jul 28th 2020 08:03. Viewed 306 times.