Corn Oil Market

Corn Oil Market Outlook (2023-2033)

Expanding at a CAGR of 8%, the global corn oil market is expected to increase from a valuation of US$ 6 billion in 2023 to US$ 13 billion by the end of 2033.

Consumers favor supermarkets/hypermarkets for daily food shopping owing to the wide availability of health food products and a broad variety of corn oils, from budget brands to name-brand oils. Corn is a popular industrial cereal, food, and feed, primarily used in the food industry as a cooking medium, and for the production of hydrogenated oil.

Corn oil, procured from the kernel of corn, is pale yellow oil. Corn oil forms a crucial value-added product from the leftover embryo, or, germ, coupled with the extraction of starch from the endosperm of the kernel. Corn oil extraction enhances the economic and commercial value of the discarded embryo.

The spotlight on high-quality food products initiated research & development activities for promoting and developing a healthy food supply. Product quality has become imperative in the agricultural sector. Corn oil, with its numerous health benefits, has been gaining importance among consumers as well as manufacturers over the past few years.

Corn oil provides fatty acids, including linoleic acid (omega 6), which is crucial for immunological function and helps persons with hypertension lower their blood pressure, all of which are projected to spur market expansion. Worldwide, corn oil is used extensively as cooking oil and is well-known as a nutritious edible oil. Due to its many medicinal benefits, corn oil can be used in a wide range of applications.

Corn-based oil has a number of health advantages, including lowering cholesterol, enhancing heart health, reducing blood pressure, and functioning as a skin emollient, among others. These elements have increased the market demand for corn oil. Due to its many advantageous qualities, corn oil is suitable for a variety of commercial uses.

Since corn oil is a nutritious edible oil, it is widely used in cooking. The main factor driving the demand for corn oil as cooking oil is its medicinal benefits. In addition to its therapeutic benefits, corn oil's chemical and physical characteristics have raised its demand across a range of end-user sectors.

Corn oil also finds its applications in soap production, paints, pharmaceutical preparations, and textiles. Processors of corn oil are focusing more on blending corn oil with other essential oils such as rice bran oil, and olive oil, which results in recommended ideal levels of polyunsaturated and monounsaturated fatty acids. This further ensures excellent stability of the flavor and taste of food. Market players are tapping the corn-producing areas to increase their productivity and gain higher profits.

Stringent environmental regulations imposed by several regulatory authorities, such as the Environmental Protection Agency (EPA) of the U.S., for reducing the carbon footprint have driven demand for biofuels around the world. This in turn will fuel demand for corn oil over the coming years. In addition, cooking oil is one of the largest applications of corn oil.

Report Attributes	Details
Corn Oil Market Size (2023)	US$ 6 Billion
Projected Market Value (2033)	US$ 13 Billion
Global Market Growth Rate (2023-2033)	8% CAGR
Market Share of Edible Corn Oil	40%
Key Companies Profiled	FEC Solutions ConAgra Foods Inc. Cargill Inc. Bunge Limited Savola Group Marico Limited Associated British Foods plc

Which Factors are Augmenting Global Corn Oil Demand?

“Growing Consumer Preference for Wholesome Food Products”

Growing consumer health consciousness has led to an increase in consumer preference for corn oil because of its health advantages. Additionally, since disposable incomes have grown, consumers can now put health ahead of product cost. Rising global population and economic growth in both established and emerging regions are driving the demand for corn oil.

The linoleic acid found in corn oil helps to preserve the health of skin cells, lower serum cholesterol levels, and boost resistance to a wide range of illnesses. Additionally, the oil includes acids that improve gastrointestinal and cardiovascular processes. Global demand for corn oil is rising as a result of these health advantages.

Growing work cultures, demanding work schedules, and sedentary lifestyles are also enabling consumers to alter their nutritional preferences to living a healthy life. Customers, therefore, favor products that are healthy and nourishing, which is boosting the consumption of corn oil.

Customers may now quickly access information about better cooking product alternatives, which allowed food oil companies to produce and introduce a healthier version of corn oil into their product line to grow their client base. Furthermore, the market demand for corn oil is rising as a result of shifting consumer dietary choices and a preference for nutrient-dense food items. Applications for corn oil in cuisine include frying, making salad dressings and marinades, and baking goods such as bread and cakes.

“Increasing Adoption of Corn Oil in Biodiesel Production”

Demand for feedstock is usually satisfied by corn oil. Other edible oils are anticipated to be replaced by corn oil in the manufacturing of biodiesel. As a result, there will likely be a large market for corn oil from producers of biodiesel around the world.

In recent years, the demand from consumers for pure, organic, and plant-based food products has increased exponentially. The global corn oil market is expected to experience considerable expansion over the coming years as a result of rising customer preferences for wholesome food items and plant-based healthy and palatable food alternatives.

What Barriers are Being Encountered by Corn Oil Suppliers?

“Presence of Alternatives and High Processing Cost of Corn Oil”

The high processing cost of corn oil is projected to impede market expansion. The corn oil market is hampered by the availability of replacement edible oils such as olive oil, groundnut oil, rice bran oil, and others that have a comparatively larger market penetration.

Which Region is Predicted to Lead Market Expansion Going Forward?

“Rapid Expansion of Food Service Industry in Europe”

Europe leads with more than 40% share of the global corn oil market due to the increased demand from customers for food that is prepared in a healthy manner utilizing wholesome ingredients. The expansion of numerous new restaurant chains and the expanding food service industry have bolstered market growth.

Country-wise Insights

How is the Market for Corn Oil Progressing in the U.S.?

“Growing Usage of Corn Oil as a Biodiesel Substitute to Lessen Environmental Pollution”

High technological expertise and increased purchasing power of consumers and huge demand for corn oil as an edible oil are driving market growth. The growing use of corn oil as a biodiesel substitute to lessen environmental pollution is anticipated to boost market expansion in the U.S.

Widespread use as a nutritious edible oil for frying, baking, and cooking is corn oil. It is also well known for being less expensive than other edible oils. These elements have increased the demand for corn oil in the country. Rising disposable income, rapid urbanization, and the growing popularity of low-calorie oil among middle-income age groups are driving market growth in the U.S.

What is Driving Demand for Corn Oil in Japan?

“Rapid Adoption of Corn Oil in Cosmetic Production”

High population and rising demand for corn oil in the food industry, the market in Japan is anticipated to expand at the fastest rate during the forecast period. As the demand for food and feed increases, Japan is predicted to have significant expansion in the corn oil market over the coming years. The widespread use of corn oil in numerous cosmetics is boosting market expansion.

Why is Germany Seeing High Sales of Corn Oil?

“Growing Corn Oil Demand for Household Applications”

The market in Germany is expected to increase at the highest CAGR over the forecast period due to consumers' growing preference for healthy products. The food, healthcare, and cosmetic businesses in the area are well-established, and the demand for plant-based, wholesome food is rising.

The preference of consumers for nutritious foods with therapeutic qualities contributes to market expansion. The majority of household applications also contain corn oil as an ingredient. Dietary changes, fast-growing distribution networks, and higher living standards are the main factors boosting market growth.

Category-wise Insights

Which Type of Corn Oil Holds High Significance?

“Increasing Need for Chemical-free Food Products Driving Demand for Edible Corn Oil”

By type, the market is segmented into edible and non-edible. Edible corn oil holds 40% share of the global market. Due to the rising global need for chemical-free, organic food products as well as a surge in customer desire for tasty, healthful products, edible corn oil has emerged as the consumer's top option. Due to expanding consumption of fried foods and disposable income, edible corn oil consumption has surged in developing countries.

Demand for edible corn oil is increasing as a result of increased consumer health concerns and the rising adoption of edible oils with reduced calorie, cholesterol, and fat content. This is because numerous lifestyle illnesses, including diabetes, obesity, and cardiovascular disease are becoming more common.

Which Application Will Bring in High Revenue Streams?

“Growing Consumer Emphasis on Healthy Living Fueling Consumption of Corn Oil in Food Processing Industry”

The market is classified into food processing, biodiesel, pharmaceuticals, and households based on the application. The food processing industry accounts for 50% share of the global market. Today's consumers place a strong emphasis on leading healthy lifestyles, which causes them to pick their products carefully.

Additionally, the availability of many kinds of oils and fats in the market has made people aware due to easy access to information. As a result, food processors are currently attempting to satisfy consumer demand by providing reliable and nutritional products.

Competitive Landscape

Top market players are implementing a variety of innovations, such as producing nutritious and wholesome corn oil. Leading corn oil suppliers are expanding their production capacities to fulfil the increased demand for corn oil in new locations by taking advantage of the untapped potential in emerging markets. Because of the increased globalization of businesses through export and trade, market leaders are maintaining a strong position.

To satisfy the increasing demand from the end-use industries, key companies in the industry are investing in the opening of new oilseed crushing facilities. Major corn oil producers are concentrating on R&D and product innovation.

The production of corn oil requires extremely precise processing due to its classification as a product of premium grade. Major participants are focusing on adopting cutting-edge technologies such as cold-pressing and oil-refining technologies to meet the rising demand for high-quality corn oil. Top corn oil manufacturers can position their products in the top rank thanks to these technological advancements.

For instance :

• In 2022, Green Plains Inc. introduced its DCO+ innovative technology to extract renewable corn oil in dry grind corn ethanol plants with "record-high low carbon" levels.

Key Segments Covered in Corn Oil Industry Research

• By Type :

  • Edible
  • Non-edible

• By Application :

  • Food Processing
  • Biodiesel
  • Pharmaceuticals
  • Households

• By Distribution Channel :

  • Supermarkets/Hypermarkets
  • Franchise Outlets
  • Specialty Stores
  • Online Stores

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa