Depleting petrochemical resources around the world in oil rigs has initiated substantial focus and concern towards research on alternative fuels and renewable energy sources such as biofuels. Uncontrollable aspects of crude oil prices in the global scenario are other factor arising similar concerns and drifts towards the usage of corn ethanol as biofuel in the automotive industry. The number of motor vehicles produced worldwide is around 95 million in 2018. Increasing demand for personal vehicles and subsequent rise in per capita income in the emerging economies has led to a remarkable growth of automobile sales in recent years, which in turn, fuel the growth of the corn wet-milling market. Approximately 1,078 million metric tons of corn was produced in 2018 worldwide and it is estimated to reach 1,122 million metric tons in 2019. This has majorly accelerated the demand for corn ethanol which is a by-product produced during the corn wet-milling process and the market will create new opportunities for itself in the upcoming years. Rising demand for corn gluten meal as animal feed is the key factor triggering the growth of the corn-wet milling market share. Corn gluten meal is a by-product of corn wet-milling process, which deals with hydrocyclone starch system, centrifuge machine, distillation, and nixtamalization. Additionally, the Wet-Milling of Corn comprises of high levels of Aflatoxin. Gluten meal is a rich source of protein and energy for livestock species. It is widely accepted as pet food for its high protein digestibility and a high source of fiber. In developed countries such as the USA and Canada corn gluten meal also used as a fertilizer and weed controlling agent.
The global Corn Wet-Milling Market size was valued at $66.94 billion as of 2018 and is expected to grow with a CAGR of 5.51% throughout the forecast period 2019-2025.
Increased Demand for High Fructose Corn Syrup in Processed Food & Beverage Food Products Drives the Corn Wet-Milling market
Surging demand for high fructose corn syrup (HFCS) with 55% fructose content in the carbonated beverage sector which makes it sweeter compared to sucrose, resulting in low production cost for manufacturers. HFCS contains no fat, and no protein but with 76% of carbohydrates in significant amounts. Since HFCS is the major outcome in the corn wet-milling process, increasing demand for this product, which in turn, spur the growth of the corn wet-milling market share globally in the upcoming years. HFCS is also used by the dairy industry for the production of flavored milk, frozen desserts, yogurt, and ice-creams. Cost-effective nature when compared to other sweeteners and its ability to remain in solution form are the functional advantages of high fructose corn syrup. It is available in liquid form which makes easier while transportation and its preservative ability that reduces the use of other preservatives makes HFCS is an eminent ingredient in the food and beverage sector. A rapid surge in the sales of ready-to-drink (RTD) beverages which include products such as alcoholic beverages such as beer, and carbonated beverages are also spurred the demand of HFCS thereby corn wet-milling market size worldwide.
Notable Developments in the Corn Wet-Milling Market
· Sayaji Industries Ltd., an Indian corn-wet milling business company has announced its collaboration with Alland & Robert, France-based natural plant exudates provider for the food, cosmetic and pharmaceutical industries in April 06, 2019. As a result of this joint venture, Alland & Robert has expanded market base in the Indian market.
· Cargill India Pvt. Ltd., a prominent player in the corn-wet milling market has announced an additional investment of around $ 40 million to start the manufacturing of modified starch products on Sep 27, 2018. The company anticipates increasing sourcing of maize from local growers surrounding the corn-wet milling plant at Davangere, India.
North America Holding Major Share of the Corn Wet-Milling Market
North America generated 32.2% of the corn wet-milling market global revenue in 2018. Rising demand for processed food items in this region is the key factor for the growth of the corn wet-milling market. Corn refiners in the U.S. are exported over $2 billion in goods, adding $4.7 billion to the U.S. economy in 2018. Wet-milling products are rich in amino acid protein, digestible fiber, methionine, cysteine, and high level of energy. Presence of market leaders and their investments to expand their businesses also led the wet-milling market growth in this region. For instance, Ingredion, Inc., an American-based ingredient solutions company has announced the investment of $60 million to grow its specialty food ingredients business in the Asia-Pacific region on Sep 26, 2018. To expand the company’s business the specialty capital investment projects include expansion of corn-wet milling and food starch production capacity in China.
The application segment that will be creating the most lucrative opportunities for the corn wet-milling market is corn sweetener. This application segment is projected to grow at a CAGR of 4.1% through to 2025. Corn sweetener is the most common end-product used in high fructose corn syrups, cookies, and crackers in the food and beverage industry. These sweeteners are used to enhance food and beverage product appearance, flavor consistency, aroma, texture, and performance. For instance, Cargill, Incorporated, North American-based nutrition provider has officially announced that the company started producing its next-generation sweetener EverSweet on March 20, 2018. It is a delicious choice for reduced or zero-calorie sweeteners and can be used in the food and beverage industry.
The Major Players in the Corn Wet-Milling Market:
Prominent players in the corn wet-milling market include Archer Daniels Midland Company (U.S.), Agrana Beteiligungs-AG (Austria), Bunge Limited (U.S.), China Agri-Industries Holding Limited (China), and Cargill, Incorporated (U.S.). Other players include Global Bio-Chem Technology Group Company Limited (Hong Kong), Grain Processing Corporation (U.S.), Ingredion Incorporated (U.S.), The Roquette Freres (France), and Tate & Lyle PLC (U.K.).
Mergers and acquisitions are the other key strategies adopted by the players to stay ahead of their competitors. Archer Daniels Midland Company, an American-based food processing, and commodities trading corporation has announced its acquisition with Neovia, France-based animal feed provider on Feb 01, 2019. With this acquisition, ADM animal nutrition enhanced its product portfolio with pet care solutions, premixes, complete feed, and additives to its customers around the globe. Ingredion, Inc., an American-based an ingredient solutions company has announced its acquisition with Western Polymer Corporation, an American-based starch products supplier on March 01, 2019. With this acquisition, Western Polymer will expand Ingredion’s starch producing capacity and strengthen its customer base in the global market. Such mergers and acquisitions aid the market players to expand their geographical boundaries and accentuate their footprint into the global corn wet-milling market.
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