Distillers Corn Oil Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Distillers Corn Oil Market was valued at USD 6.12 Billion in 2024, and is expected to reach USD 8.15 Billion by 2030, rising at a CAGR of 4.85%. The major by-product of ethanol production from maize grain is distillers’ corn oil. During the ethanol production process, corn is fermented to produce ethanol, which is then boiled away, leaving a distilled mixture in the pot. This mixture can either be dried before being processed into distilled corn oil or used immediately. The choice of distillation type for the distiller's corn oil depends on this step. Distillers Corn Oil shares many properties with conventional corn oil, but it contains higher quantities of lutein and zeaxanthin. Additionally, it exhibits greater stability compared to regular corn oil.

The Global Distillers Corn Oil Market is driven by the increasing usage of distillers corn oil in biodiesel production. China has been the leading importer of soybeans, accounting for over 60% of global imports in recent years. These imports support the world's largest soybean crushing industry, which produces soybean meal for China's extensive livestock sector, including the largest swine herd - comprising nearly half of the global pig population - and one of the largest poultry flocks. After soybean oil, it is the second-most used feedstock for domestic biodiesel production worldwide. Not only is it affordable, but immediately after distillation, distiller's corn oil contains higher levels of metals (minerals), gums, color, lutein, and free fatty acids (FFA). These characteristics make it highly advantageous for animal feed, contributing to the market's growth.

Key Market Drivers

Growth in Ethanol Production Industry

The production of biofuel, particularly ethanol, generates distillers corn oil as a co-product. This co-product is obtained from the extraction process of corn, which is used as a feedstock for ethanol production. As the demand for biofuels continues to rise, the production of ethanol also increases, resulting in a significant boost in the availability of distillers corn oil. In 2022, biofuels accounted for more than 3.5% of global transport energy demand, primarily in road transportation. Over the past five years, biofuel consumption has grown at an average annual rate of nearly 6%, except in 2020 when demand declined due to the impact of the COVID-19 pandemic. Under the Net Zero Emissions (NZE) Scenario, the share of biofuels in transport is projected to more than double, reaching 9% by 2030, with road vehicles continuing to represent a significant portion of this demand.

Key Market Challenges

Volatility in Corn Prices

Distillers corn oil, a by-product of corn ethanol production, is directly affected by the cost of corn. As corn prices fluctuate, so do the production costs, impacting the profitability of distillers corn oil producers. The volatility in the corn market can have a significant impact on the manufacturers of distillers corn oil.

When corn prices rise, the production costs increase, putting pressure on profit margins for distillers corn oil producers. This can create challenges in passing on these increased costs to consumers, considering the competitive nature of the market. The profitability of distillers corn oil manufacturers is directly linked to the price of corn, making it crucial to closely monitor and manage these fluctuations.

Key Market Trends

Growing Focus on Sustainable Sourcing

The growing focus on sustainable sourcing is having a significant impact on the distillers corn oil market. Consumers and businesses alike are increasingly demanding products that are sourced responsibly, taking into account factors such as environmental impact, fair trade practices, and ethical considerations. This shift in consumer behavior and preferences is driving changes in the way distillers corn oil is produced.

Moreover, sustainable sourcing not only benefits the environment and communities, but it also helps companies in the distillers corn oil market mitigate financial, social, and environmental risks associated with lower-tier suppliers. By prioritizing sustainable sourcing practices, these companies can improve their supply chain resilience, reduce their carbon footprint, and enhance their overall reputation as responsible industry players.

Key Market Players

• Archer-Daniels-Midland Co
• Green Plains Inc
• Cardinal Ethanol LLC
• Redfield Energy LLC
• POET LLC
• United Wisconsin Grain Producers LLC
• Aemetis Inc
• Ace Ethanol LLC
• Patriot Renewable Fuels, LLC
• RPMG Inc.

Report Scope:

In this report, the Global Distillers Corn Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Distillers Corn Oil Market, By Distillation Type:

• Dry-Milling Distillery
• Wet-Mill Distillery
• Others

Distillers Corn Oil Market, By End User:

• Biodiesel Manufacturing
• Livestock Feed
• Others

Distillers Corn Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia-Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Distillers Corn Oil Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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