Cornmeal Market - Forecasts from 2022 to 2027

The cornmeal market is expected to grow at a compound annual growth rate of 4.92% over the forecast period to reach a market size of US$1,013.484 million in 2027, from US$724.063 million in 2020. The cornmeal market is estimated to witness robust growth primarily due to the growing popularity of plant-based food, which is at the same time driven by the growing inclination toward vegetarian and vegan diets, which are gaining momentum in the majority of the developing economies and few emerging economies. The increasing awareness of consuming food products that lead to well-being and good health, and the growing considerations about climate, the environment, and animal welfare are a few of the additional factors that are influencing this trend. The other factors are inclusive of but are not limited to the growing incidence of lactose intolerance, which is making consumers increase the share of food products that are derived from plants.

Conversely, such consumer-based factors are facilitated by new product development and an upswing in at-home consumption due to the closure of food and beverage establishments because of lockdown measures enforced by various national governments. The rising preference for functional food and the resulting response by food manufacturers, not only as a means of catering to the growing consumer need but also as a means of raising the nutrition profile of traditionally consumed staples as an investment, is another development that is expected to drive the growth of the cornmeal market. Further cornmeal is being increasingly used by various food and beverage establishments. For instance, in March 2020, a fast-casual restaurant operating at 900 locations in 17 states across the USA, called Zaxby's headquartered in Athens, Georgia which is known for its chicken fingers, signature sauces, and wings, reportedly announced the comeback of fried pickles which are essentially thin slices of dill pickles coated in cornmeal. Moreover, in July 2020, it was reported that a new sandwich was introduced by Woody’s Bar-B-Q located in Florida, USA, on its 40th anniversary, which used a cornmeal-dusted bun.

Consumption trends that are increasingly accommodating the growing preference for functional food, as well as fast food and healthy snacking, are expected to partly drive the cornmeal market, in the next few years. For instance, in July 2019, it was reported that Frito-Lay had reportedly partnered with a fast-food chain in the US market to develop a signature sandwich featuring the cheese-flavored cornmeal snack, which is paired with a Cheetos-flavored sauce. During the same month, it was announced that KFC would be serving a Cheetos sandwich. In August 2019, it was reported that a Mexican multinational called Gruma had achieved significant sales growth after launching healthier products, viz. tortilla-producing companies, low-carb and gluten-free tortillas, and the growth of Mexican food restaurants. Founded in Nuevo León, Mexico, Gruma is recognised among Hispanics mainly due to the company's Maseca cornmeal brand. Considering the USA, as of July 2018, the proportion of the Hispanic population was to the tune of 59.9 million. This development has resulted in the people of Hispanic origin becoming the nation’s largest ethnic or racial minority, constituting 18.3% of the nation’s total population [Source: United States Census Bureau], which is expected to drive the demand for consumption of cornmeal-based products. Besides, the growing preference for breakfast cereals is also another factor that is expected to drive the cornmeal market growth in the next few years. This particularly stems from the rising trend of lifestyle changes accommodating increasing nutrition considerations of a growing pool of newer generations of customers in emerging economies, growing preference for more transparency in food sourcing and labelling, convenience, and consuming low calorie, and low carbohydrate and high fibre foods, among others. Nevertheless, breakfast cereals are not restricted to the breakfast hour; they are increasingly being featured among all-day-dining options at various food and beverage establishments around the world.

Further, the growing bakery and confectionery consumption is also partly responsible for driving the cornmeal market during the coming years. This development is tangible with regards to the production of bakery and confectionery innovations; increasing the number of urban home bakers, increasing availability of allergen-free variants; growing urbanization; expanding retail footprint, among others. As an effect of such development, the bakery premix segment is expected to host a substantial share to facilitate the growth of the cornmeal market. Especially considering cornbread, which has been around since the time of ancient Indians in the Americas and is still widely consumed. Also, in this regard, it should be noted that bakery premixes made out of cornmeal extend convenience to the food service industry due to the combination of ingredients and minimizing time required for production concomitantly reducing the number of tasks that are required for the entire day’s operation. An additional factor that is expected to drive the cornmeal market is the growing demand for on-the-go snacking. Further, with increasing time spent at home, due to COVID 19 lockdown measures, family members, as well as single or unmarried individuals, are increasingly participating in home banking activities and sharing the end-product over various social media platforms. Nevertheless, with nations slowly lifting the restrictions, resulting in food and beverage establishments becoming operational for a longer duration, it is resulting in a renewed demand for bakery premixes, which in turn is poised to drive the demand for cornmeal during the next few years. Further, there’s a growing demand for exotic food products from consumers in emerging economies who are inclined to sample products made out of ingredients that haven’t been a part of traditional consumption. As a result, various international players have made forays Moreover, the rising pool of millennials and the associated trend of consumption of food products that comprise healthy ingredients are also in part responsible for driving the cornmeal market.

Rapid urbanization that is taking place simultaneously with rural-to-urban migration is resulting in the adoption of new consumption trends which is expected to influence the cornmeal market moreover, convenience snacking is also another factor that has arisen from the aforesaid, which is in part responsible for increased consumption of confections and bakery products, among others. The growing household expenditure on processed food which has resulted from a rapid shift away from traditional food and beverage consumption is expected to drive the global bakery premix market growth. To provide a contextual reference, the following is being elucidated to substantiate the extent of urbanization. Most of the world's population resides in urban areas. As of 2018, North America was the most urbanized region in the world, wherein urban areas constituted 82% of the total population. This was followed by 81% of the population of Latin America and the Caribbean, which are concentrated in urban settlements, and 74 % of the population of Europe, which is concentrated in urban settlements. Additionally, the share of the world population living in urban areas is expected to reach 60% in 2030 from 55% in 2018. Besides, as of 2018, Africa and Asia represented the lowest levels of urbanization. However, by 2030, urban settlements are projected to support 47 % of the population in Africa, 56% in Asia, and 71% in Oceania. Moreover, by 2050, the African urban population is expected to triple.

Key Development

• Cargill has announced its acquisition of Arkema’s epoxides business which is located in Blooming Prairie, Minnesota.
• Bunge Ltd., a U.S based company has acquired two corn mills in the United States from Grupo Minsa, S.A.B. de C.V. With the help of this acquisition the company expanded its product portfolio across the United States.

Covid-19 Impact:

The pandemic has positively impacted the overall market growth due to the high prevalence of infectious diseases which has drawn people’s attention to their health and diet supplements. Consumers are willing to spend more on their dietary supplements and include healthy meals and fruits in their diet to develop strong immunity which supports their overall health and is anticipated to drive the overall market growth. Moreover, rising interest in foods that provide health benefits and improved digestion and growing demand for a clean eating diet is anticipated to drive the overall market growth during the forecast period.

Segmentation

By Types

• White Cornmeal
• Stone-Ground Cornmeal
• Steel Ground Yellow Cornmeal
• Blue Cornmeal

By Granulation

• Coarse
• Medium
• Fine

By Source

• Organic
• Inorganic

By End-Use

• Industrial
• Residential

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• Spain
• United Kingdom
• Italy
• France
• Middle East and Africa
• UAE
• Israel
• South Africa
• Asia Pacific
• China
• Japan
• India
• Australia