Dry Milling Market Forecasts to 2028 - Global Analysis By Source (Yellow Corn and White Corn), By End Product (Corn Grits, Cornmeal, Corn Flour, Ethanol and Distiller's Dried Grains with Solubles (DDGS)), By Application (Fuel, Animal Feed and Food) and Geography

According to Stratistics MRC, the Global Dry Milling Market is accounted for $89.9 billion in 2022 and is expected to reach $129.7 billion by 2028 growing at a CAGR of 6.3% during the forecast period. Dry milling is primarily used to produce feedstock and fuel. New bio-based by products that are related to this process are currently being developed. Products made from corn that are intended for human and animal consumption or used to make fuel ethanol are the main focus of dry milling. The primary goal of the dry milling procedure is to as thoroughly separate the endosperm, which is primarily made of starch, from the germ and pericarp fibres as possible. One of the simplest processes for creating products from maize for human consumption is dry milling.

According to the United States Department of Agriculture (USDA), originates in the United States, which produced more than 14.42 billion bushels of corn in 2018–2019, with 14.3% of that total amount going overseas.

Market Dynamics:

Driver:

Rise in the consumption of corn flour-processed snacks and bakery products

The global increase in snack and bakery product consumption made from corn flour is anticipated to fuel the future expansion of the dry milling market. Flour made from dried whole corn kernels is referred to as corn flour. In order to give baked goods and other foods form and structure, corn flour is used as a binder. Dry milling is the process of turning corn seeds into corn flour, which has a fine and silky texture similar to whole wheat flour and is used in baked goods like bread, pancakes, and biscuits. Therefore, the growth of the dry milling market is being driven by the increase in the consumption of corn flour, processed snacks, and bakery goods.

Restraint:

High maintenance to retain corn quality

The main barrier to growth in the corn dry milling market is the expense of maintaining corn quality throughout the harvesting and dry milling processes. The growing environment, harvest procedures, and drying processes all impact corn grain quality. Choosing the right hybrid and harvesting corn at the right time are crucial for producing grain of the highest calibre. Due to inadequate infrastructure and inadequate economic support, these requirements are frequently not met in developing nations, which results in decreased output.

Opportunity:

Growing consumer awareness for renewable bio-fuel

Due to rising consumer interest in renewable biofuel, the dry milling market is anticipated to expand. Additionally, corn is one of the primary ingredients in feed, and demand for corn ethanol as a biofuel is rising quickly. The market for dry milling is likely to expand as a result of growing environmental concerns, high demand for food-grade dry ground maize products, and growth in demand for various products and applications. The market for dry milling is expected to grow as a result of factors such as rising R&D costs in the agricultural sector and rising demand for processed snacks and bakery foods.

Threat:

Storability and microbial contamination challenges

The market growth of corn has been severely constrained by the numerous storability and microbial contamination issues related to its storage. Along with this, there are high maintenance costs to maintain the quality of the finished products because they are susceptible to oxidation, which degrades their flavour and odour. Additionally, dry milling has been constrained by the possibility that abrasives in the materials themselves could eventually harm the milling machinery. Such factors are hampering the market growth.

Covid-19 Impact

The Covid-19 pandemic has caused a slight decline in the global dry milling market. Agriculture is entirely responsible for the supply of corn. Unprecedented agri-food system disruptions and disruptions to food safety and security have happened as a result of the coronavirus disease crisis and the global lockdown measures. Agriculture sub-sectors like the forage feed industry were severely impacted by the covid-19 pandemic. Additionally, the disruption of the production and marketing channels had a negative impact on the dry milling market. Numerous businesses have already warned of potential delivery delays and a drop in future product sales. Moreover, the global travel restrictions put in place by North America, Asia, and Europe are impeding opportunities for partnership and business collaboration. Subsequently, these factors are impeding the expansion of the food industry's dry milling market.

The Yellow Corn segment is expected to be the largest during the forecast period

Due to its easy availability and high demand from manufacturers, yellow corn segment held the largest market share in the dry milling market during the forecast period. Because beta carotene, the pigment that gives yellow corn its yellow colour, is converted into vitamin A during digestion, yellow corn has a higher nutritional value than white corn. Lutein is abundant in yellow corn. Moreover, growing consumer demand for animal feed is what fuels market expansion. Additionally, rising consumer demand for food products made from dry-milled corn fuels segment expansion.

The Corn Flour segment is expected to have the highest CAGR during the forecast period

The Corn Flour segment is anticipated to witness highest CAGR during the projection period. Due to the widespread use of corn flour as a binding agent in puddings and other culinary preparations, the corn flour end-product segment is anticipated to account for a significant portion of the market. Additionally, it thickens a variety of premixed soups and sauces. The consumer preference for spicy and flavorful goods is also fueling the exponential growth of the sauces and condiments industry, which in turn is propelling the corn flour market.

Region with largest share:

Due to the rising demand for dry milling in the animal feed industry the Asia-Pacific region is expected to hold the largest market share during the forecast period. The developing nations in the area with the largest market shares are China and India. The low organic feed market, penetration, rising formal offtake, etc., are major growth drivers. The largest producer and consumer of dry-milled corn products is China.

Region with highest CAGR:

Over the forecast period, North America is anticipated to register the highest CAGR. The United States is the world's top corn producer. 95% of the world's corn production, as a result, the area ranks as one of the world's top producers. One of the key elements influencing the regional market for dry milled corn is the abundant supply of raw materials. Additionally, the region's robust supply chain makes it possible for the end-user industries to easily access raw materials, which drives up regional market growth.

Key players in the market

Some of the key players profiled in the Dry Milling Market include Cargill, Alto Ingredients, Inc., Lifeline Foods, LLc, Pacific Ethanol Inc., Green Plains Inc., Flint Hills Resources LLC, C.H. Guenther and Son, Incorporated, Valero Energy Corporation, Archer Daniels Midland Company, Bunge Limited, SunoptA, Didion Milling Inc. and Semo Milling, LLc.

Key Developments:

In July 2021, AGCO, a US-based agricultural machinery company, collaborated with Ocrim for an undisclosed amount. The agreement would benefit customers worldwide by bringing together the seed, grain, and food industry expertise of AGCO's Cimbria and GSI brands with Ocrim's extensive food milling capability. Ocrim is an Italy-based provider for wheat, corn, and cereal mills.

In September 2018, Dasca Group and Bunge Ltd., signed a joint venture agreement following which the companies started a new corn milling and origination facility in Ukraine which was expected to be functional by the end of 2019. This joint venture is expected to increase the production capacities of companies, thereby aiding its revenue generation.

In January 2018, Cargill Incorporated and Arabian Agricultural Services Company, a Saudi food ingredients firm. together started, The Middle East Food Solutions Company (MEFSCO) corn milling facility in Saudi Arabia, owing to their joint venture. This new plant will triple the joint venture’s overall production volume and double the production of glucose and starch.

Sources Covered:
• Yellow Corn
• White Corn

Products Covered:
• Corn Grits
• Cornmeal
• Corn Flour
• Ethanol
• Distiller's Dried Grains with Solubles (DDGS)
• Other Products

Applications Covered:
• Fuel
• Animal Feed
• Food

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

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- Market share assessments for the regional and country-level segments
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