Distillers Corn Oil Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Distillation Type (Dry-Milling Distillery, Wet-Mill Distillery, Others), By End User (Biodiesel Manufacturing, Livestock Feed, Others), By Region and Competition, 2020-2030F

Market Overview

Global Distillers Corn Oil Market was valued at USD 6.12 Billion in 2024 and is anticipated to project steady growth in the forecast period with a CAGR of 4.85% through 2030. 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.

Growing research and development efforts surrounding the production of distillers corn oil are expected to provide new profitable opportunities for the Global Distillers Corn Oil Market. Researchers are exploring the use of distillers corn oil in other products and finding ways to extract even more oil from the distillers' grains. These advancements will help manufacturers achieve higher yields and meet market demands. Moreover, Efforts are in progress to enhance the quality of distillers' corn oil by significantly lowering its free fatty acid content from approximately 15% to below 1%.

This further-refined oil can be utilized as a substitute for soybean oil in swine starter diets, premixes, and other production systems, creating greater value and growth potential. Therefore, numerous growth opportunities exist in the market. However, there are some restraints, such as the requirement to purify distillers corn oil before using it as a biodiesel feedstock due to the presence of impurities. Failure to properly purify the oil can lead to damage to catalytic converters.

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.

The boom in ethanol production not only contributes to the renewable energy sector but also has positive implications for the agricultural industry. The increased demand for ethanol leads to higher prices for bulk agricultural commodities, providing economic benefits to farmers and agricultural communities. This, in turn, stimulates economic development and growth in those regions.

Moreover, distillers corn oil plays a crucial role in the production of biodiesel, another renewable fuel source. As the world shifts its focus towards sustainable energy alternatives, the demand for biofuels is expected to surge. Consequently, the demand for distillers corn oil, as a key ingredient in biodiesel production, is also projected to increase.

Given the global emphasis on reducing carbon emissions and transitioning to cleaner energy sources, the ethanol industry is poised for significant growth in the coming years. This growth not only reflects the increasing demand for biofuels but also presents new opportunities for the distillers corn oil market. As ethanol production expands to meet the rising demand, the availability of distillers corn oil will continue to grow, catering to various industries, including the biodiesel sector.

Growth in Animal Feed Industry

Distillers corn oil, a co-product of ethanol production, is not only a valuable ingredient in animal feed due to its high energy content, but it also offers numerous health benefits for livestock. An alternative fuel predominantly produced in the United States, ethanol remains the most widely manufactured biofuel. Approximately 40% of U.S. corn production is allocated specifically for ethanol production. With its rich nutritional profile, including essential fatty acids and antioxidants, distillers corn oil contributes to improved digestion, enhanced immune function, and overall better animal well-being.

According to estimates from the United Nations Food and Agriculture Organization (FAO), global food demand is expected to increase by 60% by 2050. Between 2010 and 2050, the production of animal proteins is projected to grow at an average annual rate of approximately 1.7%, with meat production anticipated to rise by nearly 70%, aquaculture by 90%, and dairy by 55%. While this represents a near doubling of demand, extrapolating the growth trends of the past 40 years suggests that actual requirements by 2050 could potentially be four times higher. As the animal feed industry continues to expand, driven by the growing demand for high-quality and sustainable animal nutrition, the need for distillers corn oil is expected to rise significantly. This surge in demand can be attributed to its cost-effectiveness as an energy source in animal diets, which helps optimize feed conversion efficiency and enhance the productivity of livestock.

Considering Global population projections indicate an increase to 8.5 billion by 2030, followed by further growth to 9.7 billion in 2050 and 10.4 billion by 2100, it is evident that food demand will experience a substantial increase. This, in turn, will lead to a surge in livestock production to meet the growing protein needs of the population. Consequently, the demand for animal feed, including distillers corn oil, is expected to soar, further driving the growth of the global distillers corn oil market.

In conclusion, the growth in the animal feed industry serves as a major driving force behind the expansion of the global distillers corn oil market. As the world grapples with the challenge of meeting the escalating food demand, the necessity for high-quality animal feed becomes paramount. Thus, the demand for distillers corn oil is anticipated to witness a substantial rise, positioning it as a key player in the future of sustainable and efficient animal nutrition.

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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.

Moreover, the extreme price volatility of corn can pose challenges for manufacturers in accurately forecasting costs and revenues, making business planning more complex. The unpredictability of costs also increases the risk associated with investments in the sector, potentially deterring new investments. These price fluctuations are influenced by various factors, including weather conditions, global supply and demand, and government policies. Given these factors, the corn market is expected to remain volatile in the foreseeable future.

Addressing this volatility is a significant challenge for the distillers corn oil market. Manufacturers need to develop effective strategies to manage these risks and ensure the long-term sustainability of their operations. By closely monitoring market trends, optimizing production processes, and diversifying their supply chain, distillers corn oil producers can mitigate the impact of price fluctuations and maintain a competitive edge in the industry.

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.

As awareness about the importance of sustainability continues to increase, the trend of sustainable sourcing in the distillers corn oil market is expected to strengthen. Leading procurement organizations are recognizing the value of incorporating sustainability into their sourcing strategies and are achieving significant progress through targeted value-creation initiatives. These initiatives may include collaborating with farmers and suppliers who prioritize sustainable agricultural practices, implementing traceability systems, and investing in renewable energy sources.

Furthermore, embracing responsible sourcing not only addresses current market demands but can also unlock new growth opportunities for businesses in the distillers corn oil market. By aligning their operations with sustainability principles, companies can attract environmentally conscious consumers, differentiate themselves from competitors, and tap into emerging markets that prioritize sustainable products.

As such, the focus on sustainable sourcing is not just a passing trend but is likely to remain a key aspect of the distillers corn oil market for the foreseeable future. By embracing sustainable practices, companies can contribute to a more environmentally conscious and socially responsible industry while also securing their long-term success.

Segmental Insights

Distillation Type Insights

The dry-milling distillery segment is the fastest-growing category in the global market for distillers corn oil in 2024, primarily driven by its cost-effectiveness and operational efficiency. Dry milling, one of the two main processes used in ethanol production from corn, is less capital-intensive compared to wet milling, making it a preferred choice in many distilleries, particularly in the US. Despite producing a lower ethanol output per bushel of corn compared to wet milling, dry milling distilleries dominate the US ethanol production market due to their ability to operate with lower investment and ongoing operational costs.

As the demand for renewable fuels continues to rise, dry milling distilleries are well-positioned to meet this need due to their efficient processes. Both dry milling and wet milling play essential roles in supporting energy sustainability, but the advantages of dry milling, including its scalability and lower financial barriers, contribute significantly to its dominance in the distillers corn oil market..

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Regional Insights

Asia Pacific emerged as the dominant region in the Global Distillers Corn Oil Market in 2024, holding the largest market share in terms of value. Asia Pacific holds the distinction of being the world's largest producer of corn, thanks to its abundant corn supply. This ample availability of corn serves as a solid foundation for the production of DCO (Distillers' Corn Oil) in the region. With the continuous growth in corn production, Asia Pacific is poised to reinforce and solidify its position as a dominant player in the DCO market, further enhancing its global standing.

Recent Developments

• In October 2024, ICM, Inc. is pleased to announce the successful startup and commissioning of its FOT Oil Recovery™ system at Elite Octane, LLC’s ethanol facility in Atlantic, Iowa. Operational since 2018, the plant produces over 150 million gallons of ethanol annually. The newly installed FOT Oil Recovery™ system is surpassing expected oil recovery and performance benchmarks.
• In October 2024, IFF, a global leader in food, beverage, health, biosciences, and scent, introduced its OPTIMASH F200 and OPTIMASH AX enzyme solutions, designed to enhance corn oil recovery in fuel ethanol production. According to new in-plant data from IFF, this enzyme combination can increase corn oil yield by up to 15%, supporting the rising demand in the biodiesel, renewable diesel, and animal feed markets.
• In May 2024, A study on recent advancements in processing techniques for distillers corn oil (DCO) highlights its unique potential as a fuel source. In an energy landscape dominated by fossil fuels and electricity, the ability to synthesize a viable mechanical fuel from a food byproduct is both remarkable and innovative.
• In July 2023, Green Plains Inc. announced a technology collaboration with Shell’s Equilon Enterprises LLC, integrating Fluid Quip Technologies’ MSC™ precision separation with Shell Fiber Conversion Technology (SFCT). This combined platform aims to maximize Distillers Corn Oil extraction, produce cellulosic sugars for low-carbon ethanol, and enhance high-protein ingredients for global animal feed.
• In 2022, Eni and Honeywell UOP joined forces in an exciting collaboration aimed at revolutionizing jet fuel production. Their shared vision led to the development of a cutting-edge process specifically designed to convert DCO (Deoxygenated Castor Oil) into high-quality jet fuel. By leveraging their extensive expertise in catalytic processes and DCO processing, these two industry leaders are paving the way for a more efficient and sustainable future in aviation. Through this innovative partnership, Eni and Honeywell UOP are set to redefine the boundaries of jet fuel production, ensuring a greener and more environmentally friendly solution for the aviation industry.

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:

o   Dry-Milling Distillery

o   Wet-Mill Distillery

o   Others

• Distillers Corn Oil Market, By End User:

o   Biodiesel Manufacturing

o   Livestock Feed

o   Others  

• Distillers Corn Oil Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   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:

Global Distillers Corn Oil Market report with the given market data, TechSci Research 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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