Maize Oil Market size is estimated to reach $165.7 Million by 2025, growing at a CAGR of 4.3% percentage during the forecast period 2020-2025. Maize is a popular food, feed and industrial crop and its oil obtained from the germ of maize plant. It is extracted through an extended process of expeller pressing, refinement, and steam distillation. Corn is used for cooking, Skincare as well as in biofuel. In addition, the by-products obtained are used as fertilizer and animal feed. Owing to the diversified applications, the demand for maize oil is increasing rapidly. The maize oil is also used as refined vegetable oil, frying oil for salad dressing, and as a key ingredient in margarine. It is also used in food service industries, pharmaceuticals and even as massage oil. Maize oil further holds various therapeutic properties that provides various health benefits including lowering blood sugar and cholesterol, improves heart health and used as emollient for skin, thus propelling the market growth in forecast period 2020-2025. Agronomist has developed higher grade of maize oil varieties that are extremely low in calorie than others and makes it perfect frying oil for health-conscious population. Government regulations on labeling, manufacturing, and selling of the oil are some of the factors that is set to restrain the market growth.
Key Takeaways
- Geographically, Europe accounted for the highest revenue share in 2019 and it is poised to dominate during the forecast period 2020-2025 owing to its wide usage as feedstock for biodiesel. Europe has stringent environmental regulations that have led to the high demand biofuels from the region fueling the market growth.
- Edible segment held the largest market share in 2019 and is also set to grow with the highest CAGR in the forecast period 2020-20225 owing to the inclination of people towards healthy food options especially for oils.
- Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Electrophoresis Market report.
- Availability of substitutes act as challenge to hamper the growth for the forecast period 2020-2025.
By Application - Segment Analysis
By application, the maize oil market is segmented into bio diesel, food industry, cosmetics & personal care, household, pharmaceuticals, and others. The cosmetics & personal care segment registered for the highest market share of 37% in 2019 and is set to continue for the forecast period (2020-2025), with fastest CAGR of 5.6%. The increase in usage is owing to the numerous benefits, valuable nutrients and antioxidant properties offered by the product, therefore driving the segment demand. In addition, it is rich in vitamins A, E, C, and B and can regenerate damaged cell membranes, which is set to increase the market for the forecast period 2020-2025. The industrial segment is set to grow owing to the demand for bio plastic and biofuel, which are growing alternatives to decrease carbon footprint and preserve environment.
By Distribution Channel - Segment Analysis
Based on the distribution channel, maize oil market is segmented into offline and online modes. Offline segment is further divided into supermarkets, convenience stores and others. The offline segment held for the highest market share in 2019 and is set to continue for the forecast period (2020-2025). The reason for offline distribution channel growth is owing to the presence of supermarkets, which offer extensive merchandise mix along with different brands placed under the same roof. Besides, bulk discounts by supermarkets increase the sales of products, thereby boosting the segment growth in the near future. The online segment is the next promising sector for the growth of the maize oil market and is set to register highest CAGR for the forecast period 2020-2025, owing to the presence of door-to-door delivery and high reach, which is difficult in offline segment.
By Geography - Segment Analysis
Based on geography, global maize oil market is segmented into North America, Europe, Asia Pacific, and Rest of the World. Europe is set to be dominant region in the global market for maize oil holding the market share of 42% in 2019, in terms of revenues, with sales set to exhibit a steady expansion through 2025. This majorly attributed to the stringent regulations for the use of biofuels in the region that uses maize oil as feedstock. North America is another significant region for the maize oil market owing to the inclination of consumers towards healthy eating habits. Health conscious people prefer using maize oil over other edible oils that have high amount of saturated fatty acid. The market in Asia-Pacific is set to increase, owing to the increase in demand for maize oil from food industry. Also, increasing literacy rate in the emerging economies resulting in households witnessing tremendous changes in consumption habits is set to drive the market for the forecast period 2020-2025.
Drivers – Maize Oil Market
- Environmental Regulations
The Maize oil is better source of biofuel. With increase in environmental regulations by Environmental Protection Agency (EPA), for reducing the carbon footprint, the demand for biofuels is increasing, which in turn growing the demand for maize oil in the forecast period 2020-2025.
Challenges – Maize Oil Market
- Availability of Alternatives
The industry is highly competitive with large number of multinational as well as regional players, owing to the limited entry barrier and high demand for the product. This caused the increase in alternatives for maize oil, which has become a major challenge for the growth of market for the forecast period 2020-2025.
Maize Oil Industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Maize Oil Market. Key companies of this market are Abu Dhabi Vegetable Oil Co., Greenfield Global Inc., Archer Daniels Midland Co., The J M Smucker Co., Cargill Inc., Conagra Brands Inc., NutriAsia Inc., United Wisconsin Grain Producers LLC, Associated British Foods Plc., and Wilmar International Ltd.
Acquisitions/Product Launches:
- In January 2019, POET has entered the asphalt market with its newest green alternative to fossil-fuel products. POET’s “JIVE” is a proprietary maize-oil-based product used by construction companies across the US to modify or rejuvenate asphalt in roads.
- In October 2014, U.S. Water, a leading provider of integrated water and process solutions for industry, launched the first product developed for the biofuels industry specific to maize oil recovery.
