Global Dry Milling Market - 2022-2029

Market Overview

Dry milling of grains is mainly utilized to manufacture feedstock and fuel. This process is associated with the development of new bio-based associated by-products. Dry milling mainly focuses on corn-based products for human and animal consumption or used during fuel ethanol production. The main objective of the dry milling process is to separate the endosperm, mainly composed of starch, from the germ and pericarp fibers as much as possible. Dry milling is one of the simplest methods of producing maize products for human consumption. Corn is used as one of the main ingredients in feed, and the rapid rise in the demand for corn ethanol as biofuel is expected to drive the market. Also, a rise in the demand for dry ground maize products for food and an increase in the demand for various products and applications are also likely to lift the growth of the dry milling market.

The global dry milling markets were valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 5.4% during the forecast period (2022-2029).

Market Dynamics: Increased dry milling demand for the production of ethanol drives the market growth

Ethanol is a domestically produced alternative fuel made from corn. Most ethanol in the U.S. is produced from starch-based crops by dry- or wet-mill processing. Due to lower capital costs, nearly 90% of ethanol plants are used in dry mills. In the Dry-milling process, corn grinds into flour and ferments into ethanol by adding co-products of the distiller's grains and carbon dioxide. Gasoline consumption is highest in the East and West Coasts. Dry milling is expected to grow due to the increase in consumer awareness of renewable biofuel. Increased ethanol consumption in fuel additives and beverage expand demand in the market. Moreover, increasing government initiatives for ethanol production boosts the demand for dry milling. In India, currently, ethanol makes up 10% of the petrol in vehicles. India has adopted ethanol blending in petrol to reduce vehicle exhaust emissions. 1.22 billion gallons of U.S. ethanol were exported to 110 countries in 2020-2021. This marked the fifth-highest export total to date and utilized 433 million bushels of U.S. corn. Canada was the leading importer of United States ethanol last marketing year, purchasing 349 million gallons, followed by India at 144 million, China at 132 million, South Korea at 137 million, and the European Union and the United Kingdom at 108 million. These factors drive the demand for the dry milling market.

Market Segmentation: Yellow corn accounted for the highest share in global dry milling market

Yellow corn held the highest market share in the dry milling market due to its easy availability and high demand from the manufacturers. Yellow corn kernels can be pale yellow to dark yellow. Yellow corn contains more nutritional value than white corn because the pigment that makes corn yellow, beta carotene, turns into vitamin A when digested. Yellow corn is a rich source of lutein. According to the USDA, 100 grams of raw yellow sweet corn contains 3.43 g glucose, 1.94 g fructose, and 0.89 g sucrose. Yellow corn varieties are widely dry-milled to produce ethanol and animal feed for the high starch content. Increasing consumer demand for animal feed drives the market growth. Moreover, increasing consumer demand for dry-milled corn products for food drives segment growth in the forecast period.

Based on application, the dry milling market is segmented into Fuel, feed and food. The feed segment held a significant market share in the forecast period. Fibers in corn help to reduce cholesterol levels and improve the digestive health of animals. Corn flour is mixed with the food ingredients and supplements, which increases egg production in poultry, improves meat quality, and helps in milk production for cows and sheep.

Geographical Penetration: Asia Pacific is the dominating region during the forecast period

Asia Pacific region held the largest market share in the forecast period due to the increased demand for dry milling in the animal feed industry in the Asia-Pacific region. India and China are the region's developing countries with the largest market share. According to the Animal husbandry data, the animal feed market of India was valued at $ 35.8 Billion in 2021 and had a share of 17.6% in the Asia-Pacific region. India ranks 1st in cattle & buffalo population and is the largest producer of milk and buffalo meat, 2nd largest producer of goat meat and 3rd largest producer of poultry. Compound cattle feed has a market potential of $400 - 650 million with 16% growth over the next five years, major growth drivers being low organic feed market, penetration, increasing formal off take, etc. China is the largest consumer and producer of dry-milled corn products. An increase in the application of dry milling for food, feed and fuel drives the market growth in the region.

Competitive Landscape:

There are only several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are ADM, Alto Ingredients, Inc., Bunge Limited, Cargill, Incorporated, DIDION Inc., Green Plains Inc., LifeLine Foods, LLC, Valero Energy Corporation, SunOpta and Semo Milling, LLC, among others. Some key players follow merger and partnership strategies to expand their business. For instance, in March 2019, ADM and Cargill completed launching a technology joint venture focused on farmer profitability. The joint venture developed digital tools which help North American farmers. Some of the major companies expand their production facility to increase their sale. For instance, in September 2020, LifeLine Foods, Inc. expanded its Missouri masa mill. This expansion of the mill helps to increase the presence of producing high-quality masa products in the growing Mexican food industry in the United States. Masa is the corn flour used to make tortillas, tamales, chips and other products. The company will be able to process nearly 26 million bushels of corn per year. Some major key players launched their products in the market. For instance, ADM manufactured ethanol from corn feedstock through an optimized process that simultaneously produced large amounts of animal feed. It is made from plant-based ingredients.

COVID-19 Impact: Negative impact on the global dry milling market

The global dry milling market has slightly declined due to the COVID-19 pandemic. Corn supply is completely dependent on agriculture. Due to the coronavirus disease crisis and the global lockdown measures, unprecedented agri-food systems disruptions and food safety and security disruptions have occurred. The covid pandemic badly affected agriculture sub-sectors like the forage feed sector. Moreover, production and marketing channel disruption negatively impacted on dry milling market. Multiple companies have already announced possible delays in product deliveries and a decline in future sales of their products. In addition, the global travel bans imposed by countries in North America, Asia, and Europe are hindering geographical expansion, business collaboration and partnership opportunities. Thus, these factors are hindering the growth of the dry milling market in the food and beverage industry.

The global dry milling market report would provide an access to approximately 61 market data tables, 54 figures and 170 pages.