International market development trend of corn oil

With the development of my country’s economy and the improvement of people’s living standards, my country has become one of the largest edible oil consumers in the world. According to statistics, my country’s vegetable oil consumption in 2020 will be 22 million tons,of which edible vegetable oil consumption will be 3.2 million tons, accounting for about 70% of the total vegetable oil consumption. Corn oil consumption will be 4.2 million tons. The increasing proportion of edible vegetable oil consumption shows that the health awareness of Chinese residents is constantly increasing.

The analysis of international market demand shows that due to the gap between my country’s production technology and production process conditions compared with the international advanced level.

My country’s corn oil industry is facing challenges. Such as intensified market competition, difficulty in rising prices, and large increase in raw material costs. However, my country’s corn oil industry has developed rapidly in recent years. The competitiveness of enterprises has also improved, and product quality has continued to improve. In the next few years, my country’s corn oil market will still maintain rapid growth. And the scale of consumption will continue to expand. The direction of diversification and multi-function will develop. The product varieties and specifications will be further enriched.

1. Consumption structure

Due to the increasing health awareness of consumers and the influence of other factors, corn oil occupies a dominant position in the consumption of edible oil in European and American countries. According to statistics, the per capita consumption of edible oil in the United States will be 15.3 kg in 2021, and the global average will be 11.6 kg. The United States is the largest producer of sunflower oil in the world. And its consumption in 2021 will be 189.8 tons. Americans consume an average of 40 g of sunflower oil per day, and European residents consume an average of 30 g of sunflower oil per day.

While Asian residents consume an average of only 10 kg of sunflower oil per day (see Figure 1). The main sunflower oil consumption areas in the world are China and South Korea. But there are also other Asian countries whose consumption share of sunflower oil has increased rapidly. Such as India, Vietnam, Thailand, Singapore and Japan. In addition, due to the sustained and rapid economic growth of EU countries.

2. Competitive landscape

From the perspective of market share, in the US market, CHTC Yifeng has the largest sales volume, accounting for 8.1% of the global market share; followed by COFCO Oil Seeds and Arowana, accounting for 5.7% and 3.3% respectively, and the total market share of the three companies is about 11%.  Arowana ranks third, accounting for 3.2%, and the total market share of the three is about 4%. In foreign markets, the U.S. corn oil market is mainly by two multinational companies, COFCO Cereals and Oils and Arowana; the Chinese corn oil market is mainly by four companies: CHTC Yifeng, COFCO Oil and Arowana.

3. Product change trend: Health care products are developing rapidly

With consumers’ increasing awareness of food safety and their pursuit of health functions. The health-care corn oil (SHA) market will further expand in the next few years. According to statistics from Africa Research 2021, half of the corn oil consumption in the United States comes from SHA. And its demand is expected to maintain a compound annual growth rate of 6% to 8% in the next 10 years. The demand in countries such as Brazil and Canada is relatively small.

4. Market development trend: change from single raw material supply to diversified raw material supply

With the rapid development of the corn industry, the demand for raw materials is also increasing. Therefore, in order to maintain the sustainable and stable development of the industry. In the next few years, international corn oil production will change from a single raw material supply to a diversified raw material supply. Raw materials are one of the main factors restricting the development of the international corn oil industry. Especially in the current situation where crude oil prices fluctuate frequently, corn prices continue to rise, domestic grain production continues to grow, and corn import demand continues to increase.

The international corn oil market needs to rely more on Stable and efficient source of raw materials. Under the conditions of the global market, by optimizing the source structure of international corn oil raw materials. The cost of raw materials will be effectively reduced. The market competitiveness will be improved, and the sustainable and healthy development of the domestic corn oil industry will be promoted.