Home / News and Updates / Corn Global Market Supply Currently Estimated at 1133.7 Million MT, Says Beroe Inc

Corn Global Market Supply Currently Estimated at 1133.7 Million MT, Says Beroe Inc

Source: PR Newswire

RALEIGH, North Carolina, Nov 6, 2019 - The global supply of corn has been growing at a CAGR of 5.3 percent over the past few years and is expected to soon reach 1,626.7 MMT, according to Beroe Inc, a procurement intelligence firm. The growth of the global corn market is driven by increasing demand from end-user industries, such as animal feed and corn-starch and supported by consecutive record production in the U.S. and China. 

The U.S. is the largest producer of corn, accounting for 32 percent of total production, followed by China for 23 percent, and Brazil for 9 percent. The U.S. is also the biggest consumer, responsible for 27 percent of total consumption, followed by China for 25 percent and the E.U. for 7 percent. The US and China are the top consumers of corn because major corn processing end-use segments are based in these countries. The US consumption of corn has risen by about 8.8 percent over a five-year period, while for China, the increase is by 15 percent.


Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

The market for corn is being driven by its end-user applications after processing, namely sorbitol, the global market of which is growing by a CAGR of 3.6 percent, and corn starch, with an expected market growth of CAGR of 4.8 percent. Feed and residual uses of corn account for 61 percent of the demand while food, seed, industrial applications for 39 percent of the demand. The global corn market is facing constraints in the form of rising prices, due to which suppliers are switching to other crops to use for animal feedstock.

Innovation plays a key role in the corn industry for developing new varieties for pest, insect, and disease resistance. End-use segments, like ethanol, polyols, and sweetener industries, also apply innovation for high profitability. Research is being conducted into the possibility of increasing HFCS production efficiency. For corn ethanol, the focus is to improve energy efficiency, reduce water use, and implement new technologies for low-cost operations. 

Key Findings:

  • Animal feed and ethanol producers procure a large volume of corn, therefore, the contract length is ideally 3–6 months. Pharmaceutical and food producers normally procure small amounts of corn, with contract lengths of 1–3-months.
  • Corn milling is basically consolidated by global suppliers, accounting for nearly 70 percent of corn and corn derivatives. Around 30 percent of the market is constituted by regional suppliers, especially from China.
  • The starch derivative market is rapidly growing, due to technological advancements in the industry and increased demand. The major players in this market include global suppliers ADM, Cargill, Ingredion, Tate & Lyle, and Roquette.
  • LATAM countries have traditionally been competitors of the US for exports, but due to the US-China trade war and competitive price, LATAM share in the export market is expected to increase in the future. 
  • Research on corn seeds breeding programs focus on corn hybrids, with better resistance to diseases and stacked varieties combine multiple traits to confer pest, weed, and disease resistance.

The research methodology adopted for the report included:

  • Experts with twenty years of domain experience
  • Interaction with buyers
  • Inputs from supply chain partners

The CBOT price is the global benchmark for international trade of corn and to this price, transport price and basis are added to arrive at the final price. Prices could trend upward by approximately 0-2 percent, owing to the unfavorable climatic condition during the planting season. A cost-saving of approximately 2-4 percent is possible with 3–6 months contracts as compared to spot buying.

The report also includes:

Market Analysis:

  • Value Chain Analysis
  • Global Market Outlook
    • Global Supply–Demand Analysis
    • Global Demand Analysis
    • Global Corn Trade Dynamics 
    • Global Corn Starch Supply–Demand Analysis
    • Cost Structures
  • Regional Market Outlook (US, Brazil, and China)
    • Supply–Demand Analysis
    • Trade Dynamics
    • Pricing Analysis

Industry Analysis:

  • Industry Outlook (US, Europe, and Asia)
    • Porter’s Five Forces Analysis 
    • Innovations

Corn Processing Industry Analysis:

  • Global Corn Starch and Derivatives Supplier Market Share 
  • Profiling of Major Suppliers
    • ADM
    • Cargill Inc.
    • Ingredion Inc.
    • Tate & Lyle
    • Roquette Freres
    • Tereos Syral

About Beroe Inc.:

Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.

To learn more about Beroe Inc, please visit http://www.beroeinc.com

Media Contact:
Rob McMurtrie


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