The maize market is at 1.14 billion metric ton in 2020 and is expected to grow at a CAGR of 3.8% during the forecast period (2021-2026).
The significant drop in the price of corn during the initial stage of the COVID-19 pandemic has slightly affected the traders and analysts. For instance, in India, prices of corn have fallen by 20% in the month of April and May 2020 when compared to March of the same year. The starch companies have declined their production to about 20% of their usual capacity, this has resulted in the negatively impact the maize market
The growing meat industry is creating a demand for more cereals, especially for maize and soybean, as both are highly nutritious in terms of protein is used for feeding the livestock.
Corn is the primary United States feed grain accounting for more than 95% of the total feed grain production and use. More than 90 million acres of the crop is grown for maize production, primarily used for livestock and feed purposes. While the number of field farms for corn has declined in recent years, the acreage per corn farm has increased.
Key Market Trends
Increase in Demand for Animal-based Protein sources
Population growth, rising incomes in developing nations, and urbanization have led to a surge in global livestock consumption. The levels of income and population growth have been found to be directly correlated to the consumption of milk, meat, and eggs, which is increasing at the expense of staple foods. Therefore, increasing pressure on the livestock industry has intensified in recent years, to meet the rising demand for meat and high-value animal protein. For instance, in India, dairy farmers have increasingly replaced local, low-yielding dairy cattle breeds with higher-yielding crossbred cows and buffaloes, for improving the milk yields. Since, Maize is one of the key ingredients of almost every type of compound feed for animal types, such as ruminants, poultry swine, and aquaculture. Hence, the rising demand for animal-based protein sources is likely to drive the trade and the market for maize at a global level.
North America to Dominate the Global Maize Market
North America is expected to be the largest market for maize, followed by Asia-Pacific, over the forecast period owing to the high production of maize crop and its consumption as animal feed. According to the Food and Agricultural Organization (FAO), the United States is the largest producer of maize, accounting for 30.21% of the total global production in 2019. Most of maize consumed in the region is used as the main energy ingredient for livestock feed. Maize is also used in processing a wide range of food and industrial products including cereals, alcohol, sweeteners, and byproduct feed. With the rise in usage of maize in wide range of applications, the demand for maize is projected to grow during the forecast period.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support