Cornmeal Market in the US 2016-2020
The market demand for cornmeal products is attributed to the growing demand for corn-based snacks including tortilla chips, corn chips, taco shells, and a wide variety of other popular Mexican foods. Snack manufacturers in the US utilize whole cornmeal and corn flour for making snacks as the high starch content of both cornmeal as well as corn flour helps in giving a high puff in the preparation of processed/extruded snack products where corn flavor is required. The American household is now shrinking and cooking at home has decreased compared to previous years, which in turn is resulting in rising consumer preference for snack products. This shift is now leading to the increasing demand for single-portion, portable as well as healthy snack products. Thus, corn-based snacks are expected to see high growth during the forecast period attributed to the myriad health benefits of corn. In addition, the demand for gluten-free snacks is rising in the US owing to the increase in the number of people with gluten sensitivity. In 2015, around 1,080 new snack products were launched in the US with gluten-free claim.
Technavio Announces the Publication of its Research Report – Cornmeal Market in US 2016-2020
Technavio recognizes the following companies as the key players in the cornmeal market in US: Archer Daniels Midland, Associated British Foods, Bob’s Red Mill, Bunge, Cargill, General Mills, J.M. Smucker, LifeLine Foods, Maseca, Raymond-Hadley, and SEMO Milling.
Other prominent vendors in the market are: Agricor, CGB Enterprises, C. H. Guenther & Son, Hodgson Mill, King Arthur Flour, Lakeside Mills, Shawnee Milling Company, Suntava Purple Corn, Tate & Lyle, and Wilkins Rogers Mills.
Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is continuous product innovation in terms of corn ingredients and product variants. Continuous product development and innovation is essential for the sustainability of any industry. The market in the US has been growing steadily and strongly. Yet, even a promising market like this requires product innovations and dynamism to be able to remain lucrative. Therefore, manufacturers have been launching several new corn-based ingredients varieties in terms of texture as well as their taste profile. For example, in 2015, Cargill, one of the leading manufacturer of corn sweeteners, dry corn ingredients, corn gluten meal, and other value-added products in the global marketplace, launched new instant corn starch C*PulpTex12931, which is useful in improving the texture as well as visual appeal in tomato-based soups, sauces, and condiments.”
According to the report, one of the primary drivers in the market is rise in demand for corn-based snack products. Whole cornmeal is generally used for making snacks. This is attributed to the fact that the high starch content of both cornmeal as well as corn flour aids significantly in giving a high puff in the preparation of processed/extruded snack products where corn flavor is required. The growing demand for corn flour by snacks manufacturers across the US is further fueling market growth. For instance, Gruma Group, a leading corn flour producer in the US, reported that it witnessed 8% year-on-year growth in volume sales of corn flour owing to the increase in demand for corn flour from the US snack manufacturers.
Further, the report states that one major challenge in the market is fluctuations in corn prices. A major challenge for manufacturers in the US market is the fluctuation in corn prices. Across the US, El Niño conditions in 2015 damaged many crops. Spring and summer rains delayed the planting of corn in the eastern Corn Belt, consisting of Western Ohio, Indiana, and Illinois. There is still uncertainty about the overall impacts of the El Niño on corn crop yields. Therefore, any sudden rise or fall in prices of corn due to abnormal climate, such as damage triggered by El Niño, affects the profit margins of many US corn-based food manufacturers. Such fluctuations and volatility in prices often create problems in production and thereby cause demand and supply gap in the market.
Archer Daniels Midland, Associated British Foods, Bob’s Red Mill, Bunge, Cargill, General Mills, J.M. Smucker, LifeLine Foods, Maseca, Raymond-Hadley, SEMO Milling, Agricor, CGB Enterprises, C. H. Guenther & Son, Hodgson Mill, King Arthur Flour, Lakeside Mills, Shawnee Milling Company, Suntava Purple Corn, Tate & Lyle, Wilkins Rogers Mills.
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