Distillers Corn Oil Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Distillation Type (Dry-Milling Distillery, Wet-Mill Distillery, Others), By End User (Biodiesel Manufacturing, Livestock Feed, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.12 Billion
CAGR (2026-2031)	4.85%
Fastest Growing Segment	Dry-Milling Distillery
Largest Market	Asia Pacific
Market Size (2031)	USD 8.13 Billion

Market Overview

The Global Distillers Corn Oil Market will grow from USD 6.12 Billion in 2025 to USD 8.13 Billion by 2031 at a 4.85% CAGR. Distillers corn oil constitutes a valuable co-product generated during the ethanol production process, specifically extracted from thin stillage before the formation of dried distillers grains. The market expansion is principally driven by the escalating demand for low-carbon feedstocks within the biodiesel and renewable diesel sectors, as energy producers increasingly prioritize sustainable alternatives to fossil fuels. Furthermore, the product’s high caloric value makes it an essential high-energy ingredient for the livestock and poultry feed industries, ensuring consistent demand from the agricultural sector.

However, the market faces distinct challenges such as volatility in raw material costs, which can significantly disrupt profit margins and supply chain stability. According to the Renewable Fuels Association, in 2024, U.S. biorefineries produced over 4.5 billion pounds of distillers corn oil, a record volume attributed to optimized extraction capabilities. This data highlights the sector's robust production capacity, yet the reliance on corn pricing remains a critical factor that could impede future stability and expansion efforts.

Key Market Drivers

Escalating demand for biodiesel and renewable diesel feedstocks acts as the primary catalyst propelling the Global Distillers Corn Oil Market. As regulatory frameworks increasingly incentivize low-carbon intensity fuels, biofuel producers are aggressively procuring distillers corn oil due to its favorable carbon profile compared to soybean oil and other vegetable alternatives. This trend is particularly evident in the renewable diesel sector, where the fuel’s "drop-in" nature requires consistent, high-volume feedstock streams that offer both regulatory compliance and economic viability. According to the U.S. Energy Information Administration, in September 2025, corn oil consumption by biofuel producers expanded to 419 million pounds, underscoring the critical role this feedstock plays in meeting the sector's escalating production targets.

Technological advancements in corn oil extraction efficiency are simultaneously expanding market supply to meet this heightened consumption. Ethanol facilities are widely integrating next-generation mechanical separation technologies and chemical additives to maximize oil recovery rates from thin stillage, significantly exceeding historical yield benchmarks. These innovations allow producers to unlock additional value from the same corn input, directly boosting profitability and supply availability without requiring increased corn grind. According to ICM Inc., in June 2025, the installation of its FOT Oil Recovery system at a Western New York Energy facility resulted in corn oil yields increasing to as much as 1.20 pounds per bushel. This enhanced extraction capability contributes to robust overall output; according to the USDA, in October 2025, monthly corn oil production expanded to 221,174 tons, reflecting the industry's growing capacity to serve the energy sector.

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Key Market Challenges

Volatility in raw material costs represents a substantial barrier to the consistent growth of the global distillers corn oil market. As this commodity is a co-product of ethanol manufacturing, its production volume and cost structure are intrinsically tied to the dynamics of the corn market. Unpredictable fluctuations in grain prices, driven by factors such as weather patterns or geopolitical shifts, directly impact the operational expenditures of biorefineries. This instability creates a precarious financial environment where input costs can rise rapidly, narrowing the profit margins necessary to sustain processing operations.

The heavy reliance on this single agricultural feedstock amplifies financial risks for producers. According to the Renewable Fuels Association, in 2024, the U.S. ethanol industry processed approximately 5.3 billion bushels of corn to maintain operational output. This massive procurement requirement illustrates the deep dependency producers have on raw material availability. Consequently, price instability in the corn sector can disrupt long-term supply agreements and deter investment in capacity expansion, thereby impeding the overall development of the distillers corn oil sector.

Key Market Trends

Integration into Sustainable Aviation Fuel Supply Chains is rapidly emerging as a transformative trend, diverting distillers corn oil from traditional road transport biodiesel markets toward the high-growth aviation sector. As the aviation industry strives to meet aggressive decarbonization targets, refiners are increasingly utilizing corn oil in Hydroprocessed Esters and Fatty Acids (HEFA) pathways, which offer a proven, drop-in solution for jet engines. This strategic pivot allows producers to capture higher margin opportunities associated with aviation-grade biofuels compared to standard renewable diesel. According to Ethanol Producer Magazine, January 2025, Valero Energy Corp. confirmed that the sustainable aviation fuel (SAF) project at its Diamond Green Diesel Port Arthur plant was fully operational, providing the facility with the optionality to upgrade approximately 50% of its 470 million-gallon annual production capacity to SAF.

Simultaneously, the market is witnessing a Transition to Low-Carbon Intensity Pricing Structures, where value is increasingly tied to carbon intensity (CI) scores rather than simple commodity indices. Regulatory frameworks are effectively penalizing virgin crop feedstocks while incentivizing waste-derived inputs, creating a tiered pricing environment that heavily favors corn oil for its lower carbon footprint compared to soybean oil. This regulatory preference creates a distinct financial premium for the commodity in jurisdictions with strict emissions caps. According to the California Air Resources Board, November 2024, proposed amendments to the Low Carbon Fuel Standard designated distillers corn oil as a waste feedstock, explicitly exempting it from the 20% crediting limitation applied to virgin vegetable oils and enhancing its value in regulated carbon markets.

Segmental Insights

The Dry-Milling Distillery segment is positioned as the fastest-growing category in the global distillers corn oil market due to the operational efficiency of dry-grind ethanol production. This method is increasingly preferred over wet milling because it requires lower capital investment while allowing producers to effectively recover oil from thin stillage. The segment benefits significantly from rising demand for low-carbon feedstocks in the biodiesel and renewable diesel sectors. Additionally, mandates such as the Renewable Fuel Standard by the Environmental Protection Agency incentivize the utilization of corn oil derived from dry milling, thereby accelerating market expansion.

Regional Insights

Asia Pacific commands the leading position in the Global Distillers Corn Oil Market, primarily driven by its extensive corn production capacity which ensures a stable and abundant supply of essential raw materials. This agricultural strength supports a robust local industry, efficiently meeting the escalating demand from the rapidly expanding biodiesel manufacturing and animal feed sectors. The region’s dominance is further reinforced by strategic government initiatives that prioritize renewable energy adoption and sustainable resource utilization. Consequently, the availability of feedstock combined with strong industrial consumption establishes Asia Pacific as the pivotal hub in the global marketplace.

Recent Developments

• In December 2025, The Andersons, Inc. announced a significant investment of US$60 million to expand its ethanol facility located in Clymers, Indiana. The company outlined that this capital project would increase the plant's production capacity to 170 million gallons by the middle of 2027. This expansion was described as a strategic move to reinforce the company's position in the renewable fuels market, which includes the production of distillers corn oil as a key co-product. The initiative reflected the company's broader objective to optimize its assets and drive earnings growth through disciplined capital allocation in its renewables segment.
• In February 2025, Fluid Quip Technologies announced that its distillers corn oil technology achieved record yields at a partner's facility in Stanley, Wisconsin. The implemented system consistently recovered an average of over 1.3 pounds of oil per bushel throughout the previous year, significantly surpassing industry averages. The technology functioned by enhancing the mechanical separation of oil into the thin stillage stream and removing solids from the evaporator, which also served to improve overall energy efficiency. This performance demonstrated the system's ability to boost renewable corn oil production volumes without requiring increased chemical usage or higher long-term operational expenses.
• In October 2024, IFF introduced a new range of enzyme solutions specifically designed to improve corn oil recovery for fuel ethanol producers. The launched products, identified as OPTIMASH F200 and OPTIMASH AX, were engineered to increase oil yields by up to 15 percent according to in-plant data. These enzymes aimed to support the growing demand for distillers corn oil in the biodiesel, renewable diesel, and animal feed sectors. By enhancing the liberation of oil during the production process, the new biotechnology offered producers a method to maximize profitability and improve the carbon intensity scores of their fuel products.
• In August 2024, Green Plains Inc. reported that it had achieved record platform renewable corn oil yields during the second quarter of the year. The company highlighted this operational milestone in its financial results, noting that the improvements contributed to a stronger outlook for the remainder of 2024. The increased production of this low-carbon feedstock aligned with the company's strategic focus on supplying ingredients for the renewable diesel and sustainable aviation fuel markets. This achievement underscored the effectiveness of the company's ongoing operational initiatives and technology deployments aimed at maximizing the value of co-products from its ethanol production facilities.

Key Market Players

• Archer-Daniels-Midland Co
• Green Plains Inc
• Cardinal Ethanol LLC
• Redfield Energy LLC
• POET LLC
• United Wisconsin Grain Producers LLC
• Aemetis Inc
• Ace Ethanol LLC
• Patriot Renewable Fuels, LLC
• RPMG Inc.

By Distillation Type	By End User	By Region
Dry-Milling Distillery Wet-Mill Distillery Others	Biodiesel Manufacturing Livestock Feed Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Distillers Corn Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Distillers Corn Oil Market, By Distillation Type:

• Dry-Milling Distillery
• Wet-Mill Distillery
• Others

• Distillers Corn Oil Market, By End User:

• Biodiesel Manufacturing
• Livestock Feed
• Others

• Distillers Corn Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE