Distillers Dried Grains with Solubles (DDGS) Market Size was valued at USD 10.57 billion in 2023. The Distillers Dried Grains with Solubles (DDGS) market industry is projected to grow from USD 11.19 Billion in 2024 to USD 17.38 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.66% during the forecast period (2024 - 2032). Increasing demand for animal protein, the growth in ethanol production, and the focus on sustainability are the key market drivers enhancing the market growth.
Form: Secondary Research, Primary Research, MRFR Database and Analyst Review
The demand for DDGS is directly linked to the production of ethanol as it is a byproduct of the process. The ethanol market has been growing steadily in recent years due to the increasing demand for biofuels and renewable energy sources. This has led to an increase in DDGS production and availability, which has driven down prices and made it a more attractive feed ingredient.
The demand for animal protein, including meat, dairy, and eggs, is growing rapidly due to the population growth, rising incomes, and changing dietary preferences. This has led to an increase in demand for animal feed ingredients, including DDGS, as it is a cost-effective source of protein and energy.
In addition, the livestock industry is under pressure to reduce its environmental impact, including greenhouse gas emissions and water use. DDGS is considered a sustainable feed ingredient as it reduces waste and has a lower carbon footprint compared to other feed sources. This has led to an increase in demand for DDGS as a sustainable alternative to traditional feed ingredients.
The Distillers Dried Grains with Solubles (DDGS) market segmentation, based on brewers, bio-fuel plants, and others. The bio-fuel plants segment held the majority share in 2022 contribution to the distillers dried grains with solubles (DDGS) market revenue. This is due to the Bio-fuel plants produce ethanol from corn and other feedstocks. The sources has unique production processes and may produce DDGS with different nutrient profiles, which can impact their marketability and end-use applications.
August 2020: POET, one of the world's largest producers of biofuels, announced the launch of a new line of renewable, plant-based food products called Jive. The line includes a range of protein powders and bars made from high-quality DDGS, which is a byproduct of the company's biofuel production process.
The distillers dried grains with solubles (DDGS) market segmentation, based on application, includes animal feed, food and beverage industry, and others. The animal feed segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. DDGS is primarily used as a feed ingredient for livestock, including poultry, swine, cattle, and aquaculture. The poultry segment is the largest consumer of DDGS due to its high protein content and low cost. Hence, rising application of animal feed for distillers dried grains with solubles (DDGS) positively impacts the market growth.
December 2019: Flint Hills Resources announced the launch of NexPro protein concentrate, a new animal feed ingredient made from DDGS that offers an alternative to soybean meal. The company said that NexPro provides a high-quality source of protein that is highly digestible for pigs, poultry, and aquaculture.
The Distillers Dried Grains with Solubles (DDGS) market segmentation, based on Form, includes pellets, powder, and others. The pellets segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030 due to it is easy to handle and store.
Figure 1: Distillers Dried Grains with Solubles (DDGS) Market, by Form, 2022 & 2030 (USD Billion)
Form: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Distillers Dried Grains with Solubles (DDGS) market accounted for USD 4.53 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The region's demand for DDGS is driven by the high demand for animal feed, which is expected to increase with the growing population and rising income levels. Additionally, the region's focus on sustainable agriculture practices has led to the increased use of DDGS in animal feed due to its cost-effectiveness and reduced carbon footprint compared to traditional feed ingredients.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: DISTILLERS DRIED GRAINS WITH SOLUBLES (DDGS) MARKET SHARE BY REGION 2022 (%)
Form: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe distillers dried grains with solubles (DDGS) market accounts for the second-largest market share this is due to the increasing demand for animal protein and the high nutritional value of DDGS. The largest producers of DDGS in Europe are France, Germany, and the United Kingdom. The European Union (EU) has set targets to reduce the use of conventional animal feed and increase the use of alternative protein sources, such as DDGS, to promote sustainable agriculture practices. This has led to an increased focus on research and development of DDGS as a feed ingredient, as well as the implementation of policies to promote the use of DDGS in animal feed. Further, the Germany distillers dried grains with solubles (DDGS) market held the largest market share, and the UK distillers dried grains with solubles (DDGS) market was the fastest growing market in the European region.
The Asia-Pacific distillers dried grains with solubles (DDGS) Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the increasing demand for animal protein and the growing popularity of DDGS as a feed ingredient. The major producers of DDGS in the region are China and India. The region's demand for animal feed is expected to increase significantly due to the growing population and rising income levels. The use of DDGS in animal feed is also being promoted due to its cost-effectiveness and sustainability compared to traditional feed ingredients. Further, the China distillers dried grains with solubles (DDGS) market held the largest market share, and the India distillers dried grains with solubles (DDGS) market was the fastest growing market in the region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Distillers Dried Grains with Solubles (DDGS) market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the distillers dried grains with solubles (DDGS) industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the distillers dried grains with solubles (DDGS) industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, distillers dried grains with solubles (DDGS) industry has provided innovative products with some of the most significant benefits. The distillers dried grains with solubles (DDGS) market major player such as Archer Daniels Midland (U.S.), Globus Spirits Ltd. (India), CropEnergies (Germany), CHS Inc. (U.S.), Nugen Feeds & Foods (India), J. D. HEISKELL HOLDINGS LLC (U.S.), Kent Feeds (U.S.) and others are working to expand the market demand by investing in research and development activities.
Archer Daniels Midland Company (ADM) is a food processing and commodities trading corporation based in the United States. The company was founded in 1902 and has since grown to become one of the largest agribusinesses in the world, with operations in more than 160 countries. In December 2021, ADM announced the launch of a new line of high-quality DDGS products. The new line, called Protexia®, is designed to provide consistent quality and nutritional value to animal feed customers.
Kent Feeds is a privately-owned company based in the United States that specializes in providing animal nutrition products and services. Founded in 1927, the company has since grown to become a leading provider of innovative feed solutions for livestock and other animals. In May 2021, Kent Feeds announced the launch of a new line of DDGS products. The new line, called Kent Feeds Complete Feed Solutions, is designed to provide a complete nutrition package for livestock, including beef cattle, dairy cows, swine, and poultry.
Distillers Dried Grains with Solubles (DDGS) Industry Developments
In January 2024 : the national association of grain ethanol producers in Brazil, known as UNEM, has declared the initiation of activities for the newest ethanol, meal, and corn oil facility in the municipality of Maracaju (MS) starting from January 1st. Brazil today possesses a total of 22 specialized industrial facilities solely focused on the production of cereal ethanol, with 10 of them exclusively dedicated to this pursuit.
The recently opened facility has the ability to provide the market with 266 million liters of ethanol, 161,000 tons of Distillers Dried Grains with Solubles (DDGS), 10 thousand tons of oil, and has a saleable energy production of 51 GWh. The deliberate positioning of the new facility in Maracaju corresponds with Brazil's focused endeavors to augment its bioenergy production capacity. As the nation focuses on renewable and sustainable energy sources, the construction of grain ethanol facilities is crucial in diversifying its energy mix.
September 2019: Purina Animal Nutrition and Midwest AgEnergy Group announced a strategic partnership to explore new ways to innovate animal nutrition solutions using plant-based feed ingredients. The partnership aimed to improve animal nutrition and overall sustainability of animal agriculture by developing more efficient and environmentally friendly methods to produce feed ingredients like DDGS.
July 2021: ICM, Inc. announced the launch of its patent-pending ICM Clean Fiber™ technology, which is designed to remove corn kernel fiber from DDGS to create a high-protein, low-fiber feed ingredient for use in animal nutrition. The company said that the technology can significantly increase the value of DDGS and improve its nutritional profile for livestock and poultry.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 10.57 billion |
| Market Size 2024 | USD 11.19 billion |
| Market Size 2032 | USD 17.38 billion |
| Compound Annual Growth Rate (CAGR) | 5.66% (2024-2032) |
| Base Year | 2024 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2020 - 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Sources, Application, Form, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Archer Daniels Midland (U.S.), Globus Spirits Ltd. (India), CropEnergies (Germany), CHS Inc. (U.S.), Nugen Feeds & Foods (India), J. D. HEISKELL HOLDINGS LLC (U.S.), and Kent Feeds (U.S.) |
| Key Market Opportunities | Growth in Ethanol Production |
| Key Market Dynamics | Rising Demand for Animal Protein and Increasing Awareness of Sustainability |
Distillers Dried Grains Solubles Market Highlights:
Frequently Asked Questions (FAQ) :
The Distillers Dried Grains with Solubles (DDGS) market size was valued at USD 10.57 Billion in 2023.
The market is projected to grow at a CAGR of 5.66% during the forecast period, 2024-2032.
Asia-Pacific had the largest share in the market.
The key players in the market are Archer Daniels Midland (U.S.), Globus Spirits Ltd. (India), CropEnergies (Germany), CHS Inc. (U.S.), Nugen Feeds & Foods (India), J. D. HEISKELL HOLDINGS LLC (U.S.), and Kent Feeds (U.S.).
The pellets distillers dried grains with solubles (DDGS) Sources dominated the market in 2023.
The animal feed had the largest share in the market.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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