Distillers’ Grains Market Research Report - Forecast till 2032

Distillers Grains Market Research Report Information By Type (Wet Distillers' Grains, Dried Distillers' Grains with Solubles, Dried Distillers' Grains), By Source (Wheat, Corn), By Application (Animal Feed, Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

ID: MRFR/AGR/6368-HCR | 90 Pages | Author: Snehal Singh | February 2024         

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Global Distillers Grains Market Overview


Distillers Grains Market Size was valued at USD 10.9 billion in 2022. The distillers grains market industry is projected to grow from USD 11.5 Billion in 2023 to USD 17.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.60% during the forecast period (2023 - 2032). Demand for ethanol products is expected to skyrocket as distillers' grains and distiller grains are used as feed in dairy farms are the key market drivers enhancing the market growth.


Distillers Grains Market


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Distillers Grains Market Trends



  •  Corn-based distillers' grains are a significant element in ethanol production, which is helping to drive market growth


The market CAGR for global distillers' grains is boosting demand for corn-based distillers' grains, which are a critical ingredient in ethanol production. Moreover, Distiller's grain sales are being promoted all over the world by factors including the rising demand for dried distillers' grain as a long-lasting product that provides animals with the necessary nutritional supplement and is practical for distribution and storage. The preference of distillers' grain among consumers is also a result of the fact that it helps livestock grow physically and, in addition to assuring high-quality meat, also offers exceptional performance in the areas of milking and egg-laying.


Furthermore, Cattle diets frequently contain distillers grains (DDG), a corn by-product of the ethanol production. By lowering the amount of the highly fermentable carbohydrate starch, distillers can be utilized in diets as a reliable supply of protein and thus lower the risk of acidosis. Droughts, energy prices, and other variables can affect the cost and availability of distillers grains. Diets may contain less crude protein and more starch-altering rumen fermentation characteristics and feeding behavior if including distillers grains in diets is no longer feasible or cost-effective. There is limited research on how distillers inclusion impacts feeding behavior, despite the fact that the impact of distillers grains on cattle growth performance and carcass attributes has received considerable attention. As a result, the goal of this experiment was to see how low inclusion levels of DDG affected feeding behavior in finishing heifers fed a high-moisture corn-based diet. This study found that modest amounts of distillers grains had minimal effect on growth performance but can change feeding behavior and minimize variability in eating behavior features.


For instance, the USDA estimates that the number of cattle and calves will reach 93.8 million in 2022. This indicated a rise in population, which led to an increase in feed demand. Demand for DDGS has increased recently in areas with strong cattle output, including the United States. Because of the increasing animal population, there is an increased demand for milk and meat, which necessitates high feed ratios and supports the expansion of the DDGS industry. Thus, driving the distillers grains market revenue.


Distillers Grains Market Segment Insights


Distillers Grains Type Insights


The Distillers Grains Market segmentation, based on type includes wet distillers' grains, dried distillers' grains with solubles, dried distillers' grains. The market for dried distillers' grains with solubles is estimated to dominate in 2022 and is also projected to be the fastest-growing segment during the forecast period. This growth can be attributed to several properties of DDGS such as high protein content, energy, and highly digestible phosphorus content, which are responsible for its growing use as a partial replacement for some more expensive traditional animal feed such as corn and soybean meal. Moreover, DDGS has a long shelf life and can be easily and conveniently transported over long distances, which is also contributing to the growth of the DDGS segment.


Distillers Grains Source Insights


The Distillers Grains Market segmentation, based on source, includes wheat and corn. Corn is a commonly utilized grain for ethanol production; hence it is expected to have the largest earnings share and CAGR over the forecast period. Furthermore, it is a cost-effective option for many feed ingredients due to its high phosphorus and protein content, which provides energy to cattle.


Figure1: Distillers Grains Market, by Source, 2022 & 2032 (USD billion)


Distillers Grains Market, by Source, 2022 & 2032 (USD billion)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Distillers Grains Application Insights


The Distillers Grains Market segmentation, based on application, includes animal feed and others. The segment of animal feed has also been broken down into ruminants, poultry, swine, and others. In 2022, the ruminants segment was dominant. Due to the increased demand for high-quality milk and beef, distillers' grains are being used in ruminant diets due to their higher protein content than traditional feeds such as corn. During the forecast period, the poultry segment is expected to be the fastest expanding. Global poultry production has increased, and with such rise in production and consumption, it is critical for meat producers to focus more on quality. This stimulates the market for distillers' grains, which are used to provide nutritional feed for chickens.


Distillers Grains Regional Insights


By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American market dominates the global market in terms of income due to the high production and consumption of distillery grain and increased government initiatives to facilitate trade in products promoted by the Council of Grains of the States.


Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: DISTILLERS GRAINS MARKET SHARE BY REGION 2022 (%)


DISTILLERS GRAINS MARKET SHARE BY REGION 2022 (%)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe’s distillers grains market accounts for the second-largest market share due to increase in the number of livestock has raised the demand for quality nutritional feed which has propelled the demand for distillers’ grain in the region. Further, the German distillers grains market held the largest market share, and the UK distillers grains market was the fastest-growing market in the European region


The Asia-Pacific Distillers Grains Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing adoption of distillery grains, higher purchasing power and modernization of machinery equipment raw materials and the livestock industry in the countries of the region. Moreover, China’s distillers grains market held the largest market share, and the Indian distillers grains market was the fastest-growing market in the Asia-Pacific region.


Distillers Grains Key Market Players & Competitive Insights


Leading market players are investing heavily in R&D to expand their product lines, which will help the distillers grains market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, distillers grains industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global distillers grains industry to benefit clients and increase the market sector. In recent years, the distillers grains industry has offered some of the most significant advantages to medicine. Major players in the distillers grains market, including CropEnergies AG (Germany), Purina Animal Nutrition (Land O' Lakes) (US), Husky Energy (Canada), Bunge Limited (US) and others, are attempting to increase market demand by investing in R&D operations.


The Archer-Daniels-Midland Company, or ADM, is an American global food processing and commodities trading firm headquartered in Chicago, Illinois, founded in 1902. The company has over 270 plants and 420 crop procurement facilities around the world where cereal grains and oilseeds are processed into products utilized in the food, beverage, nutraceutical, industrial, and animal feed markets. ADM was placed No. 38 on the 2022 Fortune 500 list of the largest firms in the United States. In addition, the organization offers agricultural storage and shipping services. ADM's companies include American River Transportation Company and ADM Trucking, Inc. In September 2021, Archer-Daniels-Midland Co (ADM.N), a U.S. grain merchant, announced the opening of a new flavor production facility in China to fulfill the rising demand for beverages and healthy meals.


DuPont de Nemours, Inc., generally abbreviated as DuPont, is a worldwide chemical business headquartered in Wilmington, Delaware, founded in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. The corporation had an important part in the development of Delaware, beginning as a major supplier of gunpowder. In the twentieth century, DuPont invented various polymers, including Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kapton, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona, Corfam, and Lycra, and its scientists invented many chemicals, most notably Freon (chlorofluorocarbons). It also created synthetic pigments and paints, such as ChromaFlair. For instance, in January 2021, DuPont Nutrition & Biosciences, a Denmark-based bio-based company, launched the SYNERXIA Gemstone Collection, the next advancement in high-performance yeasts for the ethanol market designed for the unique needs of ethanol producers.SYNERXIA SAPPHIRE is developed to give a high ethanol yield boost compared to standard yeast and power through fermentation.


Key Companies in the distillers grains market include



  • ADM (US)

  • Valero (US)

  • Green Plains Inc. (US)

  • Pacific Ethanol Inc. (US)

  • Flint Hills Resources (US)

  • Didion Milling Inc. (US)

  • CropEnergies AG (Germany)

  • Purina Animal Nutrition (Land O Lakes) (US)

  • Huskv Energy (Canada)

  • Bunge Limited (US)


Distillers Grains Industry Developments


In April 2021 Bruks Siwertell commissioned the Siwertell ST 640-M grain unloader to improve grain handling operations and environmental protection capabilities. It uses Siwertell screw-type conveying technology to efficiently handle a variety of grains, including dry distiller grains (DDG) and others.


In June 2021 MasterHand Miling, one of the top producers of distillers grain livestock, announced the addition of a new production plant for extruded distillers grain cattle cubes and pellets.


In June 2022 The Calgary Stampede and Cenovus Energy Inc. announced a new and significant long-term sponsorship deal. The four-year Champion level sponsorship builds on the Stampedes more than a decade of participation. The extended partnership includes premier sponsorship of the Saddle Bronc competition and a new fan experience with business volunteers.


Distillers Grains Market Segmentation


Distillers Grains Market By Type Outlook



  • Wet Distillers' Grains

  • Dried Distillers' Grains with Solubles

  • Dried Distillers' Grains


Distillers Grains Market By Source Outlook



  • Wheat

  • Corn


Distillers Grains Market By Application Outlook



  • Animal Feed

  • others


Distillers Grains Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America 




 

Report Scope:

Report Attribute/Metric Details
Market Size2022 USD 10.9 billion
Market Size 2023 USD 11.5 billion
Market Size2032 USD 17.7 billion
Compound Annual Growth Rate (CAGR) 5.60% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2019- 2021
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Source, Application and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled  ADM$US), Valero (US), Green Plains Inc. (US), Pacific Ethanol Inc. (US), Flint Hills Resources (US), Didion Milling Inc. (US), CropEnergies AG (Germany), Purina Animal Nutrition (Land O' Lakes) (US), Husky Energy (Canada), Bunge Limited (US).
Key Market Opportunities Demand for ethanol products is predicted to increase dramatically as distillers' grains.
Key Market Dynamics Distiller grains are utilized as feed items in dairy farms




Frequently Asked Questions (FAQ) :

The Distillers Grains Market size was valued at USD 10.9 Billion in 2022.

The global market is projected to grow at a CAGR of 16.26% during the forecast period, 2023-2032.

North America had the largest share of the global market

The key players in the market are CropEnergies AG (Germany), Purina Animal Nutrition (Land O' Lakes) (US), Husky Energy (Canada), Bunge Limited (US).

The dried distillers' grains with solubles category dominated the market in 2022.

The corn had the largest share of the global market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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