India DDGS Market

Shift Towards Sustainable Practices

Furthermore, there is a greater emphasis on enhancing the nutritional content of DDGS by adding sustainable feed ingredients, which increases the product's appeal as a premium feed item.

Biofuel Production Rising Ethanol Blending Targets

The DDGS market is being greatly impacted by India's increasing ethanol blending targets. To decrease carbon emissions and lessen reliance on imported oil, the Indian government has set high standards for the blending of ethanol into gasoline. A lucrative by-product known as DDGS is produced more frequently as ethanol production ramps up to fulfill these aims. As a result of this trend, DDGS is more widely available and easier to utilize as animal feed. Because of its high nutritional value and affordability, Indian farmers are projected to adopt DDGS at higher rates because of the increased supply.

The agricultural industry and the renewable energy agenda are supported when ethanol blending targets are aligned with DDGS production.

Food Industry Emergence of Integrated Supply Chains

The Indian DDGS industry is changing because of integrated supply chains emerging. The supply chain, which was formerly fragmented, is becoming more integrated, which increases efficiency and lowers costs. Improvements in logistics and technology are making it possible for ethanol producers, DDGS makers, and end consumers to work together more effectively. By streamlining the DDGS supply chain from manufacture to consumption, this integration guarantees reliable quality and prompt delivery. Additionally, it promotes greater transparency and data exchange, which helps all parties involved by enabling better-informed decision-making.

The DDGS market is supported by the strengthening of the supply chain, which enhances overall operating efficiency and forges stronger market structures.

The expansion of the ethanol production industry in India is a key driver for the Global India DDGS Market Industry. As ethanol production increases, so does the availability of DDGS as a byproduct, which is subsequently utilized in animal feed. The Indian government’s push for biofuels is likely to bolster ethanol production, thereby enhancing the supply of DDGS. This interdependence suggests that as the ethanol market grows, the DDGS market will also flourish, potentially reaching a valuation of 5000 USD Million by 2035. The synergy between these two sectors underscores the importance of DDGS in the broader context of renewable energy and sustainable agriculture.

The Global India DDGS Market Industry is experiencing a notable increase in demand for animal feed, driven by the growing livestock sector. As farmers seek cost-effective and nutritious feed alternatives, DDGS has emerged as a preferred choice due to its high protein content and digestibility. In 2024, the market is projected to reach 2500 USD Million, reflecting the increasing reliance on DDGS in animal nutrition. This trend is likely to continue as the livestock industry expands, suggesting that the Global India DDGS Market Industry will play a crucial role in meeting the nutritional needs of livestock while supporting sustainable agricultural practices.

Government initiatives aimed at promoting the use of DDGS in India are significantly influencing the Global India DDGS Market Industry. Policies that encourage the production and utilization of biofuels and animal feed are fostering a conducive environment for DDGS adoption. For instance, subsidies and incentives for biofuel production indirectly boost DDGS availability as a byproduct. This support is expected to enhance market growth, with projections indicating a market size of 5000 USD Million by 2035. Such governmental backing not only stimulates production but also encourages research and development in the sector, further solidifying the position of DDGS in the agricultural landscape.

The Global India DDGS Market Industry is influenced by evolving consumer preferences towards healthier and more sustainable food sources. As consumers become more health-conscious, there is a growing demand for livestock products that are raised on high-quality feed, such as DDGS. This shift in consumer behavior is prompting producers to adopt DDGS in their feeding practices, thereby driving market growth. The increasing awareness of the benefits of DDGS, including its nutritional profile and cost-effectiveness, is likely to contribute to the market's expansion, with projections indicating a CAGR of 6.5% from 2025 to 2035. This trend reflects a broader movement towards sustainability and quality in food production.

Technological innovations in the production of DDGS are enhancing the efficiency and quality of this feed ingredient, thereby impacting the Global India DDGS Market Industry positively. Advances in processing techniques and fermentation technologies are enabling producers to extract higher nutritional value from raw materials. This not only improves the quality of DDGS but also increases its market competitiveness. As a result, the industry is likely to witness a surge in production capacity, aligning with the projected market growth to 5000 USD Million by 2035. These advancements are crucial for meeting the rising demand for high-quality animal feed in a rapidly evolving agricultural landscape.

The Global India DDGS Market Industry is increasingly aligned with sustainability goals, as DDGS is a byproduct of ethanol production, contributing to waste reduction. The growing awareness of environmental issues among consumers and producers is pushing the agricultural sector towards more sustainable practices. DDGS serves as an eco-friendly feed option, reducing the carbon footprint associated with traditional feed sources. This trend is likely to gain momentum, as the market is projected to grow at a CAGR of 6.5% from 2025 to 2035. The emphasis on sustainability is expected to enhance the appeal of DDGS, positioning it as a vital component in the future of animal nutrition.

Based on Region, the India Distiller’s Dried Grains with Solubles (DDGS) market has been segmented into North, South, East, & West. The North India region accounted for the largest market share of 36.33% in 2023 and is likely to register a CAGR of 6.36% during the projected period. In North India, states like Uttar Pradesh, Punjab, and Haryana are major contributors to the DDGS market due to their robust ethanol production capabilities and extensive dairy and poultry industries.

The growing demand for poultry products, driven by rising incomes and urbanization, has led to an increased need for cost-effective and nutritious feed alternatives. DDGS, being rich in protein and energy, serves as an excellent substitute for traditional feed ingredients like soybean meal, which are currently facing price volatility. The region has seen a recovery in ethanol production post-COVID-19, which has positively impacted the supply of DDGS. With the reopening of ethanol plants, the availability of this co-product has increased, making it more accessible to livestock farmers.

For instance, a poultry farm in Punjab that previously relied heavily on soybean meal for feed has shifted to incorporating DDGS into its feed formulation. This transition helps in reducing feed costs and enhances the nutritional profile of the feed, leading to better growth rates and overall health of the poultry. The farm reports improved feed conversion ratios and lower mortality rates among chicks, showcasing the benefits of using DDGS.

Figure 5: India DDGS Market, by region, 2023 & 2032 (USD Million)

The market has been able to establish itself as one of the key operators in the animal feed industry, driven by the need for cost-effective, potent nutritional additives. Competitor analysis of the India market of DDGS shows that it is a highly competitive market with many companies marketing products aimed at livestock, poultry, and aquaculture needs.

Some major companies operating the market, like GSK Feeds, ProRich Agro Pvt Ltd, Cargill Incorporated, Nutrigo Feed Pvt Ltd, and Nugen Feeds & Foods, resort to competition strategies such as product differentiation, effective pricing, and diverse distribution channels in their operations. The Indian DDGS market is the source of DDGS. Major share of the market is held by corn DDGS and rice DDGS, with manufacturers seeking to optimize their products by the percentage of protein, phosphorus, and other benefits.

Examples of both GSK Feeds and Nutrigo Feed specialize in corn and rice-based DDGS products, but with different approaches where nutrients and energy content are preferred at GSK and low-cost non-conventional feedstuffs such as roasted guar korma and rice DDGS are utilized by Nutrigo. Distribution networks and customer relationships play a significant role in shaping the competitive landscape. Companies like ProRich Agro have an extensive sales and marketing team across India, supported by warehouses in all zones, enabling them to offer timely delivery and maintain strong customer relationships.

Nutrigo Feed, on the other hand, focuses on expanding its market globally, leveraging its affiliation with the SSL Group to enhance its distribution capabilities.