Distillers Dried Grains With Solubles Market Overview
Distillers dried grains with solubles market size was valued at USD 16.8 Billion in 2024 and is expected to reach USD 32.32 Billion by 2034, growing at a CAGR of 7.4%.
Distillers Dried Grains with Solubles, or DDGS, is a by-product of ethanol produced from grains such as corn, wheat, or rice from the fermentation process. This feed component contains critical nutrients for use by the animal feed industry, specifically for cattle, swine, and poultry. The DDGS market relates to the biofuel and ethanol production industry with DDGS being highly valued as a co-product in most countries. As demand for quality animal feed, particularly within affordable prices, has prompted steady growth in the global DDGS market over the last decade, the high protein content and digestibility made the product very attractive for improving animal productivity and health.
Segmentation is based on grain type, production form, and animal type. Regions where ethanol production has been well-established are indeed leading players in the DDGS market. North America, it is evident, is the largest producer and exporter. Then, the sustainability trends in agriculture and energy are aligned: there is less waste while at the same time helping out the livestock industries of meat and dairy product producers. Improvement in ethanol production technology and feed science will continue to enhance the quality and consistency of DDGS.
To Know More, Request Free Sample Report
Distillers Dried Grains With Solubles Market Dynamics
Key Drivers of Target Market:
Expansion of the Biofuel Industry
- The global biofuels industry, especially ethanol, is set to expand since governments are imposing carbon emissions due to the sustainability agenda. This increase in ethanol production means this industry will supply DDGS. In terms of production, the United States and Brazil are heavily involved in ethanol production, and growth in this has a way of increasing the level of DDGS produced.
Increased Global Livestock Production
- Over the last few years, global livestock production has risen in developing areas like Asia-Pacific, Latin America, and Africa. Increased meat consumption and dairy production in these regions are responsible for creating increased demand for low-cost, nutrient-rich animal feed in the DDGS market.
Restrains:
Competition with Other Alternating Feed Ingredients
- Although DDGS competes against other high-protein feed ingredients such as soybean meal, rapeseed meal, and fishmeal, other regions may be closer, of higher quality, or even more competitive as a recognizable feed ingredient to livestock farmers, hence a substitute for DDGS in the animal feed market.
Opportunities:
Development of New Feed Formulations
- Advances in feed technology and nutritional science open up avenues for formulating better DDGS. For example, DDGS can be designed specifically for specific animal types or dietary needs by mixing different grains or optimizing the production process. Innovations in these areas will improve the nutritional quality of DDGS for animal producers.
Distillers Dried Grains With Solubles Market Segmentation
The market is segmented based on Source, Form, Animal Type, Feed Grade, Application, Distribution Channel, and Region.
Product Type Insights:
- Corn DDGS: Corn is the most widely used raw material for DDGS production due to its availability and affordability. Corn DDGS is a byproduct of the ethanol production process from corn. It is high in fiber, protein, and fats. It is most abundant in North America because plenty of ethanol plants are located in that region. The balanced nutrient profile of corn DDGS made it an attractive feed for various animals, further making it prominent in the market.
- Wheat DDGS: This product usually results from the process of producing ethanol from wheat. It usually contains higher fiber and protein content than corn DDGS but is less available on a global level due to the lesser production of wheat ethanol. Wheat DDGS are quite popular in regions where the availability of wheat is considerable. It has gained acclimatization mainly in Europe and prefers feeding ruminants dairy and beef cattle because of its fiber-rich composition.
- Rice DDGS: Rice DDGS is derived from ethanol production, which bases its operations on rice. This is less common than corn or wheat DDGS, although it has emerged as an attractive segment in regions with large quantifies of rice production, especially Asia. Rice DDGS is medium in protein content and is mainly used in specific markets with a rich rice reserve.
- Blended DDGS: Blended DDGS is a mix of grains, including corn, wheat, and rice, prepared during ethanol production. The mix is tailored to meet some specified nutritional needs and cost factors, making it flexible for feed manufacturers. Blended DDGS are mostly available in areas where different grain types can be found, making them pliable and economical feed for most livestock.
Form Insights:
- Pellets: DDGS Pellets are a compact product form, presenting advantages in handling, transportation, and storage. Pellets allow easier management in large quantities and minimize waste at feed application. They can be made relatively uniform in size, ensuring smooth feeding for animals. Pelleted DDGS is better for larger animal feed operations and is most commonly used for cattle and swine.
- Powder: DDGS powder is less processed and is used when transportation costs are lower or for recipes needing finer consistency feed mixing processes. Powdered DDGS can be mixed easily with other products to give flexibility in custom feed formulations. This form is used in small operations or blended with other fine feed components.
- Other Forms: These forms are less common but still used for particular applications, such as crumbles or granules. The designs may be suited for specialty feeds and niche uses in particular regions or constituencies that have specific husbandry and feeding practices or existing storage facilities or limitations.
Animal Type Insights:
- Beef Cattle: This feedstock is also in good demand by beef cattle due to its high energy and protein content. It enables proper weight gain coupled with proper muscle growth for finishing beef cattle before they are slaughtered. It also provides fiber, which is important for a ruminant's digestion system.
- Dairy Cattle: It is mainly applied to dairy cattle to increase milk production. This applies to a good protein and fibre level, which is significant when maintaining a dairy cow's health and optimal milking. Consequently, dairy farmers include DDGS in feed to enhance milk output, while decreasing feeds cost significantly.
- Swine: To swine producers, DDGS is a supplemental energy source and protein to complement more traditional grain-based feeds. DDGS works well in swine growth and fattening because it enables swine to meet their nutrient needs much more economically than several other feedstuffs.
- Poultry: DDGS is used as a supplementary protein resource in broilers and layers in the poultry industry. Poultry has specific nutritional requirements that DDGS can partly fulfill regarding energy and protein. However, its use in the poultry diet is usually limited because of amino acid imbalance and poor digestibility of some DDGS constituents.
Feed Grade Insights:
- High In Protein: High-protein DDGS is designed to produce more protein, making it ideal for high-performance animal feeds, especially in poultry and swine that require a greater degree of protein. The grade is preferred in intensive animal husbandry areas where protein-rich feed is emphasized.
- Middle Protein DDG: The middle-protein DDG strikes a balance between more protein and higher fiber, which will be useful for different classes of livestock such as dairy cattle, beef cattle, or swine. It has become a preference for those needing an economic feed source without nutritional value.
- Low Protein: This DDGS has low protein levels and a relatively high amount of fiber. It is mainly utilized with ruminants like beef and dairy cattle, as feeding ruminants huge amounts of fiber is critical for the proper health maintenance of the digestive system. Being more economical, this grade is found applicable primarily in regions where cost management has become a fundamental consideration in animal feed formulation.
Application Insights:
- Animal Feed: DDGS is primarily used in animal feed. It is priced competitively relative to its nutrient content and availability. DDGS is used in the feed of cattle, swine, poultry, and, to a lesser extent, fish. This usage is commercially important for promoting the growth of livestock, reproducing animals, and elevating productivity.
- Biofuel: Biofuel is also being increasingly utilized as an application. In bioethanol plants, DDGS are essentially the residual product from the actual process of ethanol manufacture. Many sites use most of it as feedstock, but more recent efforts have been designed with energy generation in mind as either direct fuel or as part of a biogas production system.
- Industrial Applications: DDGS is also explored for a number of industrial applications, including its use in the manufacture of bio-based materials or in waste management processes. Its rich nutrient content can further be used for a variety of secondary products, thus giving scope for innovation in biomanufacturing and agricultural waste management.
Distribution Channel Insights:
- Direct: will be a contract between the DDGS manufacturers and large consumers such as feed millers, companies that deal with biofuel, or large livestock farms. It will mostly be based on contractual volume purchases, and mass sales often do not incur the costs of intermediaries. Direct sale is more readily applied in large-scale operations where a massive volume of DDGS is needed.
- Indirect: channels include distributors, wholesalers, and retailers, who act as intermediaries between DDGS producers and final users. The channel is generally more important in regions with smaller livestock farms or feed operations. Indirect sales make international trade possible, enabling producers to reach markets outside their local areas.
Regional insights:
- North America, specifically the United States, is the largest producer and consumer of DDGs, mainly due to its significant corn ethanol production. The region also houses a well-established livestock industry that requires quality feed ingredients like DDGs.
- Europe: A large amount of wheat is used to produce DDGS, which is increasingly gaining ground as a feed component and a biofuel. Feed quality regulation in the region is very stringent, affecting production and distribution. The push for sustainable feed sources in Europe is more pronounced, which will open avenues for the producers of DDGS.
- Asia-Pacific: The Asia-Pacific region has a rising demand for DDGS as the livestock industry increases, driven by demand from China, India, and Vietnam. Rice and corn DDGS will be favored as this region wants to produce animal feeds at lower cost without sacrificing livestock productivity.
- Latin America: This region has tremendous growth potential, especially in the livestock industry and a developing ethanol production sector. The powerhouses in Latin America are Brazil and Argentina, where DDGS made from corn and soybean feedstocks are gaining on both domestic and export markets.
- Middle East & Africa: DDGS emerges as a new market where the regions are developing their livestock industries and finding affordable and nutrient-rich animal feed. Imports from North America and Europe supply most of the market because locally produced DDGS is unavailable in sufficient quantities.
Distillers Dried Grains with Solubles Market Report Scope:
Attribute |
Details |
Market Size 2024 |
USD 16.8 Billion |
Projected Market Size 2034 |
USD 32.32 Billion |
CAGR Growth Rate |
7.4% |
Base year for estimation |
2023 |
Forecast period |
2024 – 2034 |
Market representation |
Revenue in USD Billion & CAGR from 2024 to 2034 |
Market Segmentation |
By Source- Corn DDGS, Wheat DDGS, Rice DDGS, and Blended DDGS By Form- Pellets, Powder, and Other By Animal Type- Beef Cattle, Dairy Cattle, Swine, and Poultry By Feed Grade- High Protein, Mid Protein, and Low Protein By Application- Animal Feed, Biofuel, and Industrial Applications By Distribution Channel- Direct, and Indirect |
Regional scope |
North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered in the Report:
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Source, Form, Animal Type, Feed Grade, Application, Distribution Channel, and Region.
Segmentation:
By Product Type:
- Corn DDGS
- Wheat DDGS
- Rice DDGS
- Blended DDGS
By Form:
- Pellets
- Powder
- Others
By Animal Type:
- Beef Cattle
- Dairy Cattle
- Swine
- Poultry
By Feed Grade:
- High Protein
- Mid Protein
- Low Protein
By Application:
- Animal Feed
- Biofuel
- Industrial Applications
By Distribution Channel:
- Direct
- Indirect
By Region:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Russia
- Italy
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
Distillers Dried Grains With Solubles Market Key Players
The key players operating the Distillers Dried Grains with Solubles Market include POET, LLC, Green Plains Inc., Archer Daniels Midland Company (ADM), Cargill, Inc., Valero Energy Corporation, The Andersons, Inc., Pacific Ethanol, Inc., Sweetwater Energy, Inc., Big River Resources, LLC, BioEnergy International, Bunge Limited, Cornelius & Co., Inc., United Ethanol, LLC, Western Plains Energy, LLC.
To Access More Companies, Download Free Sample PDF
Distillers Dried Grains With Solubles Market Key Issues Addressed
- In August 2024, U.S. DDGS exports to the Asia-Pacific region, particularly to China and Vietnam, as the regions continue to chase lower-cost animal feed amid expanded livestock and aquaculture industries. Suppliers from the U.S. have benefited from favorable trade conditions and sound working relationships with buyers in these markets.
- In July 2024, Feed manufacturers had started to include new technologies for improved nutrient consistency and digestibility of DDGS. The researchers developed superior processing techniques that enhance both the protein and energy content of DDGS. This has made formulations in high-performance livestock feeds more attractive. The whole issue regarding poor quality variability in DDGS products have been addressed.
- In June 2024, saw a wave of high DDGS usage as part of the sustainable initiatives in the ethanol and livestock sectors. Bioeconomies in a circular model, by taking the opportunity to reuse DDGS as sustainable animal feed, ethanol producers increasingly begin adopting the same. A few ethanol players announced joining government-funded programs to reduce waste and improve the environmental footprint of agricultural byproducts in the US and Europe.
Distillers Dried Grains With Solubles Market Company Profile
- POET, LLC
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Performance
- Business Strategies
- Green Plains Inc.
- Archer Daniels Midland Company (ADM)
- Cargill, Inc.
- Valero Energy Corporation
- The Andersons, Inc.
- Pacific Ethanol, Inc.
- Sweetwater Energy, Inc.
- Big River Resources, LLC
- BioEnergy International
- Bunge Limited
- Cornelius & Co., Inc.
- United Ethanol, LLC
- Western Plains Energy, LLC
“*” marked represents similar segmentation in other categories in the respective section.
Distillers Dried Grains With Solubles Market Table of Contents
Research Objective and Assumption
- Research Objectives
- Assumptions
- Abbreviations
Market Preview
- Report Description
- Market Definition and Scope
- Executive Summary
- Market Snippet, By Source
- Market Snippet, By Form
- Market Snippet, By Animal Type
- Market Snippet, By Feed Grade
- Market Snippet, By Application
- Market Snippet, By Distribution Channel
- Market Snippet, By Region
- Opportunity Map Analysis
Market Dynamics, Regulations, and Trends Analysis
- Market Dynamics
- Drivers
- Restraints
- Market Opportunities
- Market Trends
- Product Launch
- Merger and Acquisitions
- Impact Analysis
- PEST Analysis
- Porter’s Analysis
Market Segmentation, By Source, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Segment Trends
- Corn DDGS
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Wheat DDGS
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Rice DDGS
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Blended DDGS
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
Market Segmentation, By Form, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Segment Trends
- Pellets
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Powder
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Others
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
Market Segmentation, By Animal Type, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Segment Trends
- Beef Cattle
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Dairy Cattle
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Swine
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Poultry
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
Market Segmentation, By Feed Grade, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Segment Trends
- High Protein
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Mid Protein
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Low Protein
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
Market Segmentation, By Application, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Segment Trends
- Animal Feed
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Biofuel
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Industrial Applications
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
Market Segmentation, By Distribution Channel, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Segment Trends
- Direct
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
- Indirect
- Overview
- Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)
- Overview
- Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
- Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
- Regional Trends
- North America
- Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Form, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Animal Type, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Feed Grade, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
- U.S
- Canada
- Asia Pacific
- Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Form, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Animal Type, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Feed Grade, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
- India
- Japan
- South Korea
- China
- Rest of Asia Pacific
- Europe
- Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Form, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Animal Type, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Feed Grade, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
- UK
- Germany
- France
- Russia
- Italy
- Rest of Europe
- Latin America
- Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Form, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Animal Type, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Feed Grade, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Form, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Animal Type, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Feed Grade, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
- Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
- GCC
- Israel
- South Africa
- Rest of Middle East and Africa
Competitive Landscape
- Heat Map Analysis
- Company Profiles
- POET, LLC
- Green Plains Inc.
- Archer Daniels Midland Company (ADM)
- Cargill, Inc.
- Valero Energy Corporation
- The Andersons, Inc.
- Pacific Ethanol, Inc.
- Sweetwater Energy, Inc.
- Big River Resources, LLC
- BioEnergy International
- Bunge Limited
- Cornelius & Co., Inc.
- United Ethanol, LLC
- Western Plains Energy, LLC
The Last Word
- Future Impact
- About Us
- Contact
Distillers Dried Grains With Solubles Market Highlights
FAQs
Distillers Dried Grains with Solubles Market Size was valued at USD 16.8 Billion in 2024 and is expected to reach USD 32.32 Billion by 2034, growing at a CAGR of 7.4%
The Distillers Dried Grains with Solubles Market is segmented into Source, Form, Animal Type, Feed Grade, Application, Distribution Channel, and Region.
The market is being driven by factors such as Expansion of the Biofuel Industry and Increased Global Livestock Production.
The restraints of the Distillers Dried Grains with Solubles market include the Competition with Other Alternating Feed Ingredients.
The Distillers Dried Grains with Solubles Market is segmented by region into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. North America is expected to dominate the Market.
The key players operating the Distillers Dried Grains with Solubles Market include POET, LLC, Green Plains Inc., Archer Daniels Midland Company (ADM), Cargill, Inc., Valero Energy Corporation, The Andersons, Inc., Pacific Ethanol, Inc., Sweetwater Energy, Inc., Big River Resources, LLC, BioEnergy International, Bunge Limited, Cornelius & Co., Inc., United Ethanol, LLC, Western Plains Energy, LLC