India DDGS Market is predicted to reach USD 717.81 million at a CAGR of 6.17% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global India DDGS Market”.

Market Synopsis

According to the MRFR analysis, the India DDGS market was valued at USD 420.67 million in 2023 and is projected to reach USD 717.81 million by 2032 at a CAGR of 6.17%.

The consistent demand for DDGS is driven by the growing demand for livestock feed, bioethanol production; spurring the growth, and cost-effectiveness; skyrocketing the demand.

COVID-19 Impact on the DDGS Market

The COVID-19 pandemic had a major effect on the dried grains with solubles market for India Distilleries, which was indicative of larger disruptions in the worldwide agri-food industry. Owing to its high nutritional value, DDGS, a byproduct of ethanol manufacture, is frequently utilized in animal feed. However, the epidemic presented this market with many difficulties. Initially, supply chains were thrown off balance by the lockdowns and movement restrictions, which raised the cost of logistics and caused delays in transit. This has an impact on end users' timely access to DDGS, such as farmers raising poultry and livestock. The supply of DDGS became unpredictable because of production facilities experiencing temporary shutdowns or operating at reduced levels. Due to scarcity, prices were volatile, which affected farmers' feed expenses and might have increased the price of animal products. Moreover, the pandemic's economic uncertainty and lower consumer spending resulted in a decline in the demand for ethanol as industrial and transportation activity halted. Thus, the amount of DDGS generated was decreased, which made the shortfalls in supply worse. Financial hardship hindered ethanol facilities' capacity to continue producing DDGS consistently. Furthermore, the shift in focus toward pandemic-related concerns diverted attention and resources away from optimizing agricultural supply chains and addressing market inefficiencies. Farmers, already grappling with reduced income and disrupted supply chains, faced additional pressure due to fluctuating feed costs and limited availability of DDGS.

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Competitive Landscape

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, Nutrigo Feeds Pvt Ltd (India), Nugen Feeds & Foods (India), Superior Industries Limited (India), Prorich Agro Pvt Ltd. (India), Globus Spirits Ltd. (India), ADM (US), Cargill Incorporated (US), IFB Agro Industries Ltd. (India), Prodigy Foods (India), GSK Feeds (India), among others.

Segmentation

By Type

1. Corn: Corn Distillers Dried Grains with Solubles (DDGS) is a byproduct of using maize to produce ethanol. After fermenting maize starch, the leftover residue is dried to generate DDGS, a protein, fiber, and critical nutrient rich product. Corn distiller’s dried grains with solubles serves as a valuable feed ingredient for various livestock, including cattle, poultry, and fish, providing approximately 85% of the energy value found in whole corn. Its high digestibility and favorable amino acid profile make it a superior alternative to traditional feed ingredients, enhancing animal performance and health. Corn DDGS plays a significant role in the animal feed industry due to its high nutritional value % cost-effectiveness.


2. Wheat: Wheat Distiller's Dried Grains with Solubles (wheat DDGS) is a residue of the fermentation process of ethanol production from wheat. After fermentation of the starch, the non-fermentable substances are then dried and milled into the DDGS that is high in proteins, carbohydrates and vitamins. Wheat DDGS is a valuable feedstuff for animals since it is energy and protein dense. It is often recommended in place of more expensive protein and energy sources such as soybean meal and corn which fluctuates in price. The protein in the Wheat DDGS is especially important and advantageous for ruminants that in a variety of ways enhances effective utilization of nitrogen during meat and milk production. The fiber in Wheat DDGS promotes digestion and gut health, helping to alleviate digestive problems in livestock.


3. Rice: Rice Distillers Dried Grains with Solubles (DDGS) is a by-product of ethanol production which is used as alternative protein source in the poultry diet. After the fermentation and distillation of rice, the remaining grains are dried to produce DDGS, which is rich in protein, fiber, and essential nutrients. This feed ingredient is gaining traction in the Indian livestock industry, particularly for poultry, cattle, and aquaculture, due to its high nutritional value and cost-effectiveness. Rice DDGS is important in the animal feed industry, especially in rice-growing regions, due to its nutritional content and role as a feed ingredient. The inclusion of Rice DDGS in animal diets not only improves growth rates and feed efficiency but also enhances the overall health and productivity of livestock.


4. Barley: Barley Distillers Dried Grains with Solubles (DDGS) is a co-product derived from the ethanol production process using barley as the raw material. In this process, barley is fermented to produce ethanol, and the remaining solid material, including barley germ, husks, and other components, is dried to create DDGS. This product is rich in protein, fiber, and essential nutrients, making it a valuable ingredient in animal feed. The inclusion of barley DDGS in livestock feed can help improve feed efficiency, growth rates, and overall animal performance. However, its usage is limited compared to other DDGS types due to lower availability and demand in the Indian market. As more ethanol plants utilize barley as a feedstock, the supply of barley DDGS increases, making it a readily available feed ingredient.


5. Blended Grains: Blended Grains Distillers Dried Grains with Solubles (DDGS) is a composite feed ingredient created from a mixture of various grains, including corn, wheat, rice, and other cereal byproducts. This type of DDGS is produced during the ethanol production process, where different grains are fermented, and the remaining non-fermentable solids are dried to create a nutrient-rich feed product. Blended Grains DDGS serves as a versatile and cost-effective option for livestock nutrition, catering to the dietary needs of ruminants, poultry, and swine. Blended Grains DDGS is significant in animal nutrition due to its balanced nutrient profile, which combines the benefits of multiple grains. Blended Grains DDGS provides a solution by offering a cost-effective source of energy and protein that can partially replace more expensive feed ingredients like soybean meal.

By Form

1. Pellets: Pellets have emerged as the preferred form for Distillers Dried Grains with Solubles (DDGS) in the animal feed industry due to their numerous advantages over the powdered form. The process of pelleting involves compacting DDGS into dense, cylindrical shapes using a pellet mill, resulting in a product that offers enhanced handling, storage, and feeding characteristics. The process of pelletizing involves compressing DDGS into small, uniform pellets. This form is particularly valued in the animal feed industry for its numerous advantages in handling, transportation, and nutritional delivery. The enhanced handling and storage properties of pellets make them a superior choice for livestock producers. Pellets possess a higher bulk density compared to the powdered form, typically ranging from 40 to 48 lbs/ft³ (640 to 768 kg/m³). This increased density allows for more efficient utilization of storage space and reduces the risk of bridging and caking during storage.


2. Power: The powder form of Distillers Dried Grains with Solubles (DDGS) is produced by drying and grinding the co-product of the ethanol fermentation process. Powdered DDGS is gaining traction in the livestock feed industry due to its versatility and cost-effectiveness, making it a valuable ingredient for various animal diets. The powdered form of DDGS is commonly used in the diets of various livestock species, including swine, poultry, and ruminants. Its fine particle size allows for easy incorporation into feed formulations, enabling producers to achieve balanced diets tailored to the specific nutritional requirements of their animals. For instance, in swine diets, powdered DDGS can improve growth performance and feed efficiency when included at appropriate levels. In poultry, it can enhance egg production and overall health.


3. Granules: Distiller's Dried Grains with Solubles (DDGS) in granule form is a significant product derived from the ethanol production process, primarily utilizing corn and wheat. This form of DDGS is characterized by its coarser texture compared to powdered and pelletized forms, making it a versatile ingredient in livestock feed. DDGS granules are rich in essential nutrients, making them an attractive option for animal nutrition. Typically, DDGS contains approximately 30-40% crude protein, 10-12% moisture, and a balanced profile of fat, fiber, and carbohydrates. The granules are particularly beneficial due to their high fiber content, which aids digestion and promotes gut health in livestock. The versatility of DDGS granules allows them to be used in various types of animal feed. In swine and poultry diets, DDGS can replace a portion of the corn and soybean meal, providing both protein and energy. For ruminants such as cattle, DDGS serves as an excellent supplement, offering additional protein and fiber to improve overall diet quality.

By Application

1. Dairy Cattle Feed: Dairy cattle feed is a critical component in the livestock sector, designed to provide essential nutrients that support the health, growth, and productivity of dairy cows. This feed typically includes a blend of forages, grains, protein sources, vitamins, and minerals tailored to meet the specific dietary needs of lactating and non-lactating cows. With the increasing demand for dairy products in India, driven by urbanization and rising incomes, the need for high-quality feed has become more pronounced. Dairy cattle feed, which encompasses all the dietary inputs provided to dairy cows to support their health and milk production, is crucial for maintaining optimal performance in the dairy industry.


2. Beef Cattle Feed: The application of Distillers Dried Grains with Solubles (DDGS) in beef cattle feed is becoming increasingly relevant in India, particularly as the demand for beef rises and producers seek to optimize feed efficiency and animal health. Beef cattle are defined as cattle raised specifically for meat production, distinguishing them from dairy cattle, which are primarily bred for milk. The beef production process involves several stages, including cow-calf operations, backgrounding, and feedlot finishing, each requiring specific nutritional strategies to ensure optimal growth and meat quality. The primary components of beef cattle feed include forages, such as hay and silage, grains, protein supplements, and minerals. Beef cattle feed is essential for several reasons. It directly influences the growth rate, feed efficiency, and overall health of the animals.


3. Swine Feed: Swine feed plays a crucial role in the overall health, growth, and productivity of pigs. A well-formulated diet is essential for achieving optimal weight gain, feed efficiency, and meat quality. Since feed costs account for a significant portion—up to 70%—of total production expenses in pig farming, producers are continuously looking for affordable alternatives that do not compromise the nutritional quality of the diets. DDGS offers a viable solution by providing a rich source of energy, protein, vitamins, and minerals, which can enhance the overall performance of pigs. The application of Distillers Dried Grains with Solubles (DDGS) in swine feed is gaining traction in India as farmers seek cost-effective and nutritious alternatives to traditional feed ingredients. DDGS is particularly attractive for swine diets due to its favorable nutritional profile. It is rich in protein, with levels significantly higher than those found in corn, and provides essential amino acids that are critical for pig growth and development.


4. Poultry Feed: DDGS (Distillers Dried Grains with Solubles) has become an increasingly popular ingredient in poultry feed formulations in India due to its numerous benefits and cost-effectiveness. As a byproduct of the ethanol production process, DDGS is rich in protein, energy, and essential nutrients, making it an excellent supplement for poultry diets. In poultry production, feed costs account for approximately 65-70% of total production expenses. As the demand for poultry meat rises in India, driven by increasing urbanization and consumer preferences, there is a pressing need for affordable and high-quality feed ingredients. DDGS presents a viable solution by offering a rich source of energy and protein, which can help poultry producers manage costs while maintaining optimal production levels.


5. Aquaculture Feed: Aquaculture feed refers to the specialized diets provided to aquatic species such as fish, shrimp, and mollusks that are cultivated in controlled environments. The primary aim of aquaculture feed is to meet the specific nutritional requirements of these species to promote growth, health, and production efficiency. Effective aquaculture feed formulations typically include a balanced mix of proteins, carbohydrates, fats, vitamins, and minerals tailored to the needs of different aquatic species and life stages. In addition to its nutritional and economic advantages, DDGS contributes positively to the health of aquatic species. The high content of available phosphorus in DDGS supports bone development and overall health in fish and shrimp.

By Protein Percentage

1. below 35%: Distillers Dried Grains with Solubles (DDGS) with a protein percentage below 35% serves as a cost-effective feed ingredient primarily used in livestock diets. This category typically includes DDGS with protein content ranging from 25% to 30%. While lower in protein compared to its higher-grade counterparts, this form of DDGS is valuable for its energy content, making it an attractive option for livestock producers seeking to optimize feed costs. The production of Distiller’s Dried Grains with Solubles occurs as a byproduct of the ethanol manufacturing process, where grains such as corn and wheat are fermented. The remaining material, rich in fiber and energy, is dried and processed into DDGS. The lower protein content in this segment makes it suitable for specific feeding strategies, particularly for non-ruminant animals like swine and poultry, where energy requirements can be met without the need for high protein levels.


2. 35% to 50%: Distillers Dried Grains with Solubles (DDGS) containing 35%-50% protein is a significant component of the livestock feed market, particularly valued for its nutritional profile and economic advantages. DDGS is produced as a byproduct of the ethanol fermentation process, primarily from corn, where the starch is converted into ethanol, leaving behind a nutrient-rich residue. This residue is then dried to create DDGS, which typically contains around 36.4% protein, making it a competitive source of protein for various livestock species. This protein range offers a good balance between protein, fiber, and energy, making it suitable for a broad spectrum of livestock. It is often preferred because it provides adequate protein while still being cost-effective.


3. above 60%: Distiller’s Dried Grains with Solubles (DDGS) with a protein content exceeding 60% represents a premium category within the DDGS market. This category of DDGS is typically derived from the ethanol production process, where the starch from grains, primarily corn, is fermented to produce ethanol. The remaining components, rich in protein and other nutrients, are concentrated and dried to create high-protein Distiller’s Dried Grains with Solubles, which can contain upwards of 60% protein. The demand for DDGS with protein content above 60% is its ability to meet the nutritional requirements of high-performance livestock, such as dairy cows and certain swine breeds. These animals require diets that are rich in protein to support growth, milk production, and overall health.

By Regional

1. North: 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.


2. South: In South India, states such as Tamil Nadu, Andhra Pradesh, and Karnataka are witnessing a surge in aquaculture and poultry farming. The demand for DDGS is growing as it is recognized for its nutritional benefits and cost-effectiveness compared to traditional feed ingredients. The aquaculture sector is increasingly adopting DDGS to enhance fish and shrimp feed formulations. The rising awareness among farmers about the advantages of DDGS, coupled with government initiatives to promote its use, positions South India as a promising market for DDGS in the coming years.


3. East: East India, including states like West Bengal and Odisha, is emerging as a potential market for DDGS, driven by the growth of the livestock sector. The increasing demand for poultry and dairy products in this region is creating opportunities for DDGS suppliers. Although the current consumption of DDGS is relatively low, the rising awareness of its nutritional benefits is expected to boost its adoption among livestock farmers. The region's expanding aquaculture industry also presents opportunities for DDGS use in fish feed, contributing to the overall growth of the market in East India.

West: West India, particularly Maharashtra and Gujarat, is experiencing growth in the livestock sector, with increasing demand for dairy and poultry products. The DDGS market in this region is benefiting from the rising prices of traditional feed ingredients, making DDGS an attractive alternative. The presence of large-scale dairy farms and poultry operations enhances the potential for DDGS adoption as a feed ingredient. Furthermore, the region's focus on improving animal health and productivity aligns with the nutritional advantages