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Distillers Dried Grains Solubles Market

ID: MRFR/Agri/3207-HCR
110 Pages
Pradeep Nandi
February 2026

Distillers Dried Grains with Solubles (DDGS) Market Size, Share, Industry Trend & Analysis Research Report Information By Sources (Organic, and Synthetic), By Application (Soil, Foliar, Fertigation, and others), By Form (Nitrogen, Potassium, Phosphate, and others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Forecast Till 2035

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Distillers Dried Grains Solubles Market Summary

As per Market Research Future analysis, the Distillers Dried Grains with Solubles (DDGS) Market Size was estimated at 11.19 USD Billion in 2024. The DDGS industry is projected to grow from 11.82 USD Billion in 2025 to 20.51 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.66% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Distillers Dried Grains with Solubles (DDGS) market is experiencing a robust growth trajectory driven by sustainability and technological advancements.

  • North America remains the largest market for DDGS, driven by its extensive animal feed industry.
  • Asia-Pacific is emerging as the fastest-growing region, reflecting increasing demand for sustainable feed alternatives.
  • The Brewers segment continues to dominate the market, while the Food and Beverage industry is witnessing rapid growth in DDGS utilization.
  • Rising demand for animal feed and sustainability initiatives are key drivers propelling the DDGS market forward.

Market Size & Forecast

2024 Market Size 11.19 (USD Billion)
2035 Market Size 20.51 (USD Billion)
CAGR (2025 - 2035) 5.66%

Major Players

POET LLC (US), Green Plains Inc. (US), Valero Energy Corporation (US), Archer Daniels Midland Company (US), Cargill, Incorporated (US), The Andersons, Inc. (US), Bunge Limited (US), CHS Inc. (US), Pacific Ethanol, Inc. (US)

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Distillers Dried Grains Solubles Market Trends

The Distillers Dried Grains with Solubles (DDGS) Market is currently experiencing notable shifts driven by various factors. The increasing demand for sustainable animal feed alternatives is a primary catalyst, as livestock producers seek cost-effective and nutritious options. This trend is further supported by the growing awareness of the environmental benefits associated with using DDGS, which can reduce the carbon footprint of animal agriculture. Additionally, the expansion of biofuel production continues to influence the availability and pricing of DDGS, as more distilleries produce this byproduct alongside ethanol. Moreover, The Distillers Dried Grains with Solubles (DDGS). As feed formulations evolve, the incorporation of DDGS is becoming more prevalent, reflecting a shift towards more sustainable practices. The market appears poised for growth, with potential opportunities arising from innovations in processing and product development. Overall, the Distillers Dried Grains with Solubles (DDGS) Market is adapting to meet the changing demands of the agricultural sector, suggesting a dynamic future ahead.

Sustainability in Animal Feed

The trend towards sustainability is reshaping the Distillers Dried Grains with Solubles (DDGS) Market. Livestock producers are increasingly prioritizing eco-friendly feed options, leading to a rise in the adoption of DDGS as a viable alternative. This shift is driven by the need to reduce environmental impacts and enhance the overall sustainability of animal agriculture.

Technological Advancements in Processing

Innovations in processing techniques are influencing the Distillers Dried Grains with Solubles (DDGS) Market. Enhanced methods for extracting and refining DDGS are improving its nutritional profile and digestibility, making it a more attractive option for livestock feed. These advancements may lead to increased market penetration and acceptance among producers.

Global Demand for Biofuels

The growing The Distillers Dried Grains with Solubles (DDGS). As ethanol production rises, the availability of DDGS as a byproduct is expected to increase, potentially leading to greater supply and competitive pricing. This trend may further solidify DDGS's role in both animal feed and biofuel sectors.

Distillers Dried Grains Solubles Market Drivers

Growing Biofuel Production

The increasing production of biofuels, particularly ethanol, is a key driver for the Distillers Dried Grains with Solubles (DDGS) Market. As ethanol production rises, so does the availability of DDGS as a byproduct, which is then utilized in animal feed. The biofuel sector has seen substantial growth, with ethanol production reaching over 15 billion gallons annually. This surge not only supports the energy sector but also bolsters the DDGS market, as livestock producers capitalize on the availability of this cost-effective feed ingredient. The interdependence between biofuel production and the Distillers Dried Grains with Solubles (DDGS) Market suggests a symbiotic relationship that could foster further growth in both sectors.

Sustainability Initiatives

Sustainability has become a pivotal focus within the agricultural sector, influencing the Distillers Dried Grains with Solubles (DDGS) Market. The use of DDGS, a byproduct of ethanol production, aligns with sustainable practices by reducing waste and promoting resource efficiency. As consumers increasingly favor sustainably sourced products, livestock producers are turning to DDGS to enhance their sustainability profiles. The market for DDGS is projected to grow as more producers adopt environmentally friendly practices, with estimates suggesting a compound annual growth rate of around 5% over the next five years. This trend not only supports the Distillers Dried Grains with Solubles (DDGS) Market but also contributes to broader environmental goals, such as reducing greenhouse gas emissions and promoting circular economies.

Rising Demand for Animal Feed

The increasing global population and the corresponding rise in meat consumption are driving the demand for animal feed, particularly in the Distillers Dried Grains with Solubles (DDGS) Market. DDGS serves as a high-protein feed ingredient, appealing to livestock producers seeking cost-effective alternatives to traditional feed sources. In recent years, the market for DDGS has expanded, with production levels reaching approximately 40 million metric tons annually. This growth is indicative of the livestock sector's reliance on DDGS to meet nutritional requirements while managing feed costs. As the demand for meat continues to escalate, the Distillers Dried Grains with Solubles (DDGS) Market is poised for further expansion, potentially leading to increased production capacities and innovations in feed formulations.

Technological Innovations in Processing

Advancements in processing technologies are significantly impacting the Distillers Dried Grains with Solubles (DDGS) Market. Innovations such as enzyme applications and improved drying techniques enhance the nutritional profile and digestibility of DDGS, making it more appealing to livestock producers. These technological improvements have the potential to increase the market share of DDGS in animal feed formulations. Furthermore, the integration of data analytics and automation in production processes is likely to optimize efficiency and reduce costs. As these technologies continue to evolve, the Distillers Dried Grains with Solubles (DDGS) Market may experience enhanced competitiveness against other feed ingredients, thereby expanding its market presence.

Increasing Awareness of Nutritional Benefits

There is a growing awareness among livestock producers regarding the nutritional benefits of Distillers Dried Grains with Solubles (DDGS), which is driving its adoption in the animal feed sector. DDGS is rich in protein, fiber, and essential nutrients, making it an attractive option for enhancing the diets of various livestock species. As producers seek to improve feed efficiency and animal health, the demand for DDGS is likely to rise. Market studies indicate that the inclusion of DDGS in feed formulations can lead to improved weight gain and feed conversion ratios. This heightened awareness of the nutritional advantages of DDGS is expected to propel the Distillers Dried Grains with Solubles (DDGS) Market forward, as more producers recognize its value in optimizing livestock performance.

Market Segment Insights

By Sources: Brewers (Largest) vs. Bio-Fuel Plants (Fastest-Growing)

In the Distillers Dried Grains with Solubles (DDGS) market, the segment breakdown shows brewers as the largest source, reflecting their established usage of DDGS as a high-protein feed supplement. Brewers utilize DDGS in significant volumes due to their existing production infrastructures, contributing to a dominant market share. In contrast, bio-fuel plants, while smaller in current share, are rapidly increasing their adoption of DDGS, driven by the need for cost-effective feedstock alternatives to meet rising energy demands. Growth trends indicate a shift towards alternative protein sources, with bio-fuel plants showing the most dynamic expansion in using DDGS. Regulatory support for renewable energy sources is bolstering market interest from bio-fuel operators. Additionally, the rising global demand for sustainable and affordable animal feed is propelling brewers to integrate DDGS into their sourcing strategies more aggressively.

Brewers (Dominant) vs. Bio-Fuel Plants (Emerging)

Brewers, as a dominant source of Distillers Dried Grains with Solubles (DDGS), maintain a robust market presence due to their extensive production volumes and longstanding relationships within the agricultural supply chain. DDGS serves as an essential ingredient for livestock feed, benefiting from its high nutritional value. The brewing process generates large quantities of DDGS, which brewers utilize efficiently. Conversely, bio-fuel plants represent the emerging segment, increasingly incorporating DDGS as a sustainable feedstock option. This shift is driven by a growing recognition of the environmental benefits associated with biofuels and the need for cost-effective alternatives. As bio-fuel development accelerates, these plants are likely to leverage DDGS further, facilitating a shift towards more renewable energy initiatives.

By Application: Animal Feed (Largest) vs. Food and Beverage Industry (Fastest-Growing)

In the Distillers Dried Grains with Solubles (DDGS) market, the application segment is mainly categorized into Animal Feed, Food and Beverage Industry, and Others. Among these, Animal Feed holds the largest market share, largely due to its prevalent use as a cost-effective and high-protein feed alternative in livestock and poultry. The Food and Beverage sector, while smaller in share, is witnessing an increase in adoption of DDGS as a functional ingredient, supporting its growth potential in the coming years. Growth trends in the DDGS application segment are shaped by rising demand for sustainable and nutritious feed options in agriculture, coupled with a growing inclination among food and beverage companies to enhance nutritional profiles using plant-based ingredients. This dual demand for DDGS in both sectors is steering innovation that focuses on improving product quality and functionality, thereby reinforcing a more robust market environment for DDGS applications over the forecast period.

Animal Feed (Dominant) vs. Food and Beverage Industry (Emerging)

The Animal Feed segment is recognized as the dominant player in the DDGS market, primarily due to its established role in livestock nutrition and the decreasing costs associated with DDGS production. It is known for its high protein content and high digestibility, making it a preferred ingredient for producers looking to optimize animal health and growth rates. On the other hand, the Food and Beverage Industry is an emerging segment that is gradually gaining traction as manufacturers explore the benefits of incorporating DDGS into food applications. The appeal of DDGS in this sector lies in its versatility as a protein source, not only enhancing the nutritional value of products but also offering cost advantages in formulation. As consumer preferences shift towards more sustainable and protein-rich diets, the food segment is poised for increased growth and innovation.

By Form: Pellets (Largest) vs. Powder (Fastest-Growing)

In the Distillers Dried Grains with Solubles (DDGS) market, the distribution of market share is primarily led by the pellets form, which accounts for the largest portion due to its high usability in animal feeds and convenience in handling. Conversely, the powder form, although smaller in share, is witnessing significant growth as it finds applications in various sectors, including food production and nutraceuticals, due to its versatility and efficient integration into different formulations.

Pellets (Dominant) vs. Powder (Emerging)

Pellets are the dominant form in the DDGS market, favored for their ease of transportation and consistent nutritional profile, making them a preferred choice among livestock producers. In contrast, the powder form is emerging rapidly as an alternative, capturing attention for its adaptability in diverse end-user applications, such as protein supplements in the food industry and as a natural additive in health products. This transition is largely driven by the increasing demand for functional ingredients and convenience in production processes, allowing the powder variant to carve out a niche in segments that prioritize formulation flexibility and customization.

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Regional Insights

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.

Distillers Dried Grains Solubles Market Regional Image

Key Players and Competitive Insights

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 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 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.

Key Companies in the Distillers Dried Grains Solubles Market include

Industry Developments

animal nutrition

Future Outlook

Distillers Dried Grains Solubles Market Future Outlook

The Distillers Dried Grains with Solubles (DDGS) market is projected to grow at a 5.66% CAGR from 2025 to 2035, driven by increasing demand for sustainable animal feed and biofuel production.

New opportunities lie in:

  • Expansion into emerging markets with tailored DDGS products
  • Development of value-added DDGS products for niche markets
  • Investment in advanced processing technologies to enhance product quality

By 2035, the DDGS market is expected to solidify its position as a key player in sustainable agriculture.

Market Segmentation

Distillers Dried Grains Solubles Market Form Outlook

  • Pellets
  • Powder
  • Others

Distillers Dried Grains Solubles Market Sources Outlook

  • Brewers
  • Bio-Fuel Plants
  • Others

Distillers Dried Grains Solubles Market Application Outlook

  • Animal Feed
  • Food and Beverage Industry
  • Others

Report Scope

MARKET SIZE 202411.19(USD Billion)
MARKET SIZE 202511.82(USD Billion)
MARKET SIZE 203520.51(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)5.66% (2025 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledPOET LLC (US), Green Plains Inc. (US), Valero Energy Corporation (US), Archer Daniels Midland Company (US), Cargill, Incorporated (US), The Andersons, Inc. (US), Bunge Limited (US), CHS Inc. (US), Pacific Ethanol, Inc. (US)
Segments CoveredSources, Application, Form, Region
Key Market OpportunitiesGrowing demand for sustainable animal feed solutions drives innovation in the Distillers Dried Grains with Solubles (DDGS) Market.
Key Market DynamicsRising demand for sustainable animal feed drives innovation and competition in the Distillers Dried Grains with Solubles market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Pradeep Nandi
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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FAQs

What is the projected market valuation of the Distillers Dried Grains with Solubles (DDGS) market by 2035?

The projected market valuation of the DDGS market is expected to reach 20.51 USD Billion by 2035.

What was the market valuation of the DDGS market in 2024?

The overall market valuation of the DDGS market was 11.19 USD Billion in 2024.

What is the expected CAGR for the DDGS market during the forecast period 2025 - 2035?

The expected CAGR for the DDGS market during the forecast period 2025 - 2035 is 5.66%.

Which companies are considered key players in the DDGS market?

Key players in the DDGS market include POET LLC, Green Plains Inc., Valero Energy Corporation, and Archer Daniels Midland Company.

What are the main applications of DDGS in the market?

The main applications of DDGS in the market include animal feed, food and beverage industry, and others, with animal feed valued at 11.5 USD Billion by 2035.

How is the DDGS market segmented by sources?

The DDGS market is segmented by sources, with bio-fuel plants projected to reach 10.09 USD Billion by 2035.

Research Approach

Research Methodology on Distillers Dried Grains Soluble Market

1. Introduction

Market Research Future (MRFR)’s report on the Distillers Dried Grains Solubles (DDGS) Market incorporates an in-depth analysis of the market, along with a study of the market dynamics and trends that are influencing the growth of this market. The report also provides an exhaustive qualitative and quantitative assessment of the market to give a detailed understanding of the current market status and the factors that have influenced the growth of the market. The report offers a detailed assessment of the key growth factors, trends, and opportunities that can impact the growth of the market over the forecast period of 2023 - 2030.

2. Research Design

For this research, Market Research Future (MRFR) adopted an exploratory research design to identify the current trends and opportunities in the market. The report is based on both primary and secondary research, where primary research involves thoroughly understanding the market dynamics through interviews and surveys conducted with industry experts. Secondary research involves data collected from the company’s databases, external and internal sources, and relevant industry literature.

The report also involves synthesizing the information collected through primary and secondary research, which were then collated to predict the growth of the market. The report started with a broad overview of the market and narrowed it down to understand the market dynamics, trends and opportunities in the market.

3. Research Process

The research process adopted by MRFR is based on the three-pronged approach, namely, primary research, secondary research, and market analysis.

a. Primary Research

For primary research, MRFR conducted extensive interviews and surveys with industry experts and key opinion leaders to understand the current trends and dynamics in the market. This research gave the team insight into the future of the market and the strategies and tactics used by the players to retain their market share.

b. Secondary Research

Secondary research involves the team conducting extensive research on the market and gathering data from the company’s databases, external and internal sources, and relevant literature. This data is then used for market analysis.

c. Market Analysis

Market research involves extensively analysing the data and information collected through primary and secondary research, in addition to the market intelligence gained through interviews and surveys. The data is analysed and the key findings are reported in the MRFR report on the Distillers Dried Grains Soluble (DDGS) Market.

4. Research Focus

The focus of the research is on understanding the current trends and opportunities in the market and predicting the future of the market. The research also analyses the players’ strategies and tactics used to retain and increase their market share.

5. Market Size Estimation

The market size estimation involves making projections for the market size for the forecast period 2023 to 2030. This is based on the market intelligence gained through primary and secondary research.

6. Market Breakdown and Data Triangulation

The market is divided into segments and sub-segments and the data was then triangulated to understand the differences in demand between different regions and end-use industries.

7. List of Secondary Sources

To have a clear understanding of the market, the team analysed the following sources:

  • Company websites
  • Company databases
  • Industry whitepapers
  • Annual reports
  • Investor presentations
  • SEC filings
  • Industry magazines
  • Industry associations
  • Databases of government organizations and published journals

8. List of Primary Sources

Primary research is based on interviews and surveys conducted with key opinion leaders and industry experts, who provided first-hand insights into the market.

9. Expert Panel Validation

MRFR conducted an expert panel validation process to validate the findings and assumptions of the report. The panel consisted of industry professionals and senior management professionals.

10. Report Assumptions

The report makes the following assumptions:

  • Europe would continue to be the largest DDGS market, followed by North America and Asia Pacific.
  • The growing demand for DDGS as an animal feed will continue to act as a major driver of the DDGS market.
  • The prices of DDGS are expected to remain steady over the forecast period.
  • The increasing number of governments providing subsidies and incentives to bioethanol producers will impact the market positively.

11. Data Collection Methods

Data collection methods adopted by MRFR included interviews and surveys conducted with key opinion leaders and industry experts, in addition to secondary research.

12. Market Parameterization Details

The parameters of this report include market overview, market dynamics, regional outlook, competition landscape, and detailed market segmentation.

13. Conclusion

With this report, the team at MRFR has shed light on the current and future trends, opportunities and threats in the DDGS market. The report provides a detailed understanding of the market, along with the key strategies adopted by the players to retain and increase their market share. The report also provides a detailed analysis of the market to provide a depth understanding of the growth of this market.

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