Distillers Dried Grains Solubles Market

Growth in Ethanol Production to boost market growth

The Global Distillers Dried Grains with Solubles (DDGS) Market Industry is closely linked to the growth in biofuel production, particularly ethanol. As the demand for renewable energy sources escalates, the production of ethanol from corn and other grains increases, subsequently generating more DDGS as a byproduct. This relationship is crucial, as the expansion of biofuel facilities not only boosts DDGS availability but also enhances its market value. The anticipated CAGR of 5.66% from 2025 to 2035 underscores the potential for growth driven by the biofuel sector, reinforcing the importance of DDGS in both energy and agricultural markets.

The Global Distillers Dried Grains with Solubles (DDGS) Market Industry benefits from the nutritional advantages that DDGS offers as a feed ingredient. Rich in protein, fiber, and essential amino acids, DDGS serves as a valuable supplement for livestock diets. Its high energy content and digestibility make it an attractive option for farmers seeking to enhance animal performance and health. As awareness of these benefits spreads among livestock producers, the adoption of DDGS is likely to increase, further driving market growth. This trend is particularly relevant in regions with intensive livestock operations, where feed efficiency is paramount.

The Global Distillers Dried Grains with Solubles (DDGS) Market Industry is characterized by various trends and projections that shape its future. The market is expected to grow from a valuation of 11.2 USD Billion in 2024 to an estimated 20.5 USD Billion by 2035, indicating a robust growth trajectory. The anticipated CAGR of 5.66% from 2025 to 2035 reflects the increasing adoption of DDGS in various applications, driven by factors such as rising demand for sustainable feed options and the expansion of biofuel production. These trends suggest a promising outlook for the DDGS market, with opportunities for stakeholders to capitalize on emerging developments.

The Global Distillers Dried Grains with Solubles (DDGS) Market Industry experiences a notable surge in demand for animal feed, driven by the increasing livestock population and the need for high-protein feed alternatives. DDGS serves as a cost-effective and nutritious feed option, particularly in poultry and swine production. As of 2024, the market is valued at approximately 11.2 USD Billion, reflecting the growing reliance on DDGS in animal husbandry. This trend is expected to continue, with projections indicating a market value of 20.5 USD Billion by 2035, highlighting the potential for sustained growth in the sector.

The Global Distillers Dried Grains with Solubles (DDGS) Market Industry is increasingly influenced by sustainability and environmental concerns. As consumers and producers alike prioritize eco-friendly practices, the use of DDGS, a byproduct of biofuel production, aligns with these values. Utilizing DDGS reduces waste and promotes a circular economy, appealing to environmentally conscious stakeholders. Furthermore, the incorporation of DDGS in animal feed contributes to lower greenhouse gas emissions compared to traditional feed sources. This alignment with sustainability goals positions the DDGS market favorably in the context of global agricultural practices.

The Global Distillers Dried Grains with Solubles (DDGS) Market Industry is witnessing a trend towards market diversification and product innovation. As producers explore new applications for DDGS beyond traditional animal feed, opportunities arise in sectors such as pet food, aquaculture, and even human food products. This diversification not only broadens the market base but also enhances the value proposition of DDGS. Innovative processing techniques and formulations are being developed to cater to specific nutritional needs, thereby expanding the potential customer base. This trend indicates a dynamic market landscape, where adaptability and innovation are key drivers of growth.

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.

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 2021, 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 2021, 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.