Distillers Grains Market

 Corn-based distillers' grains are a significant element in ethanol production, which is helping to drive market growth

The market CAGR for global distillers' grains is boosting demand for corn-based distillers' grains, which are a critical ingredient in ethanol production. Moreover, Distiller's grain sales are being promoted all over the world by factors including the rising demand for dried distillers' grain as a long-lasting product that provides animals with the necessary nutritional supplement and is practical for distribution and storage. The preference of distillers' grain among consumers is also a result of the fact that it helps livestock grow physically and, in addition to assuring high-quality meat, also offers exceptional performance in the areas of milking and egg-laying.

Furthermore, Cattle diets frequently contain distillers grains (DDG), a corn by-product of the ethanol production. By lowering the amount of the highly fermentable carbohydrate starch, distillers can be utilized in diets as a reliable supply of protein and thus lower the risk of acidosis. Droughts, energy prices, and other variables can affect the cost and availability of distillers grains. Diets may contain less crude protein and more starch-altering rumen fermentation characteristics and feeding behavior if including distillers grains in diets is no longer feasible or cost-effective.

There is limited research on how distillers inclusion impacts feeding behavior, despite the fact that the impact of distillers grains on cattle growth performance and carcass attributes has received considerable attention. As a result, the goal of this experiment was to see how low inclusion levels of DDG affected feeding behavior in finishing heifers fed a high-moisture corn-based diet. This study found that modest amounts of distillers grains had minimal effect on growth performance but can change feeding behavior and minimize variability in eating behavior features.

For instance, the USDA estimates that the number of cattle and calves will reach 93.8 million in 2022. This indicated a rise in population, which led to an increase in feed demand. Demand for DDGS has increased recently in areas with strong cattle output, including the United States. Because of the increasing animal population, there is an increased demand for milk and meat, which necessitates high feed ratios and supports the expansion of the DDGS industry. Thus, driving the distillers grains market revenue.

Global trade dynamics significantly affect the Global Distillers Grains Market Industry. The international demand for distillers grains is influenced by trade agreements, tariffs, and export policies. Countries with robust livestock sectors, such as China and Mexico, are increasingly importing distillers grains to meet their feed requirements. This trend is likely to bolster market growth, as producers seek to capitalize on export opportunities. The interplay between domestic production and international demand shapes the market landscape, potentially leading to fluctuations in pricing and availability. As trade relationships evolve, the market is poised for continued expansion.

The Global Distillers Grains Market Industry experiences a notable increase in demand for high-protein animal feed. Distillers grains, a byproduct of ethanol production, serve as a valuable feed ingredient for livestock, particularly in regions with intensive animal farming. As the global population continues to grow, the need for sustainable and efficient animal feed sources becomes paramount. In 2024, the market is projected to reach 12.1 USD Billion, reflecting the growing reliance on distillers grains to meet protein requirements in animal nutrition. This trend is likely to persist, as livestock producers seek cost-effective alternatives to traditional feed ingredients.

Sustainability plays a crucial role in shaping the Global Distillers Grains Market Industry. The increasing emphasis on environmentally friendly practices drives the adoption of distillers grains, which contribute to reduced waste in the ethanol production process. By utilizing these byproducts, producers can minimize their carbon footprint and enhance resource efficiency. Furthermore, consumers are becoming more conscious of the environmental impact of their food choices, prompting a shift towards sustainable animal feed options. This trend aligns with the projected growth of the market, which is expected to reach 20.4 USD Billion by 2035, indicating a long-term commitment to sustainable agricultural practices.

The expansion of ethanol production facilities worldwide has a direct impact on the Global Distillers Grains Market Industry. As more facilities come online, the volume of distillers grains available for use as animal feed increases, thereby supporting market growth. Regions such as North America and Brazil are witnessing significant investments in ethanol production, driven by favorable government policies and a shift towards renewable energy sources. This expansion not only enhances the supply of distillers grains but also strengthens the overall agricultural economy. The anticipated growth in the market underscores the interconnectedness of renewable energy and agricultural sectors.

Technological innovations in ethanol production significantly influence the Global Distillers Grains Market Industry. Enhanced fermentation processes and improved extraction techniques lead to higher yields of distillers grains, making them more economically viable for producers. These advancements not only increase the availability of distillers grains but also improve their nutritional profile, making them more appealing as animal feed. As the industry evolves, the integration of cutting-edge technologies is likely to drive market growth, with a projected compound annual growth rate (CAGR) of 4.83% from 2025 to 2035. This growth trajectory underscores the importance of innovation in meeting global feed demands.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American market dominates the global market in terms of income due to the high production and consumption of distillery grain and increased government initiatives to facilitate trade in products promoted by the Council of Grains of the States.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Distillers Grains Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s distillers grains market accounts for the second-largest market share due to increase in the number of livestock has raised the demand for quality nutritional feed which has propelled the demand for distillers’ grain in the region. Further, the German distillers grains market held the largest market share, and the UK distillers grains market was the fastest-growing market in the European region

The Asia-Pacific Distillers Grains Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing adoption of distillery grains, higher purchasing power and modernization of machinery equipment raw materials and the livestock industry in the countries of the region. Moreover, China’s distillers grains market held the largest market share, and the Indian distillers grains market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in R&D to expand their product lines, which will help the distillers grains market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, distillers grains industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global distillers grains industry to benefit clients and increase the market sector. In recent years, the distillers grains industry has offered some of the most significant advantages to medicine. Major players in the distillers grains market, including CropEnergies AG (Germany), Purina Animal Nutrition (Land O' Lakes) (US), Husky Energy (Canada), Bunge Limited (US) and others, are attempting to increase market demand by investing in R&D operations.

The Archer-Daniels-Midland Company, or ADM, is an American global food processing and commodities trading firm headquartered in Chicago, Illinois, founded in 1902. The company has over 270 plants and 420 crop procurement facilities around the world where cereal grains and oilseeds are processed into products utilized in the food, beverage, nutraceutical, industrial, and animal feed markets. ADM was placed No. 38 on the 2022 Fortune 500 list of the largest firms in the United States. In addition, the organization offers agricultural storage and shipping services. ADM's companies include American River Transportation Company and ADM Trucking, Inc.

In September 2021, Archer-Daniels-Midland Co (ADM.N), a U.S. grain merchant, announced the opening of a new flavor production facility in China to fulfill the rising demand for beverages and healthy meals.

DuPont de Nemours, Inc., generally abbreviated as DuPont, is a worldwide chemical business headquartered in Wilmington, Delaware, founded in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. The corporation had an important part in the development of Delaware, beginning as a major supplier of gunpowder. In the twentieth century, DuPont invented various polymers, including Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kapton, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona, Corfam, and Lycra, and its scientists invented many chemicals, most notably Freon (chlorofluorocarbons). It also created synthetic pigments and paints, such as ChromaFlair.

For instance, in January 2021, DuPont Nutrition & Biosciences, a Denmark-based bio-based company, launched the SYNERXIA Gemstone Collection, the next advancement in high-performance yeasts for the ethanol market designed for the unique needs of ethanol producers.SYNERXIA SAPPHIRE is developed to give a high ethanol yield boost compared to standard yeast and power through fermentation.