Distillers Grains Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Distillers' grain is a market with a considerable future, the size of which is expected to reach $17 billion in 2034. The average annual growth rate (CAGR) of this market is 4.8% over the forecast period. The main driving force is the growing demand for high-quality feed resulting from the growing world population and the consequent need for sustainable agriculture. Distillers' grains, a cheap and nourishing feed for animals, are also increasingly used as a result of the development of fermentation and the increasing use of the by-products of the biofuel industry. The major distillers' grains producers, such as Archer Daniels Midland, POET, and Green Plains, are pursuing a strategic plan to benefit from this development. They are investing in research and development to improve the nutritional value of the grain, and they are negotiating strategic alliances to increase their reach. For example, the recent collaborations to improve the efficiency of production and the implementation of sustainable practices show the commitment of the industry to meet the changing needs of the agricultural sector. These factors will have a significant impact on the future of the distillers' grain market.

Regional Market Size

Regional Deep Dive

Distillers' grains have been growing in several regions of the world, with the increasing demand for animal feed and the growing popularity of biofuels. In North America, particularly in the United States, distillers' grains are a major part of the livestock diet. In Europe, where the quality and safety of animal feeds is regulated, distillers' grains are in high demand, especially in Scandinavia. Asia-Pacific, with its rapidly growing livestock sector, is also experiencing strong growth. The Middle East and Africa are beginning to take advantage of the cost-effectiveness of distillers' grains, and Latin America is expanding its production capacity, taking advantage of its agricultural strengths. Each region offers opportunities and challenges that define the overall distillers' grains market.

Europe

• The European Union has implemented regulations that promote the use of sustainable feed ingredients, which has led to increased interest in distillers grains as a viable alternative to traditional feed sources.
• Key players like AB Agri and Trouw Nutrition are investing in research to enhance the digestibility and nutritional value of distillers grains, which is expected to drive adoption among European livestock farmers.

Asia Pacific

• Countries like China and India are rapidly increasing their livestock production, leading to a higher demand for cost-effective feed solutions, including distillers grains, which are being promoted by local agricultural ministries.
• Innovative partnerships between distillers and feed manufacturers are emerging, focusing on the development of specialized feed formulations that incorporate distillers grains to meet the nutritional needs of various livestock species.

Latin America

• Brazil and Argentina are leveraging their strong agricultural sectors to increase the production of distillers grains, with government programs aimed at enhancing feed efficiency in livestock.
• The region is witnessing collaborations between distilleries and livestock producers to create tailored feed solutions that utilize distillers grains, which is expected to improve livestock productivity.

North America

• The U.S. is the largest producer of distillers grains, with organizations like the Renewable Fuels Association advocating for the use of these by-products in animal feed, which is expected to enhance market penetration.
• Recent innovations in processing technologies have improved the nutritional profile of distillers grains, making them more appealing to livestock producers, particularly in the dairy and poultry sectors.

Middle East And Africa

• The growing awareness of the benefits of distillers grains in animal nutrition is being supported by initiatives from organizations like the Food and Agriculture Organization (FAO), which is promoting sustainable livestock practices.
• Local governments are beginning to recognize the potential of distillers grains as a feed resource, leading to regulatory changes that facilitate their use in animal husbandry.

Did You Know?

“Distillers grains can contain up to 30% protein, making them a highly nutritious feed option for livestock, often at a lower cost than traditional feed ingredients.” — U.S. Grains Council

Segmental Market Size

The distillers' grains market, an important sector of the animal feed industry, is currently undergoing a phase of continuous growth, owing to the growing demand for high-quality feedstuffs. The increase in world meat consumption and the need for sustainable feed solutions that reduce the dependence on cereals are driving this demand. Moreover, government policies that encourage the use of by-products in animal feed are also boosting the market. The distillers' grains market is in a mature phase, with key market players such as Archer Daniels Midland and Yazoo Mills Inc., and POET, Inc., actively integrating these products into their offerings. The primary use of distillers' grains is in livestock feed, particularly for pigs and cattle, where they serve as a cost-effective source of protein. However, the rising trend toward sustainable practices and the adoption of a circular economy are further driving the distillers' grains market. Moreover, the development of new fermentation processes and the use of nutrient-optimization methods will shape the future of the market, ensuring that distillers' grains remain a viable and competitive option in the animal feed market.

Future Outlook

From 2025 to 2034 the distiller's grains market is expected to grow at a CAGR of 4.8% from $12,732,580,000 to $19,471,200,000. This growth is driven by the growing demand for sustainable animal feeds, as livestock producers are increasingly looking for cheap and nutrient-rich feeds. In this way, the share of distiller's grains in the animal feed market is expected to increase, and by 2034, the proportion of distiller's grains in the diets of certain livestock is expected to reach up to 30 percent. This is mainly due to the need for high-quality feeds in the face of fluctuating grain prices and increasing demand for meat around the world. The development of new production and use of distiller's grains is expected to further promote market growth. The development of new fermentation and enzyme technology is expected to improve the nutritional value and digestibility of distiller's grains, thus increasing their appeal to livestock producers. The implementation of government policies to encourage biofuel production and sustainable agriculture is also expected to drive the market. The increasing influence of consumers on the environment is also expected to promote the distiller's grains market, as distiller's grains are expected to become an important component of the future of animal nutrition.