Global Distiller’s Dried Grains With Solubles Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

The Global Distillers Dried Grains with Solubles (DDGS) Market is segmented by various sources of production, applications, and forms, reflecting the diverse uses and sources of this valuable co-product. DDGS is primarily produced as a byproduct of ethanol production, with bio-fuel plants and brewers being the main sources of DDGS. Bio-fuel plants utilize grains such as corn, wheat, and barley to produce ethanol, with DDGS being generated as a co-product after the fermentation and distillation process. Similarly, brewers utilize grains in the brewing process, and DDGS is produced as a byproduct during the fermentation and brewing stages. Additionally, other sources such as distilleries may also contribute to DDGS production, further diversifying its sources.

In terms of applications, DDGS finds extensive use across various industries, with animal feed being the predominant application. Due to its high protein, fiber, and energy content, DDGS serves as an essential ingredient in animal feed formulations, particularly for poultry, swine, and cattle. The food and beverage industry also utilizes DDGS in various applications, including bakery products, snacks, and fermentation processes. DDGS may be incorporated into food products as a protein-rich ingredient or utilized in fermentation processes to produce bio-based products such as enzymes, organic acids, and biofuels. Furthermore, DDGS finds applications in other sectors such as aquafeed, pet food, and industrial applications, showcasing its versatility and broad market appeal.

The form of DDGS available in the market includes pellets, powder, and other forms. Pelleted DDGS offers advantages such as improved handling, reduced dustiness, and enhanced flowability, making it easier to handle, transport, and store. Powdered DDGS, on the other hand, may offer greater versatility in feed formulations and processing applications, allowing for easier mixing and blending with other ingredients. Other forms of DDGS may include granules, flakes, or customized formulations tailored to specific end-user requirements. The availability of DDGS in different forms allows for greater flexibility and customization in feed formulations, catering to the diverse needs and preferences of feed manufacturers and end-users across various industries.

The segmentation of the Global DDGS Market by sources, applications, and forms highlights the diverse sources of production, broad range of applications, and versatility in form that characterize the DDGS market. As demand for sustainable feed ingredients continues to rise, DDGS remains a valuable co-product of ethanol production, offering a sustainable and cost-effective solution for animal nutrition and various industrial applications.

Global Distillers Dried Grains With Solubles Segement Analysis

In this report, the Global Distillers Dried Grains With Solubles Market has been segmented by Sources, Application, Form and Geography.

Global Distillers Dried Grains With Solubles Market, Segmentation by Sources

The Global Distillers Dried Grains With Solubles Market has been segmented by Sources into Brewers, Bio-Fuel Plants and Others.

The Global Distillers Dried Grains with Solubles (DDGS) Market is segmented by sources, reflecting the diverse origins of this valuable co-product. One of the primary sources of DDGS production is bio-fuel plants, which utilize grains such as corn, wheat, and barley in the ethanol production process. During fermentation and distillation to produce ethanol, the non-fermentable components of the grains are separated as DDGS. This process ensures efficient utilization of grains, contributing to the sustainability of the biofuel industry while generating a valuable feed ingredient.

Another significant source of DDGS is brewers, particularly those involved in beer production. Brewers utilize grains in the brewing process, and DDGS is generated as a byproduct after fermentation. While brewers primarily focus on producing beer, the production of DDGS allows for the efficient utilization of grains, minimizing waste and enhancing the sustainability of the brewing process. Additionally, DDGS produced by brewers may have unique nutritional profiles depending on the grains and brewing methods used, offering opportunities for specialized applications in animal nutrition and other industries.

In addition to bio-fuel plants and brewers, other sources such as distilleries may also contribute to DDGS production. Distilleries involved in spirits production, such as whiskey or vodka, may produce DDGS as a byproduct during fermentation and distillation processes. While these sources may represent a smaller proportion of overall DDGS production compared to bio-fuel plants and brewers, they contribute to the overall availability and diversity of DDGS in the market.

The segmentation of the Global DDGS Market by sources underscores the importance of various industries in generating this valuable co-product. By utilizing grains in ethanol production, beer brewing, and other processes, these industries not only contribute to the production of renewable fuels and beverages but also generate a valuable feed ingredient that supports the sustainability and efficiency of the agricultural and livestock feed sectors.

Global Distillers Dried Grains With Solubles Market, Segmentation by Application

The Global Distillers Dried Grains With Solubles Market has been segmented by Application into Animal Feed, Food And Beverage Industry and Others.

The Global Distillers Dried Grains with Solubles (DDGS) Market is segmented by application, reflecting the diverse uses of this versatile co-product across various industries. One of the primary applications of DDGS is in the animal feed industry, where it serves as a valuable ingredient in livestock and poultry diets. DDGS is renowned for its high protein, fiber, and energy content, making it an ideal feed ingredient for enhancing animal growth, performance, and health. Poultry, swine, and cattle are among the primary beneficiaries of DDGS supplementation, as it helps meet their nutritional requirements and contributes to cost-effective feed formulations.

Beyond the animal feed industry, DDGS finds applications in the food and beverage industry, where it serves as a valuable ingredient in various products and processes. In the food industry, DDGS may be incorporated into bakery products, snacks, cereals, and other food products as a source of protein, fiber, and other nutrients. Its use in food products adds nutritional value, enhances texture, and provides a sustainable alternative to conventional ingredients. Additionally, DDGS can be utilized in fermentation processes to produce bio-based products such as enzymes, organic acids, and biofuels, contributing to the sustainability and circularity of the food and beverage industry.

DDGS finds applications in other sectors such as aquafeed, pet food, and industrial applications. In aquafeed formulations, DDGS serves as a valuable protein source for fish and shrimp, supporting their growth and development in aquaculture systems. Similarly, in the pet food industry, DDGS may be incorporated into pet food formulations to provide essential nutrients and enhance palatability. In industrial applications, DDGS may be utilized as a raw material in biorefineries, fermentation processes, and bioremediation applications, showcasing its versatility and potential beyond traditional feed and food applications.

The segmentation of the Global DDGS Market by application highlights the diverse uses and applications of this valuable co-product across multiple industries. From animal feed to food and beverage, aquafeed, pet food, and industrial applications, DDGS continues to play a pivotal role in supporting sustainable agriculture, food production, and industrial processes worldwide. As demand for sustainable feed ingredients and bio-based products continues to rise, DDGS remains a valuable and versatile solution for meeting the evolving needs of various industries while promoting resource efficiency and environmental sustainability.

Global Distillers Dried Grains With Solubles Market, Segmentation by Form

The Global Distillers Dried Grains With Solubles Market has been segmented by Form into Pellets, Powder and Others.

One of the primary forms of DDGS is pellets. Pelleted DDGS offers several advantages, including improved handling, reduced dustiness, enhanced flowability, and ease of storage. Pellets are compacted and formed into uniform granules, making them easier to handle, transport, and store compared to loose or powdered forms. Additionally, pelleted DDGS may have enhanced palatability and digestibility, making it an attractive option for animal feed manufacturers and livestock producers seeking convenience and efficiency in feed formulations.

Another common form of DDGS is powder. Powdered DDGS is finely ground into a fine, granular form, offering versatility in feed formulations and processing applications. Powdered DDGS can be easily mixed, blended, and incorporated into feed formulations, allowing for precise control over nutrient content and feed composition. Additionally, powdered DDGS may offer greater surface area and digestibility compared to pelleted forms, facilitating rapid digestion and nutrient absorption in animals.

In addition to pellets and powder, DDGS may also be available in other forms such as crumbles, flakes, or customized formulations tailored to specific end-user requirements. These alternative forms may offer unique characteristics or processing advantages depending on the intended application and industry. For example, flaked DDGS may have enhanced texture and palatability, making it suitable for certain animal feed formulations or specialty food products.

The segmentation of the Global DDGS Market by form underscores the importance of physical presentation and handling characteristics in meeting the diverse needs and preferences of consumers and end-users across various industries. Whether in pelleted, powdered, or other forms, DDGS remains a valuable and versatile feed ingredient and industrial co-product, contributing to the sustainability, efficiency, and profitability of agricultural and industrial sectors worldwide.

Global Distillers Dried Grains With Solubles Market, Segmentation by Geography

In this report, the Global Distillers Dried Grains With Solubles Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Distillers Dried Grains With Solubles Market Share (%), by Geographical Region, 2023

North America continues to have the largest market for corn-based distillers' dried grains with solubles. DDGS is a co-product of the distillery industries. The majority (~98%) of the DDGS in North America comes from dry-grind plants that produce ethanol for the biofuel industry. The United States dominates the market due to the extensive biofuel production in the country. According to the US Grain council, the United States ethanol plants possess the capacity to produce more than 15 billion gallons of ethanol and 44 million metric tons of DDGS driving the parallel expansion of the DDGS market. This can be attributed to the regulatory oversight of the US Food and Drug Administration, which ensures that ethanol plants comply with preventive control requirements as mandated by the Food Safety Modernization Act (FSMA). This federal rule requires facilities to follow hazard-free and safe manufacturing practices for animal food production. These preventive controls provide a formal assurance to buyers worldwide that American ethanol co-products continue to be safe feed ingredients.

The United States leads in the production as well as exports of DDGS. It had a major share of production and export with 44 million metric ton and 11 million metric ton, respectively, in 2021. Mexico is now the top buyer of US DDGS, which has been made possible by the North American Free Trade Agreement (NAFTA) through its market development measures and trade interrelationships.

This report provides an in depth analysis of various factors that impact the dynamics of Global Distillers Dried Grains With Solubles Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers :

• Increasing Demand for Animal Feed
• Expansion of Ethanol Production
• Cost-Effectiveness and Feed Efficiency

• Nutritional Benefits - Distillers Dried Grains with Solubles (DDGS) offer significant nutritional benefits, making them a valuable component in animal feed formulations and various food products. As a co-product of ethanol production, DDGS retains much of the nutritional value of the original grains used in fermentation, making it rich in protein, fiber, and energy. DDGS typically contains around 25-30% protein on a dry matter basis, providing a valuable source of amino acids essential for animal growth and muscle development. This high protein content makes DDGS particularly suitable for supplementing diets of livestock species such as poultry, swine, and cattle, where protein requirements are critical for optimal growth and performance.

  DDGS are rich in dietary fiber, with levels ranging from 8-12% on a dry matter basis. Fiber is essential for promoting digestive health and regulating bowel function in animals, contributing to overall gastrointestinal health and nutrient absorption. The fiber content in DDGS also helps to enhance feed bulk and promote satiety in animals, reducing the risk of digestive disorders and metabolic issues associated with high-concentrate diets.

  DDGS serve as an excellent source of energy for livestock, thanks to their high content of digestible carbohydrates and lipids. The carbohydrates in DDGS provide readily available energy for metabolic processes and physical activity, supporting animal maintenance, growth, and reproduction. Similarly, the lipid content in DDGS contributes to energy density and palatability, enhancing the overall energy value of feed rations and promoting efficient feed utilization in animals.

  DDGS contain essential vitamins, minerals, and micronutrients necessary for overall health and well-being. These include vitamins such as vitamin E, B-complex vitamins, and minerals such as phosphorus, potassium, and magnesium, which play vital roles in metabolic processes, immune function, and bone health. By incorporating DDGS into feed formulations, livestock producers can provide a balanced and nutritionally complete diet for their animals, supporting optimal health, performance, and productivity.

  The nutritional benefits of DDGS make them a valuable and versatile ingredient in animal feed formulations, providing essential nutrients, promoting digestive health, and optimizing energy utilization in livestock production systems. As the demand for sustainable and cost-effective feed ingredients continues to rise, DDGS remain a preferred choice for livestock producers seeking to optimize feed efficiency, improve animal performance, and enhance the sustainability of their operations.

Restraints :

• Competition from Alternative Feed Ingredients
• Quality Variability and Nutrient Content
• Storage and Handling Challenges

• Transportation Costs and Logistics - Transportation costs and logistics play a significant role in the global distribution and utilization of Distillers Dried Grains with Solubles (DDGS), impacting both producers and end-users across various industries. DDGS, being a co-product of ethanol production, is often produced in regions with high ethanol production capacities, such as the Midwest United States, Brazil, and parts of Europe. However, the demand for DDGS extends beyond these regions, necessitating efficient transportation networks to facilitate its distribution to end-users worldwide.

  One of the primary challenges related to transportation costs is the distance between ethanol production facilities and end-users, which can significantly impact freight expenses. Long transportation distances may increase fuel costs, trucking fees, and other logistical expenses, leading to higher overall transportation costs for DDGS. Additionally, transportation infrastructure and logistics capabilities vary across regions, influencing the efficiency and cost-effectiveness of DDGS distribution networks.

  The mode of transportation chosen for DDGS shipments can also affect transportation costs and logistics. While trucking is often used for short-distance transportation within domestic markets, international shipments typically rely on ocean freight or rail transportation, depending on the destination and proximity to ports or rail terminals. Each mode of transportation comes with its own set of costs, transit times, and logistical considerations, which must be carefully evaluated to optimize transportation efficiency and minimize costs.

  Fluctuations in fuel prices, currency exchange rates, and regulatory requirements can introduce additional uncertainties and complexities into transportation cost calculations. Fuel price volatility, for example, can impact the overall cost of transportation, while currency exchange rate fluctuations may affect the competitiveness of DDGS exports in international markets. Regulatory requirements related to transportation safety, environmental standards, and customs clearance procedures also influence transportation logistics and costs, requiring compliance measures and administrative efforts to ensure smooth and timely deliveries.

  To address transportation costs and logistics challenges, stakeholders in the DDGS supply chain often implement strategies such as route optimization, bulk shipping, and supply chain integration. By optimizing transportation routes, consolidating shipments, and leveraging economies of scale, producers and distributors can reduce transportation costs and improve supply chain efficiency. Additionally, investments in transportation infrastructure, technology, and logistics management systems can enhance visibility, traceability, and control over transportation processes, enabling better decision-making and cost management.

  Transportation costs and logistics represent critical considerations in the global distribution of DDGS, impacting the competitiveness, profitability, and sustainability of ethanol producers, feed manufacturers, and end-users worldwide. By addressing transportation challenges through strategic planning, collaboration, and innovation, stakeholders can mitigate costs, improve supply chain resilience, and ensure reliable access to DDGS as a valuable feed ingredient and industrial co-product.

Opportunities :

• Rising Demand for Protein-Rich Animal Feed
• Expansion of Ethanol Production and DDGS Availability
• Diversification of End-Use Applications

• International Market Expansion and Trade Opportunities - International market expansion and trade opportunities present significant avenues for the global distillers dried grains with solubles (DDGS) market, offering producers access to diverse markets and enhancing market competitiveness. As a co-product of ethanol production, DDGS is produced in regions with significant ethanol production capacities, such as the United States, Brazil, and parts of Europe. Expanding into international markets allows DDGS producers to diversify their customer base, reduce dependency on domestic markets, and capitalize on growing global demand for sustainable feed ingredients.

  One of the primary benefits of international market expansion is the ability to access new and emerging markets with growing demand for animal feed and sustainable protein sources. Countries in Asia, particularly China, Vietnam, and Thailand, have witnessed a surge in demand for protein-rich feed ingredients to support their rapidly expanding livestock industries. DDGS, with its high protein content and nutritional value, is well-suited to meet this demand and has emerged as a preferred feed ingredient in these markets.

  International market expansion provides DDGS producers with opportunities to leverage trade agreements, tariff reductions, and market liberalization policies to gain preferential access to foreign markets. Free trade agreements, such as the United States-Mexico-Canada Agreement (USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have facilitated trade flows and reduced trade barriers, creating favorable conditions for DDGS exports.

  International market expansion allows DDGS producers to capitalize on currency exchange rate differentials and arbitrage opportunities, optimizing pricing strategies and maximizing export revenues. Fluctuations in currency exchange rates can impact the competitiveness of DDGS exports, influencing purchasing decisions and trade flows in international markets. By monitoring currency markets and adapting pricing strategies accordingly, DDGS producers can mitigate currency risks and enhance market competitiveness.

  International market expansion enables DDGS producers to establish strategic partnerships, distribution networks, and market presence in key regions, enhancing brand visibility and market penetration. Collaborating with local distributors, feed manufacturers, and industry stakeholders allows DDGS producers to gain insights into market dynamics, consumer preferences, and regulatory requirements, facilitating market entry and expansion strategies.

  International market expansion and trade opportunities offer significant growth potential for the global DDGS market, enabling producers to tap into new markets, diversify revenue streams, and strengthen their competitive position in the global marketplace. By leveraging trade agreements, market access initiatives, and strategic partnerships, DDGS producers can capitalize on growing global demand for sustainable feed ingredients and drive market growth and profitability in the years to come.

Key players in Global Distillers Dried Grains With Solubles Market include :

• Archer Daniels Midland
• Globus Spirits Ltd
• CropEnergies
• CHS Inc
• Nugen Feeds & Foods
• J. D. HEISKELL HOLDINGS
• Kent Feeds

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis