Distillers Dried Grain Solubles Market Analysis and Global Forecast 2023-2033

Distillers Dried Grain Solubles Market Overview

The Distillers Dried Grain Solubles Market Size is expected to reach USD 9.41 Billion by 2033. The Distillers Dried Grain Solubles Market industry size accounted for USD 2.47 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 4.06% from 2023 to 2033. Distillers Dried Grain Solubles (DDGS) refer to the by-product of the ethanol production process from grains such as corn, wheat, and barley. DDGS are rich in protein, fiber, and other essential nutrients, making them a valuable feed ingredient for livestock and poultry. Due to their nutritional profile, DDGS are commonly used as a cost-effective alternative to traditional feed sources like corn and soybean meal. The utilization of DDGS in animal diets can improve animal performance and reduce feed costs for farmers. The Distillers Dried Grain Solubles market primarily revolves around the production, distribution, and utilization of this feed ingredient. Key players in the market include ethanol producers, livestock feed manufacturers, and traders involved in the buying and selling of DDGS.

Global Distillers Dried Grain Solubles Market Synopsis

COVID-19 Impact Analysis

COVID-19 pandemic had significant impacts on Distillers Dried Grain Solubles (DDGS) market. COVID-19 led to lockdowns, travel restrictions, and reduced economic activity, which affected fuel demand. As a result, many ethanol plants either scaled back production or temporarily shut down. Ethanol production is a key driver of DDGS supply, so disruptions in this industry could have influenced the availability of DDGS. The pandemic’s impact on consumer behavior and foodservice industry closures affected the demand for meat and dairy products. Reduced demand or temporary shutdowns in meat processing plants may have influenced the need for feed ingredients like DDGS. The pandemic-induced economic uncertainty could have led to price volatility in various markets, including feed ingredients like DDGS. Price fluctuations might have influenced decisions regarding feed formulation and usage.

Distillers Dried Grain Solubles Market Dynamics

The major factors that have impacted the growth of Distillers Dried Grain Solubles Market are as follows:

Drivers:

Ø  Livestock and Poultry Feed Demand

DDGS is a by-product of ethanol production from grains like corn, wheat, and barley. The demand for DDGS is closely tied to the production of ethanol. As ethanol production increases, so does the supply of DDGS. DDGS is widely used as a feed ingredient in the livestock and poultry industries due to its high protein and fiber content. The demand for meat and animal products influences the need for nutritious animal feed, which, in turn, drives the demand for DDGS. DDGS is a good source of protein, amino acids, and other essential nutrients. Its nutritional profile can enhance animal performance, leading to increased demand from livestock farmers seeking to improve their animals’ growth and health. DDGS is considered a sustainable feed option since it is a by-product of the ethanol production process. Using DDGS as animal feed reduces waste and supports circular economy principles, which align with sustainability goals for many stakeholders in the agriculture industry.

Restraint:

• Competition with Other Feed Ingredients

DDGS competes with various other feed ingredients, such as corn, soybean meal, and other protein sources, in the livestock and poultry feed industry. Fluctuations in the prices of these competing feed ingredients can impact the demand for DDGS, especially if alternative feed sources become more cost-competitive. Factors such as economic conditions, changes in livestock industry preferences, and shifts in government policies could also influence the DDGS market’s restraints. For the most current information on the restraints impacting the Distillers Dried Grain Solubles market, it’s advisable to consult more recent sources or market reports that reflect developments beyond September 2021.

Opportunity:

⮚      Growing Demand for Animal Protein:

The global population’s increasing demand for animal protein, including meat, dairy, and poultry products, has been driving the demand for high-quality animal feed. DDGS, being a rich source of protein and essential nutrients, presents an opportunity to meet this rising demand and support the livestock and poultry industries in producing more animal protein efficiently. As the demand for biofuels, such as ethanol, continues to grow, there may be opportunities to expand ethanol production. Increased ethanol production would result in higher DDGS output, providing more availability for the animal feed industry. With growing concerns about sustainability and environmental impact, DDGS’ status as a by-product of ethanol production positions it as a sustainable feed option. As consumers and industries become more conscious of sustainable practices, the demand for environmentally friendly feed ingredients like DDGS may increase. DDGS has historically been used predominantly in livestock and poultry feed, but there may be opportunities to explore its applications in other sectors. For instance, DDGS could be utilized in aquaculture feeds, pet foods, or even as a component in certain industrial processes.

 Distillers Dried Grain Solubles Market Overview

By Sources

Based on Sources, the market is segmented based on Brewers and Bio-Fuel Plants. Bio-fuel plants, particularly ethanol production facilities, are the major sources of DDGS. DDGS is a co-product of the ethanol production process, which involves fermenting grains like corn, wheat, and barley to produce ethanol for use as a bio-fuel. During ethanol production, the grains are broken down into starches and sugars. After fermentation, the liquid portion is distilled to produce ethanol, leaving behind a by-product known as distillers dried grains. Distillers dried grains are further processed to remove most of the ethanol, resulting in Distillers Dried Grain Solubles, which is then used as a high-protein feed ingredient for livestock and poultry.

By Application

Based on Application, the market has been divided into the Animal Feed and Food and Beverage Industry. DDGS is primarily used as a feed ingredient in the animal feed industry. It is a valuable source of protein, fiber, and other essential nutrients for livestock and poultry. Livestock farmers and feed manufacturers use DDGS as a cost-effective alternative to traditional feed ingredients like corn and soybean meal. It helps reduce feed costs while providing essential nutrients to support animal growth and performance. In the food industry, DDGS has been used in certain food products for human consumption. For instance, DDGS can be incorporated into baked goods, snacks, and pet foods. DDGS is a source of dietary fiber and proteins and can provide a distinct flavor and texture to food products. In the beverage industry, brewers dried grains (BDG), which is a by-product similar to DDGS, can sometimes be used as an ingredient in some non-alcoholic beverages or in the production of animal supplements.

 By Form

Based on Form, the market has been divided into the Pellets and Powder. Pellets are formed by compacting DDGS into small, cylindrical shapes using a pelletizing process. The DDGS is first dried and then processed through a pellet mill, where heat and pressure are applied to form the pellets. The pelleting process can also improve the digestibility of DDGS for some animal species, leading to enhanced feed efficiency and animal performance. DDGS powder refers to the ground and finely milled form of DDGS. It is produced by grinding the dried DDGS into a fine, consistent texture. Powdered DDGS is sometimes preferred for use in certain animal feeding systems, such as in liquid feed or when mixing DDGS with other ingredients to create custom feed blends.

Global Distillers Dried Grain Solubles Market Regional Analysis

Based on region, the global Distillers Dried Grain Solubles Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Distillers Dried Grain Solubles Market followed by the Asia-Pacific and Europe regions.

North America Market

North America holds a dominant position in the Distillers Dried Grain Solubles Market. North America, especially the United States, is one of the largest producers and consumers of DDGS globally. The region has a significant ethanol production capacity, primarily from corn, leading to ample availability of corn DDGS. The United States exports a substantial portion of its DDGS to international markets, making it a key player in the global DDGS trade. DDGS is widely used in the livestock and poultry industries in North America, particularly in the diets of cattle, swine, and poultry.

Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Distillers Dried Grain Solubles industry. The Asia-Pacific region has shown significant growth in both ethanol production and DDGS consumption. Countries like China, India, and Thailand are major players in the DDGS market, with a focus on poultry and aquaculture feed applications. The growing demand for animal protein in the region has driven the need for high-quality and economical feed options like DDGS. Aquaculture is a significant industry in the Asia-Pacific region, with countries like China being major producers of fish and shrimp. DDGS has gained attention as a potential ingredient in aquaculture feeds due to its high protein content and potential cost savings. The Asia-Pacific region has become an important player in the global DDGS trade, both as an importer and exporter. This trade dynamic has contributed to the growth of the DDGS market in the region.

Competitive Landscape

The global Distillers Dried Grain Solubles Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

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

Key Development

In July 2021, ICM Inc. announced the launch of its patent-pending ICM Clean Fiber™ technology, which is designed to remove corn kernel fiber from DDGS to create a high-protein, low-fiber feed ingredient for use in animal nutrition. The company said that the technology can significantly increase the value of DDGS and improve its nutritional profile for livestock and poultry.

Scope of the Report

Global Distillers Dried Grain Solubles Market, by Sources

• Brewers
• Bio-Fuel Plants

Global Distillers Dried Grain Solubles Market, by Application

• Animal Feed
• Food and Beverage Industry

Global Distillers Dried Grain Solubles Market, by Form

• Pellets
• Powder

Global Distillers Dried Grain Solubles Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of SouthAmerica
• Middle East &Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • SouthAfrica
  • Rest of Middle East & Africa

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Distillers Dried Grain Solubles Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Distillers Dried Grain Solubles Market historical market size for the year 2021, and forecast from 2023 to 2033
• Distillers Dried Grain Solubles Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Distillers Dried Grain Solubles Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.