Distillers Grains Market Forecasts to 2030 – Global Analysis By Type (Wet Distillers Grains (WDG), Dried Distillers Grains With Solubles (DDGS), Dried Distillers Grains (DDG), Condensed Distillers Solubles (CDS) and Other Types), Source, Livestock, Application and By Geography
According to Stratistics MRC, the Global Distillers Grains Market is accounted for $14.9 billion in 2023 and is expected to reach $26.8 billion by 2030 growing at a CAGR of 8.8% during the forecast period. Distillers grains are co-products of the ethanol production process, which involves the fermentation and distillation of grains, typically corn, to produce ethanol for use as a biofuel or alcoholic beverage. The grains used in this process are often referred to as ""feedstock."" These grains are rich in protein, fiber, and essential nutrients, making them a cost-effective and nutritious feed ingredient.
According to the Renewable Fuel Association (US), the total production of ethanol increased by more than 10% from 2010 to 2015, which is driving the market for distillers’ grains.
Market Dynamics:Driver:Rising adoption rate of distiller’s grains
The market is experiencing a significant surge in adoption, driven by the rising recognition of distiller's grains as a valuable byproduct. With increased awareness of its nutritional benefits and cost-effectiveness, industries are incorporating distiller's grains into animal feed and other applications. This growing acceptance reflects a broader trend towards sustainable and efficient use of resources in various sectors, contributing to the expanding prominence of distiller's grains in the market.
Restraint:Volatility in ethanol production
Fluctuations in weather conditions, government policies, and energy market dynamics contribute to this volatility. Additionally, demand for ethanol as a biofuel further amplifies market instability. Producers face challenges in anticipating and managing these variables, impacting both supply and pricing within the distillers grains sector. As a result, stakeholders must closely monitor and adapt to these dynamic market conditions to mitigate risks and optimize production strategies.
Opportunity:Environmental sustainability
Distillers Grains contribute to environmental sustainability by reusing spent grains from the distillation process. This practice minimizes waste and reduces the environmental impact of traditional disposal methods. By upcycling these residuals, the distillers grains market aligns with sustainable practices, offering an eco-friendly alternative to traditional waste management while supporting the circular economy within the ethanol production industry.
Threat:Competing feed alternatives
Corn gluten feed competes with soybean meal, offering a protein-rich alternative. Additionally, dried distillers grains with soluble present a versatile feed option, appealing to livestock producers. Each alternative brings unique nutritional benefits, cost considerations, and environmental implications, driving a dynamic market where producers weigh various factors to meet the diverse needs of livestock nutrition.
Covid-19 Impact:The COVID-19 pandemic significantly affected the market as disruptions in the global supply chain and lockdown measures led to a decline in ethanol production. With the ethanol industry closely linked to Distillers Grains, reduced production resulted in decreased availability of the byproduct. Additionally, the economic downturn prompted a decline in demand for animal feed, further impacting the market.
The wheat segment is expected to be the largest during the forecast period
The wheat segment is expected to be the largest during the forecast period. Distillers grains are enriched with nutrients and serve as a valuable feed ingredient. Wheat inclusion enhances the nutritional profile, offering a balanced mix of proteins, fiber, and energy for livestock. As a cost-effective alternative, it contributes to sustainable animal nutrition practices, promoting efficient resource utilization in the feed industry. The market's dynamics are influenced by the demand for high quality nutritionally-rich feed components in livestock management.
The ruminants segment is expected to have the highest CAGR during the forecast period
The ruminants segment is expected to have the highest CAGR during the forecast period. Distillers grains serve as a valuable feed supplement for cattle, sheep, and other ruminants. The nutritional content aids in promoting optimal growth and productivity. Additionally, incorporating distillers grains into ruminant diets enhances sustainability by repurposing ethanol industry residues, contributing to a circular economy within the agricultural sector.
Region with largest share:North America is projected to hold the largest market share during the forecast period due to robust demand for livestock feed and biofuel production. Distillers Grains, a byproduct of ethanol production, offer a nutrient-rich feed option, enhancing livestock nutrition. Growing awareness of the economic and environmental benefits associated with Distillers Grains contributes to their widespread usage in the region, positioning the market for continued expansion.
Region with highest CAGR:Asia Pacific is projected to hold the highest CAGR over the forecast period due to increased demand in the animal feed and ethanol production sectors. Rising awareness of the nutritional benefits of distillers grains in livestock feed is a key factor driving market expansion. Favorable government policies supporting sustainable fuel production further stimulate market dynamics, positioning Asia Pacific as a significant player in the market.
Key players in the marketSome of the key players in Distillers Grains market include Archer Daniels Midland, Bunge Limited, Poet LLC, Cenovus Energy Inc., CropEnergies AG, Flint Hill Resources, Green Plains Inc., Husky Energy, Meira Foods, Nugen Feeds & Foods, Nutrigo Feeds, Pacific Ethanol Inc., Purina Animal Nutrition, Valero Energy Corporation, Andersons Ethanol Group and Golden Grain Energy.
Key Developments:In November 2023, CropEnergies AG, Mannheim, will take over the business activities of EthaTec GmbH, Weselberg, via its recently founded subsidiary CE Advanced Bioenergies GmbH. A contract for the acquisition of personnel and tangible assets (""asset deal"") was signed.
In April 2023, Andersons, Inc. announced ELEMENT, LLC, a joint venture with ICM, Inc. in which The Andersons, Inc. is a 51% owner, was placed into receivership pursuant to the Agreed Order Granting Application for Appointment of Receiver.
Types Covered:
• Wet Distillers Grains (WDG)
• Dried Distillers Grains With Solubles (DDGS)
• Dried Distillers Grains (DDG)
• Condensed Distillers Solubles (CDS)
• Other Types
Sources Covered:
• Wheat
• Corn
• Rice
• Barley
• Other Sources
Livestocks Covered:
• Ruminants
• Swine
• Poultry
• Aquaculture
Applications Covered:
• Bioenergy
• Nutritional Supplements
• Fertilizers
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements