Distiller's Dried Grains with Solubles (DDGS) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 16.80 Billion |
| Market Size (2029) | USD 23.90 Billion |
| CAGR (2024 - 2029) | 7.30 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Distiller's Dried Grains with Solubles (DDGS) Market Analysis
The Distiller's Dried Grains with Solubles Feed Market size is estimated at USD 16.80 billion in 2024, and is expected to reach USD 23.90 billion by 2029, growing at a CAGR of 7.30% during the forecast period (2024-2029).
- The DDGS feed market is growing due to its nutrient value, demand from the livestock industry, and the need for cost-effective nutrients. Distiller grains are an excellent energy source, often testing between 85% and 95% of total digestible nutrients (TDN). The form of energy also makes distiller grains attractive for grazing cattle. Since the starch is removed, the energy derived from the distiller's grains is primarily digestible fiber and fat.
- Corn is the primary source of DDGS worldwide. Generally, corn condensed distiller solubles are added back to the coarse grains during the process to produce wet or dry distiller grains with solubles. The nutrient profile of corn condensed distiller solubles makes them a useful supplement for beef cattle fed low-quality forage diets. DDGS is primarily fed to beef cattle, dairy cattle, swine, and poultry.
- Moreover, feed cost represents between 60% and 70% of the total production costs, which warrants the assessment of alternative feed ingredients in broiler diets. Distiller's dried grains with solubles (DDGS) are an alternative ingredient, especially in poultry diets. This low cost of the DDGS feed is a driving factor for the market. Some of the major constraints of the DDGS market are lack of knowledge in some developing countries, price volatility of the grains, and ill effects of excess consumption.
Distiller's Dried Grains with Solubles (DDGS) Market Trends
This section covers the major market trends shaping the DDGS Feed Market according to our research experts:
Increasing Demand from Livestock
One of the prime factors determining whether DDGS is an economical animal feed ingredient is the price and the availability of alternate options, like corn and soybean meal, as DDGS is a partial replacement for those alternate options. DDGS meal is more like corn in terms of nutritional value and price. Additionally, the demand for distiller's dried grains with solubles increased in the global market due to the health benefits and improvement in feed nutrients. DDGS in compound feeds for cattle influences the growth of milk yield and the fat and protein content in it. Countries with high prices of cornmeal may act as ideal markets for DDGS.
The primary users of DDGS are the dairy and beef industries. Recently, the usage of DDGS in the swine industry began to increase dramatically and, to a lesser extent, in the poultry industry. According to the US Grains Council, adding 20-30% DDGS to a lactating cow diet results in milk production equal to or greater than when diets containing no DDGS are fed. The United States, China, and India are the largest producers of ruminant feed due to the presence of many cattle and other ruminant populations in these countries. For instance, according to USDA the population of cattle and calves in 2021 is 93.8 million which increased from 93.7 million in 2017. This showed an increase in the population, thereby increasing feed consumption. Regions with high livestock production, such as the United States, have been witnessing demand for DDGS for the last few years. Therefore, the increased supply of milk and meat due to the high populations of animals needs high feed ratios which aid the growth of the DDGS market.
North America Dominates the DDGS Market
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.
Distiller's Dried Grains with Solubles (DDGS) Industry Overview
The DDGS feed market is consolidated, with a few companies accounting for most market share. The United States and Brazil are the major producers of DDGS, while most of the other countries are importing. Thus, the focus of the main players is on a cheaper transportation strategy. The major players in the DDGS feed market are Archer Daniels Midland Company, CHS Nutrition Inc., Globus Spirits, Kent Nutrition Group, and Land O' Lakes Inc. These major players are investing in new product launches and improvisations, and acquisitions for business expansions. Another major area of investment is the focus on R&D to launch new products at lower prices.
Distiller's Dried Grains with Solubles (DDGS) Market Leaders
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Archer Daniels Midland Company
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Kent Nutrition Group
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Globus Spirits
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CHS Nutrition Inc.
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Land O' Lakes Inc.
*Disclaimer: Major Players sorted in no particular order
Distiller's Dried Grains with Solubles (DDGS) Market News
October 2022: Fylfot Geoworks company sets up an ethanol production plant that has a capacity of 100 klpd at Patvi in the Ambala district of Haryana.
September 2022: Krishak Bharati Cooperative (Kribhco) sets up three greenfield grain-based ethanol manufacturing plants with an estimated cost of INR 1,000 crores in Gujarat, Andhra Pradesh, and Telangana by 2024.
January 2022: The Chinese Ministry of Commerce (MOFCOM) stated that it would maintain anti-dumping and anti-subsidy tariffs on imports of distillers grains (DDGS) from the United States, a key feed ingredient. The review process will end in 2023.
Distiller's Dried Grains with Solubles (DDGS) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Corn
- 5.1.2 Wheat
- 5.1.3 Rice
- 5.1.4 Amino Acids
- 5.1.5 Blended Grains
- 5.1.6 Other Types
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5.2 Animal Type
- 5.2.1 Dairy Cattle
- 5.2.2 Beef Cattle
- 5.2.3 Swine
- 5.2.4 Poultry
- 5.2.5 Other Animal Types
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Italy
- 5.3.2.5 Spain
- 5.3.2.6 Russia
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Thailand
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 South Africa
- 5.3.5.2 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Archer Daniels Midland Company
- 6.3.2 Globus Spirits
- 6.3.3 Nugen Feeds and Foods
- 6.3.4 Crop Energies
- 6.3.5 CHS Nutrition Inc.
- 6.3.6 Kent Nutrition Group
- 6.3.7 Land O' Lakes Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Distiller's Dried Grains with Solubles (DDGS) Industry Segmentation
The feed is prepared by adding a mixture of DDGS and other nutrient ingredients for livestock for proper growth and nutrition. It is a cereal by-product of distillery industries that is rich in protein, carbohydrates, fibers, and other nutrients. The alga has a wide range of applications in the animal feed and biofuel industries. However, the majority of the DDGS obtained from the ethanol industry are used for animal feed purposes, while some are utilized in biofuel production.
The DDGS Feed Market is Segmented by Type (Corn, Wheat, Rice, Blended Grains, and Other Types), Animal Type (Dairy Cattle, Beef Cattle, Swine, Poultry, and Other Animal Types), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The report offers market estimation and forecast in value (USD million) and volume (metric ton) for the above-mentioned segments.
| Type | Corn | |
| Wheat | ||
| Rice | ||
| Amino Acids | ||
| Blended Grains | ||
| Other Types | ||
| Animal Type | Dairy Cattle | |
| Beef Cattle | ||
| Swine | ||
| Poultry | ||
| Other Animal Types | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Thailand | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | South Africa |
| Rest of Middle-East and Africa |
Distiller's Dried Grains with Solubles (DDGS) Market Research FAQs
How big is the Distiller's Dried Grains with Solubles (DDGS) Feed Market?
The Distiller's Dried Grains with Solubles (DDGS) Feed Market size is expected to reach USD 16.80 billion in 2024 and grow at a CAGR of 7.30% to reach USD 23.90 billion by 2029.
What is the current Distiller's Dried Grains with Solubles (DDGS) Feed Market size?
In 2024, the Distiller's Dried Grains with Solubles (DDGS) Feed Market size is expected to reach USD 16.80 billion.
Who are the key players in Distiller's Dried Grains with Solubles (DDGS) Feed Market?
Archer Daniels Midland Company, Kent Nutrition Group, Globus Spirits, CHS Nutrition Inc. and Land O' Lakes Inc. are the major companies operating in the Distiller's Dried Grains with Solubles (DDGS) Feed Market.
Which is the fastest growing region in Distiller's Dried Grains with Solubles (DDGS) Feed Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Distiller's Dried Grains with Solubles (DDGS) Feed Market?
In 2024, the North America accounts for the largest market share in Distiller's Dried Grains with Solubles (DDGS) Feed Market.
What years does this Distiller's Dried Grains with Solubles (DDGS) Feed Market cover, and what was the market size in 2023?
In 2023, the Distiller's Dried Grains with Solubles (DDGS) Feed Market size was estimated at USD 15.66 billion. The report covers the Distiller's Dried Grains with Solubles (DDGS) Feed Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Distiller's Dried Grains with Solubles (DDGS) Feed Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
DDGS Industry Report
Statistics for the 2024 DDGS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. DDGS analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
