Distillers Dried Grains with Solubles (DDGS) Market

Distillers Dried Grains with Solubles (DDGS) Market was valued at USD 11.4 billion in 2024 and is forecast to touch USD 18.4 billion in 2032 and the market is expected to grow at a CAGR of 6.2% from 2025 to 2032 owing to rising need for animal feed with high protein along with the surging biofuel production.

Major Drivers and Emerging Trends

The Distillers Dried Grains market is witnessing significant growth primarily fueled by the growing need for animal feed rich in protein. The growing livestock industry is highlighting the versatile and nutritious qualities of DDGS. With its high protein and key amino acids this byproduct is an excellent option for livestock feed including cattle or poultry. Many governments offer financial support to farmers including subsidies to include DDGS in animal feed formulas. As an instance the Indian government is promoting DDGS incorporation into livestock diets through financial subsidies and public awareness efforts. In USA the Renewable Fuel Standard mandates ethanol blending in gasoline.

The growing global population coupled with increased meat consumption are significantly driving the demand for affordable and nutritious animal feed sources. According to the FAO the demand for livestock feed is propelled by the rising global meat consumption which in 2030 is estimated to hit 465 million tons. The figure emphasizes how vital DDGS is for livestock nutrition and feed optimization which solidifies its market position.

The aquaculture industry is also adopting DDGS as an environmentally friendly protein alternative which supports its commitment to sustainability. Additionally with the growing pet food market globally the use of DDGS offers an affordable method to enrich pet food nutrition.

DDGS production has also been greatly enhanced by the growing biofuel industry with ethanol plants acting as the primary source of this byproduct. According to the USDA ethanol production in the United States reached around 15 billion gallons which bolstered the DDGS supply and supported the animal feed market.

North American and Asian governments have enacted policies to promote renewable energy with a focus on bioethanol production. The government in India launched an interest rate subsidy scheme to promote ethanol manufacturing from different feedstocks which directly impacts the DDGS supply. Canadian government programs promoting renewable energy are also helping to raise ethanol production which in turn strengthens the DDGS supply.

New technologies in grain drying and distillation are further improving the productivity of ethanol byproduct generation. These improvements help minimize production costs and boost the nutritional content of grains. Advances in storage and shipping methods are further increasing the global distillers grains accessibility. These innovations in technology are essential to meeting the rising demand.

Additionally the agriculture sector is focused on sustainability and reducing waste which drives greater use of byproducts like distillers grains. Rising consumer expectations for sustainable food production coupled with regulatory constraints are driving this trend which has led to DDGS being acknowledged as a crucial component in sustainable animal feed options.

Even though DDGS offers numerous benefits the market encounters some challenges. A major challenge is the nutrient composition inconsistency caused by variations throughout processing techniques. This instability may discourage some livestock producers from using DDGS because they prefer consistency in their feed supplies. Other protein sources like canola or soybean meal also pose a considerable threat since these alternatives typically provide more reliable nutrient compositions.

Moreover the volatility in corn or other feedstock prices can influence DDGS pricing which causes unpredictability. The market is particularly sensitive to changing commodity prices with corn along with ethanol being major factors. Policy changes like tariffs or subsidies can further affect market stability. Such changes may influence the economic viability and practicality in using DDGS to be a feed option for livestock producers. Addressing this fluctuation requires careful planning along with risk mitigation from producers and buyers.

In addition DDGS production and usage are subject to environmental regulations related to emissions along with waste management. Ethanol production can also raise environmental issues like water consumption or carbon emissions. Adhering to these regulations might raise operational costs. The industry thereby continues to face challenges in ensuring compliance with regulations while maintaining financial viability.

Type Insights: Corn segment is expected to dominate the market share

The corn segment is projected to dominate the market fueled by its extensive application in biofuel production. Owing to their nutritional content, corn DDGS are highly valuable as a supplementary feed for beef cattle particularly those on inadequate forage diets. Segment growth is also driven by its widespread cultivation and efficient ethanol yield. It is abundantly available in regions with ethanol plants which leads to substantial production of corn-based DDGS. Corn also provides a reliable and consistent feedstock for producing ethanol which makes it the favored option for many companies around the world.

Wheat DDGS is also experiencing rapid growth fueled by rising wheat production and the growing demand for alternative animal feed ingredients.

Animal Type Insights: Beef cattle segment is projected to capture the largest market share

DDGS remains a key feed source for beef cattle owing to its rich nutritional content and cost efficiency. The segment’s leading position is also attributed to the animals’ digestive system which is suitable to digest the nutrients and fiber found in DDGS. The global growth among the beef cattle sector is further increasing the demand for DDGS because it is an affordable feed additive with high nutrient. The poultry segment is anticipated to experience the fastest growth owing to the rising demand for chicken.

Regional Insights: North America is estimated to lead the market share

The strong ethanol production capacity in North America makes it the dominant market for DDGS. The United States is a key player in global ethanol production which results in a significant byproduct of DDGS. This large supply helps fulfill the significant need for livestock feed thereby bolstering the region’s thriving economy. The large cattle industry in North America further drives higher demand for DDGS. Canada and the United States boast large populations of poultry and cattle along with swine which benefit from the nutritious diet supplied by DDGS. The synergy between ethanol production and livestock farming results in a sustained demand for DDGS.

Asia Pacific is also seeing rapid growth where the livestock industry is rapidly growing especially in India and China. Increasing incomes coupled with changing dietary preferences contribute to higher dairy product demand. This growth leads to a higher demand for nutritious animal feed options. The ongoing industrialization and farming practices evolution in Asia Pacific countries also contribute to market growth. The shift toward innovative feed options is growing among livestock producers and farmers to maximize production. DDGS offer a combination of affordability and high nutritional content that makes them an ideal match for modern farming which leads to greater demand.

Top Market Players

The market is concentrated with just a few key players commanding most of the market share. Brazil and the United States lead in DDGS production with most other countries relying on imports. Key players are thereby concentrating on creating affordable transportation solutions. Leading companies are CHS Nutrition, Archer Daniels Midland among others. Industry leaders make investments in product innovations and acquisitions to enhance their market presence. These companies are also dedicating resources to research to offer new products that are competitively priced.

Key Developments

• • In 2024, ADM unveiled the FOB Ag Logistics Platform within its Digital Grain Elevator to streamline grain transportation along with delivery processes. The platform enables live tracking of delivery status while ensuring efficient dispatching and automating invoicing processes. These functionalities streamline supply chain operations and increase traceability in sourcing DDGS products.
  • In 2024, UNEM in Brazil announced the commencement of operations for a new ethanol and corn oil plant in Maracaju.
  • In 2022, Fylfot Geoworks launched an ethanol production facility in India capable of producing 100 kiloliters daily. The facility generates DDGS as a byproduct which caters to the growing need for sustainable feed solutions in India.

Segments covered in the Report:

The Global Distillers Dried Grains with Solubles (DDGS) Market has been segmented on the basis of Type, Animal Type and Regions. Based on Type, the market is segmented into Corn, Wheat, Rice, Amino Acids, Blended Grains and Other Types. Based on Animal Type, the market is segmented into Dairy Cattle, Beef Cattle, Swine, Poultry, and Other Animal Types.

Market Segmentation

Global Distillers Dried Grains with Solubles (DDGS) Market by Type

• • Corn
  • Wheat
  • Rice
  • Amino Acids
  • Blended Grains
  • Other Types

Global Distillers Dried Grains with Solubles (DDGS) Market by Animal Type

• • Dairy Cattle
  • Beef Cattle
  • Swine
  • Poultry
  • Other Animal Types

Global Distillers Dried Grains with Solubles (DDGS) Market by Region

• • North America Distillers Dried Grains with Solubles (DDGS) Market (Option 1: As a part of the free 25% customization)

    • By Type
    • By Animal Type
    • US Market All-Up
    • Canada Market All-Up

  • Europe Distillers Dried Grains with Solubles (DDGS) Market (Option 2: As a part of the free 25% customization)

    • By Type
    • By Animal Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Distillers Dried Grains with Solubles (DDGS) Market (Option 3: As a part of the free 25% customization)

    • By Type
    • By Animal Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Distillers Dried Grains with Solubles (DDGS) Market (Option 4: As a part of the free 25% customization)

    • By Type
    • By Animal Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Distillers Dried Grains with Solubles (DDGS) Market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • CHS Nutrition
  • Archer Daniels Midland