Market Size of Distiller's Dried Grains with Solubles (DDGS) Feed Industry
| 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 |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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) 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 | |||||||||
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Distiller's Dried Grains with Solubles (DDGS) Feed Market Size Summary
The Distiller's Dried Grains with Solubles (DDGS) market is experiencing significant growth, driven by its high nutrient value and cost-effectiveness as a feed ingredient. DDGS serves as an excellent energy source, particularly for livestock such as beef and dairy cattle, swine, and poultry, due to its high digestible fiber and fat content. Corn is the primary raw material for DDGS production, with corn condensed distiller solubles enhancing its nutritional profile. The market's expansion is supported by the increasing demand from the livestock industry, where feed costs constitute a substantial portion of production expenses. However, challenges such as price volatility, lack of awareness in developing regions, and potential health concerns from excessive consumption pose constraints to market growth. The economic viability of DDGS as a feed ingredient is influenced by the availability and pricing of alternative options like corn and soybean meal.
North America, particularly the United States, dominates the DDGS market due to its extensive biofuel production, which generates a significant supply of DDGS. The regulatory framework in the U.S. ensures the safety and quality of DDGS as a feed ingredient, bolstering its global demand. The United States leads in both production and export of DDGS, with Mexico being a major importer, facilitated by trade agreements like NAFTA. The market is consolidated, with key players such as Archer Daniels Midland Company, CHS Nutrition Inc., and Land O' Lakes Inc. holding significant shares. These companies are focusing on strategic investments in product development and research to maintain their competitive edge. The establishment of new production facilities and expansion of existing ones in regions like India further indicate the growing global interest in DDGS.
Distiller's Dried Grains with Solubles (DDGS) Feed Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Corn
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2.1.2 Wheat
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2.1.3 Rice
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2.1.4 Amino Acids
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2.1.5 Blended Grains
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2.1.6 Other Types
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2.2 Animal Type
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2.2.1 Dairy Cattle
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2.2.2 Beef Cattle
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2.2.3 Swine
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2.2.4 Poultry
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2.2.5 Other Animal Types
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Thailand
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Rest of Middle-East and Africa
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Distiller's Dried Grains with Solubles (DDGS) Feed Market Size 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.
