Distillers' Grains Market - Forecasts from 2019 to 2024

The distillers’ grains market was valued at US$12.544 billion in 2018 and is projected to expand at a CAGR of 5.07% over the forecast period to reach US$16.873 billion by 2024. Distillers' grains are by-product of bio ethanol production which is used to feed livestock. Growing organized livestock sector couple with nutritional benefits associated with distiller’s grains is expected to drive the growth of the market during the forecast period. Distiller’s grains have more protein and fiber contents than its substitutes. But lack of awareness in developing nations and ill-effects of excess consumption due to the possible high content of sulphur is expected to hamper the market growth opportunities during the forecast period. By type, DDGS segment is estimated to have a significant market share due to its several favourable properties such as high protein content, energy, and highly digestible phosphorus content. Its growing use as a replacement of expensive traditional feedstock such as corn and soybean meal is expected to contribute to its market growth. By source, corn segment is estimated to have a significant market share as it is the key grain in bio ethanol production resulting in increasing supply of corn-based distillers’ grains.

Moreover, it provides high energy and protein to livestock due to high phosphorus content. It is also an economical alternative to other feed ingredients. By geography, North America is expected to dominate the market on account of high production and consumption of distillers’ grains, particularly in the United States. In addition, North American Free Trade Agreement (NAFTA) allows duty-free access to all grains promoted by United States Grains Council (USGC), which include distillers' grains leading to growing trade of these grains from the US to Canada and Mexico. The Asia Pacific market is expected to be one of the fastest growing regions due to increasing consumption of animal-based products and modernization of the feed industry in the region.

Drivers

Growth of organized livestock sector
Distillers’ grains are a beneficial substitute to conventional feedstock

Restraints

Lack of awareness in developing countries
Ill-effects of excess consumption

Industry Updates

In March 2019, Flint Hills Resources announced today it will install Fluid Quip Process Technologies’ (FQPT) patented Maximized Stillage Co-Products (MSC)™ system at its Shell Rock, Iowa, ethanol plant. This technology allows dry mill ethanol plants to separate protein from the whole stillage that is a co-product of the ethanol-making process. Flint Hills markets this high-protein product as a feed ingredient called NexPro.

In September 2018, Poet Biorefining, the ethanol production arm of Poet LLC opened an80 million gallon expansion at its Marion, Ohio ethanol plant.

Segmentation

The Distillers’ Grain Market has been analyzed through the following segments:

By Type

DDGS
DDG
WDG
Others

By Source

Corn
Wheat
Others

By Geography

North America
USA
Canada
Mexico

South America
Brazil
Argentina
Others

Europe
Germany
France
United Kingdom
Spain
Others

Middle East and Africa
Saudi Arabia
Israel
Others

Asia Pacific
China
Japan
South Korea
India
Others