Distillers Dried Grains With Solubles Global Market Report 2025

The distillers dried grains with solubles market size has grown strongly in recent years. It will grow from $12.45 billion in 2024 to $13.28 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to introduction of renewable fuel standards, increasing ethanol production from corn, rising demand from dairy and beef cattle, rising focus on waste management, and agricultural subsidies.

The distillers dried grains with solubles market size is expected to see strong growth in the next few years. It will grow to " $17.27 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to rising demand for animal feed, expansion of biofuel production, government policies and incentives, increasing global population, and growing awareness of sustainable practices. Major trends in the forecast period include development of DDGS with improved nutritional profiles, adoption of sustainable and eco-friendly production methods, incorporation of functional additives, utilization of advanced processing technologies, and development of value-added DDGS products.

The forecast of 6.8% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by disrupting exports of ethanol byproducts used in animal feed, affecting domestic livestock nutrition costs.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth in ethanol production is expected to drive the expansion of the distiller's dried grains with solubles (DDGS) market. Ethanol production, which involves fermenting sugars or starches with yeast or other microorganisms to produce ethanol for use as a biofuel, is supported by government policies and incentives aimed at promoting renewable fuel sources and bolstering energy security and agriculture. This process generates DDGS, a valuable and nutrient-rich animal feed. As ethanol production increases, so does the output of DDGS, which benefits from improved quality and nutrition due to advancements in production technologies. For example, in January 2024, the Energy Information Administration reported that U.S. fuel ethanol production reached about 15.4 billion gallons (0.4 billion barrels) in 2022. By January 2023, production facilities in 21 states had a combined capacity of approximately 17.7 billion gallons per year. Therefore, the growth in ethanol production is fueling the expansion of the DDGS market.

Leading companies in the distillers dried grains with solubles (DDGS) market are focusing on the development of grain-based ethanol to enhance their production processes, improve sustainability, and address the growing demand for renewable energy sources. Grain-based ethanol plays a significant role in the DDGS sector by optimizing fermentation processes, leading to higher ethanol yields and valuable by-products like DDGS, which are high in protein and fiber, making them essential for animal feed and supporting sustainable agricultural practices. For example, in May 2022, Eastern India Biofuels Private Limited, an energy and environment company based in India, launched the country's first greenfield grain-based ethanol plant. This facility aims to produce renewable fuel, thereby reducing reliance on fossil fuels and emissions. Equipped with advanced fermentation and distillation technologies for optimal efficiency, the plant will also generate valuable DDGS, boosting profitability while providing a high-protein option for animal feed.

In April 2024, United Cooperative, a US-based agriculture company, acquired an ethanol plant in Wisconsin from Marquis for an undisclosed amount. This acquisition aims to incorporate the ethanol plant into United Cooperative’s operations, enhancing value for its members and broadening its offerings to strengthen economic resilience. The deal also aligns with United Cooperative’s objective to invest in agricultural infrastructure and improve market access for local corn producers. Marquis, a US-based ethanol producer, also produces distillers dried grains with solubles.

Distillers dried grains with solubles (DDGS) are a byproduct of the ethanol production process, derived from grains such as corn. This nutrient-dense feed ingredient is widely used in animal diets, offering protein, fiber, and energy. Its high nutritional content makes it a cost-effective alternative to traditional feed ingredients.

The main types of distillers dried grains with solubles include corn, wheat, rice, amino acids, blended grains, and others. Corn-based DDGS, produced during ethanol manufacturing, is a nutrient-rich byproduct that is dried and used as a protein and energy source in animal feed. It is available in various forms, such as pellets and powders, and is formulated based on crude protein, total amino acids, and true ileal digestibility. DDGS is utilized in multiple applications, including poultry, swine, aquaculture, cattle, and dairy cattle diets.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid implementation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a notable impact on the food and beverage sector. Rising costs for imported ingredients such as olive oil, cheese, and tropical fruits are pressuring food manufacturers to either reformulate their products or absorb reduced profit margins. Beverage producers are similarly affected, with tariffs on aluminum cans driving up packaging costs. Meanwhile, retaliatory tariffs on U.S. agricultural exports like soybeans and pork are disrupting farm-to-processor supply chains. In response, companies are adjusting recipes, increasing local sourcing, and using commodity hedging strategies to manage price volatility.

The distillers dried grains with soluble market research report is one of a series of new reports that provides distillers dried grains with soluble market statistics, including distillers dried grains with soluble industry global market size, regional shares, competitors with a distillers dried grains with soluble market share, detailed distillers dried grains with soluble market segments, market trends, and opportunities, and any further data you may need to thrive in the distillers dried grains with soluble industry. This distillers dried grains with soluble market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the distillers dried grains with solubles market are Valero Energy Corporation, Archer Daniels Midland Company, CHS Inc., Green Plains Inc., CropEnergies AG, Poet LLC, MGP Ingredients Inc., Little Sioux Processors LLC, Cardinal Ethanol LLC, Globus Spirits Ltd., Greenfield Global Inc., Highwater Ethanol LLC, Gulshan Polyols Ltd., East Kansas Agri-Energy LLC, Absolute Energy L.L.C., Adkins Energy LLC, Kent Feeds Inc., Nugen Feeds, R.H. Rohrer & Sons Inc., Three Rivers Energy LLC, Nutrigo Feeds Inc.

North America was the largest region in the distillers dried grains with solubles market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the distillers dried grains with solubles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the distillers dried grains with solubles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The distillers dried grains with solubles market consists of sales of nutritional supplements, energy sources, sustainable products, and feed ingredients. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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