Distillers’ Grains Market Analysis and Leading Key Players

The distillers’ grains market is estimated to be valued at USD 10.78 Billion in 2018 and is projected to reach USD 14.95 Billion by 2023, at a CAGR of 6.8% during the forecast period. The market is driven by the growing use of distillers grains as a favorable alternative to traditional feedstock and growth of the organized livestock sector.

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The market, based on type, has been segmented into DDGS, DDG, WDG, and others. The market for DDGS is estimated to dominate in 2018 and is also projected to be the fastest-growing segment during the forecast period. This growth can be attributed to several properties of DDGS such as high protein content, energy, and highly digestible phosphorus content, which are responsible for its growing use as a partial replacement for some more expensive traditional animal feed such as corn and soybean meal.

The global market, by source, has been segmented into corn, wheat, and others. The corn segment is estimated to dominate the market in 2018 and is projected to grow at a higher CAGR by 2023. This is attributable to the fact that this is the key grain used in ethanol production, resulting in an increasing supply of corn-based distillers’ grains, as a by-product. Further, the high availability of phosphorus content in corn-based distillers’ grains provides high energy and protein to livestock. It is also an economical alternative to other feed ingredients.

The market, by livestock, has been segmented into ruminants, swine, poultry, and others. It was dominated by the ruminants segment in 2017. The growth in demand for quality milk and beef products has led to the use of distillers’ grains in ruminant diets, due to their higher protein content than traditional feed such as corn. The poultry segment is projected to be the fastest-growing during the forecast period. On a global level, poultry production has been increasing, and with such growth in production and consumption, it has become important for meat producers to focus more on quality. This gives a boost to the market for distillers’ grains to provide nutritional feed for poultry.

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The various contributors involved in the value chain of the global market include raw material suppliers, R&D institutes, distillers’ grain manufacturing companies [such as ADM (US), Valero (US), Green Plains Inc. (US), Pacific Ethanol, Inc. (US)], distillers’ grain distributors, livestock producers, feed manufacturers, and government bodies & regulatory associations [such as the US Department of Agriculture (USDA), the Food and Drug Administration (FDA), and the European Food Safety Authority (EFSA)].

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