Distillers Grain Market Size, Share & Industry Analysis, By Type (Dried Distillers Grain with Solubles (DDGS), Dried Distillers Grain (DDG), Wet Distillers Grain (WDG)), By Source (Corn, Wheat, Others), By Livestock (Ruminants, Swine, Poultry, Others) And Regional Forecast, 2024-2032

In recent years, ethanol production has increased significantly, leading to a rise in by-products such as distillers’ grain availability. As distillers’ grains are a favorable alternative to traditional feedstock, demand for ethanol products is expected to rise significantly.

Traditionally, corn, wheat, and rice are used as feedstock since they are an efficient source of protein and energy for livestock. This, in turn, has increased the availability of corn-dried distilled grains in the market. As distiller grains are high in protein and fiber, they are used as feed ingredients in dairy farms. Additionally, the low cost of distiller’s grain is included in the animals' diet, replacing soybean meals whose price is higher than distiller’s grain. 

Distiller’s grain is available in different forms such as wet distiller’s grain (WDG), Dried Distiller’s Grain (DDG), Wet or dried distiller’s grain with soluble (WDGS or DDGS). The nutritional content of these grains varies from one type to another. Furthermore, the oil that is extracted from the distiller’s grain is also used in biodiesel.  

The fermentation process used for ethanol production uses corn as a primary product. During the process, the starch content present in the corn is removed, and the remaining nutrients available in the corn are protein and fat. Distiller’s grain contains 25 to 35 percent of crude protein, thus making it a good winter feeding source of protein and fat. These grains are a rich source of proteins, and the energy value of these grains is higher than that present in corn. As starch is removed from these grains, the primary source of energy is the digestible fiber which is beneficial for the stomach and does not cause any adverse health effects on the animals’ bodies. Additionally, distiller’s grain is also a prime source of phosphorous, and hence it reduces the need to provide phosphorous supplements to the animals.

The process used in the fermentation of ethanol may vary from one industry to another, and hence the composition of nutrients present in the grains also varies. The presence of sulfur in the distiller’s grain is harmful to the health of beef cattle.  Hence, before feeding the distiller’s gains to the animals, it is also essential to understand and identify the various sources of nutrients available to the animals. It is also necessary to determine whether the addition of distiller grain in the animal's diet will be beneficial or not to the animal. If the nutritional content is not met using distiller’s grain, producers need to add additional supplements, which may increase the feed cost and overall expense for the farm owners.

Key Players Covered:

The key players of global distiller’s grain market are Green Plains Inc., Pacific Ethanol, Inc., Flint Hill Resources, Valero, and CropEnergies AG. Other key players in the market include ADM, Husky Energy, Bunge Limited, Purina Animal Nutrition, Poet LLC, Didion Milling Inc., and Greenfield Global.

Although DDGS requires extra processing and are comparatively expensive than WDGS, they are easier to transport compared to WDGS. In addition, WDGS are more difficult to store than DDGS and are available for dairy farms. WDGS may get spoiled within 5-7 days due to the presence of high moisture content.

As corn is the key ingredient used for ethanol production, the demand for corn as a primary ingredient for the development of distiller’s grain is increasing in the market. Corn is also an economical alternative to other feed ingredients, and the use of grains also ensures the availability of protein, phosphorous, and other nutrients in animals' diets. 

Since the demand for high-quality milk and meat products is growing, feeding ruminants with protein-rich diets, including distiller’s grain, is essential. Additionally, increasing consumption of poultry has also increased the emphasis on quality breeding of the animals, boosting the demand for distiller’s grain for the poultry market. In 2019, as per the Food and Agriculture Organization (FAO) data, meat consumption stood around 325 Mt, with global meat exports ranging around 36 Mt. 

In current practices, animals in dairy farms are fed with dry matter such as corn grains, making it a significant portion of their diet. As the demand for renewable fuel in the market increases, the cost of corn is also increasing. The expansion of ethanol production has thus, increased the availability of ethanol by-products such as distiller’s grain for the dairy farms. Setting up new ethanol plants in different parts also increases the availability and cost-effectiveness of the grains to be used as cattle feed. This presents a unique opportunity for the farmers to provide a nutrient-rich diet to dairy animals.  

Regional Analysis:

North America is the largest market for distiller’s grain due to the region's high production of corn and ethanol. Due to free trade agreements such as the North American Free Trade Agreement (NAFTA) between the US and Canada, there is an increasing trade of distiller’s grain in the region, thus boosting the growth in the market.

Segmentation

Key Industry Developments

• In 2021, Bruks Siwertell commissioned a new grain unloader named as Siwertell ST 640-M, to provide better grain handling operations and environmental protection capabilities. It employs Siwertell screw-type conveying technology to handle different grains such as dried distiller’s grains (DDG) and others without losing the efficiency.


• In 2021, MasterHand Miling one of the leading manufacturers of distillers grain livestock announced the addition of new production unit aimed at manufacturing extruded distillers grain cattle cubes and pellets.