Distillers Grains Market Size, Share, Growth, and Industry Analysis, By Type (Corn, Wheat, & Others (Sorghum, Rice, Barley, and Rye), By Application (Ruminants, Swine, Poultry, & Others (Equine and Aquaculture), Regional Insights and Forecast to 2032

Updated On: 29 April 2024

DISTILLERS GRAINS MARKET REPORT OVERVIEW

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global distillers grains market size expanded rapidly in 2020 and the market is projected to grow substantially by 2032, exhibiting a prodigious CAGR during the forecast period.

The distillers grains market is intricately linked to the ethanol production process, with distillers grains serving as a valuable byproduct. Primarily derived from corn or other grains, distillers grains find widespread use in livestock feed, providing a rich source of protein and nutrients for animals such as cattle, poultry, and swine. The market's dynamics are influenced by factors such as the demand for ethanol, global trade policies, and trends in sustainable agriculture. Additionally, the nutritional composition of grains, coupled with their role in supporting circular economy principles, contributes to their significance in the broader agricultural and biofuel industries.

The global nature of the distillers grains market makes it subject to international trade dynamics and diverse regional factors. Price volatility is a characteristic feature, affected by elements like weather conditions impacting grain production, fluctuations in biofuel demand, and shifts in the broader feed market. Overall, the market reflects the interconnectedness of the ethanol, livestock, and agricultural sectors, with ongoing trends in sustainability and alternative feed ingredients shaping its trajectory.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic led to disruptions in various industries, including ethanol production. Lockdowns, restrictions on movement, and changes in consumer behavior contributed to a decrease in fuel demand. As grains are a byproduct of ethanol production, reduced ethanol manufacturing may have affected the availability in the market. The demand for livestock products, including meat, was influenced by the pandemic. Changes in consumer preferences, supply chain disruptions, and economic uncertainties may have impacted the livestock industry. This, in turn, could affect the demand for distillers grains as a key component of animal feed.

The pandemic heightened awareness of environmental and sustainability issues. This increased focus on sustainability may have led to a greater appreciation for grains as a byproduct of ethanol production, contributing to more sustainable and circular agricultural practices. As disruptions affected traditional supply chains, there was a growing interest in alternative and locally available feed sources. Distillers grains, being a nutrient-rich byproduct, could have garnered more attention as a viable and sustainable option for livestock feed.

LATEST TRENDS

"Eco-Friendly Practices in Distillers Grains to Drive Market Growth"

Increased utilization of DDGS (Dried Distillers Grains with Solubles) results in higher protein and nutrient content compared to dry distillers grains (DDG), leading to better feed utilization and reduced environmental impact. Recycling spent grain from ethanol production for biogas generation, reducing carbon footprint and generating renewable energy. Implementing innovative technologies and processes to minimize resource usage during production. Instead of disposal, spent grain from ethanol production is processed into biogas through anaerobic digestion, generating renewable energy and reducing reliance on fossil fuels. By embracing these practices, the industry can significantly contribute to a more sustainable food system, reduce its environmental footprint, and create a win-win scenario for farmers, consumers, and the environment.

DISTILLERS GRAINS MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into corn, wheat, & others (sorghum, rice, barley, and rye).

Corn: Corn, also known as maize, is a versatile cereal grain widely cultivated for human consumption, livestock feed, and industrial uses, including ethanol production.

Wheat: Wheat is a staple cereal grain that plays a crucial role in the global food supply, with various varieties used for making flour for bread, pasta, and other food products.

Others (Sorghum, Rice, Barley, and Rye): Sorghum, barley, rice, and rye are essential cereal grains with distinct roles in global agriculture. Sorghum is versatile, serving as both human food and livestock feed, while barley is a key ingredient in brewing and animal nutrition. Rice is a fundamental staple for a significant portion of the world's population, and rye, known for its distinctive flavor, contributes to baking and spirit production, notably in whiskey. Together, these grains play crucial roles in diverse culinary and agricultural traditions worldwide.

• By Application

Based on application the global market can be categorized into ruminants, swine, poultry, & others (equine and aquaculture).

Ruminants: Ruminants, such as cattle and sheep, are herbivorous animals with a complex stomach structure that enables them to efficiently digest fibrous plant materials through a process of fermentation and regurgitation.

Swine: Swine, or domestic pigs, are omnivorous animals known for their adaptability to various diets; they are a significant source of pork products and are commonly raised for meat production.

Poultry: Poultry, including chickens, ducks, and turkeys, are domesticated birds raised for their eggs and meat; they are efficient converters of feed into protein and play a crucial role in global meat production.

Others (Equine and Aquaculture): Equine refers to horses and related animals, serving various purposes, including recreational riding, sports, agriculture, and therapy, showcasing the versatility and companionship these animals provide. Aquaculture involves the cultivation of aquatic organisms such as fish, shellfish, and aquatic plants, contributing to global seafood production and addressing the demand for sustainable and controlled fisheries.

DRIVING FACTORS

"Increasing Ethanol Production and Nutritional Value to Boost the Market"

One of the key driving factors in the global distillers grains market growth is the increasing ethanol production and nutritional value in urban areas.The production is closely tied to ethanol production. As ethanol is derived from grains, particularly corn, the demand for biofuels, driven by environmental concerns and government policies promoting renewable energy, significantly impacts the distillers grains market.These grains are a valuable and nutritionally rich byproduct that serves as an essential ingredient in livestock feed. The growth in global meat consumption and the need for cost-effective and high-quality animal feed contribute to the demand for distillers grains in the livestock industry.

"Circular Economy Practices and Technological Advancements to Expand the Market"

Another driving factor in the global distillers grains market is the circular economy practices and technological advancements offered by these products.These grains represent a sustainable and eco-friendly aspect of the ethanol production process. The utilization of these byproducts in livestock feed contributes to a circular economy, where waste from one industry becomes a valuable input for another.Advances in technology and processing methods can enhance the efficiency of ethanol production and the quality of distillers grains. Innovations in the production process may influence the market by improving yields and nutritional content.

RESTRAINING FACTOR

"Transportation Costs and Quality Variability to Potentially Impede Market Growth"

One of the key restraining factors in the global distillers grains market is the transportation costs and quality variability of these products.Such grains are often transported over long distances from ethanol production facilities to livestock farms. Fluctuations in transportation costs, influenced by fuel prices and logistical challenges, can affect the overall cost-effectiveness in animal feed.The nutritional content of distillers grains can vary based on factors such as the type of grain used in ethanol production and processing methods. Inconsistencies in quality may pose challenges for livestock producers who require reliable and standardized feed ingredients.

DISTILLERS GRAINS MARKET REGIONAL INSIGHTS

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"North America Region Dominating the Market due to Presence of a Large Consumer Base"

"The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa."

North America has emerged as the most dominant region in the global distillers grains market share due to several factors. The United States is one of the largest producers of ethanol globally, and ethanol production is a primary driver of the distillers grains market. Corn is a major feedstock for ethanol production in the U.S., and the byproduct of this process is distillers grains.The U.S. has a substantial and highly developed livestock industry, including beef cattle, poultry, and swine. Distillers grains, being a valuable and nutrient-rich feed ingredient, are widely utilized in the U.S. to meet the dietary needs of livestock.Government policies, such as the Renewable Fuel Standard (RFS), have promoted the use of biofuels like ethanol in this region. These policies create a consistent demand for ethanol production, driving the generation of distillers grains as a byproduct.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The distillers grains market is notably shaped by influential industry stakeholders that play a central role in steering market dynamics and influencing buyer choices. These key players maintain expansive distribution networks and digital platforms, facilitating consumers' convenient access to a diverse range of distillers grains. Their robust global presence and established brand recognition have fostered heightened consumer confidence and allegiance, bolstering the widespread adoption. Additionally, these industry leaders consistently invest in research and development, unveiling innovative production methods, nutritional formulations, and sustainability initiatives in grains, aligning with changing consumer preferences. The collaborative endeavors of these major players exert a substantial impact on the competitive landscape and the future trajectory of the distillers grains market.

List of Market Players Profiled

• ADM (U.S.)
• Valero (U.S.)
• Husky Energy (Canada)
• Green Plains Inc. (U.S.)
• Bunge Limited (U.S.)
• Pacific Ethanol (U.S.)
• Cropenergies Ag (Germany)

INDUSTRIAL DEVELOPMENT

November 2023: A partnership between a DDGS producer and a technology company launches a blockchain-based traceability system for distillers grains, ensuring transparency and verifying sustainable practices throughout the supply chain.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.