Feeding Distiller Dried Grains with Solubles Market Forecasted to Surge to USD 36.3 Billion by 2035 with 7.4% CAGR

The global feeding distiller dried grains with solubles (DDGS) market is poised for strong growth over the next decade, fueled by rising demand for sustainable, high-protein animal feed and expanding bioethanol production. Valued at USD 17.9 billion in 2025, the market is projected to reach approximately USD 36.3 billion by 2035, reflecting a solid CAGR of 7.4% throughout the forecast period.

The feeding distiller dried grains with solubles (DDGS) market has emerged as a key segment in the global animal nutrition industry. DDGS is a co-product of the ethanol production process, primarily derived from corn, and is widely used as a high-protein, high-energy feed ingredient for livestock, poultry, and aquaculture. What makes DDGS attractive is its cost-effectiveness and nutritional profile, making it a sustainable and economical alternative to traditional feed components like soybean meal or corn. As the demand for efficient livestock farming continues to grow, DDGS has become an essential part of animal diets, particularly in regions where corn-based ethanol production is significant. The market is shaped by a complex interplay of factors, including grain prices, ethanol production rates, and feed formulation trends.

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Market Insights

One of the major insights into the DDGS market is its role as a value-added solution for both the biofuel and agriculture sectors. Ethanol producers are not just creating fuel; they are also contributing to the animal feed supply chain, adding economic value to their operations. This dual utility makes DDGS a strategic product. Additionally, advancements in processing technology have improved the quality and digestibility of DDGS, allowing its inclusion in more precise and diversified feeding programs. Nutritionists and feed manufacturers are also experimenting with customized DDGS blends to better meet the specific needs of animals, which opens up more avenues for adoption across different livestock categories. The market has witnessed increasing awareness about how DDGS can improve feed efficiency, particularly for ruminants and poultry, due to its favorable amino acid and energy content.

Market Demand

The demand for DDGS in animal feed is steadily climbing, primarily driven by the livestock and poultry industries' continuous need for high-quality, affordable feed ingredients. In regions where the cost of traditional protein sources is high, DDGS offers a reliable and economical substitute. Its versatility has made it a preferred choice among feed formulators-being suitable for cattle, pigs, poultry, and even fish in some cases. As global meat and dairy consumption increases, particularly in developing countries, the need for efficient feed solutions like DDGS becomes more pronounced. Additionally, the demand is supported by growing concerns over food security, which has led to a stronger focus on maximizing the use of by-products from existing agricultural processes.

List of Key Companies Profiled in The Report

Archer-Daniel Midland, Inc.
Globus Spirit Ltd.
Land O'Lakes Inc.
CropEnergies AG CHS Inc.
Others

Recent Industry News

Recent activity in the DDGS space highlights the dynamic nature of the market. Several ethanol plants have announced upgrades to increase the yield and quality of DDGS, signaling confidence in its market potential. At the same time, new players are entering the space, particularly in Asia, where feed demand is surging. Trade discussions have also been ongoing between major producers and countries with growing livestock industries, aiming to reduce tariffs and streamline export processes. On the product development front, some feed companies have launched new DDGS-based pellet feeds, optimized for poultry and swine nutrition. In terms of logistics, improvements in containerization and rail transport are making international shipments of DDGS more efficient, allowing for more consistent global supply chains.

Notable Developments

Several notable developments have recently shaped the DDGS market landscape. One of the most impactful has been the move toward low-oil DDGS, which offers more protein and less fat, aligning with specific nutritional goals in monogastric animals like pigs and poultry. Another significant trend is the incorporation of DDGS into organic and non-GMO feed programs, supported by cleaner and more traceable production processes. There has also been an increase in collaborative efforts between ethanol producers and feed companies to co-develop value-added feed solutions. Technological innovations such as enzyme treatments and fermentation enhancements are improving the bioavailability of nutrients in DDGS, further elevating its role in performance-oriented animal nutrition. As the market matures, it is likely that DDGS will continue to evolve from a basic by-product to a premium ingredient in modern feed formulations.

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Competitive Outlook

The DDGS market is dominated by major agribusinesses like ADM and CHS Inc., leveraging advanced fermentation tech and ethanol partnerships to supply high-quality feed for poultry, swine, and dairy. Companies like Land O'Lakes and CropEnergies focus on value-added, high-digestibility formulations for precision livestock nutrition. Regional players such as Globus Spirit Ltd. offer affordable DDGS in developing markets, aided by local ethanol production and government support. Emerging firms and ethanol producers are entering the space, increasing competition, while sustainability, traceability, and supply chain efficiency are becoming key industry drivers.

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This release was published on openPR.