Ddgs Market | Contrive Datum Insights

Global DDGS Market Is Projected To At A High 6.86% CAGR During The Forecast 2022-2030.  Distillers Dried Grains with Solubles (DDGS) Market Size was valued at USD 9.90 billion in 2022 to USD 15.75 billion by 2030.

DDGS Market Overview:

Distillers grains are an excellent source of energy and are typically tested for 85% to 95% total digestible nutrients (TDN). The form of energy also makes distillers grains attractive to grazing cattle. Due to the removal of starch, the energy extracted from distillers grains is mainly digestible fiber and fat. Feed costs represent 60% to 70% of total production costs, so alternative feed ingredients in broiler diets need to be evaluated. Dried distillers grains with solubles (DDGS) is an alternative ingredient, especially in poultry diets. Some of the major constraints in the DDGS market are lack of knowledge in some developing countries, volatile grain prices, and the adverse effects of overconsumption. In 2021, U.S. production and exports will be 44 million tons and 11 million tons, respectively. Corn is the main source of corn worldwide.

DDGS stands for Distillers Dried Grains with Solubles. It is a co-product of the ethanol production process that is derived from grains, primarily corn, but also wheat, barley, and other feed grains. DDGS is created after starch is extracted from the grains for ethanol production, leaving behind protein, fiber, and other nutrients.

DDGS is widely used as an animal feed ingredient due to its nutritional value and cost-effectiveness. It is a valuable source of protein, energy, and fiber for livestock, poultry, and aquaculture. The production of DDGS has grown significantly in recent years due to the expansion of the biofuel industry, particularly ethanol production.

Key Market Updates:

• In January 2022, China's Ministry of Commerce (MOFCOM) announced that it would maintain anti-dumping and anti-subsidy tariffs on imports of DDGS, a key feed ingredient. The review process ends in 2023.
• In March 2019, Evonik launched a new testing service for corn DDGS used in feed production. AMINORED 2.0, an analytical service, allows you to quickly and reliably assess the nutritional value of distilled grains containing soluble ginseng (DDGS) to detect the effects of processing.

Major Market Segments Covered in DDGS Market Industry Research:

• POET
• Archer-Daniel Midland
• Valero
• Pacific Ethanol
• Green Plains Inc.
• Flint Hills Resources
• COFCO Biochemical
• SDIC Bio Jilin
• CHS Inc
• Greenfield Global
• Jilin Fuel Alcohol
• Alcogroup
• CropEnergies
• Pannonia Bio
• Husky Energy
• Ace Ethanol
• Envien Group
• Manildra Group
• United Petroleum
• Essentica.
• Others.

Key Vendors: 

1. POET: POET is one of the largest ethanol producers in the United States. The company, also known as POET LLC, operates numerous ethanol plants across the Midwest. POET is involved in every aspect of the ethanol production process, including sourcing feedstock (primarily corn), processing, and distributing ethanol and its co-products, such as DDGS. POET is known for its commitment to sustainable ethanol production and has been a leader in developing advanced biofuels.

2. Archer-Daniels-Midland (ADM): ADM is a multinational food processing and commodities trading company that is involved in various sectors, including ethanol production. ADM operates ethanol plants in the United States and Europe. In addition to ethanol, ADM is involved in the processing and trading of agricultural commodities, including grains, oilseeds, and other feedstocks used in ethanol production. The company has a global presence and is involved in numerous other businesses beyond ethanol.

3. Valero: Valero Energy Corporation is a multinational energy company primarily known for its refining and marketing operations. Valero has also entered the ethanol industry and is one of the largest ethanol producers in the United States. The company owns and operates several ethanol plants, primarily located in the Midwest and South regions. Valero has integrated ethanol production with its refining operations, allowing it to blend ethanol directly into gasoline and meet renewable fuel standards.

4. Pacific Ethanol: Pacific Ethanol is a leading producer and marketer of ethanol and co-products. The company operates ethanol production plants in the Western United States. Pacific Ethanol produces ethanol primarily from corn, but it also utilizes other feedstocks, including sugarcane. In addition to ethanol production, the company is involved in the marketing, distribution, and transportation of ethanol and co-products.

5. Green Plains Inc.: Green Plains Inc. is another significant player in the ethanol industry. It is an ethanol production and marketing company with multiple ethanol plants located in the United States. Green Plains produces and markets ethanol, distillers grains, and corn oil. The company also operates a diversified agricultural commodity trading business, handling and merchandising various commodities, including grains and energy products.

By Type:

• Ordinary Grade (Protein Content below 30%)
• Premium Grade (Protein Content above 30%)

1. Ordinary Grade: In the DDGS market, Ordinary Grade typically refers to distillers dried grains with a protein content below 30%. This category of DDGS may have slightly lower protein content compared to the Premium Grade. While the exact protein content can vary, Ordinary Grade DDGS is still considered a valuable feed ingredient due to its protein content, energy value, and other nutrients.

2. Premium Grade: Premium Grade DDGS, on the other hand, generally refers to distillers dried grains with a protein content above 30%. This category of DDGS is known for having a higher protein content compared to the Ordinary Grade. Higher protein content in DDGS can provide additional nutritional value, especially for animal diets that require more protein-rich feed ingredients.

By Application:

• Ruminant Feed
• Swine Feed
• Poultry Feed
• Others

1. Ruminant Feed: Ruminants, such as cattle, sheep, and goats, have unique digestive systems capable of breaking down fibrous plant materials. Ruminant feed formulations typically include a combination of roughages (such as hay or silage) and concentrates (such as grains or protein sources). DDGS can be incorporated into ruminant feed to provide a source of protein, energy, and fiber. Ruminants can efficiently utilize the nutrients present in DDGS due to their ability to ferment and digest fibrous material.

2. Swine Feed: Swine, or pigs, have a monogastric digestive system, similar to humans. Swine feed formulations often consist of a mix of grains, protein sources, vitamins, and minerals. DDGS can be included in swine feed to provide a source of protein, energy, and other essential nutrients. However, the inclusion rate of DDGS in swine diets may be limited to avoid potential issues related to palatability and digestibility.

3. Poultry Feed: Poultry, including chickens, turkeys, and ducks, require a balanced diet to support growth, egg production, and overall health. Poultry feed formulations typically include grains, protein sources (such as soybean meal), and essential additives. DDGS can be utilized in poultry feed as a protein and energy source, helping to meet the nutritional requirements of birds. However, the inclusion rate of DDGS in poultry diets may be limited to maintain the desired nutrient balance and prevent issues like reduced feed efficiency.

4. Others: Animal feed is also formulated for various other species, such as fish, horses, rabbits, and companion animals like dogs and cats. Each category of animal feed has specific requirements and considerations based on the nutritional needs, digestive systems, and growth stages of the animals. DDGS can be utilized in these feeds as a protein and energy source, depending on the specific dietary requirements of each species.

By Region:

The North American market is the largest for distillers grains with solubles (DDGS), a by-product of distilleries. The majority of DDGS in North America, accounting for approximately 98%, is derived from dry milling plants that produce ethanol for the biofuel industry. The United States dominates this market due to its extensive biofuel production.

Ethanol production in the United States has experienced significant growth over the past decade, increasing by 288% from around 4.5 billion gallons to over 17 billion gallons in 2018. This growth has driven a parallel expansion of the DDGS market. The U.S. Food and Drug Administration (FDA) plays a crucial role in this growth by enforcing preventive controls mandated by the Food Safety Modernization Act (FSMA). These controls ensure that ethanol plants comply with safe animal food production practices, providing formal assurance to global buyers that U.S. ethanol by-products, including DDGS, are safe feed ingredients.

China has traditionally dominated the global DDGS market. However, anti-dumping and countervailing duties imposed on DDGS imports led to a significant decrease in purchases from China. In just five years, purchases dropped from approximately 6.18 million tonnes to almost 157,000 tonnes in 2018.

Mexico has emerged as the largest buyer of U.S. DDGS. This has been made possible by the market development measures and trade interrelationships established under the North American Free Trade Agreement (NAFTA). Mexico's position as a major buyer of U.S. DDGS has helped sustain the demand for these feed ingredients in the region.

These market dynamics highlight the dominance of the North American region, particularly the United States, in the DDGS market. The growth in biofuel production, regulatory oversight, and trade relationships have all played significant roles in shaping the market landscape for DDGS.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Denmark
  • Finland
  • Iceland
  • Sweden
  • Norway
  • Belgium
  • The Netherlands
  • Luxembourg
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Benelux Union
• Rest of Europe
• Asia-Pacific
  • Indonesia
  • Thailand
  • Malaysia
  • Singapore
  • Rest of Southeast Asia
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Significant Market Dynamics:

DDGS Market Dynamics: The DDGS market is influenced by various factors that shape its dynamics. Here are some key aspects:

1. Drivers:
   a. Increasing Demand for Animal Feed: The growing global population and rising meat consumption have led to an increased demand for animal feed. DDGS serves as a cost-effective and sustainable feed ingredient, driving its demand.
   b. Expansion of Ethanol Industry: The expansion of the biofuel industry, particularly ethanol production, has resulted in increased DDGS production as it is a co-product of the ethanol manufacturing process.
   c. Nutritional Value and Cost-Effectiveness: DDGS is valued for its nutritional composition, providing protein, energy, and fiber. Its cost-effectiveness compared to traditional feed ingredients makes it attractive to feed manufacturers and livestock producers.

2. Restraints:
   a. Market Volatility: DDGS market prices can be influenced by factors such as grain prices, supply and demand dynamics, trade regulations, and geopolitical factors, resulting in market volatility.
   b. Competition from Alternative Feed Ingredients: DDGS faces competition from other feed ingredients like corn, soybean meal, and other protein sources, depending on their availability and pricing.

3. Trends:
   a. Increasing International Trade: DDGS is traded globally, with international markets witnessing significant growth. Export opportunities have expanded, driven by demand from countries seeking cost-effective feed ingredients.
   b. Technological Advancements: Ongoing research and technological advancements are aimed at improving the nutritional profile and value of DDGS, making it a more desirable feed ingredient.

4. Challenges:
   a. Regulatory Compliance: Compliance with regulatory standards and food safety regulations is essential for DDGS producers and exporters to maintain market access and meet import requirements in different regions.
   b. Market Access Barriers: Trade barriers, tariffs, and regulatory restrictions can pose challenges to the export of DDGS to certain markets, limiting market access.

5. Opportunities:
   a. Sustainability and Environmental Benefits: DDGS is a by-product of the ethanol industry, contributing to the circular economy and reducing waste. Its use as a feed ingredient supports sustainable agricultural practices.
   b. Growing Demand for Plant-Based Proteins: The increasing interest in plant-based diets and alternative protein sources presents an opportunity for DDGS, given its protein-rich composition derived from grains.

Scope of Report :

Conclusion: 
                  In conclusion, the DDGS market has witnessed significant growth, driven by the expansion of the ethanol industry and the increasing demand for animal feed. North America, particularly the United States, dominates the market due to its extensive biofuel production. DDGS, as a by-product of distilleries, provides a cost-effective and sustainable feed ingredient rich in protein, energy, and fiber.

Key Takeaways from this DDGS Market Report

• Estimate DDGS Market potential through analyzing growth rates (CAGR %), Volume (Units) and Value ($M) data given at country level - for product types, applications and by different industry verticals.
• Understand the supply chain in depth on the value growth at each step, in order to optimize value and bring effectiveness in your processes.
• Know the different dynamics affecting the market - challenges, key driving factors and opportunities.
• Get a quick viewpoint on the DDGS Market entropy - M&A's, deals, partnerships, product launches of all key companies for the historical 5 years.
• Estimate the supply-demand gaps, import-export data and regulatory landscape for more than top 20 countries worldwide for the market.
• Get complete insights on your competitor performance - market shares, strategies, financial benchmarking, product benchmarking, SWOT and more.
• Study the sales and distribution channels over key geographies to improve top-line revenues.