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Distillers Grain Market Revenue, Growth Rates and Industry Challenges 2026

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Distillers’ grain refers to a cereal byproduct of the distillation processing unit or dry-grind ethanol plants in wet and dried form. These are low-cost alternative feed ingredients that are produced in large quantities. Distillers’ grain is an essential diet of livestock and poultry birds that provides adequate nutritional source of cereal proteins, fat, minerals, vitamins, fiber, oil, and amino acids. Supply of insufficient feed for livestock with inadequate nutritive quality has raised the demand for distillers’ grain. Continuous growth in demand for nutritive feed products by end-users has boosted the distillers’ grain market by replacing traditional expensive feed across the globe. Factors such as increasing popularity of dried distillers’ grain as a long shelf life product with essential nutritive supplement for livestock that are feasible for distribution and storage are promoting the sales of distillers’ grain across the globe. In addition, distillers’ grain is preferred by end-users because it is a medium for improving physical growth of livestock that provides excellent performance in milking and egg laying, apart from ensuring meat quality.

Distillers’ Grain Market – Segmentation

The global distillers’ grain market can be segmented based on product type, source, livestock, distribution channel, and region. Based on product type, the market is segmented into Dried Distillers’ Grains with Soluble (DDGS), Dried Distillers’ Grains (DDG), Wet Distillers’ Grains (WDG), and others. Based on source, the market can be categorized into corn, wheat, barley, sorghum, oats, rye, millet, and others. The global distillers’ grain market based on livestock is categorized into cattle, swine, poultry, and others. Further, the market can be segregated into online distribution channel, and offline distribution channel in terms of distribution channel.

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Based on region, the global distillers’ grain market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. In North America, increase in the number of ethanol production plants has increased the availability of byproducts that has propelled the usage of distillers’ grain. In Europe, increase in the number of livestock has raised the demand for quality nutritional feed which has propelled the demand for distillers’ grain in the region. In Asia Pacific, increase in the population of livestock, rise in awareness of products among end-users, and easy availability of distillers’ grain sources has rapidly fueled the growth of the distillers’ grain market in the region. In Middle East & Africa, supply of insufficient high quality nutritive livestock feed and availability of lower cost alternative feed over traditional feed is expected to boost the sale of distillers’ grain during the forecast period. Similarly, South America is also estimated to be an attractive market during the forecast period.

Distillers’ Grain Market – Drivers and Restraints

Major drivers of the global distillers’ grain market are availability of low cost alternative feed ingredients for livestock, high quality nutritive feed, source of adequate nutritional value as per animal nutritionists, rising concerns about feeding quality diet to livestock among end-users, and rapid growth in distillation units and ethanol biofuel plants across the globe. Major restraints of the global distillers’ grain market are lack of awareness among end-users about the product in developing countries, fluctuating prices of grains, dependence on distilleries for manufacturing, insufficient storage facilities, and ill-effects of excess consumption. Products with high moisture content (60% to 80%) have less shelf life and are not suitable for transportation over longer distances. Nevertheless, new product development, collaboration with agro business firms, and penetration of the product through ecommerce business are expected to create significant opportunities for the distillers’ grain market.

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Distillers’ Grain Market – Key Players

Major players operating in the global distillers’ grain market include Purina Animal Nutrition, Archer Daniels Midland Company, Pacific Ethanol, Inc., Green Plains Inc., United Wisconsin Grain Producers, Didion Milling Inc., Bunge Limited, Flint Hill Resources, Husky Energy Inc., Nugen Feeds, Valero, Central Indiana Ethanol, LLC, Tharaldson Ethanol, POET LLC, Greenfield Global, Inc., Lincolnway Energy, LLC, and CropEnergies AG.

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