Australia Distiller's Dried Grains with Solubles (DDGS) Market Report and Forecast 2025-2034

According to this report, the Australia distiller’s dried grains with solubles (DDGS) market size witnessed a healthy growth in 2024. Aided by rising demand for high-quality animal feed and the surging livestock production, the market is projected to grow at a CAGR of 7.1% between 2025 and 2034.

The growing demand for high-quality animal feed in Australia, coupled with the increase in ethanol production, is driving the Australia distiller’s dried grains with solubles (DDGS) market growth. DDGS are particularly attractive to livestock farmers as they offer a cost-effective way to enhance the nutritional value of animal feed. With rising feed costs, particularly for traditional grains, DDGS serves as a more affordable option without compromising the quality of the feed. Furthermore, DDGS are highly sought after due to their high protein, fibre, and energy content, making them an ideal addition to animal diets.

The increasing adoption of advanced ethanol production technologies is also driving the Australia distiller’s dried grains with solubles (DDGS) market expansion. Ethanol production has gained momentum in recent years, supported by government incentives and the rising demand for renewable biofuels. As a by-product of the ethanol production process, the expansion of the ethanol industry directly correlates with an increase in DDGS availability. This has led to a more stable and abundant supply of DDGS, further making them an attractive option for livestock farmers across the country.

The growing interest in sustainable farming practices has also contributed to the Australia distiller’s dried grains with solubles (DDGS) market development. As an economically viable and eco-friendly alternative to traditional feed sources, DDGS offer several advantages over other animal feed options. They are derived from renewable resources, and their use helps to reduce food waste by repurposing ethanol production residues. Additionally, the carbon footprint associated with DDGS production is lower compared to other animal feed ingredients, making them a more sustainable choice for environmentally conscious farmers. This shift towards sustainability has driven many farmers to incorporate DDGS into their feeding regimes.

As per the Australia distiller’s dried grains with solubles (DDGS) market analysis, beyond their use in animal feed, DDGS have also found applications in other industries. In particular, the potential use of DDGS in bio-based products and as a source of renewable energy is garnering attention. Research into the utilisation of DDGS in the production of bioplastics, biofuels, and other eco-friendly products is underway, opening up new avenues for the market. As these alternative applications for DDGS continue to develop, they could serve to further increase demand for this versatile by-product, thereby enhancing its market potential.

Another key Australia distiller’s dried grains with solubles (DDGS) market trend is the increasing demand for livestock products, particularly beef and dairy. As the Australian population continues to grow and consumer preferences shift towards higher-protein diets, the demand for animal-based protein sources has risen significantly. This, in turn, has boosted the need for efficient and cost-effective animal feed, such as DDGS.

Additionally, the ongoing advancements in ethanol production technologies and the government's support for biofuel initiatives are creating a favourable Australia distiller’s dried grains with solubles (DDGS) market outlook. Australia has set ambitious renewable energy targets, with a growing emphasis on biofuels as a cleaner alternative to traditional fossil fuels. As the production of ethanol increases, the availability of DDGS as a by-product is expected to rise, thus meeting the increasing demand for animal feed.

The focus on sustainability within the agricultural sector is another factor boosting the Australia distiller’s dried grains with solubles (DDGS) market revenue. As farmers seek to reduce their environmental impact and adopt more eco-friendly practices, the use of DDGS as an animal feed ingredient presents a viable solution. DDGS are made from renewable resources and can help farmers minimise waste and lower their carbon footprint, making them an attractive choice for sustainable farming practices.

Despite the promising growth outlook for the Australia distiller’s dried grains with solubles (DDGS) market, there are several challenges that could hinder the market’s expansion. One of the primary concerns is the fluctuating price of ethanol production. Since DDGS is a by-product of ethanol production, any instability in ethanol prices or changes in government policies could impact the supply and cost of DDGS. Price volatility in the ethanol market may make DDGS less predictable for farmers, thereby affecting its adoption.

However, the Australia distiller’s dried grains with solubles (DDGS) market is poised for strong growth in the coming years, driven by the increasing demand for high-quality animal feed, the expansion of ethanol production, and the growing focus on sustainability in agriculture. With their high nutritional value, cost-effectiveness, and eco-friendly attributes, DDGS have become a vital component of animal nutrition. As the market continues to evolve, new opportunities for the use of DDGS in alternative applications may provide further growth potential. Overall, the market is expected to continue its upward trajectory, offering significant prospects for farmers, producers, and industry stakeholders.

Market Segmentation

The market can be divided based on type, animal type, and region.

Market Breakup by Type

• Amino Acids
• Corn
• Blended Grains
• Rice
• Wheat
• Others

Market Breakup by Animal Type

• Swine
• Dairy Cattle
• Poultry
• Beef Cattle
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia distiller’s dried grains with solubles (DDGS) market. Some of the major players explored in the report are as follows:

• ADM Australia Pty Ltd.
• CropEnergies AG
• Manildra Flour Mills Pty. Ltd.
• East Coast Stockfeeds Pty Limited
• Others