Overview:
Distiller’s dried grains with solubles has a high demand and various applications in the animal feed industry for the production of superior quality animal feed, which is rich in protein and fiber content. But the COVID-19 attack has triggered certain downfalls, which can impact the market substantially.
Segmental analysis
The DDGS Market is segmented on the basis of source, application, and forms.
The sources of energy used in the global market are bio-fuel plants, brewers, others. Among these, bio-fuel plants are observed to be producing the amount of DDGS, owing to the growing production of ethanol in the industry. Also, a relatively smaller amount of DDGS is being produced by breweries and distilleries and are expected to contribute remarkably to the market growth over the review period.
The applications of distiller’s dried grains with solubles in the global market for the same are animal feed, and the food and beverage industry, and others. Among these, the animal feed industry holds the largest market share, owing to the higher demand for low-cost, nutritionally rich animal feed over the forecast period.
The various forms of distiller’s dried grains with solubles available in the market are pellets, and powder, and others. Among these, the pellet segment has the maximum market share, followed by powder segment. This is attributed to the fact that pellets can be easily mass-produced for the cattle according to the need, which makes this form of feed more convenient for the consumers.
Regional Analysis:
North America has the lead and it will retain its dominance during the forecast period. This is getting spurred by the huge animal feed industry and the contributions made by the US and Canada, who are also great consumers of the product.
Competitive Landscape:
Globus Spirits Ltd.(India), CropEnergies (Germany), Archer Daniels Midland (U.S.), Nugen Feeds & Foods (India), J. D. HEISKELL HOLDINGS, LLC (U.S.), CHS Inc. (U.S.), Kent Feeds (U.S.), and others are playing important roles in taking the global distiller’s dried grains with solubles market ahead. These companies are relying on some tested strategic moves involving mergers, substantial investment for the research and development sector, tie-ups, innovations, acquisition, and others. Innovative moves regarding launching and branding are also going to impact the market. MRFR listed the recent moves to understand how the global market is expected to benefit from various trends and what patterns these companies would set for the coming years.
Industry News:
In May 2020, the USDA released its Grain Crushings and Co-Products Production report, which showed a steady decline in the production of a number of products. The numbers are showing that the fall is mostly due to the onslaught of the COVID-19. In April, the distiller's dried grains with solubles production was 1.66 million tons, which saw a plummet from its previous recordings of production volume of 1.81 million tons in February and 1.87 tons in March 2019.
In the US, in April 2020, the import of distiller’s dried grains with solubles from China took a bad hit and it saw a dip by 98%. In March, the intake was 3,637 mt, which cam down 84mt in April. The import value witnessed a dip by 90% to $63,210, compared to the statistics of April 2019's $662,794. This is due to the changes in various regulations due to the COVID-19 attack.
