Growth in Organized Livestock Sector is Expected to Drive the Distillers’ Grains Market Growth
The distillers’ grains market is estimated to be valued at USD 10.8 billion in 2018 and is projected to reach USD 14.9 billion by 2023, at a CAGR of 6.8% from 2018 to 2023.
Factors such as distillers’ grains being a favourable alternative to traditional feedstock, and growth in the organized livestock sector is expected to drive market growth. Traditionally, crops such as corn, wheat, and rice are used as feedstock, since they are an efficient source of protein and energy for livestock. Distillers’ grains, especially DDGS, are fed to livestock as an alternative to commodity crops such as corn and wheat. Distillers’ grains are produced as a by-product of ethanol production.
The market, by livestock, has been segmented into ruminants, swine, poultry, and others. It was dominated by the ruminants segment in 2017. The growth in demand for quality milk and beef products has led to the use of distillers’ grains in ruminant diets, due to their higher protein content than traditional feed such as corn. The poultry segment is projected to be the fastest-growing during the forecast period. On a global level, poultry production has been increasing, and with such growth in production and consumption, it has become important for meat producers to focus more on quality. This gives a boost to the market for distillers’ grains to provide nutritional feed for poultry.
The various contributors involved in the value chain of the distillers’ grains market include raw material suppliers, R&D institutes, distillers’ grain manufacturing companies [such as ADM (US), Valero (US), Green Plains Inc. (US), Pacific Ethanol, Inc. (US)], distillers’ grain distributors, livestock producers, feed manufacturers, and government bodies & regulatory associations [such as the US Department of Agriculture (USDA), the Food and Drug Administration (FDA), and the European Food Safety Authority (EFSA)].
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