DDGS maize market overview 2024 [Global Report]

In 2024, the global corn DDGS (Dried Distillers Grains with Solubles) market continues to play a key role as a valuable animal feeding redient and by-product in the bioethanol industry. Maize DDGS is a rich source of protein, fibre and other essential nutrients, making it an attractive feed additive, particularly in the livestock sector including cattle, pigs and poultry.

The introduction of policies that support sustainability and the growing demand for high-protein feeds in regions such as Asia and South America have influenced the continued upward trend in the DDGS sector. Despite competition from other feed ingredients such as soybean meal, maize DDGS remains a key component of livestock diets worldwide. In this report, we provide an analysis of current trends, regional outlook and factors influencing the growth of the maize DDGS market in 2024.

Market dynamics

In 2024, the maize DDGS market continues to grow on the back of dynamic growth in bioethanol production, particularly in the United States and Brazil. The introduction of policies to reduce carbon emissions is driving the growth of the bioethanol industry, which translates into greater availability of DDGS as a by-product. This makes DDGS from maize a valued source of protein for livestock farmers, providing stable prices and improving feed efficiency.

At the same time, growing livestock production in countries such as China, India and Brazil is generating greater demand for nutrient-rich feed. As meat and dairy consumption increases in these regions, livestock farmers are looking for cost-effective solutions, increasing the demand for maize DDGS.

Nevertheless, the DDGS market faces challenges, including competition from other feed ingredients, such as soybean meal, and unfavourable changes in trade policy. For example, China’s anti-dumping duties on US imports of DDGS have restricted US producers’ access to one of their key markets, affecting global supply and prices.

However, the opportunities for market development are significant. Investment in technological innovation is making it possible to create more valuable and differentiated DDGS products that are tailored to the specific needs of livestock. In addition, expansion into emerging markets, particularly in Asia and Africa, is creating new prospects for maize DDGS producers, given the increased demand for high-quality feed in these regions.

Regional analysis of the maize DDGS market

North America

The United States remains the largest producer and exporter of maize DDGS, supported by a strong bioethanol industry. Mexico continues to be a key export market for the US, mainly due to established trade agreements such as NAFTA. In Canada, demand for DDGS is also increasing, further strengthening North America’s position in the global market.

Europe

In Europe, maize DDGS is gaining popularity as a cost-effective animal feed ingredient. Nevertheless, the region still prefers DDGS from wheat due to the greater availability of this cereal. Countries such as Germany, France and the UK are intensively introducing DDGS into livestock diets, thus supporting sustainable agriculture and reducing feed production costs. Consequently, the DDGS market in Europe is growing steadily, following agricultural trends and the increasing demand for nutrient-rich feeds.

Asia-Pacific

In the Asia-Pacific region, particularly in China, India and Japan, the demand for DDGS from maize is growing. This is due to the rapid growth in livestock production and a growing population with higher incomes. Although China has maintained anti-dumping duties on DDGS imports from the United States, other markets in Asia, such as Southeast Asia, are increasingly turning to DDGS as an economic source of protein for animal feed.

South America

Brazil plays a significant role in DDGS production thanks to its strong bioethanol industry. The growth in livestock production, especially in the beef cattle sector, is increasing the demand for DDGS from maize as a key feed ingredient. In addition, the expansion of ethanol production in Brazil is contributing to the availability of DDGS both domestically and for export to other regions of the world.

Middle East and Africa

In the Middle East and Africa regions, demand for maize DDGS is growing, driven by the expanding poultry and livestock sectors. Due to limited local production capacity, these countries rely heavily on imports from key DDGS-producing regions such as North and South America. As the feed market continues to develop in these regions, DDGS imports are expected to increase, providing an opportunity for global producers to expand their market presence.

Trends and forecasts

DDGS prices in 2024 are subject to fluctuations, mainly due to fluctuating feedstock prices, such as maize, and the cost of bioethanol production. The increase in ethanol production affects the increased availability of DDGS, which in turn can stabilise prices on world markets. At the same time, trade policies, including tariffs, can affect the price and availability of DDGS in particular regions.

Developments in DDGS production and processing technology are creating new opportunities for feed manufacturers. Investment in research and development is focused on improving the nutritional value of maize DDGS and adapting it to different animal nutritional needs. These innovations have the potential to make DDGS more competitive in the feed market, especially in the face of competition from other protein sources such as soybean meal and fish meal.

Trade policy and regulations on bioethanol production have a significant impact on the DDGS market. For example, decisions to maintain anti-dumping duties imposed by China on US DDGS imports may limit US DDGS exports to one of its largest markets. In addition, regulations on biofuel production, including mandates related to the use of ethanol, have a direct impact on DDGS production levels, which in turn shapes its availability and prices in the global market.

Forecasts for the coming years indicate further growth in the maize DDGS market. The global market is projected to reach a value of approximately USD 16.8 billion in 2024 and then grow at a compound annual growth rate (CAGR) of 7.3% to reach USD 23.9 billion by 2029.

Global Reports from Foodcom S.A.

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