According to the report by Expert Market Research (EMR), the Australia distiller’s dried grains with solubles (DDGS) market is witnessing strong growth, supported by the expanding bioethanol industry and the rising demand for cost-effective, high-protein animal feed ingredients. DDGS, a co-product of the ethanol production process derived mainly from grains such as corn and wheat, is widely used in livestock, poultry, and aquaculture feed due to its high nutritional value. The market is expected to grow at a CAGR of 7.10% between 2026 and 2035, driven by increasing feed demand, growth in the livestock sector, and the need for sustainable feed alternatives.

Australia Distiller’s Dried Grains with Solubles (DDGS) Market Trends

One of the key trends shaping the Australia DDGS market is the increasing adoption of DDGS as a substitute for traditional feed ingredients such as soybean meal and corn. Feed manufacturers are increasingly incorporating DDGS into feed formulations to reduce costs while maintaining nutritional quality. Another notable trend is the growing focus on improving product consistency and quality through advancements in ethanol processing technologies. This has enhanced the digestibility and nutrient profile of DDGS, making it more attractive to feed producers. Additionally, the rising emphasis on sustainable and circular economy practices is supporting the use of DDGS, as it enables the efficient utilisation of by-products from the biofuel industry.

Drivers of Growth

The primary driver of growth in the Australia DDGS market is the increasing demand for animal protein, which is boosting livestock production across the country. As feed costs account for a significant portion of overall livestock production expenses, the use of cost-effective feed ingredients such as DDGS is gaining popularity. Furthermore, the expansion of domestic ethanol production has increased the availability of DDGS, supporting market growth. The high protein, fibre, and energy content of DDGS makes it particularly suitable for ruminants, poultry, and swine, further driving its adoption across various animal feed segments.

Get a Free Sample Report with Table of Contents

Australia Distiller’s Dried Grains with Solubles (DDGS) Market Forecast

Looking ahead, the Australia DDGS market is expected to witness robust growth over the forecast period of 2026–2035. The market is likely to benefit from continued expansion of the ethanol industry, rising livestock production, and increasing emphasis on cost-efficient and sustainable feed ingredients. As feed manufacturers and farmers seek to optimise feed formulations, demand for DDGS is expected to rise steadily. With a projected CAGR of 7.10%, the Australia DDGS market offers attractive growth opportunities for producers, ethanol manufacturers, and stakeholders across the animal nutrition value chain.