The global dried spent grain market is on track to witness strong growth between 2025 and 2035, driven by the rising need for green animal feed, organic fertilizers, and renewable biofuel. As breweries and distilleries across the world look to repurpose their by-products, dried spent grain has emerged as a high-value ingredient that aligns with both sustainability and profitability.
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Dried Spent Grain: From Brewery Waste to Market Staple
Dried spent grain is a by-product of beer brewing and distilling, long valued in the livestock sector for its protein and fiber-rich composition. Farmers increasingly rely on DSG to feed cattle, poultry, and swine as an affordable and nutrient-dense alternative to traditional feed.
In recent years, however, the application of dried spent grain has gone beyond the farm. From being incorporated into bakery products like breads and biscuits to finding its way into dietary supplements and protein bars, DSG has become an attractive solution for food manufacturers eager to meet consumer demand for clean-label, plant-based products.
The global dried spent grain market is expected to grow at a steady CAGR of 4.7% between 2025 and 2035, with breweries and distilleries forming partnerships with feed producers, food processors, and energy companies to commercialize this once-overlooked ingredient.
A Win for Sustainability and the Circular Economy
The shift towards sustainable and circular economy practices in the food and beverage industry has been a major catalyst for market growth. Breweries that once disposed of tons of wet spent grain now view it as a revenue-generating opportunity. By drying and repurposing the material, these companies not only reduce waste but also contribute to renewable energy production and sustainable agriculture.
Dried spent grain is increasingly being used in:
- Organic fertilizers and composts – supporting nutrient-rich soil management.
- Biofuel production – as a feedstock for bioethanol and biogas.
- Functional foods – where high-fiber and plant protein properties improve nutrition.
This ability to extend DSG’s utility across industries creates new growth avenues for both established players and emerging innovators.
Regional Market Highlights
- North America dominates the market thanks to large-scale brewing operations in the U.S. and Canada. With craft beer production on the rise, breweries generate vast amounts of DSG that feed directly into the livestock and biofuel industries.
- Europe remains another powerhouse, particularly in Germany, the UK, and Belgium, where breweries and distilleries actively repurpose spent grains into feed, fertilizers, and bakery ingredients. The region’s strong push toward renewable energy further drives demand.
- Asia-Pacific is forecast to be the fastest-growing market. Rapid urbanization, expanding brewery operations, and booming livestock industries in China and India are set to boost DSG adoption for both feed and sustainable farming practices.
Challenges and the Road Ahead
Despite promising growth, the industry faces hurdles. High moisture content during processing, short shelf life, and transportation costs limit commercial scalability. Additionally, food safety regulations governing the use of DSG in human food products present another challenge for small and mid-sized breweries.
To address these issues, manufacturers are investing in advanced drying technologies such as drum and spray drying, along with innovative packaging solutions that extend shelf life and reduce spoilage. Collaborative efforts between breweries, food manufacturers, and regulators are also paving the way for wider adoption across industries.
Opportunities for Innovation
The growing appetite for upcycled and sustainable ingredients presents immense opportunities for the DSG market. Companies are experimenting with DSG in:
- Plant-based meat alternatives
- Nutritional supplements
- Biodegradable packaging materials
Start-ups like ReGrained have already gained traction by introducing upcycled snack products made from DSG, while major brewers such as AB InBev and its subsidiary EverGrain Ingredients are exploring high-value food and beverage applications.
With consumers becoming more health-conscious and eco-aware, dried spent grain is expected to become a mainstream ingredient in the coming decade.
Competitive Landscape
The market is shaped by both established corporations and emerging innovators:
- Grain Processing Corporation leads the industry with a market share of around 20–24%, specializing in DSG for animal feed, biofuel, and food products.
- AB InBev, with a 15–19% share, continues to expand its sustainable ingredient portfolio, transforming brewery by-products into protein supplements and biofuel.
- Malteurop Group and Brewers Grain Ltd. focus on supplying large-scale DSG for feed and industrial applications.
- EverGrain Ingredients, an AB InBev venture, is spearheading the development of plant-based proteins and fibers derived from DSG for food, beverage, and packaging industries.
- Other players such as Molson Coors, ReGrained, Cargill, and Kirin Holdings are also investing in innovative applications ranging from pet food to bioplastics.
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Looking Ahead: 2025 to 2035
Between 2025 and 2035, the dried spent grain market is expected to undergo transformational growth. Investments in preservation technologies, expansion of regulatory support for food waste minimization, and increasing consumer preference for sustainable products will drive adoption across livestock feed, food processing, and bioenergy sectors.
As breweries large and small recognize the value of their by-products, the dried spent grain market is evolving from a niche segment to a central player in the global sustainability movement. For both established companies and emerging start-ups, this market offers a powerful opportunity to innovate, expand, and contribute to a greener future.
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