| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2020-2023 |
| Base Year |
2024 |
| Forecast Period |
2025-2032 |
| Dried Spent Grain Market Size 2024 |
USD 3711 million |
| Dried Spent Grain Market, CAGR |
5.98% |
| Dried Spent Grain Market Size 2032 |
USD 5905 million |
Market Overview:
The Dried spent grain market is projected to grow from USD 3711 million in 2024 to an estimated USD 5905 million by 2032, with a compound annual growth rate (CAGR) of 5.98% from 2024 to 2032.
The dried spent grain market is primarily driven by increasing demand for sustainable and nutrient-rich animal feed. As dried spent grain is high in protein and fiber, it serves as an effective and economical feed component for livestock, poultry, and aquaculture. This shift toward natural feed alternatives aligns with broader trends in sustainable agriculture and livestock management. In addition, breweries and distilleries are increasingly exploring avenues to repurpose their by-products, turning spent grain into valuable resources rather than waste. This aligns with circular economy principles and helps reduce environmental footprints. Technological advancements in drying, preservation, and packaging have further enabled manufacturers to extend shelf life and improve transportation logistics, making dried spent grain more commercially viable. Moreover, the growing use of spent grain in functional food products such as protein bars, baked goods, and health supplements is expanding its application beyond the feed industry.
North America leads the dried spent grain market, supported by a well-established brewing industry, a strong focus on sustainable waste management, and advanced infrastructure for collection, processing, and distribution. The presence of major craft and commercial breweries has created a steady supply of spent grain, which is being efficiently utilized across the feed, food, and energy sectors. In Europe, traditional brewing countries such as Germany, the United Kingdom, and Belgium have implemented stringent environmental regulations that promote the reuse of brewery by-products. These countries have integrated dried spent grain into both agricultural and industrial applications, backed by strong policy support and public awareness. Asia-Pacific is emerging as a key growth region, with rising beer production, expanding livestock industries, and increasing adoption of sustainable farming practices. Countries like China, India, and Japan are witnessing a surge in spent grain utilization across multiple sectors. In Latin America, the expansion of local breweries and increasing interest in sustainable feed sources are contributing to the market’s development.
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Market Insights:
- The dried spent grain market is projected to grow from USD 3,711 million in 2024 to USD 5,905 million by 2032, driven by increasing demand for sustainable and nutrient-rich animal feed.
- High protein and fiber content make dried spent grain an economical feed ingredient for livestock, poultry, and aquaculture, supporting a shift toward natural feed alternatives aligned with sustainable agriculture.
- Breweries and distilleries actively repurpose spent grain, transforming waste into valuable resources that comply with circular economy principles and reduce environmental footprints.
- Technological advances in drying, preservation, and packaging have extended shelf life and improved transportation logistics, enhancing the commercial viability of dried spent grain products.
- Beyond feed applications, dried spent grain is gaining traction in functional food products like protein bars, baked goods, and health supplements, expanding its market reach.
- North America leads the market, supported by a mature brewing industry and advanced infrastructure; Europe follows with stringent environmental regulations, while Asia-Pacific, Latin America, and MEA are emerging growth regions.
- Challenges remain due to limited shelf life, complex storage requirements, and regulatory uncertainty across regions, which impact product standardization and scalability.
Market Drivers:
Growing Demand for Sustainable Animal Nutrition is Accelerating Adoption
he rising focus on sustainability in agriculture and livestock management is driving the demand for dried spent grain in animal feed formulations. Farmers and feed manufacturers are seeking cost-effective, high-protein ingredients that support animal health while minimizing environmental impact. Dried spent grain offers a natural blend of protein, fiber, and essential nutrients that enhance feed value across cattle, poultry, and swine sectors. It supports circular economy initiatives by repurposing brewery by-products instead of allowing them to go to waste. Large-scale breweries are partnering with feed processors to streamline the supply chain. The dried spent grain market benefits from growing pressure to reduce reliance on synthetic additives and unsustainable feed sources.
Expanding Role of Breweries in Industrial Waste Reutilization is Fueling Supply
Breweries worldwide are under increasing pressure to improve waste management and reduce their environmental footprint. Spent grain remains the most abundant by-product of beer production, and drying it creates a practical way to extend its usability. Breweries are investing in technologies that convert wet spent grain into shelf-stable, transportable material. It allows them to contribute to zero-waste operations while opening new revenue streams. Governments and environmental agencies are encouraging such transitions through incentives and waste-reduction policies. The dried spent grain market gains momentum as breweries embed sustainability goals into core operations.
Increasing Application in Food, Packaging, and Bioenergy is Broadening Use-Cases
Beyond feed, dried spent grain is finding acceptance in functional foods, biodegradable packaging, and bioenergy production. Food manufacturers are using it in bakery products, protein bars, and nutritional supplements to improve fiber and protein content. Consumers are becoming more conscious of upcycled ingredients that contribute to cleaner labels and reduced food waste. Researchers and startups are exploring its potential in bio-composites and green packaging solutions, replacing traditional plastics. Bioenergy producers view it as a promising biomass feedstock, supporting renewable energy initiatives. The dried spent grain market is evolving beyond its traditional scope due to this diversification.
- For instance, AB InBev’s EverGrain has launched EverPro (a soluble plant-based protein) and EverVita (a high-protein barley flour), which are incorporated into protein bars, bakery goods, and nutritional supplements.
Technological Advancements in Drying and Logistics are Improving Viability
Recent innovations in drying technologies are addressing long-standing challenges associated with moisture content and spoilage in spent grain. Equipment upgrades and process optimization have made it easier to preserve nutritional value while improving efficiency. Logistics providers are developing better packaging and transport solutions to maintain product integrity over long distances. It helps expand the market into regions without proximity to breweries. Small and medium-sized processors are adopting modular systems that lower entry barriers. The dried spent grain market benefits from these technological improvements, making it more accessible and scalable for global supply chains.
- For instance, the Spent Goods Company addresses logistical challenges by freezing spent grain for storage and transport, allowing bakeries to use the grains as needed while minimizing waste and costs.
Market Trends:
Increased Utilization of Dried Spent Grain in Functional Food and Beverage Products
The dried spent grain market is seeing a rise in its application across the functional food and beverage sector. Manufacturers are incorporating it into products such as protein bars, high-fiber snacks, breakfast cereals, and baked goods to meet growing demand for clean-label and nutrient-rich alternatives. Its natural content of dietary fiber, protein, and minerals appeals to health-conscious consumers seeking sustainable and plant-based ingredients. The inclusion of upcycled materials also aligns with brand sustainability goals and regulatory support for waste reduction in the food industry. Food startups and established brands are actively exploring product innovation using dried spent grain. It offers unique texture and nutritional value that enhance consumer experience and product differentiation. The dried spent grain market is benefiting from these cross-industry collaborations and expanded product offerings.
- For instance, ReGrained, a food upcycling company, produces SuperGrain+® flour from brewers’ spent grain, which delivers at least 3.5 times the fiber and twice the protein of whole grain flours. This ingredient is used in products such as protein bars, savory snacks, crackers, flatbreads, and pasta.
Rising Focus on Circular Economy Is Transforming Brewery By-product Management
Breweries are adopting sustainable waste management strategies by repurposing spent grain into valuable commercial products. This shift is reducing environmental waste and unlocking new revenue opportunities through partnerships with feed producers, bioenergy firms, and food companies. Drying spent grain allows breweries to extend its shelf life and market it across various sectors without compromising quality. Governments are supporting these practices through incentives and regulations that encourage resource efficiency and reduced landfill usage. It strengthens industry alignment with ESG objectives while enhancing brand value in competitive markets. The dried spent grain market is evolving through these brewery-driven sustainability models, which convert operational waste into high-demand products.
- For instance, Sierra Nevada, another major craft brewery, collaborates with local dairy farmers to distribute its spent grain, demonstrating a closed-loop system that benefits both brewers and farmers.
Technological Advancements in Drying and Processing Methods Are Improving Efficiency
Improved drying and processing technologies are helping overcome long-standing barriers in the dried spent grain market. High moisture content previously limited the usability and transportability of spent grain, but innovations in low-energy drying systems and modular processing equipment are resolving these issues. These systems allow for consistent product quality, extended shelf life, and reduced transportation costs. Equipment manufacturers are developing scalable solutions tailored to the operational capacities of small and large breweries alike. It enables producers to integrate drying systems without disrupting existing workflows. Better control over moisture levels and microbial activity is making dried spent grain more attractive for use in both feed and food-grade applications.
Expansion Across Non-Traditional End-Use Sectors Is Creating New Market Pathways
The dried spent grain market is expanding beyond traditional animal feed into diverse industries including packaging, cosmetics, and construction. Researchers and product developers are leveraging its fibrous and biodegradable properties to create sustainable packaging alternatives and compostable materials. Cosmetic brands are exploring its antioxidant and exfoliating properties for use in skincare formulations. Bio-composite manufacturers are integrating it into materials for use in building panels and automotive interiors. These novel applications open new commercial opportunities while reducing reliance on virgin raw materials. It supports a broader circular economy approach and strengthens market resilience against sector-specific fluctuations.
Market Challenges Analysis:
Limited Shelf Life and Complex Storage Requirements Restrain Commercial Viability
The dried spent grain market faces constraints due to its susceptibility to spoilage if not processed and stored correctly. High residual moisture levels can lead to microbial growth and mycotoxin contamination, compromising product safety. Despite advances in drying technology, maintaining uniform moisture content remains difficult across large batches. Inconsistent quality hinders large-scale adoption in regulated sectors such as food and pharmaceuticals. Storage and logistics require controlled environments, which raise operational costs for suppliers and distributors. It also limits distribution reach, particularly in regions lacking cold chain infrastructure or specialized handling capabilities.
Regulatory Uncertainty and Limited Standardization Affect Market Scalability
The lack of harmonized standards across countries creates challenges for companies operating in the dried spent grain market. Regulations governing its use in food, feed, and packaging vary significantly, leading to uncertainty in product development and compliance. Without clear definitions or classifications, producers often struggle to meet import-export requirements or gain approval for new applications. It slows innovation and discourages investment in downstream processing facilities. Labeling, safety testing, and traceability expectations also differ widely, complicating global supply chain integration. These regulatory inconsistencies reduce the market’s scalability and create barriers for new entrants aiming to commercialize value-added products.
Market Opportunities:
Growing Demand for Sustainable Ingredients in Human Nutrition Unlocks New Avenues
The dried spent grain market holds strong potential in the human food sector, driven by rising interest in sustainable, high-protein ingredients. Consumers are actively seeking products with clean labels, natural fiber, and environmental benefits. Food manufacturers can capitalize on this by incorporating dried spent grain into snacks, cereals, bread, and nutrition bars. It offers both nutritional density and upcycled value, helping brands meet environmental goals and appeal to conscious buyers. The functional food segment continues to evolve, and dried spent grain fits well into current product development trends. It supports diversification beyond traditional livestock feed, opening new revenue streams.
Expansion in Bioplastics, Cosmetics, and Industrial Applications Creates Diversified Revenue Streams
The dried spent grain market presents untapped opportunities in non-food sectors such as biodegradable packaging, personal care, and construction materials. Researchers and innovators are developing bioplastics and composite materials using its fibrous content, responding to the global push for eco-friendly alternatives. Cosmetic brands are exploring its antioxidant properties for scrubs and skin treatments. In industrial sectors, it can serve as a filler or binder in composite panels and insulation products. These applications reduce dependence on synthetic raw materials and support waste valorization. The market benefits from this growing recognition of dried spent grain as a functional, versatile input across diverse industries.
Market Segmentation Analysis:
The dried spent grain market is segmented by source, application, and nature, reflecting its diverse utility across industries.
By source, barley-based spent grain holds the largest share, supported by its dominance in global brewing. Wheat-based and rice-based variants follow, with sorghum and millet gaining attention in regions with diversified grain use. Each source offers unique nutrient profiles, influencing selection across end-use sectors.
- For instance, AB InBev processes over 1.4 million metric tons of barley spent grain annually, with a significant portion repurposed for animal feed and food ingredients.
By application, animal feed remains the primary segment, with livestock, poultry, and aquaculture feed utilizing dried spent grain for its protein and fiber content. The food and beverage segment is expanding, especially in bakery products, dairy alternatives, and functional foods, where spent grain enhances nutritional value. Nutritional products such as protein powders and health shakes are also integrating it to meet clean-label trends. Pharmaceuticals and nutraceuticals are incorporating dried spent grain in dietary supplements and medicinal blends due to its bioactive compounds. Biofuels and energy producers use it in biomass pellets and bioethanol production, supporting renewable energy targets. Cosmetics and personal care applications are increasing, especially in exfoliants and skincare. Industrial uses include sustainable packaging, biocomposites, and even construction materials, contributing to circular economy goals.
- For instance, EverGrain (AB InBev) produces EverPro and EverVita, which are incorporated into protein bars, bakery goods, and nutritional supplements.
By nature, conventional dried spent grain dominates due to lower production costs and widespread availability. However, demand for organic alternatives is rising, driven by consumer preference for certified sustainable ingredients in food, supplements, and cosmetics. The dried spent grain market benefits from this broad segmentation, supporting growth across multiple value chains.
Segmentation:
By Source
- Barley-Based Spent Grain
- Wheat-Based Spent Grain
- Rice-Based Spent Grain
- Sorghum-Based Spent Grain
- Millet-Based Spent Grain
By Application / End Use
- Animal Feed
- Livestock Feed
- Poultry Feed
- Aquaculture Feed
- Food & Beverages
- Bakery Products
- Confectionery Products
- Dairy Alternatives
- Functional Foods
- Beverages & Brewing Adjuncts
- Nutritional Products
- Protein Powders
- Meal Replacements
- Health Shakes
- Pharmaceuticals & Nutraceuticals
- Dietary Supplements
- Medicinal Formulations
- Biofuels & Energy
- Biomass Pellets
- Bioethanol
- Cosmetics & Personal Care
- Exfoliants & Scrubs
- Skin Care Products
- Industrial Applications
- Sustainable Packaging
- Biocomposites
- Construction Materials
By Nature
- Organic Dried Spent Grain
- Conventional Dried Spent Grain
By Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East and Africa
Regional Analysis:
North America commands a leading share and drives innovation
North America holds approximately 38% of the dried spent grain market, led by the U.S. and Canada with a strong brewing and distillation base. The region boasts well-developed infrastructure for collection, processing, and logistics, enabling cost-effective handling of large spent grain volumes. Breweries actively convert by-products into feed, fertilizer, and bioenergy, aligning operations with circular economy principles. It supports integration of dried spent grain into livestock, food, and energy value chains. Industry players invest in advanced drying technologies and supply chain partnerships. They maintain focus on quality control and regulatory compliance to support broader use.
Europe secures a substantial position through tradition and regulation
Europe represents 30% of the global dried spent grain market, anchored by brewing giants in Germany, the U.K., and Belgium. The region enforces strong environmental standards that drive reuse of spent grain. It channels material into agriculture, biofuel, and food manufacturing, supported by policy and public awareness. It feeds nutrient-dense inputs into livestock systems and supports innovations in food-grade and packaging applications. Companies invest in process standardization and product certification. They collaborate with research institutions to optimize extraction of protein, fiber, and bioactive compounds.
Asia-Pacific, Latin America, and MEA show rising demand and diversification
Asia‑Pacific owns 18% of the market and sees increasing output in China, India, Japan, and Australia . It responds to growing beer production, livestock feed demand, and sustainable farming trends. Companies set up processing facilities and form brewery–farm partnerships. Latin America holds 8%, driven by emerging breweries and interest in sustainable feed resources. Middle East and Africa capture 6%, with incremental adoption in agriculture and energy uses. These regions invest in infrastructure and capacity‑building to tap into market potential. They adapt dried spent grain to local needs across agriculture, food, and energy sectors.
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Key Player Analysis:
- Grain Processing Corporation
- AB InBev
- Malteurop Group
- Brewers Grain Ltd.
- EverGrain Ingredients
- MGP Ingredients
- DSM
- Lallemand Inc.
- Leiber
- Briess Malt & Ingredients
- Kerry Group plc
- ReGrained (Upcycled Foods, Inc.)
- Grain4Grain
Competitive Analysis:
The dried spent grain market features a mix of established players and emerging innovators focused on sustainability and value-added applications. Key companies include EverGrain Ingredients, ReGrained, and NETZRO, which specialize in upcycling brewery by-products into food, feed, and industrial materials. It benefits from partnerships between breweries and technology providers aimed at improving drying efficiency and expanding end-use segments. Large breweries such as AB InBev and Heineken are integrating dried spent grain processing into their sustainability initiatives. Smaller firms are targeting niche applications in functional foods and bioplastics. Competitive strategies focus on securing steady supply sources, optimizing processing technologies, and achieving compliance with feed and food safety standards. Companies invest in R&D to enhance nutritional profiles and unlock new commercial uses. The dried spent grain market remains dynamic, with innovation, circular economy alignment, and regional partnerships shaping long-term competitiveness.
Recent Developments:
- In May 2025, Grain Processing Corporation (GPC) received the 2024 Pinnacle Award from Union Pacific for excellence in rail safety, marking its second consecutive year of recognition. This award highlights GPC’s commitment to safe and efficient rail transportation in its operations.
- In May 2025, Malteurop Group inaugurated a new biomass power plant in Seville, Spain. This €40 million investment is a significant step in the company’s decarbonization strategy, reducing the malting plant’s greenhouse gas emissions by nearly 75%. The plant utilizes biomass from wood chips, olive stones, and almond shells, reinforcing Malteurop’s commitment to sustainable energy and environmental responsibility in malt production.
- In May 2023, MGP Ingredients announced the acquisition of Penelope Bourbon, a premium American whiskey brand. This acquisition aligns with MGP’s premiumization strategy and expands its branded spirits portfolio, leveraging Penelope’s growth potential and MGP’s national distribution network. The transaction is expected to be accretive to earnings and gross margin, with additional cost synergies anticipated by the end of 2025
Market Concentration & Characteristics:
The dried spent grain market exhibits moderate concentration, with a mix of large multinational companies and smaller specialized firms operating globally. It features key players that dominate through established supply chains, advanced drying technologies, and strong partnerships with breweries and feed manufacturers. These companies focus on securing consistent raw material supply, enhancing product quality, and expanding applications across feed, food, and industrial sectors. The market also includes regional players catering to local demand and regulatory requirements. It remains competitive due to ongoing innovation in processing methods and the growing emphasis on sustainability. Collaboration between breweries and processors strengthens supply reliability and drives market growth. Overall, the dried spent grain market balances consolidation with opportunities for niche entrants focusing on value-added products.
Report Coverage:
The research report offers an in-depth analysis based on source, application, and nature. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook:
- Increasing adoption of dried spent grain as a sustainable protein source will expand its use in animal feed globally.
- Advances in drying and preservation technologies will improve product quality and shelf life.
- Growing consumer demand for upcycled and fiber-rich ingredients will drive incorporation into human food products.
- Expansion of craft and commercial breweries worldwide will boost raw material availability.
- Regulatory support for waste reduction and circular economy practices will encourage industry investment.
- Rising awareness of environmental impacts will prompt companies to integrate dried spent grain into sustainability strategies.
- Development of novel applications in bioplastics, packaging, and bioenergy will diversify market opportunities.
- Improved logistics and cold chain infrastructure will enable wider distribution across emerging markets.
- Collaborations between breweries, technology providers, and end-users will enhance supply chain efficiency.
- Increasing focus on product standardization and certification will facilitate market acceptance and global trade.
