Brewers Spent Grain Market: Global Industry Analysis and Forecast (2024-2030) by Product, Form, Source and Application

Brewers Spent Grain Market Overview

The sustainability to focus on various industries is driving the widespread adoption of Brewer’s Spent Grain (BSG) as a renewable resource. With an increasing importance on environmental responsibility, BSG is being utilized across sectors as a sustainable alternative. Additionally, ongoing research and development endeavors are continuously uncovering new applications for BSG, ranging from biofuel production to food fortification and biopolymer synthesis. The innovation in applications is increasing the scope of BSG utilization, contributing to its growing prominence in multiple industries. The BSG market is experiencing a significant increase on a global scale, with emerging economies witnessing heightened adoption of BSG-based products.

The market growth is driven by several key drivers. Initially, the rising global consumption of beer is leading to higher production volumes of BSG, driving market growth. Additionally, environmental concerns and regulatory measures are pushing for the adoption of sustainable solutions like BSG. Finally, technological advancements in BSG processing are enhancing efficiency and diversifying the range of BSG-based products available in the market. These market drivers collectively contribute to the growth and diversification of the BSG market, making it a key player in the sustainable solutions landscape.

Increased production of BSG due to the rise in beer consumption worldwide is driving market growth. At the same time, increased environmental awareness and legislative actions are intensifying the demand for sustainable solutions like BSG. In addition, technological developments in BSG processing are increasing productivity and broadening the variety of BSG-based products that are offered. These interrelated elements play a crucial role in driving the BSG market's growth and diversification and satisfying the need for ecologically friendly solutions across a range of sectors.

Brewers Spent Grain Market Dynamics

Role of Brewery Development in Rising BSG Supply

The production of Brewer's Spent Grain (BSG), an unavoidable by-product of brewing, is directly correlated with the rise in production. The amount of BSG produced rises proportionately with each liter of beer produced as breweries grow their production. That clear relationship shows how the craft beer trend has a major impact on the availability and production of BSG, supporting the increase and long-term viability of numerous sectors that depend on this important by-product. Brewer's Spent Grain availability is increasing, which is good for the BSG market in several ways.

The rise is being caused by brewery development. Initially, increased supply results in lower BSG costs, which is expected to make it attractive to companies looking to use it in industries like food manufacturing, biofuels, and animal feed. Widely accessible and less expensive BSG draws in new competitors and promotes innovation in the creation and application of new products. Ultimately, BSG provides a useful outlet for brewers looking to reduce their environmental effects, helping to raise a more sustainable brewing sector. The market of Brewer’s Spent Grain (BSG) applications is growing and becoming more diverse because of this convergence of variables.

BSG as a Sustainable Feedstock opportunity for Biofuel Production

BSG contains carbohydrates and sugars that are converted into biofuels such as ethanol through fermentation processes. As the demand for renewable energy sources continues to rise, BSG offers a sustainable feedstock for biofuel production, contributing to the reduction of greenhouse gas emissions. Brewer's spent grain (BSG) is becoming increasingly in demand as the biofuel industry uses it as a result, breweries are setting up effective systems for collecting and processing BSG. Despite it was once thought of as trash, BSG is now a valuable ingredient for the manufacture of biofuel, providing breweries with an additional source of income that could help them with their brewing costs.

The biofuel application attracts new companies and diversifies the use of BSG, hence increasing the market. The diversification demonstrates that BSG is increasingly seen as a valuable resource across a range of industries and not only optimizes BSG utilization but also has the potential to lower overall disposal costs for breweries.

Impact of High Moisture Content on Quality and Shelf Life is challenging

BSG has a high moisture content and is susceptible to spoiling, necessitating suitable storage and preservation measures to ensure its quality. It makes it difficult for breweries and BSG users to control inventory and cut down on waste. BSG's perishable nature complicates logistics, potentially increasing transportation costs and limiting its geographical reach. According to Stellar research its shows that, transportation costs as a significant factor in BSG utilization, further impacted by the need for rapid transport due to its perishability. Efficient storage and preservation solutions are crucial for breweries to manage BSG inventory without spoilage, as inefficiencies lead to waste and reduced revenue streams. Concerns about maintaining quality and preventing waste are expected to deter potential users, posing challenges to market adoption of BSG and its applications.

Drying BSG reduces moisture content, extending shelf life and simplifying storage and transportation. Its energy-intensive nature, however, compromises cost-effectiveness. Anaerobic BSG fermentation through ensiling improves storage stability but necessitates certain tools and expertise. Proximity between breweries and BSG users promotes on-site consumption by enabling the prompt use of fresh BSG and reducing storage issues. The approach underscores the importance of geographic closeness for optimizing the use of BSG and resolving logistical issues related to its maintenance and storage.

Brewers Spent Grain Market Segment Analysis

By Product, Barley, being relatively cheap and widely accessible, makes barley BSG a cost-effective choice for various applications. Its dominance in brewing ensures the highest volume of production among all BSG types, ensuring a consistent and dependable supply. According to SMR Research, in 2023 barley remained the most utilized brewing grain in the United States, with over 60% of all beers brewed using barley. The substantial barley usage results in a significant generation of barley BSG, reinforcing its abundant availability and affordability for users across various industries. With its abundance, barley BSG presents opportunities for large-scale applications such as biofuel production, contributing to a more sustainable energy landscape.

Research published in Fuel Processing Technology in 2023 confirms barley BSG's viability as a feedstock for bioethanol production, with conversion efficiencies comparable to other cellulosic materials. This supports its potential for biofuel applications. Additionally, the availability and affordability of barley BSG attracts new market entrants, particularly in sectors like animal feed and bioplastics, where BSG offers a cost-competitive and sustainable alternative to traditional materials, promoting market growth.

Brewers Spent Grain Market Regional Insights

Europe's significant BSG generation and long history of brewing contribute to its dominance in the worldwide BSG market. According to Stellar Research, Europe's revenue share in 2023 was 34.1%, indicating the region's leading position in the manufacturing and use of BSG. Brazil ranks third globally in beer production, following China and the USA, contributing 5% to the world beer market. The brewing process involves converting starch from barley malt into fermentable wort, which is then boiled with hops, cooled, and fermented with brewer’s yeast. BSG, the major lignocellulosic biomass waste generated in the beer industry, poses economic and environmental challenges regarding its disposal. However, it holds significant potential for various applications, including animal feed, food fortification, biofuel production, and biorefinery processes. The Brazilian beer industry has witnessed exponential growth in recent years, resulting in a rapid increase in registered beer companies.

According to data from the Ministry of Agriculture, Livestock and Food Supply (MAPA) in 2022, the number of registered beer companies in Brazil has surged, especially between 2018 and 2021. The growth trajectory indicates a corresponding increase in BSG generation, raising concerns about its disposal and utilization. The perishable nature of BSG complicates logistics and transportation, potentially increasing costs and limiting its geographical reach. The drying process, although effective in extending shelf life and facilitating storage, is energy-intensive, impacting cost-effectiveness. Ensiling, an alternative preservation method, requires specialized equipment and expertise but offers enhanced storage stability. However, storage and preservation challenges are expected to discourage potential users, hindering market adoption of BSG and its applications.

Europe, particularly countries Including Germany and France, is increasingly prioritizing sustainability in the brewing industry, driving exploration of innovative BSG applications such as biofuel production and incorporation into food products. SMR report highlights ongoing research projects focusing on BSG's potential for bioethanol production and novel food ingredients, indicating Europe's commitment to sustainable BSG utilization.

The EU's Circular Economy Action Plan, with a target for a 50% reduction in food waste by 2030, supports BSG valorization by promoting waste reduction and resource recovery initiatives. Also, strict waste management regulations in countries like Germany incentivize breweries to find responsible outlets for their BSG, while government grants support research on innovative BSG applications. Germany leads BSG production in Europe, producing over 85 million hectoliters of beer in 2021, significantly contributing to the region's BSG generation. The focus on sustainability, coupled with government initiatives and Germany's prominent role in beer production, drives market growth and innovation in BSG utilization in Europe.

Brewers Spent Grain Market Competitive Landscape

Large sums of money are being spent on R&D by both well-established businesses and start-ups to extend the market of BSG-based products by improving processing methods and finding new uses for the material. In addition, larger organizations strategically buy out smaller firms that have access to the market or special BSG processing technologies to strengthen their position as market leaders.  Increased competition from new players and innovative products is driving market growth and benefiting consumers with lower prices and a broader range of BSG-based products. Overcoming storage and transportation challenges allows the market to reach new customer segments across industries.

The competitive landscape is also fostering sustainability practices within the brewing industry and beyond, pushing the boundaries of BSG utilization towards more environmentally friendly solutions. The intensified competition drives innovation, promotes market growth, and encourages sustainable practices, ultimately enhancing the overall value proposition of BSG-based products for consumers and industries alike.

1. A joint venture called Circular Food Solutions Switzerland AG was established in July 2022 by Bühler, a global provider of process and equipment technologies for the food and beverage, agricultural, and feed sectors, and CN & Partners, an investment firm with headquarters in Switzerland. The goal of the venture is to create a Swiss meat substitute by utilizing recycled spent grain.
2. Osage Foods, a Missouri-based supplier of ingredients and ingredient systems, unveiled SolvPro, a new range of vegan plant protein blends, in January 2023. EverPro, an upcycled grain obtained from the brewing business Anheuser-Busch InBev (AB InBev), is used to make these protein blends.

Key Player in the Brewers Spent Grain Market

• Malteurop
• Anheuser-Busch Companies LLC
• MGP
• DSM
• Lallemand Inc.
• Leiber
• Briess Malt & Ingredients
• Kerry Group plc.
• Buhler
• ReGrained
• Particlecontrolinc
• Tetrapak
• Brewbound
• Kwsmfg
• world-grain
• paulmueller
• homebrewers association