Brewer’s Spent Grain Market Size, Share & Industry Analysis by Source (Barley, Wheat, Rye, Oats, and Other Grains), By Form (Wet Form, Dry Form, Pelletized Form, and Others), By Application (Animal Feed, Food & Beverage Ingredients, Biofuel & Biogas Production, Fertilizers & Soil Conditioners, and Others), and Regional Forecast, 2026-2034

The global brewer’s spent grain market is poised to depict significant expansion, driven by sustainability pressures, circular-economy models, growing interest in nutrient-rich ingredients, and innovation in processing and logistics. Brewer's spent grain (BSG) is a fibrous residue left after wort removal during brewing. It is normally generated in great quantities by breweries and contains high amounts of protein, fiber, and other nutrients. Furthermore, it has increasingly attracted interest for up-cycling into animal feed, human food ingredients, bio-energy applications, and other value-added uses rather than being disposed.

Brewer’s Spent Grain Market Drivers

Expanding Global Beer Production and Microbrewery Growth to Fuel the Market Expansion

Increasing worldwide beer production and the rise of microbreweries are major drivers for significant growth in the global brewers' spent grain market. Brewer's spent grain, being a major by-product of beer brewing, increases proportionally with every liter of beer produced. The global consumption of beer is on the rise, driven by the increasing demand for craft beer, supported by the booming microbrewery segments, which in turn raises the volumes of BSG, serving as the primary supply for the market.

• According to the Brewers Association, in 2023, the total number of operating craft breweries reached an all-time high of 9,683, with the breakdown including 2,071 microbreweries, 3,467 brewpubs, 3,900 taproom breweries, and 245 regional craft breweries. The U.S. brewery count overall was 9,812, which includes 495 new openings and 418 closings throughout the year.

Brewer’s Spent Grain Market Restraints

High Moisture Content and Perishability/Logistics Challenges to Hinder Market Growth

Fresh brewer's spent grain has a very high moisture content, within the range of 70-85%, which poses severe problems in terms of transportation, storage, shelf life, and international trade. High moisture content means that BSG is a highly perishable product, prone to microbial growth and toxin elaboration. Hence, its spoilage and instability occur rather quickly. These factors also reduce the time frame within which it can be collected, transported, and used efficiently, entailing logistical complications for breweries and end-users.

Brewer’s Spent Grain Market Opportunities

Partnerships with Food Manufacturers, Snack Producers, and Bio-Energy Companies to Pave New Opportunities

The partnerships between BSG producers/processors with food manufacturers, snack producers, dietary supplement formulators, and bio-energy companies open up possibilities for higher-value product streams beyond their traditional uses as animal feed. In the food processing industry, BSG is processed, usually dried and milled into flour or powder, which is rich in fiber, protein, and bioactive compounds. Food companies add value to BSG by infusing it into bread, cookies, biscuits, pizza crusts, crackers, and other baked foods, improving nutritional profiles to appeal to the consumer demand for functional and sustainable ingredients.

Segmentation

Key Insights

The report covers the following insights:

• Overview of the Parent Market
• Supply Chain Analysis
• Regulatory Landscape
• Recent Industry Development – New Product Launches, Mergers & Acquisitions, Investments, and Others
• Impact of Tariffs on the Market

Analysis by Source

Based on source, the market is divided into barley, wheat, rye, oats, and other grains.

The barley-derived spent grain segment dominates the source portfolio as barley is the most used grain in conventional brewing globally. The dominance of the segment in the market is primarily due to barley being the most widely used grain in conventional brewing globally. Barley remains the primary grain in beer production due to its enzymatic properties that facilitate the conversion of starch into fermentable sugars required for brewing.

The wheat-based segment is expected to grow at the fastest rate due to the increasing popularity of wheat-based beers and more common usage of wheat in brewing.

Analysis by Form

Based on form, the market is categorized into wet form, dry form, pelletized form, and others

The dry form of BSG currently holds a major share as it offers better shelf life, transportability, and versatility compared to the wet form. The dry form of brewer's spent grain (BSG), such as dried, milled, or pelletized, indeed holds the major market share due to several advantages over wet BSG. Drying is the most important post-production process for BSG as it significantly enhances shelf life and product safety by reducing moisture content from the original high levels (70%-85%) to below 10%, limiting microbial growth and toxin development.

The pelletized form segment is seeing increased traction due to new applications in snacks, fiber-enriched foods, and bio-energy.

Analysis by Application

By application, the market is fragmented into animal feed, food & beverage ingredients, biofuel & biogas production, fertilizers & soil conditioners, and others.

The animal feed segment dominated the application side of the market. This dominance is attributed to the rising meat, milk, and egg production needing substantial feed supplies. The feed industry's growth is supported by technological advancements, sustainability trends, and the rising demand for organic and functional feeds.

The food and beverage segment is expected to grow significantly during the forecast period. This is driven by the increasing consumer demand for convenience, functional and fortified foods, plant-based and sustainable food options, and the rise of e-commerce platforms.

Regional Analysis

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Based on region, the market has been studied across North America, South America, Asia Pacific, the Middle East & Africa, and Europe.

The Europe region dominates the global brewer’s spent grain market, sustained by a long-established brewing tradition, strict waste management policies, and strong sustainability and circular economy initiatives. Germany leads Europe's market with the largest share and is driven by advanced brewing technology, solid food processing capabilities, and comprehensive sustainability frameworks.

Meanwhile, the Asia Pacific region is the fastest-growing market for brewer’s spent grain. Growth is propelled by increasing beer consumption, abundant agricultural raw materials, supportive government policies, and rapid urbanization in countries such as China, India, and Japan.

Key Market Players

• Anheuser-Busch InBev SA/NV (Belgium)
• Molson Coors Beverage Company (U.S.)
• Carlsberg A/S (Denmark)
• Heineken N.V. (Netherlands)
• Kerry Group plc (Ireland)
• Bühler AG (Switzerland)
• Leiber GmbH (Germany)
• EverGrain Ingredients (U.S.)
• Malteurop Group (France)
• Cargill, Incorporated (U.S.)

Key Industry Development

• August 2025: Western Australia witnessed a new research collaboration called the "Value Adding to Brewery Spent Grain" project, focused on transforming beer by-products, specifically brewer's spent grain (BSG), into innovative food and fiber products. This project aims to unlock new market opportunities for the regional craft brewing industry by turning BSG into ready-to-eat foods, food ingredients, health products, and even plant-based leather.
• May 2024: HEINEKEN France launched Project Circle as a pioneering sustainability initiative at its brewery in Mons-en-Barœul. The project focuses on valorizing brewers' spent grain (BSG), a major byproduct of brewing, by converting it into valuable products and sources of renewable energy.