The malted barley market offers various benefits such as providing natural sweetness, texture, enzymes, and aromatic compounds. Malted barley is widely used as a natural ingredient in beer production, adding body, texture and providing sugars for fermentation. It helps maintain the natural color, provides characteristic flavor profiles, and acts as a natural preservation agent. Malted barley also enhances the nutritional value as it contains numerous minerals, B vitamins, and is a good source of fiber.
The global malted barley market is estimated to be valued at US$ 8.99 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the malted barley market is the increasing popularity of craft beer. According to the Brewers Association, the number of breweries in the United States grew from around 7,000 in 2016 to over 8,000 in 2021. Craft beer offers variety in flavors, styles and tastes compared to other alcoholic beverages. This has led to increased demand for high-quality malted barley which enhances the taste and aroma of craft beer. Furthermore, innovations in malting technology allow for development of diverse flavors and aromas, thereby enabling craft brewers to experiment with different malted barley varieties. This trend is expected to drive the growth of specialized malted barley varieties tailored to complement an array of craft beers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the moderate capital requirements and intellectual property protections/rights required. However, established players have significant brand recognition and supply chain advantages.
Bargaining power of buyers: The bargaining power of buyers is high as malted barley is a commodity product with many substitutes available. Buyers can negotiate on price and quality requirements.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as malted barley requires specific varieties, malting techniques and supply consistency. However, established suppliers have significant scale advantages.
Threat of new substitutes: The threat of new substitutes is moderate as products like malt extracts provide functionality with lower costs and complexity compared to malted barley.
Competitive rivalry: The competitive rivalry is high due to many global and regional players competing for market share. Price competition is intense.
Key Takeaways
The Global Malted Barley Market Size is expected to witness high growth over the forecast period. Regionally, North America accounted for the largest market share in 2022 owing to the presence of major brewers, maltsters and consumers in the region. Asia Pacific is expected to witness fastest growth through 2030 with countries like India and China emerging as major consumers of malted barley.
Regional analysis: North America led by U.S. dominated the global malted barley market in 2022. Growing demand for craft beers is driving market growth. Asia Pacific market is expected to witness highest CAGR during the forecast period with India, China and other Southeast Asian countries expected to emerge as high growth markets. Supportive government policies and increasing consumption of beer and whisky in the region are fueling market expansion.
Key players: Key players operating in the malted barley market include Pfizer Inc., Novartis AG, Merck & Co., Inc., Celgene Corporation, AstraZeneca PLC, Astellas Pharma Inc., AbbVie Inc., F. Hoffmann-La Roche Ltd., Bristol-Myers Squibb Company, and Johnson & Johnson (Janssen Global Services, LLC), among others. Key players are focusing on expanding their production volumes and distribution networks to cater to the growing global demand for malted barley.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it