Malted barley is primarily used in beer production and acts as a crucial raw material. It provides fermentable sugars like maltose and also imparts characteristic beer flavor. Moreover, its enzymes break down the starch into fermentable sugars during the mashing process. With the rising global beer consumption, the demand for malted barley is increasing substantially. The requirement for higher quality, consistency and efficiency throughout the malting process has driven technological advancements like automated malting equipment and computerized process controls which is estimated to fuel the market growth.
The global malted barley market is estimated to be valued at US$ 10.36 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the malted barley are Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Kia Corporation (South Korea), Nissan Motor Co., Ltd. (Japan), BYD Auto Co., Ltd. (China), SAIC Motor Corporation Limited (China), Geely Automobile Holdings Limited (China), Tata Motors Limited (India), Mahindra & Mahindra Ltd. (India), Maruti Suzuki India Limited (India), Mitsubishi Motors Corporation (Japan), Proton Holdings Berhad (Malaysia), Perusahaan Otomobil Kedua Sendirian Berhad (Perodua) (Malaysia), Groupe PSA (France). The increasing popularity of craft beer has opened opportunities for specialized malted barley varieties used in these premium beers. Technological advancements like automated malting equipment and computerized process controls have improved the consistency and quality of malted barley.
Market Drivers
The rising global Malted Barley Market Demand consumption of beer is a key driver pushing the demand for malted barley upward. Higher disposable income, expanding working population and improving lifestyles in developing countries are fueling the beer market growth, subsequently increasing malted barley requirement.
According to market estimates, the global beer production volumes surpassed 1.95 billion hl in 2020 and is expected to keep rising at a steady rate. This burgeoning beer industry will drive significant demand for malted barley in the upcoming years.
Challenges in Malted Barley Market
The Malted Barley Market is facing several challenges such as fluctuation in barley production due to changing weather conditions, high dependence on few cultivars of barley for malting, and volatile prices of barley. Droughts and excess rainfall negatively impact barley yield. Also, cultivation of barley requires fertile lands which are limited. Further, there is a lack of investment in barley breeding programs which restricts the development and commercialization of new barley varieties especially suited for brewing and distilling. The buyers in this market demand consistent quality of malted barley which is challenging to maintain.
SWOT Analysis
Strength: Wide applications in beer, whisky and food industries leading to stable demand. Malted barley has health benefits like antioxidants, fibers, vitamins etc.
Weakness: Barley production prone to weather changes. Processing of barley into malt is labor intensive and involves long production cycle.
Opportunity: Growing craft beer market worldwide gives opportunity to increase malted barley demand. Development of new barley varieties suited for specific industries through research.
Threats: Substitutes like corn, rice used for brewing pose competition. Stringent regulations regarding pesticide residues can impact traders.
Geographical Regions
Europe accounts for the largest share of the global malted barley market in terms of value owing to massive beer consumption and presence of large breweries in countries like Germany, UK, Belgium. China is also one of the major markets due to large population and growing middle class driving beer demand.
The Asia Pacific region is expected to witness the fastest growth during the forecast period. This can be attributed to rising health-conscious youth population especially in India and Southeast Asian countries promoting low-alcohol craft beer consumption. Countries like India are also encouraging barley cultivation which will augment regional malted barley production.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.