Malted Barley Market Is Anticipated To Witness High Growth Owing To Increasing Demand From Brewing Industry

Malted Barley Market 

The malted barley market comprises barley that has been steeped in water, allowed to germinate by sprouting, and then subsequently dried. This process allows the grain to modify naturally occurring starches into fermentable sugars to produce beer, whiskey, and other alcoholic beverages. Malted barley has high nutritional value as it is a rich source of various vitamins, minerals, enzymes, and proteins. It helps in easy breakdown of starch during the brewing process. The increasing consumption of beer globally is propelling the demand for malted barley from the brewing industry.

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). Key opportunities in the malted barley market include expanding production capacities, and new product innovations to tap growing demand from brewing and distilling industries. Major companies are focusing on global expansion by investing in new production facilities and acquiring local players across regions such as Europe, North America, Asia Pacific, and Latin America.

Market Drivers And Restrain

The increasing consumption of beer globally is a major market driver for Malted Barley Market Demand According to estimates, annual global beer consumption has increased from ~1.8 billion hl in 2000 to over 2 billion hl in 2020. Malted barley serves as the primary ingredient in the production of beer. Another key driver is the growing whiskey market. Malted barley is the chief grain used in whiskey making. The global whiskey market was valued at ~US$ 60 Bn in 2020 and is growing at a steady pace.

Volatility in barley production and prices is a major market restraint. Barley yield and prices are dependent on various factors such as weather conditions, soil quality, pest attacks, etc. Any issues affecting barley cultivation can negatively impact malted barley supply and drive up prices. This increases input costs for brewers and distillers. Fluctuations in barley prices pose major risks for buyers in the malted barley industry.

Segment Analysis

The malted barley market is segmented into the source and application. Based on source, the two-row malted barley dominates the market currently due to higher diastatic power and better modification over six-row malted barley. Two-row malted barley is more preferred for brewing than six-row as it provides more fermentable sugars and less protein compared to six-row. The applications covered under this report include food, beverage, pharmaceuticals and feeding stuff. The beverage segment consisting of alcoholic and non-alcoholic beverages holds the largest market share. Within the beverage segment, the alcoholic beverages sub-segment that produces beer is the major consumer of malted barley owing to its key role in the production of beer.

Global Analysis

Geographically, the malted barley market in the Asia Pacific region is projected to witness the highest growth during the forecast period. Countries such as China, India, and others are dominating the Asia Pacific region due to the rapid urbanization, western influence and the fast-growing food processing and beverage industries. The increasing disposable income of the middle-class population coupled with rising preference for ready-to-drink (RTD) beverages are driving the growth of the region's market. Europe currently dominates the global malted barley market supported by the high production and consumption of beer in countries like Germany, the UK, Belgium, Poland, and others. However, support from government initiatives and investments in grain production and research is helping North America to increase its production capacity of malted barley.

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