by The malted barley market is expanding rapidly due to the growing consumption of alcoholic beverages around the world. Malted barley is essential for brewing beers and is a key ingredient that provides fermentable sugars and aroma. It offers several advantages such as improved taste and quality of beer along with enzymatic properties that helps in the conversion of starches to sugars during the mashing process. 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 2030.
Key Takeaways
Key players operating in the malted barley market 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 rising consumption of beer globally is augmenting the demand for malted barley. According to the Beer Institute, the global beer consumption has grown from 180,996 million liters in 2012 to 187,377 million liters in 2020. Asia Pacific accounts for nearly 40% of the total global beer consumption and is expected witness substantial growth in demand due to increasing disposable incomes.
Leading producers are expanding their production capacities and operations to match the growing demand. For instance, Malteurop Group, one of the largest malting companies, inaugurated a new malting plant in Kazakhstan in 2021 to meet the increasing demand from Central Asia. Several new craft breweries are also being launched globally, utilizing specialized malted barley varieties to produce unique beers. This has opened up new opportunities for malted barley producers.
Market key trends
Increasing use of specialty malted barley is a key trend being witnessed in the market. Craft brewers are utilizing unique varieties of malted barley such as Caramel, Roasted, and Dark malts to provide different flavors, aromas and colors to beers. These malts help craft brewers to differentiate and expand their product portfolio. Producer are developing specialized malted barley varieties through advanced malting techniques to cater to the dynamic needs of craft brewers. This emerging trend of innovation and variety is expected to drive the demand for malted barley over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the malted barley market is moderate. Existing brewers and malt producers control the supply chain and distribution channels making it difficult for new firms to establish themselves. However, declining margins in the mature markets act as an incentive for new firms.
Bargaining power of buyers: The bargaining power of buyers is high given the fragmented nature of the industry with large brewers and few private label buyers. Buyers can negotiate on price and demand better quality and service.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While few large multinational companies dominate production, many small and medium local producers exist. Suppliers have some control over prices.
Threat of new substitutes: The threat of substitutes is low as malted barley is the primary raw material used in beer and whiskey manufacturing due to tradition and taste. Alternative grains are not close substitutes.
Competitive rivalry: The competitive rivalry in the industry is high. Large manufacturers compete intensely on pricing, quality, and innovation.
Geographical Regions
In terms of value, Europe accounts for more than 55% share of the global malted barley market. Countries like Germany, UK, Belgium, and Czech Republic are some of the major consumers as well as producers.
North America is the fastest growing region for the malted barley market between 2024-2030. Increasing consumption of craft beer in the US and growing demand for imported beers are driving market growth in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
