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Market Dynamics 

Driver: Increased Demand for Barley in the Brewing Industry Drives Market Growth

Barley is one of the primary beneficiaries of the growth in the brewing industry, and malt barley demand is projected to touch new levels in 2023. Beer production globally continues to increase notably with the total production amounting to an estimated 1.96 billion hectoliters in 2023. This increase in the barley market is primarily due to an increase in the preference of consumers for craft beers and the many micro-breweries, which have grown to more than 35,000 worldwide. China is the highest beer consumer in the world and was noted to have imported nearly 6 million metric tons of barley for its brewing sector in 2023. Barley is also grown in the European Union, and in the same year, the EU distributed around 60 million metric tons of barley for the purpose of malt production and targeting the Mediterranean, Africa, and America. Over 2.5 million acres of land were given over to barley crop farming in the United States in the year 2023 with the majority of land given for the brewing industry. Australia was able to ship out 9 million metric tons of barley in 2023. In 2023, The global malt market stood at US$ 24 billion and barley malt made about a three-quarters share owing to its superior qualities in beer making outfits.

Due to the strategic weakness in the supply of barley market, the majority of the brewing companies acquired barley supplies worth $1.2 billion in addition to external contracts and partnerships with barley farmers in 2023. Consequently, malting barley prices reached $210 per metric ton in 2023 with strong market forces in play. Another barley growing giant Canada allocated more than 3 million hectares to barley in 2023 corroborating its significance to the brewing industry. There was also deliberate effort to develop new barley variety as a total of 15 new high yielding disease resistant barley stalks for brewing use were released in the year 2023. The value of the non-alcoholic malt beverage market reached a market size of 5 billion dollars in 2023, thus increasing the need for malt barley. All these developments suggest the reason why the barley market continues to expand is due to the needs posed by the brewing industry, thus maintenance of production and optimization of the supply chain remains imperative.

Challenge: Climate Change Poses Challenges, Affecting Barley Production and Yields

In 2023, climatic changes emerged as one of the barriers to barley production, decreasing the production output and creating uncertain marketplace. Natural disturbances of extreme scale have been occurring more regularly with droughts affecting important barley producing countries including Australia whose intense drought in 2023 further clipped down barley production by 2 million metric tons from the previous. Similarly, persistent overriding heat in Europe’s summer countries saw a drop of 1.5 million metric tons of barley harvested in countries like France and Germany. In Canada, however, 2023 is seen as quite adverse with renovating frosts spreading over 500,000 hectares of barley fields within the conventional barley growing regions and causing great barriers to farmers. The global mean yield of barley market dropped from 1999 to 3.0 metric tons ha in 2023 as climatic factors deteriorated the yield and production trends. There is also another issue which has risen over the years in terms of water availability as nearly twenty percent increase in irrigational necessity is felt for barley plantations in dry areas to keep the crop in shape.

As a result of climate-related soil erosion, 1 million hectares of barley farmland were lost to soil degradation in the year 2023. Climate changes also motivated pests such as the barley yellow dwarf virus that dominated with 10% of the barley crops in 2023. The United Nations stated that if climate change trends regarding or production volumes will remain the same, barley production might decrease by as much as 17 million metric tons every year by the year 2050. In order to address these problems, there was increased investment in the development of climate resilient barley varieties with $300 million dedicated to this purpose in the year 2023. In the year 2023, Governments of major barley producing nations came to the support of farmers affected by climate related losses by injecting $150 million in subsidies and support programs for such purposes. Further, the global barley insurance market incurred claims worth $1 billion on climate related crop losses in the year 2023..

Trend: Technological Advancements Improve Efficiency in Barley Farming and Production

In 2023, new technologies aided in improving efficiency in barley growing and production in the barley market. The use of precision agriculture, such as GPS-enabled equipment, was implemented to 2 million hectares of barley land promoting efficiency in planting and harvesting. In 2023, more than 1.5m tons of barley fields were fly over for monitoring by farmers using drones and remote sensing technology so that get respond to problems quickly and lose some $500 million in barley loss to the global economy. Additional irrigation such as drip and sprinkler systems served 1 million hectares of barley producing water savings of 200 million cubic meters in the year 2023. Additionally, ten new genetically modified barley strains were approved for cultivation because of a biotechnological breakthrough made in 2023.

Automation in agricultural machinery saw significant investments in the barley market, with $800 million spent in 2023 on autonomous tractors and harvesters for barley farming. Leading agribusiness companies employed the blockchain technology in the barley supply chain, which was assessed with more than 1 million metric tons of barley from farm to brewery for quality assurance purposes. Agriculture based AI solutions examined and processed 5 million data in the year 2023 in order to avail farmers advice on farming activities such as crop growing for more than $200 million worth of increase in production yields. Countries around the world brought down the demand for agricultural robots, especially for barley growing, when the volume of world sales of such equipment reached $5.5 billion in 2023. Also, barley microgreens vertical farming projects have compelled urban farms to expand growing 10,000 metric tons of barley in 2023. Moreover, investment made in renewable energy for barley processing plants reached $ 250 million in 2023 helping to cut down greenhouse emissions and costs of doing business.

Segmental Analysis 

By Application

In 2023, alcoholic beverage application in the barley market held over 47.34% market share in the barely market. World production of barley is forecasted to value near 156 million tons in complex 2023, with a major share used for malting within the alcoholic beverage sector. In the brewing sector, the malting barley amounting to about 30 million tons is consumed every year in beer production. By 2023, the world beer production reached approximately 190 billion liters, hence the need for remarkable use of barley. Other contributions to this demand emanates from the whisky industry where production of scotch whisky alone has been consuming over 1.5 million tons of barley per annum. Due to combination of craft breweries and distillers growing demand for barley, there are over 30 000 distributed around the world. More so, new emerging markets such as China also increased their imports of barely to up to 10 million tons in the year 2023 flooring mainly beer. The malting industry of Europe imports well over 10 million tons of barley per annum, making her active in the world market. In 2023, the United States produced about 3.5 million tons of barley with most of it consumed by its well-established brewing industry. Because of the growth in demand, barley prices have reached more than $250 a ton, and the alcoholic beverages market is estimated to be $1.6 trillion dollars in 2023, explaining the reason behind the high consumption of barley.

The rise in barley consumption in the barley market can be attributed to a number of causes. The expansion of the global alcohol drinks market has also contributed to the increasing demand for superior barley malt, especially in less developed markets. Specialty malts, in turn, are on higher demand due to consumers’ turn towards more premium and craft beverages. Barley remains central to the industry as it allows for production of a wide range of beer styles and whiskies. Invention of brewing and distillation technologies is still exploiting the originality of this crop, ensuring its place on the world’s commodities market. Furthermore, barley is also attractive to producers as the crop can be grown in various climates and thus can help meet the increasing demand of the alcohol market.

By Type 

The demand for malted barley has been on the rise due to the expanding global beverage industry in the barley market and shifting consumer preferences, which accounted for 41.56% market share. This is clearly seen through the emergence of the craft beer and whiskey segments which are driving the demand for quality malt barley. There is a change in the types of alcoholic drinks that people drink with more of the premium and artisanal beverages being produced, necessitating the increasing procurement of malt barley by breweries and distilleries. Further, malted barley is being used and even marketed in the food industry as health foods and Malt based foods due to various disease preventive properties, protein, enzymes aiding digestion and many more. In recent years due to the healthy eating culture there has been an increase of demand in malted barley users in products like cereals, bread and energy bars. Besides, its being "an enzyme-friendly" it also extends it's application as an ingredient in food processing which in turn boosts the demand for malted barley usage in the economy.

Breweries, distilleries, and food industries form the key end-users of malted barley. The total malt barley market consumption metric for 2023 is tremendous and North America, Europe and Asia-Pacific region due to the booming beer and whiskey production industries in the country. Likewise, states such as Germany, China, and the United Kingdom are promising markets primarily because of well-established brewing habits. By the year 2023, there is adequate production of malted barley on the market to meet the existing demand, with millions of metric tons produced. Only such country as USA focuses its production primarily on the craft beer market, which has also resulted in high consumption levels of malted barley. Moreover, in countries like India also demand of malt roasted products has risen. Brewer’s grains have been affected by transportation and stocking wages thus making malted barley price depend on the logistics side of processes. The distilling industry also has a significant share of malt barley demand, particularly in the whiskey segment whose production worldwide is substantial. The malted barley grain has numerous applications in the food sector and other applications which increases its demand as needed by the consumers.

By Grade

In the dominance analysis of barley grades, feed grade barley leads the global barley market by accounting for a 47.34% market share. Of the total barley and barley product market consumption, feed barley is the largest segment accounting for close to 90 million metric tons owing to its application in animal feed for cattle, pigs and poultry. The feed market was worth around $16.2 billion in 2023, which evidences the importance of this commodity in the industry. There are staggering figures of about 20 million metric tons of malting barley that are consumed in the making of beer or beverages every year. Nevertheless, this sector of food grade barley is smaller than malting barley but grows at a remarkable pace. Around for 5 million metric tons Of food grade barley European countries are also consuming annually, enhancing conventional eating patterns as well as new food patterns. The increasing demand for plant based and or whole grain diet is further accentuating this trend setting food grade barley in the global barley market in which it is a comparatively smaller segment that wields enormous potential.

According to the International Grains Council, barley production stood at 156 million metric tons on a global scale in 2023. Of this, a very small amount is used for human consumption and as this volume does not exceed over 10 million metric tons per year. Wherein, China imports 4.5 million tons of food grade barley, which is in particular, consumed because of the Chinese traditional food as well as the increasing health awareness of the people. This is closely followed by Japan with food barley usage constituting around 1.2 million metric tons per year. The demand for food grade barley in India has also increased and is currently at around 2 million metric tons as barley pushes its way into the Indian thali.

By Nature

Conventional barley continues to dominate global barley market accounting for over 82.91%, despite the growing trend towards organic varieties. Economies of scale and the gains from productivity of synthetic inputs lead to production costs which are lesser than that of conventional barley. Rather than that, organic barley production incurs higher costs that arise from intensive work processes, decreased outputs and there are also expenses related to getting the organic certificate. Unfortunately, these high production costs result into high marketing costs of the organic barley which is a restriction to bulk buyers and companies who work with narrow margins. Take for instance, organic barley can command a high price tag that appeals to organic barley consumers within a limited market, whereas mass markets prefer conventional barley to save costs. 

Besides, organic barley cannot be sourced widely because of the limited size of organic fields and the relatively fast pace of converting farmland to organic ones. Countries that are the main producers of barley, for example Russia and Australia, have been increasing the production of conventional barley every year adding millions of tons of barley onto the market and perpetuating the dominance of conventional barley.

Farmers and bulk buyers are easily lured to conventional barley market because of its relatively higher cost-benefit advantages that result from higher yields through the use of such farming techniques. Conventional farming is dependent on artificial fertilizers and pesticides, which have greatly improved agricultural production as they provide nutrients and aid in the prevention of pests and diseases. For instance, while conventional barley can have a yield of as high as 4 ton per hectare, organic barley very rarely reaches this high though as chemical inputs and effective management of pests and nutrients in the soil are limited. There is also a high demand for barley from other industries, such as brewing, livestock feed, and food industries, as this crop ensures high supply levels to cover demand. The brewing industry in particular is dependent on consistent supply of conventional barley for malt processing; hence countries with limited barley production are unable to maintain beer production rates owing to dependency on normal barley. Moreover, barley is an integral constituent of animal feeds, primarily in the diets of cattle and pigs because of its high energy and nutritional value needed for maximum animal production. 

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Regional Analysis 

Europe is the current leading producer and consumer of barley market in the world, owing to the favorable climate, rich history of agriculture and a strong market for beers and livestock. In the marketing year 2023/2024, the barley production estimate in the European Union is about 47.5 million metric tons. Germany contributes around 10 million metric tons annually to the deal while France accounts for about 12 million metric tons. The United Kingdom also plays a significant role with an annual production of approximately 7 million metric tons. The sizeable beer market of Europe that had 11, 000 breweries in 2023, accounts for a significant proportion of barley utilizing the grain in the production of malt for beer brewing. Barley is also essential as a feed grain in the large livestock industry within Europe, enabling further increase in domestic use.

The barley production and consumption in the Asia Pacific region has remain the second largest. Wherein, Australia remains one of the key players with an estimated output of 13 million metric tons in barley production in 2023. The agricultural and climatic conditions practiced in the country are conducive to high yields and high grade grains. They have dominated the global market, with the country exporting about eight million metric tons of Barley per annum. Especially, airway China has turned out to be a prominent nd user with barley consumption reaching nearly 9 million metric tons in 2023. The growing barley consumption in China is supported by the country's development of brewing industry as well as by consumers favoring agricultural food products containing barley.

North America is significant region in the barley market with Canada and the United States accounting for its position. For the year 2023, the production of barley in Canada is to the tune of about 10 million metric tons which is sufficient for domestic consumption as well as for exports. The contribution of barley to the world market from the United States is in the region of 3 million metric tons and the states like North Dakota and Montana are notable production areas. The craft brewing movement in North America has created a new market opportunity for good quality barley in excess of the Sonoma’s Centre of the United States of over 9,000 breweries in 2023. This surge is also assisted by the growing market consumer preference towards natural and wholegrain foods making the ingredient barley sought by many in the region as a health promoting food.

Recent Developments 

• In February 2024, Cargill has launched a SustainConnect program in Australia to address the growing demand for sustainable canola while facilitating connections between farmers and emerging markets. This initiative aligns with Cargill's global sustainability efforts and aims to create new revenue streams for canola producers. Notably, plans are in place to extend similar sustainable practices to barley, highlighting the program's potential impact on the global barley market and sustainable agriculture.
• In November 2023, Malteries Soufflet acquired United Malt Group Ltd., enhancing its position as the second-largest player in the global malt industry. United Malt, catering primarily to the craft brewing sector with a robust distribution network, underscores the importance of sustainable, low-carbon barley-malt production chains. This strategic move aligns with the increasing demand for diverse malt products from brewers, distillers, and food manufacturers in the global barley market.
• In May 2023, Archer Daniels Midland Company completed its due diligence on GrainCorp Limited and announced plans to acquire its shares for A$12.20 each, valuing the transaction at around A$3.4 billion. This acquisition aligns with ADM's strategy to enhance its position in the global barley market, capitalizing on GrainCorp's strengths to address the rising demand for barley and other agricultural products, especially in emerging markets. The GrainCorp board is anticipated to endorse the offer, pending regulatory approvals.
• In April 2021, Boortmalt Group announced the resumption of operations at its Cavan Malting Plant in South Australia. Boortmalt aimed to meet the increasing demand for malts used in brewing and distilling across the Asia-Pacific region and beyond. The reopening of the Cavan plant was expected to significantly reduce the company's carbon footprint by minimizing logistics emissions through shorter transportation distances for barley and malt to end users. This development was a favorable outcome for South Australian growers, particularly those involved in local malting barley production.

Top Players in Global Barley Market

• Archer-Daniels-Midland Company
• Boortmalt Group
• Cargill Inc.
• Ever Grain LLC
• Grain Corp Ltd.
• Grain Millers Inc.
• IREKS GmbH
• Malt Products Corp.
• Matlexco SA
• Muntons PLC
• Soufflet Group
• Other Prominent Players

Market Segmentation Overview:

By Product Type

• Whole Grain/Hulled
• Non-Whole Grain
• Hull-Less
• Pot Barley
• Pearl Barley
• Barley Grits
• Barley Flakes
• Barley Flour
• Malted Barley
• Others

By Grade

• Food Grade
• Feed Grade
• Malting Grade

By Nature

• Organic
• Conventional

By Packaging Type

• Bags
• Sacks
• Drums
• Others

By Application

• Alcoholic Beverage
• Non-Alcoholic Beverages
• Livestock Diet
• Breakfast Cereals
• Food Products
• Distilled Spirits
• Others

By End Use Industry

• Animal Feed
• Food and Beverage
• Brewing
• Distilling
• Nutraceuticals
• Personal Care
• Others

By Distribution Channel

• Online
• Offline
  • Hypermarket/Supermarket
  • Retail Stores
  • Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • UAE
  • Saudi Arabia
  • Kuwait
  • Qatar
  • Oman
  • Bahrain
  • Rest of Middle East
• Africa
  • Egypt
  • Nigeria
  • Kenya
  • Rest of Africa
• South America
  • Argentina
  • Brazil
  • Rest of South America