Malted barley is produced from barley grains which are allowed to germinate by soaking in water and then halting germination through kilning. It has a range of health benefits as it is a rich source of enzymes, vitamins, amino acids, minerals and antioxidants. The malting process enhances the natural enzymes present in barley which help in the brewing process. It provides bitterness, color, body and other attributes to beer. The growing craft beer industry and changing consumer preference for premium beers made from malted barley has been driving its demand globally. 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 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 growing craft beer industry and changing consumer preferences for premium beers made from malted barley present significant growth opportunities for players in the malted barley market. Technological advancements in the malting process such as automated plants with improved efficiency and better quality control are helping boost production volumes.
Key advances include automation in batch malting, improved kilning capabilities for consistent quality, and waste product handling with zero liquid discharge. These allow for scalable and sustainable production needed to meet growing demand.
The increasing consumption of beer globally is a major driver for the Global Malted Barley Market Size. Especially the double-digit growth being witnessed in the Asian markets like China, India and Southeast Asia is expected to fuel demand. The shift towards premium craft beers and growing popularity of microbreweries which use malted barley extensively is another important driver.
Challenges in malted barley market
The malted barley market faces various challenges which includes high production cost, fluctuating barley prices, climate change impacting barley cultivation. The malted barley production requires significant water and energy which increases the overall production cost. The prices of barley are also unstable depending on various climatic factors which affects barley yield. Moreover, climate change has emerged as a significant threat as increasing temperatures and changing rainfall patterns are reducing barley cultivation in many regions.
Strength: Malted barley has wide applications in beer, whisky and food industries. It offers properties like enzymatic power and fermentable sugars.
Weakness: High dependence on barley cultivation makes market vulnerable to climate change impacts. Production process requires large amount of water and energy.
Opportunity: Growing craft beer industry worldwide is boosting the demand for specialty malted barleys. Product innovation for developing new malted varieties offers new opportunities.
Threats: Substitutes like corn and rye gaining popularity in some regions. Trade barriers and policies could impact barley imports.
In terms of value, North America and Europe currently hold nearly two-third of global malted barley market share. Countries like United States, Germany, United Kingdom are among the largest consumers. However, demand is growing rapidly in Asian markets like China, India with increasing beer consumption.
Fastest growing region
Asia Pacific region is projected to be the fastest growing market for malted barley during the forecast period. Developing economies like China and India offer immense growth potential attributed to rising disposable incomes, changing lifestyle and expanding beer industry in the region. Countries in Southeast Asia are also expanding their malt processing facilities to meet the growing local demand.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it