Barley Market Research Report

Barley Market Size:

The global barley market size reached US$ 23.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 31.8 Billion by 2032, exhibiting a growth rate (CAGR) of 3.49% during 2024-2032. The global market is primarily driven by its significant demand in the brewing and food industries, influenced by climate conditions, technological advancements in agriculture, international trade policies, and changing economic factors and supply and consumer trends.

Barley Market Analysis:

• Market Growth and Size: The market is experiencing steady growth, driven by its widespread applications in various industries. This growth is reflected in the expanding market size, with significant contributions from key regions like Europe, North America, and the Asia Pacific.
• Major Market Drivers: Primary drivers of the market include the high demand in the brewing industry and its increasing use in the food sector, attributed to its health benefits. Additionally, the growing animal feed sector contributes substantially to the market's expansion.
• Technological Advancements: Advances in agricultural technology, such as improved seed varieties, precision farming, and efficient irrigation systems, have enhanced yields and quality. These technological innovations are pivotal in addressing environmental challenges and ensuring a stable supply.
• Industry Applications: It is extensively used in industries like brewing (for malt production), food processing (for health-conscious products), and animal feed. Its application in the pharmaceutical and personal care industries, though smaller, is growing due to its health-promoting properties.
• Key Market Trends: The market is witnessing trends such as a rising preference for craft beers and organic products. Health-conscious consumer behavior is leading to increased use of the cereal in nutritious food products, impacting market dynamics.
• Geographical Trends: Europe dominates the market, largely due to its robust brewing industry and optimal growing conditions. The Asia Pacific region is rapidly growing, driven by increased beer consumption and agricultural advancements. North America maintains a significant market presence, with a focus on both malt production for brewing and for animal feed.
• Competitive Landscape: The market is characterized by the presence of key players actively engaged in R&D, geographical expansion, and sustainable practices. Strategies, such as partnerships and mergers are common, aiming to enhance market reach and adapt to consumer preferences.
• Challenges and Opportunities: The market faces challenges such as climate variability affecting crop yields and the need to meet stringent quality standards for different grades. However, these challenges present opportunities for innovation in farming practices and for exploring new market segments like health foods and nutraceuticals.
   

Barley Market Trends:

Climate and environmental conditions

The cultivation and yield are heavily dependent on climatic and environmental factors. Ideal growing regions feature temperate climates, providing the cool and dry conditions necessary for optimal growth. Excessive heat or moisture can be detrimental, leading to lower yields and compromised quality. The sensitivity to soil composition and pH levels also plays a significant role. Thus, regions with favorable weather conditions typically yield higher production, which in turn affects the global supply and market dynamics. Furthermore, environmental changes and climate variability, including extreme weather events, such as droughts or floods, can significantly impact cultivation areas, leading to fluctuations in availability and price in the global market. 

Rising demand in brewing and food industries

Its role as a crucial ingredient in the brewing industry, especially for malt production in beer manufacturing, underlines its market significance. The global increase in beer consumption directly provides a boost to the demand. Concurrently, the growing trend towards health-conscious eating has amplified the use in food products. Its nutritional value, marked by high fiber content and essential vitamins, adds to its appeal. Its versatility, evident in its use in a variety of food products, including soups, bread, and cereals, further augments its demand. As consumer preferences continue to change and products gain popularity, the demand from both the brewing and food industries considerably propels the market forward.

Technological advancements in agriculture

The role of technology in agriculture has been transformative for the market. Advances in farming practices, enhanced seed varieties, and more effective irrigation systems have collectively contributed to higher yields and improved crop quality. The adoption of precision agriculture, leveraging data analysis and GPS technology, enables farmers to refine their planting, watering, and harvesting strategies. These technological advancements bolster production efficiency and mitigate the effects of environmental challenges. As a result, these innovations lead to a more stable and predictable supply, significantly influencing global market dynamics. This aspect underscores the intersection of technology and agriculture in shaping the future trajectory of the market.

Barley Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, grade, distribution channel, and industry vertical.

Breakup by Type:

• Covered
• Two-Row Barley
• Six-Row Barley
• Hulless
   

Covered accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes covered, two-row barley, six-row barley, and hulless. According to the report, covered represented the largest segment.

Covered is distinguished by its husk that remains attached during harvesting and processing. This feature makes it particularly suitable for animal feed and certain brewing processes. The husk provides a protective layer, making covered the cereal more resilient to environmental factors and pests during cultivation. Its wide application in the animal feed industry, driven by the growing demand for livestock products, significantly contributes to its dominant market position. Furthermore, certain traditional beer brewing methods favor covered cereal, adding to its demand in the brewing industry.   

On the other hand, two-row variant is highly valued in the brewing industry. It is preferred for its lower protein content and higher fermentable sugar levels, which are ideal for producing high-quality malt and, consequently, beer. This type of cereal is known for its uniform kernel size and consistency, making it a favorable choice for maltsters and brewers seeking consistency in their products.

Furthermore, six-row, characterized by its six rows of kernels around the stem, is another significant segment in the market. This variety is known for its higher protein content and enzyme levels, making it suitable for certain types of beer where these characteristics are desired. It is often used in the production of adjunct lagers, where it assists in breaking down the starches of adjunct grains.

Additionally, Hulless is a niche segment in the market. It lacks the tough outer husk that is typical of other types, making it easier to process and more palatable for direct human consumption. This characteristic makes hulless a popular choice for health-conscious consumers and in the production of food products, such as cereals, bars, and flour.

Breakup by Grade:

• Food Grade
• Feed Grade
• Malt Grade
   

Malt grade holds the largest share in the industry

A detailed breakup and analysis of the market based on the grade have also been provided in the report. This includes food grade, feed grade, and malt grade. According to the report, malt grade accounted for the largest market share.   

Malt grade, the largest segment in the market, is primarily utilized in the brewing and distilling industries. This grade is preferred for its high enzyme content, optimal starch levels, and the ability to efficiently convert starches into sugars during the malting process. These sugars are crucial for fermentation in beer and whiskey production. Malt grade is carefully cultivated to meet specific quality criteria, including uniformity in kernel size, color, and moisture content, which are essential for consistent brewing and distilling outcomes.

On the contrary, food grade is tailored for direct human consumption and is a key component in various food products. This segment caters to the increasing demand for healthy, whole-grain foods, as it is rich in fiber, vitamins, and minerals. Food grade is utilized in a variety of products, such as cereals, bread, and health bars.

Additionally, feed grade is predominantly used in animal feed, catering to the livestock industry. This segment includes that may not meet the stringent quality requirements of malt or food grades but is still nutritious and valuable as animal feed. Feed grade is a cost-effective and energy-rich component of feed for cattle, pigs, poultry, and other farm animals.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Departmental Stores
• Specialty Stores
• Online Stores
   

Supermarkets and hypermarkets represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, departmental stores, specialty stores, and online stores. According to the report, supermarkets and hypermarkets represented the largest segment.

Supermarkets and hypermarkets form the largest segment in the market distribution channel. These large retail establishments offer a wide range of products, including whole variant, flakes, and pearled, catering to a broad consumer base. The convenience of finding a variety of products under one roof, along with competitive pricing and the availability of both national and private label brands, makes supermarkets and hypermarkets a preferred shopping destination for customers. The vast geographical reach and extensive distribution networks of these retail giants ensure easy accessibility for consumers, significantly driving sales.  

On the other hand, departmental stores, serving as another important distribution channel, offer a more curated selection of products. These stores often cater to a more niche market, providing specialty products that may not be readily available in larger retail formats. Consumers shopping at departmental stores usually seek specific types or brands, such as organic or locally sourced varieties.  

Furthermore, specialty stores are a key segment in the market, primarily focusing on high-quality, specialty, or niche products. These stores cater to health-conscious consumers, offering organic, non-GMO, or locally grown varieties. Specialty stores are often preferred by consumers who are well-informed about the health benefits and are seeking premium or artisanal products.

Moreover, the online store segment in the market is rapidly growing, offering convenience and accessibility to a wide range of products. This segment caters to the tech-savvy consumer base that prefers shopping online for ease and timesaving. Online stores provide a vast selection of products from various brands and origins, often accompanied by detailed product information, customer reviews, and competitive pricing.

Breakup by Industry Vertical:

• Food and Beverages
• Pharmaceuticals
• Seed Industry
• Personal Care
• Animal Feed
• Nutraceuticals
• Others
   

Food and beverages exhibit a clear dominance in the market   

A detailed breakup and analysis of the market based on the industry vertical have also been provided in the report. This includes food and beverages, pharmaceuticals, seed industry, personal care, animal feed, nutraceuticals, and others. According to the report, food and beverages accounted for the largest market share.  

The food and beverages sector are the largest segment in the market. It is extensively used in this industry, primarily for brewing beer and producing malt beverages. It's also incorporated in various food products, including bread, cereals, and health bars, owing to its nutritional benefits like high fiber content and essential vitamins. The versatility in culinary applications, ranging from traditional dishes to innovative food products, drives its demand in this segment. The rising trend of health-conscious eating and the growing popularity of craft beers further enhance its prominence in the food and beverages industry, making it a key driver of the market.

On the contrary, in the pharmaceutical industry, it is valued for its health-promoting properties. The extracts are used in various medicinal products due to their rich composition of vitamins, minerals, and antioxidants. These properties are beneficial for cardiovascular health, diabetes management, and digestive health. The growing recognition of these health benefits in the pharmaceutical sector is gradually expanding its use, contributing to its market segmentation.

Additionally, the seed industry represents a significant segment in the market, focusing on the production and distribution of high-quality seeds for agricultural use. This segment is crucial for ensuring the availability of superior varieties with enhanced yield, disease resistance, and adaptability to different environmental conditions. The development of genetically modified and hybrid seeds to meet specific requirements of farmers also falls under this segment, playing a vital role in the overall production chain.

Moreover, it finds its application in the personal care segment, albeit on a smaller scale compared to other sectors. The extracts, known for their skin-soothing and nourishing properties, are increasingly being used in skincare and cosmetic products. This segment leverages the natural benefits to create products that appeal to consumers seeking organic and natural personal care options.

Furthermore, itis a staple in the animal feed sector, where it is used primarily as a nutritious feed ingredient for livestock. Its high fiber content makes it suitable for cattle, sheep, and other ruminants. The consistency in demand in animal feed, especially in regions with significant livestock farming, marks this segment as an essential part of the market.

Apart from this, in the nutraceuticals industry, it is appreciated for its health-enhancing properties. The supplements are gaining popularity for their potential benefits in weight management, cholesterol reduction, and overall wellness. This sector taps into the growing consumer awareness and demand for natural health products, making it a promising, though relatively smaller, segment in the market.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest barley market share  

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share.  

Europe is the largest segment in the regional market, primarily due to its long-standing tradition in cultivation and beer production. Countries, such as Germany, France, and the UK are key producers, with cereal being a crucial ingredient in the brewing industry. The region's favorable climate for cultivation, combined with advanced agricultural practices, contributes to its high production levels. Additionally, the presence of numerous well-established beer brands and the rising popularity of craft beers further drive the demand in Europe.  

On the contrary, in North America, the market is significantly driven by the brewing industry, particularly in the United States and Canada. The region sees substantial production for both malt and feed purposes. The growth of craft breweries and the increasing demand for malt for beer production are key factors contributing to the market's growth in this region.  

Additionally, the Asia Pacific region is a rapidly growing segment in the market, with countries, such as China and Australia playing major roles. Australia is a significant exporter of, particularly to countries in the Asia Pacific region. The increasing consumption of beer in populous countries, including China and India is a major driver for the demand for malt variant.

Furthermore, Latin America's market is primarily driven by the brewing industry, with countries, such as Brazil and Argentina being key contributors. The region's climate is conducive to cultivation, supporting its production primarily for malt and beer manufacturing. Additionally, the growing popularity of craft beers in the region is contributing to an increased demand for high-quality malt variant, supporting the growth of the market in Latin America.   

Moreover, the Middle East and Africa region, though a smaller segment compared to Europe or North America, is gradually gaining significance in the market. The demand in this region is primarily driven by the animal feed sector, with the cereal being an important feed ingredient due to its nutritional value.

Leading Key Players in the Barley Industry:

Key players in the market are actively engaging in a range of strategic initiatives to strengthen their market positions. These include investments in research and development to enhance its varieties for higher yield and better disease resistance, aligning with the changing demands of both the brewing and agricultural sectors. Many are also expanding their geographical reach through partnerships, mergers, and acquisitions, especially in rapidly growing markets like Asia Pacific. Additionally, they are increasingly focusing on sustainable and environmentally friendly farming practices to meet the rising consumer demand for organic and eco-friendly products. Marketing efforts are being tailored to highlight the health benefits, tapping into the growing health-conscious consumer base. Companies are also leveraging advanced technologies to improve supply chain efficiency and to respond effectively to market trends and consumer preferences.  

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:  

• Briess Malt & Ingredients Co.
• Cargill Incorporated
• Crisp Malting Group
• EverGrain LLC (Anheuser-Busch InBev)
• Grain Millers Inc.
• GrainCorp Limited
• IREKS GmbH
• Malt Products Corporation
• Malteurop Groupe S.A. (VIVESCIA)
• Maltexco S.A
• Muntons PLC
• The Soufflet Group
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News: 

• 27 November 2023: Cargill Incorporated announced Commitment to Eliminate Deforestation and Land Conversion in Brazil, Argentina and Uruguay by 2025. Cargill’s commitment will help protect native vegetation and support sustainable agriculture in these countries. 
• 30 June 2022: Anheuser-Busch announced that EverGrain LLC (Anheuser-Busch InBev) a sustainable ingredient company backed by AB InBev, is officially operational with its barley protein, EverPro. The new full-scale plant protein production facility will support EverGrain’s mission to revolutionize sustainable ingredients.
• 12 September 2021: InVivo Group completes the acquisition of Soufflet Group. The creation of this Group supports food sovereignty while creating value for farmers and all other players in the agricultural sector.

Barley Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the barley market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global barley market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the barley industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.