Latin America Barley Market is Anticipated to Witness High Growth Owing to Increasing Demand for Craft Beer

 

The Latin America barley market comprises barley and barley products such as malt, brewer's grains and barley flour. Barley is majorly cultivated as a grain crop for brewing, distilling and malt production in the region. It provides antioxidants, fiber and various vitamins and minerals. The demand for barley is increasing in the region due to rising consumption of craft beer. Craft beer is an artisanal beer made by small, independent and traditional breweries. The market for craft beer has expanded significantly in Latin America over the past few years owing to growing popularity of microbreweries.

The Global Latin America Barley Market is estimated to be valued at US$ 3.44 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Latin America barley market are Grain crop Limited, Malteurop Group, Soufflet Group, Crisp Malting Group, Global Malt Gmbh & Co. Kg, Ireks Gmbh, Muntons Plc, Maltexco S.A., Grain Millers, Inc, EverGrain, Malt Products Corporation, and Briess Malt & Ingredients Co. These players are focusing on capacity expansion and new product launches to strengthen their market position.

The key opportunities in the Latin America barley market include rising use of barley in animal feed industry and high potential for malting barley export. The animal feed industry is gaining traction in the region due to growing meat consumption. This is presenting growth prospects for barley cultivation and sales. Furthermore, countries like Argentina have suitable climate and soil conditions for growing high-quality malting barley. This provides opportunities for barley export from Latin America to other markets globally.

The major players are also focusing on global expansion by entering into strategic partnerships, mergers and acquisitions. For instance, Malteurop Group has a strong presence across Latin America through its subsidiaries and joint ventures. The company exports malt to several countries and strives to increase its international footprint.

Market Drivers

- Increasing consumption of beer particularly craft beer is a major driver favoring barley demand in Latin America. The craft beer market is growing at over 10% annually in the region.

- Growing animal feed industry is also propelling barley cultivation. The meat consumption has risen significantly in the emerging countries of Latin America, increasing the demand for animal feed including barley.

Market Restraints

- Volatility in barley production due to changing climate patterns poses a major challenge. Natural calamities like droughts can adversely impact barley yields.

- High dependence on few import markets makes the trade vulnerable to their demand-supply dynamics and currency fluctuations. For e.g., Argentina is highly dependent on China for barley exports.

Segment Analysis

The Latin American barley market is dominated by the feed and malt segments. Within feed barley, the poultry feed sub-segment holds the major share as it is commonly used as a source of protein in poultry feeds. Barley is considered a cost-effective alternative to corn and helps improve the nutritional profile of poultry feeds. The malt segment is also significant as barley is a key raw material for the brewing industry. Within malt, the standard and specialty malts sub-segments are the largest revenue generators due to growing demand for beers and craft brews.

Global Analysis

Regionally, Brazil represents the fastest growing market for barley in Latin America owing to rising meat consumption and production. The country is among the largest producers and exporters of chicken in the world, driving demand for barley in poultry feeds. Mexico follows in terms of growth on account of surge in beer consumption per capita. Argentina also holds substantial share backed by increasing grain exports, especially to Asia and Europe. Going forward, Brazil, Mexico and Argentina are expected to continue dominating the Latin American barley market till 2030 supported by expanding agriculture and food industries.