by Barley is one of the most important cereal grains and is widely used as a raw material in alcoholic beverage production. It serves as the primary ingredient in beer and is also used in production of whiskey and other alcoholic beverages. The grain imparts color, flavor, and texture to beers and whiskeys. Some key uses of barley include malting, brewing, distilling, and animal feed. Malted barley is produced by soaking dried barley grains in water, allowing them to germinate under controlled conditions and then drying the partially germinated grains. This process converts stored starches into maltose and other sugars which are later fermented to produce alcohol.
The global Latin America barley market is estimated to be valued at US$ 3.44 Bn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The global Latin America Barley Market is driven by increasing consumption of beer and whiskey in the region. Latin America has witnessed rising beer consumption over the past few years mainly due to growing socialization trends and introduction of new varieties by major breweries. According to the Brazzers Association report, Brazil accounted for over 50% of the total beer volume sales in Latin America in 2020. The country represented the third largest beer market globally. Similarly, whiskey consumption is also on the rise in countries such as Brazil, Mexico, and Argentina. This is fueling demand for barley as a key raw material in the production of these alcoholic beverages. Additionally, rising health consciousness is augmenting consumption of barley-based health drinks and barley grass supplements in the region, thus propelling market growth.
Market Dynamics:
The growing consumption of beer and whiskey in Latin America as mentioned in the heading is one of the key drivers of the barley market. Beer represents the most common alcoholic beverage consumed in Latin America, especially in countries like Brazil. Young population, rising socialization trends, and introduction of new flavor variants by major breweries are some factors fueling beer consumption. This rising beer consumption positively impacts demand for barley grains which serve as the primary ingredient. Additionally, expanding whiskey demand from Brazil, Mexico, and Argentina is also driving the need for barley raw material for whiskey production. Overall increased consumption of beer and whiskey in the region is propelling Latin America barley market growth over the forecast period.
Another driver supporting the barley market expansion is increasing popularity of barley-based health foods and supplements
Segment Analysis
The Latin America barley market is dominated by the malt segment which holds around 65% share of the overall market. Malt is one of the primary ingredients used in brewing beer. Latin America region has witnessed significant growth in the beer industry over the past few years, thereby driving the demand for malt. Within malt segment, standard and specialty malts collectively account for over 90% share with standard malt dominating the segment. The feed segment is another major segment in the Latin America barley market and accounts for about 30% share.
PEST Analysis
- Political: The governments in Latin America are supporting the agricultural sector through various subsidies and incentives. This is positively impacting the growth of the barley market.
- Economic: The rising GDP and disposable incomes in the region is driving higher spending on beer and other goods made using barley. This is propelling the barley market growth.
- Social: Changing lifestyles and socializing trends have increased beer consumption in Latin America. Social events and gatherings often involve consumption of beer, benefiting the barley market.
- Technological: Adoption of advanced farming equipment and tools has improved barley yields. Agricultural mechanization has enhanced productivity and boosted barley harvest volumes.
Key Takeaways
The global Latin America barley market is expected to witness high growth at a CAGR of 3.5% during the forecast period of 2023 to 2030.
Regional analysis indicates Brazil dominates the Latin America barley market with around 30% share due to large area under barley cultivation and high consumption of beer and beer-based products.
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. Crisp Malting Group accounts for over 20% market share due to its extensive distribution network and product portfolio consisting of malted barley in the region.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
