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The malted barley market size is forecast to increase by USD 1.11 billion, at a CAGR of 2.12% between 2023 and 2028. The market is experiencing significant growth due to the increasing use of malted barley in various end-user industries, including breweries and distilleries. The food processing sector is also witnessing an uptick in the demand for malted barley as a key ingredient in several applications. The rise in organic farming and growing concerns about the environment are also driving market growth. However, challenges such as climatic changes affecting barley production and the need for stringent quality control in terms of enzymatic activity, color, pH factor, sugar level, protein, ash, and microbiological profiles pose significant hurdles for market participants. Producers must focus on addressing these challenges to ensure consistent product quality and meet the evolving demands of their customers.
Malted barley is a key ingredient in the production of various food and beverage products, including distilled spirits, beer, food, and medicinal applications. The unique flavor and nutritional properties of malted barley make it an essential component in these industries. Malted barley undergoes a specialized process that involves germination and kilning, which enhances its nutritional value and enzymatic activity. In the food industry, malted barley is used in the production of malt extracts and syrups, which are essential in baking, confectionery, and breakfast cereals. The malting process also improves the color, ph factor, sugar level, protein, ash, and microbiological profiles of malted barley.
In the beverage industry, malted barley is a crucial ingredient in the production of beer and malt beverages. The nutritional content of malted barley, including its phytochemical content and antioxidants, provides numerous health benefits, including potential protection against heart-related ailments. Malted barley production capacity is significant, with key producers such as Boortmalt and Buckie, located in the Morayshire Coast of Scotland, contributing to the global supply. The demand for malted barley is expected to grow due to its unique flavor and nutritional properties in various industries.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The beer segment is estimated to witness significant growth during the forecast period. Malted barley is a crucial raw material in various industries, including the baking industry, confectionery, breakfast cereals, malt beverages, dairy products, and condiments. Among these applications, the beverage segment, particularly beer, holds the largest market share due to the growing popularity of this casual drink worldwide. The beer industry's expansion, driven by its comparatively lower alcohol content and widespread acceptance, fuels the demand for malted barley. Additionally, the food and beverages sector's increasing utilization of malted barley as a raw material presents a significant growth opportunity for businesses. Moreover, the use of organic malted barley in breweries adds to the product's demand, contributing positively to the global market's growth.
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The beer segment was valued at USD 3.8 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Barley, a significant crop in Europe, is predominantly cultivated in countries such as Russia, France, Germany, and the UK. Farmers hold barley in high regard due to its versatility as a raw material. While a substantial portion is used for animal feed, the demand for malted barley in the production of beer and other malt beverages is on the rise. Additionally, the adoption of barley in baking industry, confectionery, breakfast cereals, dairy products, and condiments as a caramel substitute is increasing, fueling market growth. Despite the challenges posed by the COVID-19 pandemic in 2020, which led to stringent lockdowns in major European economies like Italy, France, Germany, Spain, and the UK, the market for malted barley is expected to continue its upward trajectory during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing use of malted barley in end-user industries is the key driver of the market. The market for malted barley is experiencing notable growth in various sectors, including the distillery, food, and beer industries. In the food industry, malted barley is utilized in the form of extracts, syrups, or as a solid ingredient, offering unique flavors and nutritional properties. Malted barley extracts can be enzymatic or non-enzymatic, dark or light colored, and are chosen based on their solid content, color, pH factor, ability to reduce sugar levels, protein, ash, and microbiological profiles. Food processing industries are increasingly using malted barley due to its high protein and phytochemical content, which can contribute to heart-related health benefits and overall nutritional value.
In the beverage industry, malted barley is a crucial ingredient in brewing beer, imparting distinct flavors and aromas. Additionally, malted barley extracts have medicinal applications, making them a versatile and valuable commodity in various industries.
Rise in organic farming and concerns about environment is the upcoming trend in the market. Malted barley is a key ingredient in the production of food items, such as beer and distilled spirits, as well as in medicinal applications, due to its unique flavor and nutritional properties. In the food industry, malted barley is used to produce malt extracts, which serve as essential flavoring agents and nutritional supplements. The malting process enhances the barley's nutritional value, making it a rich source of B vitamins, dietary fiber, and minerals. Moreover, malted barley is increasingly being recognized for its potential health benefits, particularly in the prevention and management of heart-related ailments. Organic farming practices, which exclude the use of artificial substances and harmful pesticides, are increasingly being adopted in the production of malted barley.
This not only ensures the purity and quality of the final product but also aligns with the growing consumer demand for organic and healthier food options. The market is expected to witness steady growth in the coming years, driven by these factors and increasing consumer awareness about the health benefits of natural and organic food products.
Climatic changes hampering barley production are a key challenge affecting the market growth. The market relies heavily on the production of barley as its primary raw material. Europe, being one of the major barley-producing regions, plays a significant role in the market's growth. However, the market may face challenges due to potential decreases in barley production caused by climate change and weather conditions. These factors can negatively impact crop yield and quality, leading to price increases and supply shortages. Malted barley is used extensively in the production of beer, food, and medicinal applications due to its unique flavor and nutritional properties. Malt extracts derived from malted barley offer various health benefits, particularly for heart-related ailments.
Despite these advantages, the market's growth may be hindered by fluctuations in barley production and availability.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Avangard Agro - The company offers malted barley such as corn, buckwheat and oil flax.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Malted barley is a crucial raw material in the production of various food and beverage products, including beer, whisky, and food processing industries. The unique flavor and nutritional properties of malted barley make it an essential ingredient in the brewing and distilling processes. Malted barley contains essential nutrients such as phytochemicals, antioxidants, protein, ash, and microbiological profiles, which contribute to its health benefits, particularly in the prevention of heart-related ailments. Malted barley production involves the germination of barley grains, which results in the development of enzymes that convert starches into fermentable sugars. The malted barley is then dried and ground into malt extracts, syrups, or flakes, which are used as ingredients in various industries.
In addition, the market caters to the needs of the baking industry, confectionery, breakfast cereals, malt beverages, dairy products, condiments, and caramel substitute industries. The market is influenced by several factors, including climate variability, productive crops, economic status, and supply-chain operations. The production capacity and manufacturing operations of key players in the market, such as Boortmalt, Buckie, and Morayshire Coast, are crucial in ensuring the availability of high-quality malted barley. Lockdowns and disruptions in supply-chain operations due to economic instability have impacted the market, leading to fluctuations in prices and demand. The market is expected to grow due to the increasing popularity of craft brewing, homemade beer, and the use of malted barley in various food products, such as malted shakes, malt vinegar, flavored shakes, and baked goods like bagels and malt loaf.
Malted barley's nutritional properties, including its ph factor, sugar level, and protein content, make it a valuable ingredient in various industries. Its versatility and health benefits are driving its demand in the food and beverage sector, making it a significant market to watch.
Market Scope |
|
Report Coverage |
Details |
Page number |
134 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.12% |
Market growth 2024-2028 |
USD 1.11 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
2.06 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 38% |
Key countries |
Russia, France, Germany, Canada, and Australia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Avangard Agro, Axereal, COFCO International, Malting Company of Ireland Ltd, Muntons Plc, Rahr Corp., The Soufflet Group, United Malt Group Ltd., Viking Malt, and VIVESCIA |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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