Barley Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Barley Tea Market is projected to expand from USD 1.32 Billion in 2025 to USD 1.81 Billion by 2031, registering a CAGR of 5.40%. As a staple infusion in East Asia brewed from roasted barley kernels, this beverage is gaining traction due to a growing consumer preference for natural, functional drinks that provide antioxidant properties without artificial additives or caffeine. This growth is further accelerated by the availability of convenient bottled formats that cater to modern, on-the-go lifestyles. Data from the Japan Soft Drink Association supports this observation, noting that in 2024, soft drink production in Japan hit approximately 22 million kiloliters, with unsweetened tea beverages comprising a significant portion of that volume.

However, the industry confronts a substantial obstacle regarding the volatility of raw material supplies caused by climate change. Erratic weather patterns threaten to reduce barley crop yields, leading to potential supply shortages and price instability for manufacturers. This uncertainty disrupts supply chain consistency and poses a risk to market expansion, as producers may find it difficult to maintain the steady output levels necessary to satisfy rising international demand.

Market Drivers

A primary catalyst for the Global Barley Tea Market is the increasing consumer inclination toward caffeine-free beverages, fueled by a broader shift toward functional hydration and digestive health. Unlike green or black teas, barley tea is naturally free of caffeine, making it an ideal daily water substitute for individuals of all ages looking to avoid sugary carbonated drinks. This health-centric demand is reinforced by the prevalence of sugar-free options in major regions; for instance, Ito En reported that in 2024, unsweetened beverages made up over 80% of the Japanese domestic market. Furthermore, a March 2024 survey by Hite Jinro Beverage revealed that 59.7% of South Korean respondents selected barley tea as their most frequently consumed tea, explicitly favoring it for its utility as a daily hydration source.

Concurrently, the proliferation of Ready-to-Drink (RTD) formats has revolutionized market accessibility, shifting consumption habits from traditional home brewing to convenient grab-and-go bottles. Major beverage manufacturers are aggressively expanding their RTD portfolios to suit busy modern lifestyles, ensuring barley tea is widely available in supermarkets, vending machines, and convenience stores. This strategic focus on packaged volume is reflected in the production scaling of market leaders; Ito En's financial results for the second quarter of FY2024 noted that sales for their barley tea category alone reached 26.81 million cases in the first half of the fiscal year, underscoring the massive consumer uptake of pre-packaged products.

Market Challenges

The volatility of raw material supply resulting from climate change presents a major hurdle for the Global Barley Tea Market. As weather patterns become increasingly unpredictable, barley cultivation faces severe disruptions, including prolonged droughts and unexpected heavy rains. These environmental inconsistencies negatively impact both crop yields and grain quality, making it difficult for manufacturers to secure a reliable inventory of roasting-grade barley. Consequently, this supply chain fragility leads to price fluctuations and production delays, forcing companies to either absorb higher costs or pass them on to consumers, which can stifle volume growth in a competitive retail landscape.

The severity of this instability is highlighted by recent agricultural assessments. In 2024, COCERAL revised the barley production forecast for the EU-27 and UK downward to 57.6 million tonnes, attributing the reduction to unfavorable weather conditions throughout the growing season. Such unpredictable declines in output from key producing regions limit the availability of premium raw materials required for global distribution. This scarcity complicates procurement strategies and restricts the industry's capacity to scale production effectively to meet the growing international demand for healthy hydration options.

Market Trends

The adoption of eco-conscious and minimalist packaging has emerged as a transformative trend in the Global Barley Tea Market, driven by strict regulatory pressures and consumer demand for sustainable waste reduction. Manufacturers are increasingly removing plastic labels from Ready-to-Drink (RTD) bottles, a move that reduces petrochemical usage and simplifies the recycling process for consumers who no longer need to separate materials. This shift is particularly strong in mature markets like Japan, where companies are scaling "label-less" lines to meet decarbonization goals. Asahi Group Holdings reported in April 2024 that the distribution volume of their label-free products in 2023 was eight times higher than in 2019, demonstrating rapid consumer adoption of these sustainable formats.

Simultaneously, there is a distinct shift toward single-origin and transparent sourcing, where premiumization is defined by the quality and provenance of the raw barley grains. Consumers are moving away from generic blends in favor of products that feature domestically grown, high-quality ingredients, associating local sourcing with superior safety, freshness, and flavor. This trend compels brands to explicitly market the specific origin of their grains - such as premium domestic black barley - to differentiate themselves in a crowded market. A March 2024 survey by Hite Jinro Beverage underscored this preference, with 33.4% of respondents identifying the use of domestic ingredients as a key factor when selecting RTD barley tea brands.

Key Players Profiled in the Barley Tea Market

• ITO EN, LTD.
• Suntory Beverage & Food Limited
• Kirin Holdings Company, Limited
• Kansai Chagyo Co., Ltd.
• Ippodo Tea Co., Ltd.
• Dongsuh Foods Corporation
• SEMPIO FOODS COMPANY
• Lotte Chilsung Beverage Co., Ltd.
• Macmaup Enterprises Ltd.
• The Canadian Barley Tea Company

Report Scope

In this report, the Global Barley Tea Market has been segmented into the following categories:

Barley Tea Market, by Product Type:

• Original
• Flavored

Barley Tea Market, by Form:

• Instant
• Ready-to-Drink

Barley Tea Market, by Distribution Channel:

• Online
• Offline

Barley Tea Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Barley Tea Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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