Barley Market Overview, 2025-30

Barley's balanced nutritional profile makes it a preferred choice for livestock across the global stage. The second major force, driving immense value, is the global brewing and distilling industry. The global thirst for beer and whiskey is insatiable, and the global rise of the craft beverage movement has created a lucrative market for high-quality malting barley. This has fueled innovation and specialization, as brewers and distillers seek out unique barley varieties to create distinctive products. Cultivation of this global crop is concentrated in specific regions. Europe, for example, is the undisputed leader in global production, leveraging its vast, temperate farmlands to supply the global market.

Other key global players include Russia, Australia, and Canada, each contributing significantly to the global supply. Global production trends are shifting as farmers and companies invest in new technologies to develop climate resilient barley varieties that can withstand unpredictable global weather patterns. The global trade of barley is a finely tuned system, with a few major exporters, such as Australia and the European Union, meeting the immense demand of key global importers, particularly in the Middle East and Africa and China. Government initiatives like the European Union's Green Deal are also encouraging sustainable farming, prompting global companies to invest in regenerative agriculture practices to meet new standards and consumer preferences. The global barley market is a microcosm of the global economy, where every move by a major player, every policy change, and every technological leap has far reaching consequences. The strategic mergers and acquisitions among major agribusinesses like the Bunge Viterra merger are designed to create economies of scale and better manage the risks associated with volatile global trade.

According to the research report, "Global Barley Market Overview, 2030,", the Global Barley market was valued at more than USD 27.51 Billion in 2024, with the CAGR of 3.93% from 2025-2030. These consolidations allow companies to streamline operations and ensure a more reliable global supply to their industrial clients. On the technology front, Companies and research institutions are developing new barley varieties that are more resilient to environmental stress, from drought and salinity to diseases. Research using nuclear technology has helped develop new, high yielding barley varieties in places like Kuwait, a stark illustration of how global innovation is being used to address local agricultural challenges.

Companies are not just focused on production but on new product applications. Launches like plant-based proteins made from barley are targeting the global health and wellness trend, while new non-alcoholic malt beverages are catering to specific cultural and health preferences in various global regions. Government policies and regulations act as both a catalyst and a constraint on this global activity. While many governments offer subsidies and support for barley research, they also impose trade restrictions, tariffs, and import regulations that can disrupt established supply chains. Geopolitical events also have a profound and often immediate impact, as disruptions in key shipping lanes or conflicts in major grain-exporting nations can send shockwaves through the global supply chain. The market's dynamics are further complicated by the substitutability of barley with other grains. When the prices of corn or feed wheat are low, they can become more attractive alternatives for livestock producers, which in turn reduce demand for barley and puts downward pressure on its price. Government policies, including trade agreements, tariffs, and agricultural subsidies, also play a significant role in shaping the market's landscape. Beyond these foundational factors, shifts in global consumer preferences are creating powerful new trends that are redefining the market's future.

Market Drivers

• Rising Demand from the Brewing Industry: One of the major drivers of the global barley market is the consistently high demand from the brewing industry. Barley, particularly malted barley, is the foundational ingredient in beer production, which remains one of the most widely, consumed alcoholic beverages globally. Countries such as China, the United States, Germany, and Brazil are among the top beer consumers, and they account for a substantial portion of global malt barley usage. The rise of craft brewing in both developed and emerging markets has spurred demand for premium and specialty malts. Craft breweries often use more malt per liter of beer and demand unique barley varieties to achieve specific flavors and characteristics.
• Growth in Functional and Health Based Foods: Barley’s reputation as a health enhancing grain has elevated its importance in the global food industry. Rich in soluble fiber, particularly beta glucan, barley has been associated with various health benefits, such as lowering cholesterol, improving gut health, and regulating blood sugar levels. This has led to increased inclusion of barley in breakfast cereals, snack bars, bakery items, and even plant based beverages. As global consumers become more health conscious and look for functional ingredients that support wellness and disease prevention, barley's nutritional profile is increasingly valued. This demand is further supported by dietary trends like clean label, low-GI, and whole grain food products, boosting barley’s application in food formulations beyond its traditional uses.

Market Challenges

• Climate Change and Unstable Growing Conditions: Barley is highly sensitive to environmental factors, and climate change poses a growing threat to its stable production. Fluctuating weather patterns, including droughts, unseasonal rains, and heatwaves, can significantly affect barley yields and grain quality, especially malting-grade barley which requires specific protein levels and kernel uniformity. Regions such as Australia, parts of Europe, and North America which are major barley producers are facing increasingly unpredictable climate conditions. These disruptions not only affect global supply but also introduce volatility in prices, impacting both producers and industrial buyers. The challenge of adapting to these conditions with climate-resilient barley varieties and sustainable farming practices is ongoing and crucial.
• Competition from Other Grains: Barley competes with other grains such as wheat, corn, and rice, which often offer higher yields or better price stability. In animal feed, for example, maize is often preferred due to its energy density and global availability. Similarly, wheat may dominate food applications in many regions due to established culinary preferences. As a result, barley’s market share can be constrained by the availability and affordability of these alternatives. In regions with limited agricultural land, farmers may favor crops with more lucrative or stable returns, leading to reduced barley cultivation. This competition makes it essential for the barley industry to highlight its unique value propositions and diversify its applications.

Market Trends

• Expansion of Barley in Plant Based and Gluten Reduced Products: Barley is increasingly being incorporated into plant based food and beverage products due to its rich nutritional content and natural texture. Barley milk, barley tea, and protein-enriched barley snacks are examples of emerging product categories. While barley contains gluten, it is sometimes used in blends for gluten reduced formulations aimed at consumers with mild sensitivities. Advancements in food processing are making it easier to integrate barley into new applications without compromising on taste or functionality. This trend is aligned with the growing consumer preference for plant-based, natural, and functional foods globally.
• Shift toward Sustainable and Local Sourcing: Sustainability has become a major trend influencing global agricultural markets, including barley. Breweries and food companies are under increasing pressure to reduce their carbon footprints and source raw materials responsibly. As a result, there is a growing emphasis on local barley sourcing, regenerative farming practices, reduced pesticide use, and traceability in the supply chain. In regions like Europe and North America, barley growers and processors are working closely with corporate buyers to meet sustainability standards, including carbon reduction and soil health improvement. This trend is reshaping how barley is grown, marketed, and valued in the global supply chain.

Malted barley is the second largest and fastest growing segment in the global barley market is because of its irreplaceable role in the booming beer and whiskey industries and its growing use as a functional, natural ingredient in the food sector.

While feed barley accounts for the largest volume of global barley consumption, the malted barley segment, driven by value rather than just volume, is experiencing a higher growth rate and holds the second-largest market share by revenue. This is because the malting process transforms raw barley into a high-value product with specific properties that are essential for brewing and distilling. The craft beer movement, in particular, has been a significant catalyst. Craft brewers and artisanal distillers are intensely focused on the quality and flavor of their ingredients, and they rely on a wide variety of specialty malts to create unique and complex flavor profiles.

This has led to a premiumization of the malting barley market, as brewers are willing to pay more for specific barley varieties and malting techniques that can produce distinct aromas, colors, and flavors in their final products. This trend is not confined to North America or Europe; it is a global phenomenon, with craft breweries and distilleries proliferating in Asia-Pacific and South America, fueling demand for high quality malt. Beyond alcoholic beverages, malted barley is also gaining traction in the food industry. Manufacturers are increasingly using malt extract and malted barley flour as natural sweeteners, flavor enhancers, and functional ingredients in products like bread, cereals, snacks, and nonalcoholic beverages. As consumers worldwide become more health conscious and seek clean-label ingredients, malted barley's nutritional profile rich in fiber, vitamins, and minerals makes it an attractive alternative to artificial additives.

Animal feed is the largest application for barley globally, in terms of volume, because of its role as a fundamental and cost effective energy and protein source for a massive and ever growing global livestock industry.

The world's demand for meat, dairy, and eggs is constantly increasing due to a rising global population and growing prosperity, particularly in developing economies. This has created a monumental need for animal feed to support the expansion of the livestock sector. Among the major feed grains, barley holds a critical position. Unlike high value grains that are primarily destined for human consumption, a significant portion of the world's barley is cultivated specifically for use as animal feed. It is a highly versatile and nutritious grain for a wide range of animals, including cattle, pigs, sheep, and poultry.

Barley's nutritional profile, which includes a good balance of carbohydrates, protein, and fiber, makes it an excellent component in feed formulations. In many parts of the world, such as in the European Union, Canada, and the Middle East, barley is a more readily available and more resilient crop than corn, especially in cooler or drier climates. This makes it a primary and economical choice for local livestock producers, who can rely on domestic or nearby supplies, reducing their dependence on volatile international markets for other grains. The sheer scale of the animal feed industry means that it will always consume the largest volume of barley, including grain that does not meet the strict quality standards required for the malting industry. This provides a stable and foundational market for barley producers, ensuring that even in years with lower quality harvests, there is a consistent and massive demand, solidifying the animal feed segment's position as the largest end-user by volume globally.

Food and beverage manufacturers are the fastest growing end-user segment in the global barley market due to increasing consumer demand for health conscious, functional, and plant based products incorporating barley for its nutritional benefits and versatility.

The food and beverage manufacturers segment is emerging as the fastest growing end-user in the global barley market, driven primarily by the rising global demand for nutritious, clean label, and functional foods that support modern wellness oriented lifestyles. As consumers become increasingly aware of the health benefits of whole grains, barley has gained attention for its rich fiber content particularly beta glucan which is known to reduce cholesterol, improve heart health, and aid digestion. The surge in demand for plant based and whole food ingredients has made barley an appealing grain for vegan and vegetarian consumers, especially in Western markets.

With its growing reputation as a supergrain, barley is being positioned alongside quinoa, oats, and millet in health food segments. This shift is prompting manufacturers to explore new processing methods and product innovations to capitalize on consumer trends, such as high fiber diets, clean eating, and minimally processed ingredients. In the beverage sector, barley is also gaining ground, not just as malt in beer, but in emerging products like barley tea, barley milk, and non-alcoholic malt drinks, especially in Asian and Middle Eastern markets. As global food brands increasingly focus on sustainability and local sourcing, barley’s lower water requirement and ability to grow in diverse climates position it as an environmentally friendly ingredient, further appealing to both manufacturers and eco conscious consumers. Regional demand is also supporting growth particularly in North America and Europe, where government dietary guidelines and health advocacy groups are promoting whole grain consumption.

Conventional barley dominates the global market segment due to its cost effective production methods, established agricultural infrastructure, and widespread adoption by farmers who utilize traditional farming practices that enable large scale production at competitive prices across diverse geographical regions.

Conventional barley holds its position as the largest segment in the global barley market primarily because it is the most efficient and economically viable method to meet the immense, high volume demands of key end-use applications. This dominance is a reflection of well established agricultural systems worldwide that prioritize consistent quality, reliable supply, and competitive pricing. The established conventional farming practices, which include the use of synthetic fertilizers, pesticides, and modern machinery, allow for maximized crop yields per hectare.

This is crucial for a market where more than of the barley crop is designated for animal feed, a sector that requires a massive, cost effective supply to support the global livestock industry. Beyond animal feed, conventional barley production also efficiently serves the brewing and distilling industries, which account for a significant portion of the global market. These industries rely on a consistent supply of barley that meets specific quality standards, and conventional farming provides the predictability and scale required for their operations. While a small percentage of barley is consumed as human food, its use in this sector also benefits from the stability and widespread availability that conventional production provides. The dominance of conventional barley reflects the practical realities of global agricultural economics, where farmers benefit from accessible and affordable production inputs and established support systems, from seed suppliers and equipment manufacturers to extensive transportation and storage networks.

The Business-to-Consumer distribution channel is the fastest-growing in the global barley market due to the surge in health conscious consumer behavior, direct access through e-commerce, and the rising popularity of barley based food and beverage products in everyday diets.

The Business-to-Consumer distribution channel is rapidly becoming the fastest-growing segment in the global barley market as a result of increasing health awareness among consumers, expanding retail availability, and the transformative impact of digital commerce platforms. In recent years, global dietary trends have shifted dramatically toward functional, plant-based, and whole grain foods, with consumers actively seeking out ingredients that offer nutritional value, aid digestion, and support long term wellness.

Online marketplaces like Amazon, Thrive Market, and regional platforms now offer organic barley flour, barley cereals, malted barley drinks, and other functional products directly to consumers, often bundled with nutritional guidance, recipes, or wellness subscriptions. At the same time, large supermarket chains are dedicating more shelf space to whole grains and plant based offerings, driven by consumer demand and food trends that prioritize clean label, gluten reduced, or fiber rich ingredients. The growing popularity of vegan, flexitarian, and heart-healthy diets across Europe, North America, and parts of Asia has created a favorable consumer base for barley. This demand is being amplified by food bloggers, nutritionists, and health influencers who highlight barley’s benefits and versatility in everyday cooking. Recipes for barley bowls, salads, breakfast porridges, and even smoothies are becoming mainstream, encouraging consumers to purchase barley as a pantry staple. Unlike B2B models, where barley is sold in bulk to breweries or feed manufacturers, the B2C segment offers higher margins, greater product differentiation, and more direct feedback from end-users, encouraging producers and marketers to invest more aggressively in branding, packaging, and distribution tailored to individual consumers.

North America is the fastest-growing region in the global barley market due to rising demand for health focused food products, expansion of the craft brewing industry, and increasing consumer preference for whole grains and plant based diets.

The region’s vibrant craft brewing industry has had a significant impact on barley demand, particularly for malting grade varieties. The United States, home to one of the world’s largest and most innovative craft beer markets, continues to drive demand for high quality malted barley. Thousands of microbreweries and independent beer brands prioritize unique flavor profiles and locally sourced ingredients, resulting in a consistent need for specialty malts. This has encouraged greater collaboration between barley growers, maltsters, and breweries, strengthening regional supply chains and stimulating local production in key barley producing states like Montana, Idaho, and North Dakota.

North American consumers are showing increased interest in cooking with whole grains at home, supported by greater availability of barley products through mainstream retail outlets and natural food stores. Supermarkets are now dedicating more space to ancient grains and functional staples like barley, and the growth of e-commerce has made it easier for consumers to access niche or organic barley varieties. Food service providers, including restaurants and meal kit companies, are also incorporating barley into menus as a healthy, hearty alternative to refined grains like white rice or pasta. Government and healthcare institutions in the U.S. and Canada continue to advocate for higher whole grain consumption in dietary guidelines, further supporting demand from consumers and food manufacturers alike. As food companies continue to explore sustainable and high value ingredients, barley’s low water footprint and soil enriching qualities make it a favorable crop in a climate conscious food economy.

• May 2025: GB Pant University researchers have developed UPB 1106, a six-row barley variety, following 12 years of research. The variety has received approval for cultivation across 12 Indian states. UPB 1106 delivers higher yields, enhanced disease resistance, and elevated protein content of 12.3%. The variety performs optimally in irrigated, timely sown conditions.
• April 2025: Denmark has established a new export agreement with China that eliminates phytosanitary barriers and streamlines import procedures for Danish malting barley. The agreement enhances Denmark's agricultural trade position following China's decision to remove anti-dumping tariffs on Australian barley in August 2023. Danish exporters plan to increase their market share in China's beer industry by utilizing the stability provided by this new protocol.
• August 2024: The Indian Institute of Wheat and Barley Research (IIWBR) introduced DWRB-219, a new barley variety adaptable to irrigated and limited irrigation conditions. This variety aims to improve productivity across multiple regions, with a specific focus on India's North-Western Plains Zone (NWPZ).
• June 2024: Heineken and Vivescia, a French agricultural cooperative, have completed their first barley harvest through a regenerative agriculture model implemented under Vivescia's Transitions program. The program focuses on outcome-based farming practices to improve soil health, biodiversity, water conservation, and agricultural business development.