Barley Market Report: Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

Global barley market is valued at USD 24 billion, driven by demand in brewing, animal feed, and health foods, with key players in Russia, Canada, and EU.

The Global Barley Market is valued at USD 24 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for barley in brewing, animal feed, and health food sectors. The rising popularity of craft beers, the expansion of livestock industries, and the growing awareness of the health benefits associated with barley consumption have significantly contributed to market expansion. Additionally, barley’s adaptability to diverse climates and its role in sustainable agriculture further support market growth.

Countries such as Russia, Canada, and Germany, along with the European Union as a whole, dominate the barley market due to their favorable climatic conditions for barley cultivation and established agricultural practices. These regions have strong export capacities, further enhancing their market presence and making them key players in the global barley supply chain.

In 2023, the European Union implemented Regulation (EU) 2023/435 of the European Parliament and of the Council, which amends Regulation (EU) 1307/2013, focusing on the Common Agricultural Policy. This regulation promotes sustainable agricultural practices, including those for barley, by incentivizing farmers to adopt environmentally friendly methods, enhancing the quality of barley produced, and ensuring compliance with international sustainability standards.

Global Barley Market Segmentation

By Type:

The barley market is segmented into hulled barley, hull-less barley, covered barley, and others. Hulled barley continues to gain traction due to its nutritional benefits and versatility in food applications. Hull-less barley is increasingly popular among health-conscious consumers for its digestibility and higher nutrient profile. Covered barley remains important in specific brewing and animal feed applications, especially where resilience to environmental stressors is valued.

By Grade:

The barley market is categorized into malt grade, feed grade, food grade, and others. Malt grade barley is the most dominant segment, driven by its essential role in the brewing and distilling industries. The proliferation of craft breweries and the demand for high-quality malt continue to propel this segment. Feed grade barley is also significant, serving as a primary ingredient in animal feed and supporting the expanding livestock sector.

Global Barley Market Competitive Landscape

The Global Barley Market is characterized by a dynamic mix of regional and international players. Leading participants such as Archer Daniels Midland Company (ADM), Cargill, Incorporated, Bunge Limited, GrainCorp Limited, Olam International Limited, Anheuser-Busch InBev (AB InBev), Carlsberg Group, Diageo plc, Molson Coors Beverage Company, Trouw Nutrition, KWS SAAT SE & Co. KGaA, Syngenta AG, Bayer AG, BASF SE, and Agrial Cooperative contribute to innovation, geographic expansion, and service delivery in this space.

Global Barley Market Industry Analysis

Growth Drivers

Increasing Demand for Barley in Animal Feed:

The global demand for barley in animal feed is projected to reach 160 million metric tons in future, driven by the livestock industry's growth. The FAO reports that livestock production is expected to increase by 1.5% annually, leading to higher feed requirements. Barley, being a cost-effective and nutritious feed option, is favored by farmers, particularly in regions like North America and Europe, where livestock farming is prevalent.

Rising Popularity of Craft Beer and Malt Beverages:

The craft beer market is anticipated to grow to $600 billion in future, significantly boosting barley demand. According to the Brewers Association, the number of craft breweries in the U.S. has increased to over 9,000, creating a robust market for malted barley. This trend is mirrored globally, with countries like Germany and the UK also experiencing a surge in craft beer production, further driving barley consumption.

Health Benefits Associated with Barley Consumption:

Barley is recognized for its health benefits, including high fiber content and potential to lower cholesterol levels. The global health food market is projected to reach $1.2 trillion in future, with barley-based products gaining traction. The World Health Organization highlights the importance of whole grains in diets, which is expected to increase barley's appeal among health-conscious consumers, particularly in North America and Europe.

Market Challenges

Climate Change Impact on Barley Production:

Climate change poses a significant threat to barley production, with the IPCC predicting a potential yield reduction of 10-20% in future due to rising temperatures and erratic weather patterns. Regions like Australia and parts of Europe are already experiencing droughts, which adversely affect barley yields. This unpredictability can lead to supply shortages and increased prices, challenging market stability.

Fluctuating Prices of Raw Materials:

The barley market faces challenges from fluctuating prices of raw materials, which can impact production costs. In future, the price of barley reached $300 per metric ton, influenced by global supply chain disruptions and geopolitical tensions. Such volatility can deter farmers from investing in barley cultivation, leading to potential supply shortages and affecting overall market dynamics.

Global Barley Market Future Outlook

The future of the barley market appears promising, driven by increasing consumer awareness of health benefits and a shift towards sustainable farming practices. Innovations in barley varieties are expected to enhance yield and resilience against climate change. Additionally, the growth of e-commerce platforms is likely to facilitate barley sales, making it more accessible to consumers. As demand for organic and health-focused products rises, barley's role in the food industry will continue to expand, presenting new avenues for growth.

Market Opportunities

Growth in Organic Barley Production:

The organic barley market is projected to grow significantly, with demand expected to reach 12 million metric tons in future. This growth is driven by increasing consumer preference for organic products, supported by government initiatives promoting sustainable agriculture. Regions like North America and Europe are leading this trend, presenting opportunities for farmers to diversify their production.

Technological Advancements in Barley Processing:

Innovations in barley processing technology are set to enhance efficiency and product quality. The introduction of advanced malting techniques can increase yield by up to 20%, making barley more competitive against other grains. This technological shift is expected to attract investments, particularly in developed markets, creating opportunities for growth and expansion in barley processing facilities.