Barley is one of the most widely used ingredients in beer production and Latin America has witnessed a booming craft beer industry in recent years. Barley is mainly used for malting in the beer brewing process where it provides sugars for fermentation. The growing popularity of craft beers produced by small and independent breweries has fueled demand for high-quality barley varieties. These breweries focus on unique beer styles made from authentic ingredients rather than mass-produced lagers.
The global Latin America Barley Market is estimated to be valued at US$ 3.44 Bn in 2024 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. Latin American countries such as Brazil, Mexico, and Colombia have developed thriving craft beer scenes in the past decade, attracting both domestic and international consumers. As more consumers in the region seek flavorful, artisanal beers, local barley production is poised for sustainable growth to meet the needs of burgeoning craft brewers.
The increasing demand for craft beer in Latin America referred to in the heading as one of the key drivers fueling the regional barley market. As the number of small craft breweries multiplies across major Latin American countries, specialized malting barley varieties best suited to produce unique beer styles have become more sought after. This growing craft brewing sector presents lucrative opportunities for barley producers to deliver high-quality, locally sourced ingredients.
Another driver is support from government initiatives and Farm bills. For instance, A bill introduced by the Mexican government provides subsidies and programs for barley farmers to boost domestic production. This aims to reduce barley imports and promote self-sufficiency in the agricultural industry. With efforts to bolster barley cultivation, both production volumes and cultivated area are expected to rise steadily in Latin American countries over the coming years.
The Latin America barley market is dominated by the malt segment, which accounts for over 60% of the market share. Malt finds extensive application in the brewing industry for the production of beers. Being used as the main ingredient in beer, malt demand is strongly influenced by beer consumption trends in the region. Countries such as Brazil and Mexico have been witnessing rising beer volumes led by increased socializing at bars and lounges as well as changing consumer tastes favoring beers. This has bolstered the demand for malt from the brewing industry.
- Political: There are supportive policies and regulations in countries like Brazil and Argentina encouraging barley cultivation. However, unfavorable weather conditions sometimes affect production.
- Economic: The rising disposable incomes and spending capacities in developing economies have boosted beer as well as food consumption, fueling barley demand. Latin America presents immense opportunities for barley exporters as well.
- Social: Evolving lifestyles and socializing patterns are driving greater beer consumption. International brewing brands are also gaining popularity.
- Technological: Advances in farming techniques and the development of high-yielding barley varieties have aided in increasing barley cultivation and yields in the region.
The global Latin America barley market is expected to witness high growth.
Regional analysis: The Latin America barley market is dominated by Brazil, Argentina, and Mexico collectively accounting for over 80% share due to large-scale production and processing in these countries.
Key players operating in the Latin America barley market are Grain crop Limited, Maltexco SA, Cervecería Argentina SA, Anheuser−Busch InBev SA/NV, Heineken NV.