Malted Barley Market Analysis & Forecast: 2025-2032

Malted Barley Market is estimated to be valued at USD 9.6 Bn in 2025 and is expected to reach USD 12.05 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 3.3% from 2025 to 2032.

Drivers

Health benefits of malt-based food

The many applications of malted barley in the distillery, food, beer, and medicinal industries are likely to support market expansion throughout the forecast period. The fundamental ingredient in beer production is malted barley; the unique flavor of the beer is related to the malted barley from which it is created. Beer is becoming more popular as people become more aware of its health benefits, enhanced nutritional properties, and ability to reduce heart-related ailments. The expansion of the Malted Barley market is increasing demand for malted barley.

Multiple applications of malted barley in various industries

Malted barley is used as a source of nutrients which is extracted from the process of fermentations, e.g., the production of butanol, glycerol, and acetone. Malt extracts and syrups are prepared by concentrating worts (wort is the liquid extracted from the mashing process during the brewing of beer or whisky) by evaporation. These products are widely used in baking, confectionery, breakfast cereals, malt beverages, dairy products, and condiments and as a caramel substitute.

Market Restraints

High cost of raw barley grains

The cost of the raw materials used for the production of the malted barley is hampering the market growth worldwide. Due to the rising demand for raw barley from various industries, such as breweries, distilleries, and others as a raw material, the price of barley has increased significantly. The supply of malt in both the domestic and global markets, as well as demand for malt and malt products, impact the price of barley. Increasing malted barley prices are influenced by the shipping and storage costs as well. The higher cost of raw materials is negatively affecting the market growth.

Market Trends

The food processing industry's increased demand for malted barley

The growing demand for malted barley in the food processing industry is driving the market growth. In food processing various types of malts are available in the form of extracts, syrups, liquid or dry, enzymatic or non-enzymatic, dark or light colored. Malts are used by many segments of the food industry and are used according to their solid content, enzymatic activity, color, pH factor, ability to reduce sugar level, protein, ash, and microbiological profiles. For instance, according to the report by the food navigator in 2020, food processing industries are using malted barley as a source of high protein and phytochemical content. The implication of phytochemicals in food products provides antioxidants and nutrition for the human body. The increased public knowledge of the health benefits of malted foods is expanding the market for malted barley.

Opportunity

The emergence of novel food items

Increased knowledge of health advantages of barley-based foods and drinks, rising urbanization in emerging nations, and changes in consumer tastes and lifestyle are driving the Malted Barley market. Furthermore, the introduction of new food and beverage-related businesses, a growth in the demand for organic malt components and extracts, and the rising popularity of craft beer all present attractive potential for industry participants.

Market segment

Figure 1: Global Malted Barley Market by Form in 2025

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On the basis of form, in 2025, flakes held the largest revenue share of 28.63% in the global malted barley market. Malted wheat flakes add a delicious nutty, sweet flavor to recipes, especially bread. Used in bread, malted wheat flakes add a rusticity to a loaf and an extra malty flavor. Full of insoluble fibers, they are a nutritious grain that adds texture and flavor.

Figure 2: Global Malted Barley Market by Region in 2025

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Among regions, Europe held a dominant position in the global malted barley market in 2025, accounting for 29.8% of the market share in terms of revenue, followed by Asia Pacific and North America.  For instance, in June 2021, Boortmalt, an international malting company, announced a significant multi-million pound investment to expand its malting facility in Buckie, on the Morayshire coast. The expansion supports the growing demand for malt in whisky distilling and brewing. Boortmalt’s expansion of its site witnessed a production capacity increased by 50% to approximately 90,000 million tons per year.

Global Malted Barley Market - Impact of Coronavirus (COVID-19) Pandemic

Most industries across the world have been negatively impacted over the last few months due to the COVID-19 pandemic. This can be attributed to significant disruptions experienced by their respective manufacturing and supply-chain operations as a result of various precautionary lockdowns, as well as other restrictions that were enforced by governing authorities across the globe. The same applies to the global malted barley market. Moreover, the consumer demand has also subsequently reduced as individuals are now keener on eliminating non-essential expenses from their respective budgets as the general economic status of most individuals have been severely affected by this outbreak. However, as respective governing authorities began to lift these enforced lockdowns, the global malted barley market is expected to recover accordingly.

Key Development

• In February 2020, BSG an manufacture announced a partnership with Leopold Bros. (US) to market a new range of small-batch, handcrafted malts. As a consequence, it will be able to penetrate the expanding craft brewing and homemade beer sectors.
• In May 2021, for instance, Budweiser Brewing Co APAC Ltd announced that through a relationship with a state-owned enterprise, it plans to supply beer to local customers made from locally obtained malting barley. The barley is of high quality, and it will assist the company develop collaboration between global and domestic businesses.
• In January 2023, the European Commission's new Common Agricultural Policy aims to assist European farmers in transitioning to a more sustainable and resilient agricultural industry while preserving rural community diversity
• In April 2021, Intergrain, a manufacture a leading Australia-based barley breeding company, collaborated with two major Australian universities to improve barley yield stability in the face of climate variability and to provide innovative breeding solutions that allow for the development of more productive crops

*Definition: Malted barley, or malt, is barley that has been allowed to germinate (or sprout) by being soaked in water. By doing this to the grain, the starches are converted into fermentable sugars. The process ensures that starch in the grain can be made into alcohol. This process is known as malting, this is an important step in the process of producing whisky as well as beer. Malt is also used to make confections such as malted shakes, malt vinegar, flavored shakes including Milo and Horlicks, and some baked goods such as bagels and malt loaf. Malted barley is an ingredient used to manufacture yeast bread and other baked goods.