Press release
Barley Market: Will Asia Pacific & Japan Beat Western Europe to Become the Leading Regional Market
The global barley market is segmented by type, grade, and application. The Barley Malt product type segment is likely to emerge as the most popular segment within the assessment period. This segment dominated more than 30% share of the global barley market in 2016 and is projected to register a CAGR of 3.5% in terms of value during the forecast period. The Barley Malt segment is expected to witness a substantial growth in revenue share during the period of assessment.
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Western Europe expected to be the dominant market in terms of value and volume throughout the forecast period
The Western Europe market led the global barley market in 2016 with more than 25% market share. This market is anticipated to reach a market valuation in excess of US$ 8000 Mn by 2026, recording a value CAGR of 3.7% during the forecast period. Besides Western Europe, the North America, Latin America, and the Asia Pacific and Japan barley markets are projected to witness good growth during the period of assessment. Rapid increase in the usage of barley in the food and beverages industry is expected to fuel market growth in these regions.
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Within the Latin America region, Argentina is anticipated to be the highest contributor to regional market growth in terms of revenue, registering a value CAGR of 3.1%. The Argentina barley market is estimated to record incremental value of more than US$ 225 Mn between 2016 and 2026. Mexico is also expected to witness significant growth in the coming decade. The Mexico barley market is estimated to represent incremental opportunity in excess of US$ 140 Mn between 2016 and 2026 and register a CAGR of 3.4% in terms of revenue during the forecast period.
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Growing awareness regarding the health benefits of barley coupled with an easy availability of grains is anticipated to boost revenue growth of the Mexico barley market. The Brazil barley market is expected to project exponential growth in terms of revenue during the forecast period. This market is estimated to register a value CAGR of 3.6% during the forecast period.
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Mergers and collaborations strengthening the framework of the global barley market
Cargill Incorporated offers a broad range of malt products derived from barley. The company has a strong sales network in Argentina, Australia, Belgium, Canada, Germany, Japan, Russia, Spain and the U.S. In 2010, the company formed a joint venture with Grupo Modelo, S.A.B. de C.V., a Mexico-based beer manufacturer, to form InteGrowMalt LLC, to produce malt and barley products. This JV was in line with the companys organic strategy of acquisitions and collaborations to enhance its product offerings. GrainCorp, a leading food ingredients and agribusiness company with presence in over 30 countries globally, offers a wide range of malt products derived from barley and wheat. The company has malt production facilities in Australia, Canada, the U.S., the U.K. and Germany. In 2011, the company acquired German Malt GmbH and Co., a Germany-based company, with an objective to expand its malt business in Europe. The company focusses on establishing new production facilities to cater to an increasing demand from the global market. In 2015, Malteurop Group, another leading global barley malt manufacturer with presence in more than 14 countries across Europe, North America, Oceania, and Asia announced plans to upgrade its production facility in Geelong, Australia to cater to an increasing demand for malt in the Asia Pacific market.
The global barley market is shifting rapidly. A high usage of barley in alcoholic products is likely to boost revenue growth of the barley market in the Latin America region. However, in the developed regions, usage of barley will be predominantly witnessed in the animal feed industry.
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