Latin America Barley Market Growth Accelerated by Rising Demand for Healthy Beverages

 

Barley is one of the most widely cultivated cereal grains, and is commonly used for animal feed, malting, and human consumption. It contains high nutritional value and offers various health benefits such as promoting cardiovascular health, reducing cholesterol levels and protecting against diabetes. Barley is widely used in breakfast cereals, breads, beers and healthy beverages due to its high soluble fiber content. The growing health-conscious consumer base is shifting their preference towards plant-based, gluten-free and protein-rich beverages made from barley. The global Latin America Barley Market is estimated to be valued at US$ 3.44 Bn in 2023 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.

Market key trends:

The rising demand for healthy beverages is a key factor fueling the growth of the Latin America barley market. Barley-based beverages contain more nutrients and lower calories than sugary drinks. Furthermore, due to the presence of beta glucans, barley helps promote satiety and fullness. This induces weight management and aids in the prevention of obesity. As obesity rates rise rapidly in Latin American countries, consumers are turning to healthier alternatives such as barley water and barley tea. Technological advancements have enabled large-scale production of these beverages and improved their shelf-life which is further boosting their demand across the region.

Segment Analysis

The Latin America barley market is dominated by the malt segment. Malt is a major input in the production of beer, which has high demand in the region. Latin American countries like Brazil, Mexico, and Argentina are among the largest consumers of beer globally. This makes malt as the prime barley product in demand. The malt segment utilized over 65% of the regional barley production in 2023. Other major segments are feed and food. However, the demand for barley in feed applications is moderately substitutable with other grains.

Key Takeaways

The Latin America barley market is expected to witness high growth over the forecast period. Latin America accounts for around 6% of the global barley production currently.

Regional analysis: The Brazil barley market holds the dominant share currently and is expected to retain its pole position during the forecast period. Being a leading producer and consumer of beer, the country commands over 30% share of the regional barley market. With rising beer demand, especially craft beers, major brewers are increasingly procuring local malting barley. Argentina follow Brazil as the second largest producer and consumer. Other notable producers include Mexico, Chile and Colombia. However, highest growth is expected from Colombia, attributable to initiatives promoting barley cultivation and beer industry expansion.

Key players: Key players operating in the Latin America Barley Market are Grain crop Limited, Malteurop Group, Boortmalt, Soufflet Group and Rahr Corporation. Grain crop Limited is the largest supplier of barley and malt to brewers and distillers in Latin America. Malteurop Group operates malting plants in Brazil, Argentina and Chile. Boortmalt and Soufflet Group are other prominent malt producers with a growing presence across the region. Rahr Corporation exports malting barley varieties developed through its plant breeding program.