Barley is one of the most important cereal crops worldwide and is widely used for animal feed, alcoholic beverages production and malting. Barley grains are rich in starch, proteins and dietary fibers. As a cereal crop, barley provides vital nutrients to animals and is preferable for high quality animal feed production. The Latin America region has been witnessing rising demand for animal protein such as meat and dairy. Rising meat and dairy consumption in countries like Brazil has bolstered the demand for compound animal feed incorporating barley as a key ingredient. The global Latin America Barley Market is estimated to be valued at US$ 3.44 Billion 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.
Market key trends:
One of the key trends observed in the Latin America barley market is the development of specialty malting barley varieties. Plant breeders and seed companies are engaged in developing new barley varieties customized for applications such as malting, brewing and distilling industries. For instance, development of high protein, high enzyme barley varieties to produce high-quality malts for unique beer flavors. Similarly, development of waxy or hull-less barley varieties for specialty applications like brewing gluten-free beer. Such innovative product development and customization as per end-use industries requirements is anticipated to boost market demand over the forecast period.
- Threat of new entrants: The threat of new entrants in the Latin America barley market is moderate. Though the initial investment is not very high, established key players have strong foothold and distribution channels.
- Bargaining power of buyers: The bargaining power of buyers is moderate. The buyers have moderate bargaining power due to the presence of many established suppliers.
- Bargaining power of suppliers: The bargaining power of suppliers is high as there are few number of suppliers for raw materials.
- Threat of new substitutes: The threat of new substitutes is low as barley has unique properties and there are limited substitutes for it.
- Competitive rivalry: The competitive rivalry is high due to the presence of many national and international players.
The Latin America barley market is expected to witness high growth owing to increasing demand from food processing and animal feed industries in the region.
Regional analysis: The Brazil barley market held the largest share in Latin America in 2021 and is expected to maintain its dominance during the forecast period. Increasing consumption of beer and increasing demand for malted barley from the brewing industry are propelling market growth in Brazil.
Key players operating in the Latin America barley market are Grain crop Limited, Malteurop Group, Soufflet Group, and Cargill. Grain crop Limited is one of the leading players offering a wide range of barley products.