Latin America Barley Market Forecast: Projecting Trends for the Coming Years
Barley is a widely grown cereal crop and is mainly consumed as animal feed. It provides various nutrients like protein, fiber, vitamins, and minerals. The grain is commonly used for brewing beer. Barley has numerous health benefits such as controlling blood sugar levels, reducing inflammation, strengthening bones, and boosting heart health. It is used to produce malt, which provides body and flavor to various beers. The brewing industry has led to increased demand for barley in Latin American countries.
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.
Market Opportunity:
The increasing usage of barley in breweries presents a major market opportunity. Latin America has witnessed rising beer consumption in countries such as Brazil, Mexico, Argentina, and Colombia over the past few years. Breweries account for the bulk of barley usage as it imparts distinct flavor and color to beers. As the beer market in the region continues to grow driven by changing lifestyles and rising disposable incomes, the demand for barley from breweries is expected to increase substantially. With an expanding brewing industry, barley producers in Latin America can leverage this opportunity and increase barley cultivation to fulfill the burgeoning requirements of breweries. This will augment the growth of the regional barley market during the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is medium. Setting up a barley production and processing facility involves high capital investment. However, favorable climate and availability of arable land provide some opportunities.
Bargaining power of buyers: The bargaining power of buyers is high. The barley market is fragmented with many small farmers and buyers. Buyers can exert pressure on price.
Bargaining power of suppliers: The bargaining power of suppliers is medium. While farmers have some control over supply, major buyers have established a dominant position in the market.
Threat of new substitutes: The threat of substitutes is low. Barley is uniquely suited for malting and brewing. It faces limited competition from alternatives.
Competitive rivalry: Competition is intense. Producers compete primarily on pricing.
SWOT Analysis
Strengths: Mexico is the largest producer in the region. Favorable climate supports reliable yields. Cereal crops like barley are well-integrated into the regional agricultural systems.
Weaknesses: Small landholdings dominate cultivation. Many farmers lack access to credit and latest technologies. Post-harvest facilities need improvement.
Opportunities: Growing global demand for beer and malt is driving barley consumption. Developing malting industry can add value. Opportunities exist in organic/ specialty barley exports.
Threats: Volatility in commodity prices poses risks. Changing weather patterns from climate change impact yields. Pests and diseases remain a concern.
Key Takeaways
The Latin America barley market is expected to witness high growth over the forecast period supported by rising demand from the brewing industry.
Regional analysis: Over the forecast period, Brazil is anticipated to be the fastest growing market for barley in Latin America expanding at a CAGR of around 4%. Growing beer consumption is driving the malting barley industry in Brazil. The country is working towards reducing its dependence on imports by developing a robust value chain for barley from seed to malt.
Key players: Key players operating in the Latin America barley market are Grain crop Limited, Cervecería Costa Rica, Anheuser-Busch InBev, Heineken, and Brasil Kirin Holdings. Grain crop Limited is the largest barley producer and exporter in Mexico. It accounts for over 25% share in the country's barley market.
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