Brazil Malted Barley Market- Trend Analysis & Forecasts

The Brazil malted barley market valued at US$ ** billion in 2024, the market is projected to expand at a CAGR of **% through 2032, primarily fueled by the brewing sector. The market is undergoing a significant transformation, driven by increasing domestic beer production, rising consumption of craft beer, and growing investments in malting infrastructure. In 2024, Brazil’s malted barley demand was estimated at over ** million tonnes (MMT), primarily fueled by the brewing sector. With a growing dependence on imports and evolving trade partnerships, Brazil is emerging as both a key consumer and a strategic influencer in the global malted barley value chain.

Market/ Product Overview

Brazil stands as Latin America’s largest beer market and the third-largest beer consumer globally, with annual consumption surpassing 13 billion liters in 2023. Malted barley, a critical raw material in brewing, has seen increased demand, particularly due to the expansion of the craft beer segment. As of 2024, Brazil consumed nearly ** MMT of malted barley, with over **% directed toward the beer industry.

While Brazil cultivates barley domestically, mainly in the southern states such as Rio Grande do Sul and Paraná, it remains heavily reliant on malted barley imports due to limitations in malting capacity and inconsistent barley crop yields. In 2024, Brazil imported over ** thousand MT of malted barley, predominantly from Argentina and Uruguay, highlighting regional trade dependencies.

The domestic malt production infrastructure is gradually evolving, with companies like Agrária and Maltaria Campos Gerais investing in local malting facilities. The Brazilian malted barley market is expected to grow at a CAGR of **% from 2025 to 2032, driven by technological improvements, rising consumption trends, and favorable trade policies. As Brazil seeks to reduce import dependency and strengthen its barley value chain, the market is poised for strategic transformation.

Significance of Brazil in Global Malted Barley Supply Chain

Brazil's role in the global malted barley supply chain is defined more by its consumption than its production. As of 2024, the country ranked among the top five global importers of malted barley, showcasing its critical position as a demand center in South America. Brazil accounted for **% of the global malted barley import volume in 2024, with imports valued at over US$ ** million.

Despite limited barley-growing areas compared to countries like Canada or Australia, Brazil's expanding beer industry fuels consistent demand for high-quality malt. This demand has prompted cross-border supply chain integration with Argentina and Uruguay, countries that not only supply malt but also occasionally barley for domestic malting.

Brazil also serves as a growth hub for malt technology adoption in Latin America. Initiatives such as the Malte Brasil Program aim to improve local barley varieties suitable for malting, which could reduce dependency on external suppliers over the next decade. The market’s import-heavy nature means that global malt suppliers closely monitor Brazil’s trade policy, harvest cycles, and currency fluctuations, making it a linchpin in South America’s malted barley ecosystem.

Brazil Malted Barley Supply & Demand Trend

Brazil’s malted barley supply ecosystem is marked by limited domestic production and strong dependency on regional imports. In 2024, Brazil produced ** thousand MT of barley, but only about **% was suitable for malting purposes. Local malting capacity was estimated at ** thousand MT, falling short of demand, especially from the brewing sector which consumed over ** million tonnes of malt in the same year.

The gap is filled through imports, predominantly from Argentina, which supplied over **% of Brazil’s imported malted barley in 2024, followed by Uruguay with **%. This trade dependency poses challenges during periods of crop failures or logistical disruptions in supplier countries.

On the demand side, Brazil's beer industry continues to be the primary driver. The rise of craft breweries — now exceeding 1,500 units nationwide — has amplified the need for specialty malt types, further straining supply chains. The animal feed and food processing industries consume a smaller share, estimated at **% of total malt usage.

With the craft beer segment projected to grow at over **% annually through 2030, demand for malted barley is expected to reach ** MMT by 2032. However, without proportional expansion in domestic production or malting capacity, Brazil may continue to rely on imports, underscoring the urgency of public-private investments in barley and malt value chains.

Market Growth Factors

The Brazil malted barley market is buoyed by a combination of macroeconomic, agricultural, and consumer-driven factors. The first and most prominent is the consistent growth of the domestic beer industry. As per ABRABE (Brazilian Beverage Association), Brazil’s beer production exceeded ** billion liters in 2024, with malt accounting for over **% of the fermentable base in most brewing operations.

Secondly, the rapid expansion of the craft beer segment is reshaping the malt demand landscape. The number of registered craft breweries grew by over **% between 2022 and 2024, prompting a rise in demand for specialty malts with unique flavor profiles. This shift not only raises total malt consumption but also creates opportunities for differentiated malt producers and importers.

Technological advancements and public-sector research programs are also supporting domestic barley cultivation. The Embrapa Barley Program introduced new malting barley varieties such as BRS Korbel and BRS Brau in recent years, which are more resistant to local diseases and adaptable to Brazil’s climate.

Finally, favorable trade agreements within MERCOSUR provide tariff-free access to malted barley from neighboring producers. This streamlined import mechanism ensures consistent supply, even during periods of domestic production shortfall. Together, these factors are expected to sustain a healthy CAGR of nearly **% for Brazil's malted barley market through 2032.

Market Restraints & Challenges

Despite a positive outlook, the Brazil malted barley market faces several critical challenges. The foremost constraint is the limited area under barley cultivation, which stood at just ** hectares in 2023. This low base restricts the volume of locally available malting-grade barley, increasing dependency on imports.

Weather variability further exacerbates production risks. Southern Brazil, the main barley-growing region, is prone to late frosts and erratic rainfall, which significantly impacts yields and malt quality. For example, unfavorable weather in 2021 led to a **% decline in barley harvests, disrupting local malt supply.

Another persistent challenge is the underdeveloped malting infrastructure. Brazil’s existing malting capacity fulfills less than half of its total malt demand, resulting in elevated import bills and exposure to international price fluctuations. The cost of importing malt is also influenced by currency volatility, particularly the BRL-USD exchange rate, which fluctuated by over **% in 2023.

Regulatory delays and fragmented policy support further impede the acceleration of barley and malt supply chains. Without cohesive national programs to expand barley acreage, invest in malt facilities, and de-risk farmer participation, Brazil’s efforts to build self-sufficiency will remain slow and uneven.

Brazil Malted Barley Market Segmentation

The Brazil malted barley market is segmented based on end use, type, and source.

By end use, the beverage industry dominates the market, accounting for nearly **% of malted barley consumption in 2024. Within this, the mainstream beer segment forms the bulk, although craft beer is rapidly gaining ground. The food industry, utilizing malt for flavoring, cereal production, and bakery applications, holds around **% share. Animal feed and pharmaceutical applications account for the remaining **%.

In terms of type, the market is divided into base malt, specialty malt, and adjunct malt. Base malt, used in lager production, forms the backbone of demand, capturing **% market share. Specialty malts — including caramel, roasted, and chocolate malt — are experiencing growth rates of over 8% annually, thanks to the booming craft beer sector and demand for unique beer profiles. Adjunct malts, used in dilution or specific brewing methods, remain niche but stable.

By source, the market is segmented into domestic and imported malted barley. Imported malt still holds over **% of the total market share, though this is expected to decline gradually as new domestic malting projects such as the Maltaria Campos Gerais, with a capacity of ** thousand MT/year, come online by 2025.

These segmentation dynamics are critical for stakeholders seeking to align product strategies with evolving demand trends and diversify sourcing portfolios.

Brazil Malted Barley Trade (Export & Import) Trend

Trade forms the lifeline of Brazil’s malted barley market. In 2024, Brazil imported ** thousand MT of malted barley, primarily from Argentina, which accounted for **% of total volume, followed by Uruguay (**%), and Paraguay (**%). The total value of these imports exceeded US$ ** million.

Brazil’s export volume of malted barley remains negligible, constrained by limited domestic production and malting capacity. However, certain value-added malted products have seen niche export growth, especially toward Paraguay and Bolivia.

Brazil benefits from its MERCOSUR membership, allowing for zero-duty imports of malt from regional partners. In contrast, malt imported from outside MERCOSUR faces tariffs of up to **%, making regional partners the preferred source.

Trade policies have generally remained supportive, though logistical bottlenecks, including port congestion at Paranaguá and currency volatility, continue to impact shipment schedules and costs. A weakening BRL in 2023 increased CIF prices by nearly **% on average, raising landed costs for importers.

Nonetheless, long-term contracts between brewers and regional malt suppliers have mitigated short-term price risks and ensured a relatively stable malt supply flow into Brazil.

Influence of Brazil in Global Malted Barley Price

While Brazil is not a dominant price setter in the global malted barley market, its status as a major importer gives it indirect influence over South American pricing benchmarks. In 2023, the average import price for malted barley in Brazil was US$ ** per MT, reflecting an **% increase over 2022 due to regional supply tightness.

Brazil’s import demand has a ripple effect on prices in Argentina and Uruguay, where local exporters often adjust prices based on Brazilian contract volumes. During peak brewing seasons, especially pre-Carnival, Brazil’s bulk orders tend to temporarily elevate spot prices in the region by 3–5%.

Wholesale malt prices in Brazil have also shown volatility, ranging between US$ ** and US$ ** per kg in 2024, impacted by both global commodity cycles and domestic logistics. Given the scale of its demand, Brazil’s consumption trends and procurement strategies continue to influence the export pricing behavior of key South American malt producers.

Brazil Malted Barley Market Competitive Analysis

The Brazil malted barley market features a mix of domestic malt producers, regional exporters, and international trading firms. Leading the domestic front is Agrária Malte, which supplies over **% of Brazil’s locally produced malt. The company has invested in state-of-the-art malting technologies and is a key supplier to major brewers like Ambev.

Another rising player is Maltaria Campos Gerais, a consortium of local cooperatives and breweries aiming to boost Brazil’s self-sufficiency. With operations slated to begin by 2025, it will add ** thousand MT/year to national capacity.

Among global players, Soufflet Group (France) and Malteurop maintain strong trade ties with Brazilian importers. On the trading side, Cargill and Bunge play important roles in supply chain logistics and price negotiations.

Recent partnerships include the 2024 agreement between Agrária and Coopavel to improve contract farming models and quality standards. Mergers have been limited, but international companies have shown growing interest in direct investment, with speculation about potential JV activity by 2026.

List of Key Companies in Brazil Malted Barley Market,

■ Agrária Malte
■ Maltaria Campos Gerais
■ Ambev
■ Soufflet Group
■ Malteurop
■ Cargill
■ Bunge
■ Coopers Malte
■ Castle Malting
■ Malt Company India (MCIL)
■ Louis Dreyfus Company
■ Intermalt
■ Weyermann Specialty Malts
■ Muntons Malt
■ Cooperativa Frisia

Future Outlook

The Brazil malted barley market is projected to reach ** million MT in demand by 2032, growing at a CAGR of **% from 2024 levels. Domestic production of malt is expected to rise significantly with the operationalization of new malting facilities and improved barley varieties. However, imports will continue to meet at least 50–55% of demand due to climatic and acreage limitations.

Trade with Argentina and Uruguay will remain dominant, although Brazil may diversify slightly toward other European or North American suppliers depending on global market conditions. Price volatility is expected to persist, influenced by global cereal trends and domestic currency swings.

By 2032, Brazil aims to achieve near self-sufficiency in base malt and improve specialty malt production for high-value applications. With coordinated public-private action, favorable trade frameworks, and a thriving beer sector, Brazil is poised to play a stronger and more balanced role in the global malted barley market.