Malted barley is produced by soaking barley grains in water and allowing them to germinate by sprouting. This malting process increases enzyme levels to modify starch into fermentable sugars and improves taste. Malted barley is used extensively in the production of beer as it enhances the color, aroma, and flavor. It provides proteins, minerals, dietary fiber and vitamin B that are beneficial for health.

The global malted barley market is estimated to be valued at US$ 8.99 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity in functional ingredients in malted barley is driving the market growth. Malted barley has medicinal values and provides various health benefits such as reducing inflammation, boosting immunity, and improving heart health. It contains peptides that have antioxidant and antihypertensive properties. Research studies show that soluble fibers in malted barley help reduce cholesterol levels and manage blood sugar levels. With growing consumer emphasis on preventive healthcare and wellness, there is increasing demand for malted barley as a functional ingredient in foods and beverages. Food formulators are leveraging the nutritional and health promoting characteristics of malted barley to develop novel products targeted at wellness-conscious consumers. This growing application of malted barley as a functional ingredient will support the market expansion over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the malted barley market requires high capital investment for processing, drying and milling units. However, established players are expanding globally and inorganically which can affect new entrants.
Bargaining power of buyers: The bargaining power of buyers is moderate to high owing to the presence of several buyers for malted barley. Buyers can negotiate on price and demand customized products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the raw material i.e. barley is seasonal and dependent on climate changes. Suppliers have less differentiation.
Threat of new substitutes: The threat of new substitutes is low as malted barley has unique properties to produce various beverages and food products.
Competitive rivalry: The competitive rivalry is high due to the presence of many regional and global manufacturers. Players compete on the basis of quality, price and innovation.

SWOT Analysis
Strength: High nutritional profile of malted barley containing proteins, dietary fibers, vitamins and minerals. Growing demand for craft beers globally augmenting market growth.
Weakness: Seasonal availability depends on climatic conditions affecting consistent supply. High capital investment required for production.
Opportunity: Rising health-conscious consumers preferring nutritious food and beverages. Increasing product innovations and new product launches by key players.
Threats: Availability of substitute ingredients. Stringent regulations pertaining to food safety and quality.

Key Takeaways
The Global Malted Barley Market Size is expected to witness high growth. The market size for 2023 is estimated to be US$ 8.99 Bn and projected to reach US$ 15.6 Bn by 2030, registering a CAGR of 7.6% during the forecast period. Regional analysis related content comprises Regional analysis related content: Asia Pacific dominates the global malted barley market and is estimated to grow at the fastest rate during the forecast period on account of increasing consumer spending on health-based food and beverages in the region. Key countries contributing to the market growth in Asia Pacific include India, China, and Japan.

Key players operating in the Malted Barley market are Pfizer Inc., Novartis AG, Merck & Co., Inc., Celgene Corporation, AstraZeneca PLC, Astellas Pharma Inc., AbbVie Inc., F. Hoffmann-La Roche Ltd., Bristol-Myers Squibb Company, and Johnson & Johnson (Janssen Global Services, LLC), among others.

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