Barley market in Southern Europe

Earlier Report Observations

The barley market in Southern Europe showed significant volatility between 2018 and 2020. Demand from the brewing industry, particularly fueled by the entry of new craft breweries, supported market volume initially. For example, in 2018, the establishment of 210 new breweries in Brazil alone boosted global barley demand, influencing European markets. However, by 2019, climatic challenges and increasing global competition contributed to a decrease in market size to 12 269 thousand tonnes. In 2020, the COVID-19 pandemic affected supply chains, yet the market reached a peak of 15 244 thousand tonnes, potentially due to shifting consumption patterns and stable grain prices.

From 2021 onwards, the market entered a sustained contraction, falling to 10 762 thousand tonnes by 2023. This decline was driven primarily by severe droughts in Southern Europe, especially in Spain where production dropped by 20-30% in 2022, reducing domestic supply. The war in Ukraine further disrupted the market, leading to expectations of shortages and higher prices across Europe. Regulatory changes, such as the European Union's extension of duty-free access for Ukrainian agricultural products until June 2025, also impacted import flows and market dynamics. Additionally, adverse weather conditions in Italy compounded production challenges, while investments in malt houses in Brazil aimed to meet brewing demand but did not offset regional declines.

Production barley in Southern Europe

In kind, 2017-2020, K t

Top producers of barley, 2017-2020

World map of production of barley, 2017-2020

In 2020, Southern Europe produced 14 238 K t of barley, marking a 38.7% increase compared to 2019. Over the period from 2017 to 2020, production grew by 76.9%, which translates to an annualized growth rate of 20.9%. The most significant decline occurred in 2019, with a drop of 14.1%, while the largest increase was recorded in 2018, at 48.5%.

Annual dynamics of production in Southern Europe in kind, 2017-2020, K t

Exports barley from Southern Europe

Exports in kind, K t

The market exhibited notable volatility during these years. Exports reached their lowest point in 2019 at 185 K t and peaked in 2018 at 380 K t, showing a 2.1-fold difference between these two years. In 2020, Southern Europe exported 319 K t of barley, representing a dramatic rise of 72.3% compared to the previous year. The largest decline was recorded in 2019, with a decrease of 51.2%.

Annual dynamics of product's exports from Southern Europe in kind, 2017-2020, K t

From 2017 to 2020, the export partner landscape for barley in kind was highly diversified. France accounted for 8.4% of exports in kind, Romania for 7.9%, and Libya for 4.4%, together making up only 20.7% of total flows. The remaining 79.3% was distributed among many other countries, indicating a broad and varied trade network.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Europe in kind, 2017-2020

Exports in value, M $ US

In 2020, Southern Europe exported barley worth 83.2 M $ US, which is 20.5% more than the previous year. Between 2017 and 2020, exports increased by 29.5%, equating to an annualized growth rate of 9.0%. The maximum value was recorded in 2018 at 104.2 M $ US. The largest decline occurred in 2019, with a drop of 33.7%, while the largest increase was in 2018, at 62.2%.

Annual dynamics of product's exports from Southern Europe in value, 2017-2020, M $ US

During 2017–2020, France, Romania, and Libya were among the largest buyers of barley from Southern Europe in value terms, with shares of 11.5%, 6.6%, and 4.4%, respectively. However, even combined, they represented just 22.5% of total exports in value terms, highlighting a broadly diversified partner base with many other countries involved.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Europe in value, 2017-2020

Imports barley to Southern Europe

Imports in kind, K t

In 2020, Southern Europe imported 1 326 K t of barley, which is 39.5% less than the previous year. Between 2017 and 2020, imports decreased by 50.7%, corresponding to an annualized decline rate of 21.0%. The largest decline was recorded in 2018, with a drop of 42.4%, while the largest increase occurred in 2019, at 41.5%.

Annual dynamics of product's imports to Southern Europe in kind, 2017-2020, K t

From 2017 to 2020, France, the United Kingdom, and Hungary were the leading sources for barley imports in kind to Southern Europe. France accounted for 23.8% of imports in kind, the United Kingdom for 16.5%, and Hungary for 13.1%, together comprising 53.5% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Europe in kind, 2017-2020

Imports in value, M $ US

In 2020, Southern Europe's barley imports amounted to 279.2 M $ US, reflecting an abrupt drop of 37.4% compared to the previous year. Over the period 2017-2020, imports decreased by 43.5%, with a compound annual growth rate (CAGR) of -17.3%. The largest increase was recorded in 2019, at 24.6%.

Annual dynamics of product's imports to Southern Europe in value, 2017-2020, M $ US

Over 2017–2020, France, the United Kingdom, and Hungary were the main suppliers of barley to Southern Europe in value terms. France contributed 24.8% of imports in value terms, the United Kingdom 16.2%, and Hungary 12.1%, together making up 53.2% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Europe in value, 2017-2020