Malt market in Brazil

Earlier Report Observations

The Brazilian malt market expanded rapidly from 1.4 million tons in 2018 to 1.9 million tons in 2019, a growth of over 30%. This surge was primarily driven by a presidential decree that overhauled beer production legislation, facilitating the consolidation of the pure-malt segment and encouraging the entry of major brands like Skol. Simultaneously, a 30% increase in barley production in Paraná, which supplies about 60% of the country's malt-grade barley, boosted domestic raw material availability. The continued opening of craft breweries, adding around 210 new facilities in 2018, further stimulated demand for malt. Market growth slowed to a near stabilization in 2020, with volume reaching 1.92 million tons, as pandemic-related supply chain bottlenecks and increased international freight costs introduced headwinds.

After 2020, the market resumed its upward trajectory, reaching 2.15 million tons by 2022. This period was characterized by significant capacity expansions in domestic malt production. In 2021, Agrária Malt reached its full installed capacity of 360 thousand tons per year. The following year, the inauguration of the Campos Gerais Malt House in Paraná, with an annual capacity of 240 thousand tons, further increased national supply. These investments were supported by sustained demand from the craft beer sector, which grew at approximately 30% annually. However, in 2023, the market contracted to 2.03 million tons. This decline was influenced by a 12% rise in barley prices, which increased production costs for specialized malts, and ongoing global container shipping crises that elevated import expenses.

Production malt in Brazil

In kind, 2018-2021, K t

From 2018 to 2021, Brazil consistently ranked 12th globally in malt production.

Top producers of malt, 2018-2021

World map of production of malt, 2018-2021

Brazil's malt production declined for the second year in a row. In 2021, the country produced 671.6 K t of malt, which represents a 13.9% decrease compared to 2020. Over the period from 2018 to 2021, production grew by 5%, translating to an average annual growth rate of 1.7%. The highest production level was recorded in 2019 at 819.4 K t, with the largest year-on-year increase of 28.2% also occurring that year.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

Exports malt from Brazil

Exports in kind, K t

The market showed an unstable trend during this period. Exports reached their lowest point in 2019 at 3 K t, with the largest decline of 53.2% recorded that year. By 2021, exported malt volumes from Brazil had risen to 18 K t, marking a significant increase of 318.8% compared to 2020. The difference between the peak in 2021 and the trough in 2019 was 5.3 times.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, K t

Between 2018 and 2021, the main markets for Brazil's malt exports in volume terms were Paraguay, accounting for 37.4% of exports, Belgium with 30.7%, and Argentina at 21.9%. Together, these three countries represented 90.1% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. Exports hit their lowest point in 2019 at 2.3 M $ US, with the largest decline of 47.0% occurring that year. In 2021, Brazil exported 7.5 M $ US of malt, which is 146.8% higher than the previous year. The difference between the peak in 2021 and the trough in 2019 was 3.3 times.

Annual dynamics of product's exports from Brazil in value, 2018-2021, M $ US

From 2018 to 2021, the primary markets for Brazil's malt exports in value terms were Paraguay, representing 43.9% of exports, Argentina at 28.5%, and Belgium with 14.1%. Collectively, these three destinations accounted for 86.5% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports malt to Brazil

Imports in kind, K t

Malt imports into Brazil increased for the third consecutive year. In 2021, imports reached 1 427 K t, showing a 24.8% rise compared to the previous year. Over the period from 2018 to 2021, imports grew by 78.3%, with a compound annual growth rate of 21.3%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, K t

Between 2018 and 2021, the principal suppliers of malt to Brazil in volume terms were Argentina, accounting for 41.7% of imports, Uruguay with 28.8%, and France at 5.7%. Together, these three countries made up 76.2% of total import volume.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, M $ US

In 2021, foreign malt supplies to Brazil reached 773.2 M $ US, reflecting a sharp increase of 32.8% compared to the previous year. Over the period from 2018 to 2021, imports rose by 78.2%, with a compound annual growth rate of 21.2%. The largest increase was recorded in 2019 at 35.0%, while the largest decline occurred in 2020 at 0.6%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, M $ US

From 2018 to 2021, the main sources of malt imports to Brazil in value terms were Argentina, representing 41.1% of imports, Uruguay with 31.1%, and France at 4.9%. Combined, these three countries accounted for 77.2% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021