Malt market in Europe

Earlier Report Observations

From 2018 to 2020, the European malt market volume declined from 9.0 million tons to 8.6 million tons, despite production initially rising. Early support came from the expanding craft beer sector, with nearly 9,700 active breweries by 2022, which increased demand for malt. However, production challenges emerged in key producing countries like Poland, where a reduction in barley cultivation and high import dependence constrained output. Concurrently, intense competition and price pressures in the European market, partly due to reduced exports to Russia, contributed to the downturn.

The market began to recover from 2021 onward, with volume growing to 8.8 million tons in 2022 and stabilizing near 8.9 million tons in 2023. This turnaround was driven by sustained demand for craft beer and specialty malts, as well as rising beer sales in the EU, which reached 313 million hectoliters in 2022. The structure of the industry was marked by the dominance of a few large malting plants with foreign capital in Poland, which supplied the majority of domestic production but could not fully meet local breweries' needs, leading to significant imports.

While physical market volume saw modest growth after 2021, the market value surged by over 30% in 2023, reaching $7.5 billion. This jump reflected shifting consumer preferences toward premium, sustainable, and clean-label products, such as organic malt and ingredients with traceable origins. The growing use of malt in the baking and snack industries, alongside the trend for low-alcohol beers, further supported value expansion.

Production malt in Europe

In kind, 2017-2020, K t

Top producers of malt, 2017-2020

World map of production of malt, 2017-2020

Malt production in Europe experienced a decline following two consecutive years of growth. In 2019, production reached its peak at 11 749 thousand tons, but then fell by 7.4% to 10 876 thousand tons in 2020. Over the four-year period from 2017 to 2020, overall production decreased by 4.6%, with an average annual decline of 1.6%. The most significant year-on-year increase occurred in 2019, when production rose by 2.1%.

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

In value, 2017-2020, M $ US

Europe's malt production value declined for the second year in a row. In 2018, production reached its highest value at 6 600 million US dollars, but then decreased by 5.4% to 6 105 million US dollars in 2020. Looking at the period from 2017 to 2020, overall production value increased by 5.6%, translating to an average annual growth rate of 1.8%. The most substantial increase was recorded in 2018, when production value surged by 14.1%.

Annual dynamics of production in Europe in value, 2017-2020, M $ US

Exports malt from Europe

Exports in kind, K t

In 2019, Europe's malt exports reached their highest volume at 3 863 thousand tons, but then declined by 8.6% to 3 532 thousand tons in 2020. Over the 2017-2020 period, export volumes decreased by 3.3%, with an average annual decline of 1.1%. The most significant year-on-year increase occurred in 2019, when exports grew by 8.2%.

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

Between 2017 and 2020, Europe's malt exports in volume terms were distributed across a diverse range of partner countries rather than being concentrated among a few. Japan accounted for 5.5% of exports, Brazil for 4.0%, and Vietnam for 3.9%, together representing 13.4% of total export flows. The remaining 86.6% was spread across many other countries.

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

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

Exports in value, M $ US

After two years of growth, Europe's malt export value declined. In 2019, exports reached their peak at 2 121 million US dollars, but then fell by 6.5% to 1 983 million US dollars in 2020. Over the 2017-2020 period, overall export value increased by 7%, equating to an average annual growth rate of 2.3%. The most substantial increase was recorded in 2018, when export value rose by 10.6%.

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

From 2017 to 2020, Europe's malt exports in value terms were spread across a broad set of partner countries. Japan accounted for 6.4% of export value, the United States for 4.3%, and Brazil for 3.9%, together representing just 14.6% of total export flows. The majority of exports went to numerous other countries.

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

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

Imports malt to Europe

Imports in kind, K t

In 2019, Europe's malt imports hit their lowest point at 951 thousand tons, but then surged by 32.5% to 1 260 thousand tons in 2020. Over the 2017-2020 period, import volumes increased by 19.9%, with an average annual growth rate of 6.3%. The most significant decline occurred in 2019, when imports dropped by 12.2%.

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

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

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

Imports in value, M $ US

Following two years of growth, Europe's malt import value declined. In 2019, imports reached their highest value at 923 million US dollars, but then decreased by 9.4% to 836 million US dollars in 2020. The most substantial increase was recorded in 2018, when import value rose by 9.2%.

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

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

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