Malt market in SADC

Earlier Report Observations

The malt market in SADC began the period at 674 thousand tons in 2018, supported by regional industrialization efforts and the framework to eliminate technical barriers to trade under the SADC Protocol on Trade, which aimed to facilitate market integration. Private sector involvement was also signaled by a pledge from South African companies to invest $500 million in the region. Despite these foundational developments, the market volume contracted over the next two years, falling to 636 thousand tons in 2019 and then to 574 thousand tons in 2020.

A sharp recovery followed in 2021, with the market expanding to 785 thousand tons. This growth continued at a more moderate pace, reaching 802 thousand tons in 2022 and 823 thousand tons in 2023. The period saw rising import volumes, which exceeded 470 thousand tons annually from 2022 onward, contributing to the overall market expansion.

In 2024, key developments pointed to further market evolution. The Agreement Establishing the Tripartite Free Trade Area (TFTA) among COMESA, EAC, and SADC entered into force, expanding formal market access. More directly for the malt sector, Soufflet Malt and Heineken announced a partnership to invest €100 million in a new malting factory near Johannesburg, South Africa, which will source local barley and represents a significant industrial investment in regional production capacity.

Production malt in SADC

In kind, 2017-2020, K t

Top producers of malt, 2017-2020

World map of production of malt, 2017-2020

In 2020, SADC produced 308.9 thousand tons of malt, marking a 1.8% increase from the previous year. However, looking at the broader period from 2017 to 2020, production actually declined by 11.9%, which translates to an average annual decrease of 4.1%. The lowest production level was recorded in 2019 at 303.4 thousand tons, while the peak occurred in 2018 with 356.3 thousand tons. The most significant drop in production happened in 2019, when it fell by 14.8%.

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

Exports malt from SADC

Exports in kind, K t

The market for malt exports from SADC experienced notable fluctuations during this period. In 2019, exports reached their highest level at 37.2 thousand tons, but then plummeted to their lowest point in 2020 at just 6.5 thousand tons—a dramatic 5.7-fold difference between the peak and trough. This sharp decline in 2020 represented an 82.5% drop compared to the previous year. The most substantial increase occurred in 2018, when exports surged by 127.0%.

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

From 2017 to 2020, the main destinations for SADC's malt exports in volume terms were Special Categories, which accounted for 3.0% of total flows, and Congo, with 1.1%. Together, these two markets made up 4.2% of all export volumes.

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

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

Exports in value, M $ US

In 2020, SADC's malt exports in value terms amounted to 18.5 million US dollars, reflecting a 30.5% decrease from the year before. Over the four-year span from 2017 to 2020, export values fell by 31%, averaging an annual decline of 11.6%. The largest year-over-year increase was recorded in 2019, when export values rose by 20.2%.

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

During the 2017–2020 period, Special Categories and Congo continued to be the key destinations for SADC's malt exports in value terms, together representing 5.1% of total export flows.

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

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

Imports malt to SADC

Imports in kind, K t

In 2020, SADC's malt imports in volume terms stood at 271.7 thousand tons, showing a sharp 26.7% decline compared to the previous year. Over the entire 2017–2020 period, imports decreased by 48.5%, with a compound annual growth rate of -19.9%. The most significant drop occurred in 2018, when imports fell by 34.5%, while the largest increase was in 2019, with a 7.2% rise.

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

From 2017 to 2020, three key markets—Belgium, France, and the United Kingdom—collectively supplied 56.2% of all malt imports to SADC in volume terms.

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

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

Imports in value, M $ US

After two consecutive years of growth, SADC's malt imports in value terms saw a downturn. In 2020, imports totaled 160.4 million US dollars, down 32.4% from the previous year. Over the 2017–2020 period, import values decreased by 22.9%, averaging an annual decline of 8.3%. The highest import value was recorded in 2019 at 237.2 million US dollars, and the largest year-over-year increase occurred in 2018, with a 9.3% rise.

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

Between 2017 and 2020, Belgium, France, and Ukraine were the primary suppliers of malt to SADC in value terms. Belgium accounted for 26.4% of imports, France for 22.1%, and Ukraine for 10.2%. Together, these three countries made up 58.6% of total import values.

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

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