Malt market in South America

Earlier Report Observations

Between 2018 and 2019, the malt market in South America expanded from 2.6 million tons to 2.8 million tons. This growth was primarily fueled by a substantial increase in barley production in Paraná, Brazil's main barley-growing region, which supplied raw material for malt. Simultaneously, the rapid rise of craft breweries, growing at approximately 30% per year, boosted demand for domestically produced malt.

After a contraction to 2.6 million tons in 2020, the market rebounded sharply to 3.3 million tons in 2021. By that year, Brazil relied on imports for 65% of its malt consumption, highlighting the market's external dependency. The war in Ukraine, beginning in early 2022, subsequently exerted inflationary pressure on barley and malt costs, affecting the Brazilian market.

Despite cost pressures, market volume continued to rise, reaching 3.8 million tons in 2023. This sustained growth was supported by an expanding beer industry, with the number of registered breweries increasing by 6.8% in 2023, and a growing consumer preference for pure malt beers, which accounted for 29.2% of production volume. In 2024, Heineken reported a 9% sales volume increase in Brazil, underscoring ongoing market vitality.

Production malt in South America

In kind, 2017-2020, K t

Top producers of malt, 2017-2020

World map of production of malt, 2017-2020

South America's malt production has risen for the second year in a row. In 2020, the region produced 2 880 K t of malt, an 18.8% increase year-over-year. From 2017 to 2020, production grew by 20.6%, with a compound annual growth rate of 6.4%. The lowest production level was in 2018 at 2 386 K t, which also saw the largest decline of 0.1%.

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

In value, 2017-2020, M $ US

South America's malt production value has increased for the second consecutive year. In 2020, the output was valued at 1 477 M $ US, up 13.2% from 2019. Between 2017 and 2020, production value rose by 19.8%, translating to an annualized rate of 6.2%. The minimum value occurred in 2018 at 1 226 M $ US, with the largest decline that year at 0.5%.

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

Exports malt from South America

Exports in kind, K t

South America exported 870 K t of malt in 2020, a sharp reduction of 11.3% compared to the previous year. From 2017 to 2020, exports fell by 2.1%, equating to an annualized decline of 0.7%. The lowest export volume was in 2018 at 828 K t, while the peak was in 2019 at 982 K t, which also recorded the largest increase of 18.6%.

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

Between 2017 and 2020, Free Zones, the Dominican Republic, and Panama were the leading destinations for South America's malt exports in kind. Free Zones accounted for 9.8% of exports, the Dominican Republic for 3.5%, and Panama for 0.9%, together making up 14.3% of total export flows.

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

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

Exports in value, M $ US

In 2020, South America's malt exports totaled 446.4 M $ US, a significant drop of 15.6% from the previous year. Over the period 2017-2020, exports decreased by 2.7%, with an annualized rate of decline of 0.9%. The minimum value was in 2018 at 425.3 M $ US, while the maximum was in 2019 at 528.8 M $ US, which saw the largest increase of 24.3%.

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

From 2017 to 2020, Free Zones, the Dominican Republic, and Panama were the top buyers of South American malt in value terms. Free Zones represented 10.6% of exports, the Dominican Republic 3.3%, and Panama 0.8%, collectively forming 14.7% of total export value.

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

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

Imports malt to South America

Imports in kind, K t

In 2020, South America imported 555 K t of malt, a steep decline of 58.2% compared to the previous year. Between 2017 and 2020, imports fell by 51.6%, with a compound annual growth rate of -21.5%. The highest import volume was in 2019 at 1 327 K t, which also experienced the largest increase of 24.7%.

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

From 2017 to 2020, malt imports to South America in kind were spread across various partner countries. Belgium accounted for 6.9% of imports, France for 4.6%, and Germany for 3.9%, together representing just 15.4% of total import flows.

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

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

Imports in value, M $ US

In 2020, South America's malt imports reached 710.1 M $ US, a moderate decline of 3.4% from the previous year. Over the period 2017-2020, imports increased by 17%, with a compound annual growth rate of 5.4%. The lowest value was in 2018 at 568.4 M $ US, which saw the largest decline of 6.4%, while the peak was in 2019 at 735.2 M $ US, recording the largest increase of 29.4%.

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

The partner structure for malt imports in value terms from 2017 to 2020 was fragmented, with Belgium accounting for 5.8%, Germany for 4.1%, and France for 3.8% of imports. Together, these countries made up only 13.7% of total flows, with no single country holding a dominant share.

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

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