Malt market in Southern Europe

Earlier Report Observations

The malt market in Southern Europe, led by Italy, experienced initial fluctuations from 2018 to 2020. The sector saw growth in malt production capacity with new malthouses and expanded barley cultivation, supporting the rising craft brewery segment. Companies like Doppio Malto contributed to demand by launching e-commerce services and increasing beer production. However, in 2019, high costs for fertilizers and fuel for barley farming pressured domestic malt production, contributing to a temporary market contraction. The COVID-19 pandemic in 2020 disrupted supply chains but also accelerated trends like demand for organic malt and clean-label ingredients, helping the market recover.

From 2021 to 2022, the market stabilized around 1 257 thousand tonnes annually. Continued growth in craft brewing and technological innovations in malt processing supported production, while new players entered the market with specialized offerings. However, rising inflation, energy costs, and the impact of the war in Ukraine increased production expenses, limiting volume growth. Doppio Malto's expansion, including a new brewery in Sardinia, and plans for Italy's largest malthouse in Veneto set the stage for future capacity increases.

In 2023, the malt market surged by 13% to over 1 418 thousand tonnes, driven by the commissioning of new production facilities, such as the large malthouse in Veneto that became operational. This capacity expansion, coupled with sustained demand from the craft beer industry and broader food sectors, led to a significant rise in both production and market volume.

Production malt in Southern Europe

In kind, 2017-2020, K t

Top producers of malt, 2017-2020

World map of production of malt, 2017-2020

In Southern Europe, malt production reached 1 022 K t in 2020, showing a moderate increase of 8.2% compared to the previous year. Over the period from 2017 to 2020, production grew by 10.3%, which translates to an average annual growth rate of 3.3%. The most significant decline occurred in 2019, when production fell by 5.1%.

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

In value, 2017-2020, M $ US

The value of malt production in Southern Europe was 592.1 M $ US in 2020, marking a substantial increase of 25.5% from the previous year. From 2017 to 2020, production value rose by 18.4%, with a compound annual growth rate of 5.8%. The lowest value was recorded in 2019 at 471.7 M $ US, which also saw the largest decline of 19.9%.

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

Exports malt from Southern Europe

Exports in kind, K t

Malt exports from Southern Europe increased for the second year in a row. In 2020, export volumes stood at 101.0 K t, representing a robust year-on-year rise of 14.4%. Between 2017 and 2020, exports grew by 6.2%, with an average annual growth rate of 2.0%. The lowest volume was in 2018 at 76.6 K t, which also experienced the largest decline of 19.4%. In contrast, the largest increase occurred in 2019, with a 15.2% rise.

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

From 2017 to 2020, malt exports from Southern Europe were relatively evenly distributed among destinations. Angola accounted for 8.9% of exports in kind, Nigeria for 6.7%, and Turkey for 4.0%, with these three countries together making up only 19.7% of total export flows.

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

Following a two-year decline, malt exports from Southern Europe rebounded. In 2020, export value totaled 58.5 M $ US, up by 32.6% compared to 2019. Over the 2017-2020 period, exports increased by 13.9%, with a compound annual growth rate of 4.4%. The lowest value was recorded in 2019 at 44.1 M $ US, while the largest decline of 11.7% occurred in 2018.

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

During 2017-2020, the value of malt exports from Southern Europe was spread fairly evenly. Angola contributed 9.6% of exports in value terms, Nigeria 6.2%, and Turkey 4.4%, with these three countries collectively accounting for just 20.1% of total export flows.

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 malt to Southern Europe

Imports in kind, K t

Malt imports into Southern Europe rose for the second consecutive year. In 2020, imports reached 316.6 K t, which is 10.2% higher than in 2019. However, over the 2017-2020 period, imports decreased by 5.4%, with an average annual decline of 1.8%. The lowest volume was in 2018 at 279.4 K t, which also saw the largest drop of 16.5%.

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

From 2017 to 2020, the largest suppliers of malt to Southern Europe were France, with 24.8% of imports in kind, Germany with 23.5%, and Austria with 10.6%. Together, these three countries accounted for 58.8% of total imports in kind.

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

After increasing for two years, malt imports into Southern Europe declined. In 2020, import value stood at 140.9 M $ US, reflecting a slight drop of 2.2% compared to 2019. Over the 2017-2020 period, imports increased by 10.2%, with a compound annual growth rate of 3.3%. The highest value was recorded in 2019 at 144.1 M $ US, which also experienced the largest increase of 10.7%.

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

Between 2017 and 2020, Germany led as the top supplier of malt to Southern Europe, accounting for 25.1% of imports in value terms, followed by France at 24.1% and Austria at 10.6%. Their combined share reached 59.8% 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