United States Barley Market Overview, 2030

Barley is one of the oldest cultivated cereal grains in the United States. Its cultivation dates back to the 1600s, initially introduced by European settlers. Over the past several decades, barley acreage in the U.S. has declined. According to the USDA, U.S. barley harvested area fell from over 10 million acres in the 1960s to less than 3 million acres in recent years. The decline has been due to shifts in crop economics favoring corn and soybeans, especially in the Midwest. The top barley-producing states in the U.S. are Idaho, Montana, and North Dakota. As of 2024 USDA data, Idaho leads national production, accounting for approximately 37% of the total U.S. output, followed by Montana and North Dakota. These states benefit from cooler climates and established infrastructure for malting barley production. The two-row barley variety is dominant due to its suitability for malting. The primary use of barley in the United States is for malting, representing more than half of total domestic utilization. This is followed by animal feed applications, especially in regions like the Northern Plains. Barley is also used for seed, food processing, and industrial purposes. The U.S. is a significant exporter of malting barley and malt, primarily to Mexico, Japan, and South Korea. According to the American Malting Barley Association (AMBA), demand for malting barley has remained stable due to consistent brewing industry requirements. Food use of barley has seen modest growth, supported by its inclusion in health-focused products due to its β-glucan content. Opportunities exist in expanding the use of barley in functional foods, ready-to-eat cereals, and high-fiber ingredients. USDA and state-led agricultural research programs are advancing breeding projects focused on drought resilience, disease resistance, and food-grade quality. The USDA Agricultural Research Service and institutions such as Montana State University and the University of Idaho are engaged in barley innovation initiatives targeting climate adaptation and food diversification.

According to the research report ""U.S Barley Market Overview, 2030,"" published by Bonafide Research, the U.S Barley market is anticipated to grow at more than 6.07% CAGR from 2025 to 2030. The U.S. barley industry is segmented primarily into two supply chains malting barley and feed barley. The malting barley industry is contract-driven, with direct agreements between farmers and maltsters or breweries. These contracts define quality parameters including protein content, moisture levels, and germination capacity. The feed barley sector operates largely in spot markets and is more sensitive to price volatility and substitution with corn or sorghum. Malting facilities are primarily located in Idaho, North Dakota, Minnesota, and Wisconsin. Major industry players include Rahr Malting Co., Malteurop North America, and Anheuser-Busch InBev, which operate dedicated grain elevators and proprietary sourcing models. The animal feed chain is regionally distributed and often local to feedlots and dairy operations. Barley prices in the U.S. are influenced by domestic factors such as acreage, yield variability, and malt demand cycles. According to USDA Agricultural Prices data, average farmgate prices for barley ranged from $4.30 to $6.50 per bushel between 2020 and 2024. Feed barley prices remain more volatile and are subject to substitution based on corn or soybean meal prices. From a regulatory standpoint, barley is classified as a program crop under the USDA’s Farm Service Agency, making it eligible for Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs. The U.S. Grain Standards Act regulates the grading and inspection of barley, managed by the Federal Grain Inspection Service (FGIS). For malting use, there are also quality specifications maintained by the American Malting Barley Association (AMBA). In terms of pesticide use, barley falls under EPA crop residue tolerances, and certified organic barley must comply with USDA National Organic Program (NOP) regulations. The barley industry also aligns with traceability and sustainability protocols in response to brewery sourcing policies, such as the Sustainable Agriculture Guiding Principles (SAGP) adopted by several large brewers.

Whole grain barley in the U.S. market is predominantly used for food-grade applications and seed purposes. It retains the bran layer, making it high in dietary fiber, particularly β-glucan. Whole grain barley is marketed for health-conscious consumers and is used in cereals, soups, and baking mixes. Food processors targeting heart health and diabetes management incorporate whole grain barley due to its cholesterol-lowering potential, as recognized by the FDA's health claim for β-glucan. Pearled or polished barley is the most common processed form available in U.S. retail markets. During pearling, the outer husk and part of the bran layer are removed, resulting in quicker cooking and a softer texture. It has a longer shelf life and is widely distributed across foodservice and consumer grocery channels. It is not considered whole grain. Barley flakes are produced by steaming and rolling pearled or whole barley. They are similar in use to rolled oats and are included in breakfast cereals, granola blends, and energy bars. Demand for flakes remains niche but steady, often driven by health food manufacturers and organic brands. Barley flour is milled from either whole or pearled barley and is used in bakery applications such as bread, muffins, and pancake mixes. It is lower in gluten than wheat flour, making it unsuitable for yeast-leavened bread unless blended. Malted barley is the largest value segment of the U.S. barley market. It is used almost exclusively in the brewing and distilling industries. Malting involves controlled germination and drying of the grain. U.S. maltsters typically operate under contract with growers to ensure malting-grade quality. Malted barley is also used in some food and beverage products as a sweetener or flavor enhancer. Barley grits are coarse-ground barley kernels used in porridges, pilafs, and specialty foods. Grits are a minor segment and mostly found in regional or ethnic food applications, such as traditional Eastern European and Middle Eastern recipes.

The brewing and distilling industry is the dominant end-user of barley in the United States. According to the American Malting Barley Association (AMBA), more than 50% of the barley grown in the U.S. is used for malting, which is essential for beer and spirits production. Malting barley requires specific quality standards, including low protein and high germination capacity. Major brewing companies and craft breweries across the U.S. contribute to consistent demand for malting barley, especially in states like Idaho, Montana, and North Dakota. The animal feed industry is the second-largest consumer of barley in the U.S., particularly in the Northern Plains and Pacific Northwest. Barley is used as a feed grain for beef cattle, dairy cows, and swine. Its higher fiber and lower energy content compared to corn make it regionally competitive in cooler climates. Feed barley varieties are typically six-row types with higher protein levels. The food and beverage manufacturing sector uses barley in the form of whole grain, flakes, flour, and malt extract. Barley is incorporated into soups, breakfast cereals, health snacks, and bakery products. Barley’s soluble fiber content supports product positioning in the functional and heart-healthy food segments. The FDA allows a health claim linking barley β-glucan to reduced risk of coronary heart disease, which influences its inclusion in health-targeted food lines. Biofuel and industrial applications represent a small but growing share of barley use. Barley starch can be converted to ethanol, and non-malting barley varieties have been explored for bioethanol production, especially in non-traditional growing regions. Federal research initiatives have investigated barley’s role in renewable fuel production, though cost competitiveness with corn remains a constraint. The seed industry supports both commercial and specialty barley markets. Seed growers produce certified seed for feed, malting, and food-grade varieties. Public institutions like the USDA and land-grant universities maintain barley breeding programs to supply the seed industry with climate-resilient and disease-resistant varieties.

The conventional barley segment dominates production in the United States, accounting for the vast majority of cultivated area. Conventional barley is produced primarily in Idaho, Montana, and North Dakota, using standard agronomic practices that include the use of synthetic fertilizers, herbicides, and fungicides. Most conventional barley is grown under contract for malting purposes or for feed markets. The availability of well-established varieties and familiarity with conventional farming systems make it the default choice for most growers. The conventional barley supply chain is fully integrated with commercial seed suppliers, large-scale malting operations, feed processors, and bulk commodity traders. Organic barley represents a small but emerging segment of the U.S. barley market. It is primarily used in niche food and beverage applications that cater to organic product lines. Organic barley must be grown without synthetic inputs and certified by USDA-accredited bodies. According to USDA's National Agricultural Statistics Service (NASS), the acreage under organic barley remains limited, concentrated in states with developed organic grain sectors such as Montana, Oregon, and Minnesota. Organic barley is used in whole grain form, flakes, flour, or as organic malt for specialty brewing and natural food manufacturing. Organic barley pricing is significantly higher than conventional due to limited supply and certification-related costs. Demand for organic barley is driven by consumer interest in clean-label foods and organic brewing. Growth is observed in natural food retail, organic snack producers, and microbreweries producing certified organic beer. Challenges for organic barley growers include weed control, disease management, and limited access to certified organic malting facilities. USDA’s Organic Agriculture Research and Extension Initiative (OREI) and other federal programs have supported research in organic barley production, varietal development, and supply chain coordination. Show more