The first half of 2025 saw malted barley markets shaped by shifting consumption patterns, trade developments, and tariff-related pressures. In the United States, demand from brewers and maltsters weakened further as beer consumption continued its long-term decline, reaching the lowest levels in decades.
The reduced uptake from the brewing sector coincided with competition from alternative alcoholic beverages, while younger demographics increasingly moved away from alcohol altogether. This decline in end-use consumption contributed to limited buying interest from domestic maltsters.
Trade dynamics played a significant role in market activity. U.S. farmers faced financial strain as tariffs disrupted key export flows. Canada implemented tariffs on U.S. barley and agricultural goods, dampening exports and raising the cost of imported farm inputs such as fertilizer and crop chemicals. Mexico, a major importer of U.S. malt, raised concerns about potential retaliatory tariffs, which added further uncertainty to trade flows. Higher costs for brewing materials, including aluminium and steel used in kegs and cans, also added to the challenges faced by the brewing sector.