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Barley use declining as U.S. beer production trends lower

  • Corn and Other Feed Grains
Combined stacked bar chart showing the U.S. barley use by category and a line chart showing beer production for marketing years 2016/17 to 2025/26.

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Over the past 40 years, use of barley in the United States has shifted considerably across utilization categories. Utilizations reported in the USDA, World Agricultural Supply and Demand Estimates include exports, seed, feed and residual use, as well as a broad category known as food, alcohol, and industrial (FAI) use. FAI has become the dominant use of barley, which represents a contrast from historical marketing patterns when barley was used mostly in animal feed. However, FAI volume has been trending lower, following a general decline in U.S. beer production over the past 10 years. Data from the U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau indicates that beer production fell by more than 13 percent between marketing years 2016/17 and 2023/24. Monthly beer production data through February 2025 suggest this trend is continuing. Based on the 3-year average pace of production for March to May, beer production is projected to fall below 160 million barrels, compared with 189 million barrels in 2016/17. Reflecting softening demand for malt barley for use in brewing, FAI for the 2024/25 marketing year is forecast at an all-time low of 110.7 million bushels, down 27 percent from 151.6 million bushels in 2016/17. This chart is drawn from the USDA, Economic Research Service Feed Grains Yearbook.

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