Barley Tea Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Original, Flavored), By Form (Instant, Ready-to-Drink), By Distribution Channel (Online, Offline), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.32 Billion
CAGR (2026-2031)	5.40%
Fastest Growing Segment	Instant
Largest Market	North America
Market Size (2031)	USD 1.81 Billion

Market Overview

The Global Barley Tea Market will grow from USD 1.32 Billion in 2025 to USD 1.81 Billion by 2031 at a 5.40% CAGR. Barley tea is an infusion brewed from roasted barley kernels and serves as a staple hydration beverage across East Asia. The market is supported by the rising consumer shift toward natural functional drinks that offer antioxidant benefits without artificial additives or caffeine. This growth is further propelled by the increasing convenience of bottled formats which align with modern lifestyles and the demand for healthy on the go hydration. According to the Japan Soft Drink Association, in 2024, the production of soft drinks in Japan reached approximately 22 million kiloliters, with unsweetened tea beverages constituting a major share of this volume.

However, the market faces a significant challenge regarding the volatility of raw material supply due to climate change. Irregular weather patterns can adversely affect barley crop yields and lead to supply shortages or price fluctuations for manufacturers. This uncertainty complicates supply chain stability and could impede market expansion as producers struggle to maintain consistent output to meet growing international demand.

Key Market Drivers

The rising consumer preference for caffeine-free beverages serves as a primary catalyst for the Global Barley Tea Market, driven by a widespread shift toward functional hydration and digestive wellness. Unlike green or black teas, barley tea is naturally caffeine-free, positioning it as an ideal daily water substitute for all age groups seeking healthier alternatives to sugary carbonated drinks. This health-centric demand is reinforced by the dominance of sugar-free options in key regions; for instance, according to Ito En, in 2024, the proportion of unsweetened beverages in the Japanese domestic market remained higher than 80%, creating a fertile environment for grain-based infusions. Additionally, a strong preference for these functional attributes is evident in consumer behavior. According to Hite Jinro Beverage, March 2024, in a consumer drinking behavior survey, 59.7% of South Korean respondents identified barley tea as their most frequently consumed tea, explicitly favoring it over other varieties for its suitability as a daily, caffeine-free hydration source.

Simultaneously, the proliferation of Ready-to-Drink (RTD) and convenience formats has revolutionized market accessibility, moving consumption away from traditional home-brewed roasted kernels toward grab-and-go bottles. Major beverage manufacturers are aggressively expanding their RTD portfolios to cater to modern, busy lifestyles, ensuring that barley tea is readily available in convenience stores, vending machines, and supermarkets. This strategic focus on packaged volume is evident in the performance of market leaders who are scaling production to meet this convenience-driven demand. According to Ito En, December 2024, in the 'Financial Results Presentation for FY2024 2Q', the sales volume of the company's barley tea category alone reached 26.81 million cases in just the first half of the fiscal year, highlighting the massive scale of consumer uptake for pre-packaged, ready-to-drink barley tea products.

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Key Market Challenges

The volatility of raw material supply resulting from climate change presents a substantial hurdle to the Global Barley Tea Market. As weather patterns become increasingly erratic, the cultivation of barley faces severe disruptions ranging from prolonged droughts to unexpected heavy rainfall. These environmental inconsistencies directly impact crop yields and grain quality, making it difficult for manufacturers to secure a stable inventory of roasting-grade barley. Consequently, this supply chain fragility leads to inevitable price fluctuations and production delays, forcing companies to absorb higher costs or pass them on to consumers, which can stifle volume growth in competitive retail environments.

The magnitude of this instability is evident in recent agricultural assessments. According to COCERAL, in 2024, the barley production forecast for the EU-27 and UK was revised downward to 57.6 million tonnes due to unfavorable weather conditions that plagued the growing season. Such unpredictable reductions in output from major producing regions restrict the availability of premium raw materials needed for global distribution. This scarcity not only complicates procurement strategies but also constrains the industry's capacity to scale up production to meet the rising international demand for healthy hydration options.

Key Market Trends

The Introduction of Eco-Conscious and Minimalist Packaging has become a transformative trend in the Global Barley Tea Market, driven by intensifying regulatory pressure and consumer demand for sustainable waste reduction. Manufacturers are increasingly eliminating plastic labels from Ready-to-Drink (RTD) bottles, a move that not only reduces petrochemical usage but also simplifies the recycling process for end-users who no longer need to separate materials. This shift is particularly evident in mature markets like Japan, where major beverage companies are aggressively scaling their "label-less" product lines to align with decarbonization goals. According to Asahi Group Holdings, April 2024, in the report 'Pioneering Label-Free Packaging for a Sustainable Future', the distribution volume of the company's label-free products in 2023 was eight times higher than that of 2019, reflecting the rapid consumer adoption of these sustainable formats.

Simultaneously, there is a distinct Shift Toward Single-Origin and Transparent Sourcing, where premiumization is defined by the provenance and quality of the raw barley grains. Consumers are moving away from generic blends and showing a strong preference for products that highlight domestically grown, high-quality ingredients, associating local sourcing with superior safety, freshness, and flavor profiles. This trend is compelling brands to explicitly market the specific origin of their grains—such as domestic premium black barley—to differentiate their products in a crowded retail landscape. According to Hite Jinro Beverage, March 2024, in a consumer drinking behavior survey, 33.4% of respondents identified the 'use of domestic ingredients' as a key attribute for RTD barley tea brands, underscoring the growing importance of material transparency in purchasing decisions.

Segmental Insights

The Instant segment represents the fastest-growing category within the Global Barley Tea Market, driven by shifting consumer preferences toward convenience and efficiency. This expansion is largely attributed to the increasing demand for quick beverage solutions among urban populations with time-constrained schedules. Unlike traditional roasted grains that necessitate brewing, instant variants offer immediate solubility in hot or cold water, aligning with modern consumption habits. Additionally, the extended shelf life and logistical advantages of powder forms enhance their availability across diverse retail channels, further accelerating adoption among health-conscious consumers seeking caffeine-free alternatives.

Regional Insights

North America dominates the Global Barley Tea Market, driven by a significant consumer shift toward functional, caffeine-free beverages. The region's leadership is sustained by the widespread mainstream adoption of ready-to-drink formats, which have successfully transitioned the product from niche specialty stores to major retail outlets. Increasing health consciousness has accelerated this trend, as consumers actively seek natural options rich in antioxidants. Furthermore, the rising influence of East Asian culinary culture has normalized consumption, while consistent safety standards established by regulatory bodies like the FDA support ongoing product innovation and consumer trust in the category.

Recent Developments

• In June 2024, Ito En, Ltd. formulated and announced its new Medium-Term Management Plan for the fiscal years ending April 2025 through April 2029. As part of its strategy to solidify existing businesses in Japan, the company identified "Kenko Mineral Mugicha" as a core brand to be prioritized for sustainable growth. The plan emphasized concentrating management resources on main brands to improve profitability and market share, reinforcing the position of its barley tea product as the best-selling brand in the global market.
• In May 2024, Woongjin Foods launched the "Haneul Bori National Park Edition" as part of a collaboration with the Korea National Park Service. The special edition packaging featured illustrations of endangered flagship species, such as the goral, to raise awareness for wildlife conservation. This product launch was a key component of the company's "K-TEA Campaign" and broader ESG initiatives. Proceeds from the sales of this edition were later donated to support the preservation of national park ecosystems and the protection of endangered wildlife.
• In April 2024, Suntory Beverage & Food Limited announced price revisions for a range of its products in Japan, including large PET bottle beverages, effective from October 2024. The company attributed the decision to the prolonged rise in raw material and energy costs, which could no longer be absorbed through corporate efficiency measures alone. This revision impacted the company's major product lines, including its popular "GREEN DAKARA Yasashii Mugicha" barley tea, a staple in the Japanese ready-to-drink tea market.
• In January 2024, the board of directors of Taiwan-based Uni-President Enterprises Corp. authorized a tender offer to acquire the remaining 20.68% stake in its South Korean subsidiary, Woongjin Foods Co. This strategic move was designed to secure 100% ownership of the Korean beverage manufacturer, which is a market leader in the barley tea sector with its "Haneul Bori" brand. The Chairman of Uni-President Group stated that the acquisition aligned with the company's ambition to establish a comprehensive distribution platform across Asia and strengthen its presence in the Northeast Asian market.

Key Market Players

• ITO EN, LTD.
• Suntory Beverage & Food Limited
• Kirin Holdings Company, Limited
• Kansai Chagyo Co., Ltd.
• Ippodo Tea Co., Ltd.
• Dongsuh Foods Corporation
• SEMPIO FOODS COMPANY
• Lotte Chilsung Beverage Co., Ltd.
• Macmaup Enterprises Ltd.
• The Canadian Barley Tea Company

By Product Type	By Form	By Distribution Channel	By Region
Original Flavored	Instant Ready-to-Drink	Online Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Barley Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Barley Tea Market, By Product Type:

• Original
• Flavored

• Barley Tea Market, By Form:

• Instant
• Ready-to-Drink

• Barley Tea Market, By Distribution Channel:

• Online
• Offline

• Barley Tea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE