China’s rapid expansion of malt production is reshaping global trade flows and putting exporters worldwide under pressure, according to GrainCentral. With malting capacity now estimated at 5–5.5 million tonnes annually but domestic demand of only around 3 million tonnes, Chinese maltsters are increasingly turning to exports to absorb the surplus. Shipments have almost doubled in just two years, climbing from a little over 400,000 tonnes in 2023 to a projected 800,000 tonnes in 2025, figures presented by Boortmalt show.
This surge comes at the expense of traditional exporters, particularly Australia, a leading exporter of premium malting barley and a significant malt exporter, which has seen its malt shipments shrink from more than 800,000 tonnes in 2022 to just over 500,000 tonnes expected this year. Much of the malt leaving Chinese ports is produced from Australian barley, especially fair average quality (FAQ) grain, which is cheaper to procure than premium malting grades. At the Australian Grains Industry Conference (AGIC) in Melbourne on 30–31 July 2025, Simon Robertson of Boortmalt explained that China is “using a lot of Australian barley and re-exporting it as malt,” creating direct competition for Australian malt exporters.
While China did not build its malting capacity with exports in mind, sluggish domestic beer sales are forcing its maltsters to ship growing volumes abroad. Riordan Grains’ chief commercial officer Mark Lewis told AGIC delegates that, much like China’s electric vehicle industry, malt is now being pushed into export markets to offset flat local demand. “At the moment, the domestic market is very flat,” he said, questioning whether Chinese consumers will eventually absorb the surplus capacity or whether plants may be forced to shut down.
Industry leaders warn that China’s pricing strategy is eroding premiums for malting barley over feed barley, with international buyers increasingly focused on cost. At the same conference, Lewis suggested rebranding FAQ barley as “Malt MV” (multi-variety) to help restore premium value for Australian exports, but conceded that cost pressures in China remain decisive. Paul Rigoni of Barrett Burston Malting added that high energy and labor costs make it difficult for Australia to compete, even on quality.
The consequences extend beyond Australia. With new malting plants coming online in China and South America, the global malt market faces oversupply just as world beer growth slows. Mature beer markets are expanding only modestly (+1.7%), and gains are concentrated in emerging regions (+3.1%), according to Boortmalt data presented at AGIC. Russia, Mexico, and Brazil are driving much of the current growth, while China’s own beer production contracted in 2024 before showing signs of recovery in 2025.
With decreasing demand in established markets and rising capacity worldwide, Chinese malt exports are becoming a disruptive force that is reshaping global competition. As highlighted at AGIC, the world’s maltsters are now competing not only with each other, but with China’s ability to undercut on price while relying on imported barley to fuel its exports.
