The malt ingredients market is estimated to be valued at USD 25.7 billion in 2023. As per Future Market Insights (FMI), the overall market value is expected to reach a valuation of USD 43.7 billion by 2033, rising at a CAGR of 5.4% through 2033.
| Attributes | Details |
|---|---|
| Malt Ingredients Market CAGR (2023 to 2033) | 5.4% |
| Market Size for Malt Ingredients (2023) | USD 25.7 billion |
| Market Size for Malt Ingredients (2033) | USD 43.7 billion |
| Global Market Absolute Dollar Growth (USD million/billion) | USD 17.9 billion |
Malt ingredients find their application in multiple industries ranging from food & beverage to pharmaceutical, personal care, and several others. This is due to the numerous health benefits attached to it, such as controlling cholesterol, reducing heart diseases, increasing insulin activity, etc.
Among the above-mentioned industries, the product finds a significant demand from the beverage industry as it is a primary ingredient in the production of alcoholic beverages such as beer and whiskey, to mention a few. Additionally, it is also used in confectionaries to make malt vinegar and shakes, flavored drinks such as Milo and Horlicks, and baked goods such as rich tea, malt loaf, and bagels.
The malt ingredients market accounted for 47% of the overall grain and high-fiber market, which was worth USD 24.4 billion in the year 2022.
FMI provides an evaluation and comparison of the market growth rates and future development possibilities on a half-yearly basis for the global market. Malt extract provides various nutritional benefits and is just half as sweet as sugar syrup. Barley-derived malt extract is used to improve the flavor of foods based on cereal, such as biscuits, infant formula, and bread.
Additionally, it is utilized to lessen the bitterness that comes with formulations high in fiber. More firms are entering the market as a result of the expanding uses for malt. The primary industry where malt ingredients are used is the brewing sector. There have been a number of recent changes in this market.
The global malt ingredients market is expected to rise by 5.0 % in the first half of 2021. However, the distribution of this increase is not equal across all geographical areas. The expected growth rate of the market is around 5.5%. Consequently, during H1 2022, there may be a -55 BPS point difference between expected and projected growth.
The desire of consumers for convenience foods is driving up demand for products in the food industry, which is one of the main causes of this shift in growth rate during the first half of the projected period. The food industry's product application reach has also expanded as a result of rising health consciousness.
Malt extracts are frequently utilized in the production of flakes, cookies, milk powder, snack bars, and nutritious syrups as colorants, tastes, and additions. Additionally, it is anticipated that in the second half of the projection period, the development of malt components in the beverage category may perform well and achieve good growth prospects.
The lack of alternatives with the same properties as malts may result in a lack of malt ingredients, which is anticipated to restrain malt ingredients market expansion. Although the shortage is alleviated by utilizing other grains, such as rice, this substitute lacks the same nutritional value and other attributes as barley and wheat. During the course of the projection period, this is anticipated to limit the market growth.
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In the current scenario, several food manufacturers are focused on sustaining an ever-growing competitive market by adopting a ‘better for you’ strategy as compared to the previously significant taste factor of the food, providing improved natural ingredient-based food products to consumers. Growing inclination towards natural ingredients and a healthy diet amid the rise of numerous lifestyle diseases is likely to lead to increasing demand for malt ingredients from food manufacturers in the forecast period.
Numerous food manufacturers are taking initiatives to offer natural ingredient-based foods to consumers with additional benefits, which in turn, is expected to complement the growth of the malt ingredients market.
Considering the notable increase in demand, market players, such as Dohler GmbH, are offering ingredient systems that extend from natural flavors, colors, and juices to sugar-free sweetening systems and ‘beyond dairy’ solutions for lactose-free products.
Rising Raw Material Costs Present a Roadblock for the Market
Malt producers are expanding their market by exporting their goods, which raises the price of these goods and makes it difficult for local producers to make significant profits. Market expansion is being hampered by rising raw material prices. The outcome is also influenced by the quality of the crops used in this method. All of these factors are anticipated to restrain market expansion.
The quality of the crops needed to make malt extracts and ingredients is being impacted by seasonal changes, which is anticipated to be a significant barrier to the malt ingredients market expansion. The widespread use of malt extracts and ingredients in industries other than the beverage industry may raise the cost of raw materials, which may pose a hurdle to the market's expansion.
| Attributes | Details |
|---|---|
| Top Product Type | Malt Extract |
| CAGR % 2017 to 2022 | 4.2% |
| CAGR % 2023 to End of Forecast (2033) | 4.6% |
Increasing demand for traditional food from consumers has led to the high adoption of malt ingredients in the food industry.
Preference for home-cooked foods and cooking processes is regaining traction among various consumers worldwide. However, it is expected to remain a challenge because a section of people is either working with a busy lifestyle or since most do not have access to traditional methods of cooking and baking. In order to attract this segment of consumers, the food industry is turning to traditional ingredients and cooking processes, thereby potentially raising the demand for malt ingredients.
Increasing consumers' awareness of health benefits associated with malt ingredients has also been influencing their application in various food products, especially bakery products. Diastatic malt, which is an extract from sprouted grains, can be used as a replacement for honey and sugar needed to feed yeast in bakery products. It also helps reduce the need for extra synthetic sugar in bakery food products and labels the product as ‘sugar-free.’
As diastatic malt extract contains enzymes and vitamins, it improves nutritional value and helps increase the shelf-life of baked products. Such benefits have led to high demand for malt ingredients-based food products from the F&B industry.
| Attributes | Details |
|---|---|
| Top Raw Material | Barley |
| CAGR % 2017 to 2022 | 3.1% |
| CAGR % 2023 to End of Forecast (2033) | 3.6% |
Due to rising awareness of the benefits of barley-based drinks, it is one of the most used sources of malt, as it contains high protein levels and is easy to malt. Moreover, it is extensively used to produce malt vinegar, malted milk, whiskey, and beer. As a result, it has high demand from the alcohol-based beverage industry. These factors are anticipated to positively push the demand for barley as a source of malt during the forecast period. In addition to normal malt extracts made from the ingredients used to make malt, there are specialty malt extracts.
Due to the high demand for malt extracts in the Asia Pacific area, the malt ingredients market may expand tremendously in this region. In the Asia Pacific region, malt extracts are also frequently utilized in baked goods, which is anticipated to fuel the market for the extracted category.
The food and beverages sector is anticipated to rule the malt ingredients market in the upcoming years based on application. Alcoholic and non-alcoholic beverages are frequently made using malt extracts and ingredients. The market is anticipated to expand as a result of the rising demand for malt extracts, which are used to give this and other non-alcoholic beverages a particular aroma.
Different kinds of spirits start with malt as a base ingredient. In addition to being used in the brewing sector to make beer, malt extract is also utilized to make whisky. The demand for beer is anticipated to rise in the upcoming years due to increased beer consumption among the youthful generation and middle-aged population.
The demand for beer is anticipated to rise as a result of the growth of beer brewers and blue pubs in both developed and emerging countries. In the upcoming years, those segments' growth may be driven by an increase in the use of malt extracts and other components in the production of various other non-alcoholic beverages.
Principal Consultant
Region-wise HCAGR
| Countries | HCAGR |
|---|---|
| USA | 5.7% |
| UK | 2.3% |
| China | 4.1% |
| Japan | 2.6% |
| India | 5.3% |
Region-wise CAGR:
| Countries | CAGR |
|---|---|
| USA | 6.1% |
| UK | 2.6% |
| China | 4.6% |
| Japan | 2.9% |
| India | 3.8% |
| Attributes | Details |
|---|---|
| USA Market Size (USD million/billion) by End of Forecast Period(2033) | USD 9.5 billion |
| USA Market Absolute Dollar Growth (USD million/billion) | USD 4.2 billion |
The United States had the largest market share. The United States was the most important malt ingredients market in the region and had a remarkable CAGR of 6.1%.
The United States has an established malt ingredients market with the widespread use of malt-based goods. According to the annual report of the Beer Institute, Each year, the USA beer industry sells more than USD 119.3 billion in beer and malt-based beverages to USA consumers.
According to beer shipment data and USA Census demographic statistics, consumers 21 and older in the United States consumed 26.5 gallons of beer and cider per person. Rising demand for flavored drinks and alcohol, as well as expanding use of malt-based food and beverages, are driving the malt ingredient market.
| Attributes | Details |
|---|---|
| UK Market Size (USD million/billion) by End of Forecast Period (2033) | USD 2.1 billion |
| UK Market Absolute Dollar Growth (USD million/billion) | USD 461.2 million |
The United Kingdom's rise as an important ally for malt ingredients can be ascribed to the rising demand for alcoholic beverages, in addition to the increased consumption of beer in craft breweries. Diverse applications of malt ingredients in the non-alcoholic beverage sector have greatly increased product sales in the United Kingdom.
The United Kingdom has people aged 40 to 59. This raises the likelihood of customers in the country being exposed to health concerns. As a result, the demand for malt ingredients in the country is very high, as it helps to regulate cholesterol and cardiac problems, which are widespread in the elderly population.
| Attributes | Details |
|---|---|
| China Market Size (USD million/billion) by End of Forecast Period (2033) | USD 3.2 billion |
| China Market Absolute Dollar Growth (USD million/billion) | USD 1.2 billion |
Over the projection period, China is expected to provide significant malt ingredients market growth possibilities. This expansion is the result of China's phenomenal economic growth. People's living conditions in Asian countries are rising overall.
People's understanding and perception of their needs and desires are changing as their living levels improve. They become more health-conscious and make more informed decisions. On the other side, disposable income in China is increasing, allowing consumers to spend more on non-essential products such as alcohol and confectionery.
| Attributes | Details |
|---|---|
| India Market Size (USD million/billion) by End of Forecast Period (2033) | USD 1.2 billion |
| India Market Absolute Dollar Growth (USD million/billion) | USD 385.7 million |
During the projected period, India is anticipated to have lucrative Growth in the malt ingredients market. The demand for processed food and alcoholic and non-alcoholic beverages is rising among Indian consumers.
This region's malt ingredient industry is expanding due to the majority of the food processing and brewing sectors employing malt ingredients in their ingredients. In addition, pharmaceutical items also contain ingredients from malt. This aspect further fuels the market growth for malt ingredients during the assessment period.
| Attributes | Details |
|---|---|
| Japan Market Size (USD million/billion) by End of Forecast Period (2033) | USD 821.3 million |
| Japan Market Absolute Dollar Growth (USD million/billion) | USD 205.4 million |
The market may expand at a 2.9% CAGR over the forecast period. In the coming years, the market for malt extracts is expected to benefit greatly from the anticipated growth in the millennial generation. Over the past few years, the number of breweries in Japan has increased along with the popularity of craft beer among millennials, which has contributed to the expansion of the malt extract market in the region.
Organic malt extract is becoming more well-known throughout Japan as a result of the interest that various end-use sectors are demonstrating in organic products. Ingredients, including barley, wheat, and rye, cultivated organically, are used to make organic malt extract.
The growth in demand for malt ingredients in Brazil is attributed to the rising consumption of convenience food and processed beverages in the country. Moreover, heightened consumer awareness about the health benefits of the product, along with the wide application opportunity in the ever-expanding food and beverage industry in the country, has had a significant impact on the malt ingredients market.
Stable income by consumers in the country has encouraged them to trade up for expensive alcoholic beverages, especially single malt whiskies and craft beers, which use malt as a primary ingredient. These factors are anticipated to primarily impact the sales of malt ingredients in Brazil by 2033 end.
The global market has a reasonably consolidated competition landscape, with most prominent manufacturers focusing on developing a solid distribution channel, joint ventures, and targeting a firm global footprint.
Some of the key players in the market include Cargill Incorporated, Ireks GmbH, Dohler GmbH, Malteurop Group, Simpsons Malt Limited, Axereal (BOORTMALT NV), The Soufflet Group, Barmalt India Pvt. Ltd., Viking Malt Oy, Vivescia Industries SCA, Polttimo Oy, Malt Products Corporation, Muntons Plc., Crisp Malting Group, Holland Malt B.V., among others.
The market is relatively moderate in size, which acts as an important factor for its dynamic and competitive nature. Moreover, key manufacturers of malt ingredients are currently focusing on research & development. New product launches resonate with the rising demand for organic products globally.
Recent Development:
Partnership
| Attribute | Details |
|---|---|
| Date | Feb-20 |
| Company | Leopold Bros and BSG |
| Details | In February 2020, Leopold Bros a USA-based company partnered with BSG to sell a handmade malt product line in small batches, in an effort to penetrate the popular hand-made beer and craft brewing market. |
| Attribute | Details |
|---|---|
| Date | Oct-19 |
| Company | Estonian Malt and Puratos Group |
| Details | A joint venture between Estonian Malt and Puratos Group, a Belgian firm that sells ingredients to bakers, patissiers, and chocolatiers, was established in October 2019. In addition to Estonian Malt's expertise and experience with malt flours and sprouted grains, the joint venture may benefit from Puratos' extensive network of distribution channels, purchasing power, and services. The manufacturer of rye malt is called Estonian Malt. |
Expansion
| Attribute | Details |
|---|---|
| Date | Sep-19 |
| Company | Malteurop |
| Details | Malteurop established a new malthouse plant or manufacturing facility in Meoqui in September 2019. It was anticipated that the completion of this facility in North Mexico may spur market expansion by the year 2021. |
Acquisition
| Attribute | Details |
|---|---|
| Date | Oct-19 |
| Company | Axereal |
| Details | Axereal, a French cooperative that cultivates and refines grains, especially for the brewing, baking, and livestock industries, purchased Cargill's malt division in October 2019 for an unknown sum. The Malt segment of Cargill and its workers would gain access to a global footprint and possibilities for future expansion through this acquisition. A USA-based producer and supplier of agricultural goods, including ingredients for malt, is Cargill Inc. |
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The malt ingredients market size is valued at USD 25.7 billion in 2023.
The malt ingredients market is predicted to create an absolute dollar growth worth USD 17.9 billion by 2033.
The malt ingredients market is projected to thrive at a 5.4% CAGR from 2023 to 2033.
The malt extract segment is predicted to expand at a 6.4% CAGR through 2033.
India’s malt ingredients market size is predicted to reach USD 1.2 billion by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Raw Material 5.1. Barley 5.2. Wheat 5.3. Rye 5.4. Maize 5.5. Rice 5.6. Oat 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Malt Extract 6.1.1. Dry Malt Extract 6.1.2. Liquid Malt Extract 6.2. Malt Flour 6.3. Others 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Grade 7.1. Specialty Malt 7.1.1. Caramelized Malt 7.1.2. Roasted Malt 7.2. Standard Malt 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By End-use 8.1. Food & Beverages Industry 8.1.1. Food 8.1.2. Beverages 8.2. Pharmaceutical Industry 8.2.1. Medicines 8.2.2. Neutraceuticals 8.3. Personal Care 9. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. Asia Pacific Excluding Japan 9.6. Japan 9.7. Middle East & Africa (MEA) 10. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Asia Pacific Excluding Japan Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. Japan Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East & Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Cargill Incorporated 19.2. Dohler GmbH 19.3. Ireks GmbH 19.4. Malteurop Group 19.5. Simpsons Malt Limited 19.6. The Soufflet Group 19.7. Axereal 19.8. Barmalt India Pvt. Ltd. 19.9. Viking Malt Oy 19.10. Vivescia Industries SCA 19.11. Polttimo Oy 19.12. Malt Products Corporation 19.13. Muntons Plc. 19.14. Crisp Malting Group 19.15. Holland Malt B.V. 20. Assumptions & Acronyms Used 21. Research Methodology
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Malt Ingredients Market
