Specialty Malt Market

Specialty Malt Market Outlook for 2024 to 2034

The specialty malt market, which includes a variety of malt types such as caramel, roasted, and smoked malt, is valued at USD 3,102.40 million in 2024. The market is expected to continue growing moderately over the next decade, with an estimated value of USD 4,250.30 million by 2034.

This growth represents a compounded annual growth rate (CAGR) of 3.70% from 2024 to 2034. The increasing demand for specialty malt in the brewing industry and the growing popularity of craft beer are some of the factors contributing to this growth.

Attributes	Details
Global Specialty Malt Market Size 2024	USD 3,102.40 million
Projected Market Value for 2034	USD 4,250.30 million
Value-based CAGR of Market for 2024 to 2034	3.70%

Specialty Malt Market Dynamics

The intensifying demand for specialty malt in the manufacturing of microbreweries and craft beer has caught the attention of industry manufacturers. This increasing demand is driving the growth of craft breweries globally and is contributing to its growing demand.

Here are several factors influencing market growth:

• The mounting demand for specialty malt has led to the availability of more small-batch malt systems for micro and craft malting applications, amplifying demand in industries and driving market growth.
• The increasing popularity of specialty malt in food and beverage products is also contributing to market expansion.
• Market players and industry giants are collaborating to shift their strategies to maintain margins in response to fluctuations in profit margins.
• The market is observing continuous growth due to the increasing use of leavening agents in various products globally, especially in bakery products.
• The market is expected to benefit from the high demand for organic food products and the establishment of mega food parks, as well as the increase in the number of food and beverage manufacturing units.

Category-wise Outlook

Barley is the predominant source of specialty malt, and distilling is the top application for it.

Craft Beer Boom Fuels Demand Surge for Barley-based Malt, Propelling Market Growth

In 2024, barley specialty malt is projected to hold 58.7% of the market share, with various factors influencing its growth. The various and unique characteristics of barley, aimed at producing exceptional brews, are gaining popularity. This makes it the leading source of this type of malt in the market. As the craft beer industry significantly expands, the demand for barley-based malt is expected to increase, driving market growth.

Attributes	Details
Source	Barley
Market Share (2024)	58.7%

Locally Sourced and Premiumization Trends Propel Distilling Application to Market Leadership

The distilling application is projected to hold 63.1% of the market share in 2024, driven by various factors such as advancements in malt production. The enhancing popularity of craft spirits and the growing number of micro-distilleries has driven the demand for specialty malts used in distilling. The growing interest in locally sourced and small products, as well as the trend toward Premiumization in the spirits industry, drives the growth of this segment and ultimately the market.

Attributes	Details
Application	Distilling
Market Share (2024)	58.6%

Country-wise Analysis

The specialty malt market research report reveals that Europe and North America dominate the global market, while Asia Pacific is expected to grow at a modest CAGR due to high consumption of alcoholic beverages and savory products. The report also considers the presence and availability of global brands, challenges faced by these brands due to competition, and the impact of domestic tariffs and trade routes on country forecasts.

Countries	CAGR (2024 to 2034)
United State	2.1%
China	2.8%
Germany	2.5%
India	4.2%
United Kingdom	3.3%

Healthy Beverage Demand Propels the United States to Seasoned Specialty Malt Leadership

The CAGR of the market for the forecast period in the United States is anticipated to be 2.1%. Some of the factors influencing market growth in the country are:

• Interest in seasoned malt drinks is growing in the market, owing to their emergence as unique beverages that sit amid the popularity of both alcohol and beer.
• Sales of 'alternative beverage liquor' drinks, which include flavored malt drinks along with strong-flavored seltzers and ciders, are expected to expand steadily over the projection period.
• High demand for healthy beverages and products makes it a leader in the specialty malt market with a large number of manufacturers.

Urbanization and Clean-label Trends Fuel Growth in China's Specialty Malt Market

The market is expected to progress at a CAGR of 2.8% in China throughout the forecast period. Some factors inducing this progress are:

• China is a major producer of specialty malt in the Asia Pacific area.
• Growth in China is predicted to accelerate, owing to growing urbanization and the availability of cheap labor.
• Clean-label trends are on the rise and have been developing dramatically, boosting the market in this area.

Rising Beer and Non-alcoholic Malt Beverages Drive Specialty Malt Production in the United Kingdom

The market is expected to progress at a CAGR of 3.3% in the United Kingdom for the forecast period. Some factors persuading this development are:

• The United Kingdom dominates the market in Europe with a wide range of applications in beer, conventional alcoholic drinks, and non-alcoholic malt beverages.
• The growing popularity of beer and non-alcoholic malt refreshments in the United Kingdom is driving the rise of malt production.
• The use of organic malt by brewers is increasing, which is encouraging the market's growth.

Traditional Beer Brewing Propels Demand for Specialty Malt in Germany

The market is expected to progress at a CAGR of 2.5% in Germany. Some factors prompting this progress are:

• Germany is known for its traditional beer brewing, which is driving the demand for specialty malt in the country
• Specialty malt is used in various applications such as beer, whiskey, and bakery products.
• The increasing demand for organic and natural products in the food and beverage industry is also boosting market growth in Germany.

Craft Beer Craze and Government Support Drive Specialty Malt Market Growth in India

The market is expected to achieve a CAGR of 4.2% in India through 2034. Some of the factors responsible for the market growth are:

• The rise of the middle class in India has led to an increase in disposable income and changing lifestyles, driving the demand for premium and high-quality malt-based beverages.
• The increasing popularity of craft beer and microbreweries in India is also boosting the demand.
• Government initiatives to promote the food processing industry and encourage foreign direct investment in the country are also expected to drive market growth in India.

Competitive Landscape

The specialty malt market is characterized by a high level of product differentiation and innovation, with industries focusing on investing in research and development to maintain a highlighted position. Top factors anticipated for growth include the increasing demand for craft beer, growing disposable income, and changing consumer preferences toward healthy and organic products.

Associated British Foods PLC, Lantmännen Unibake, and ADM are major players in the market, with a global presence and diverse product portfolios. They focus on developing new products, expanding distribution networks, and increasing production capacity to meet growing demand.

• London Dairy Co. Ltd (UK) has launched a new range of specialty malt products, catering to the growing demand for healthy and organic products.
• Conagra Brands has acquired Pinnacle Foods, a leading player in the market, to expand its product portfolio and strengthen its market position.
• General Mills Inc. has launched a new line of specialty malt products, targeting the growing demand for craft beer and other specialty beverages.

These developments highlight the cumulative competition in the market and the prominence of innovation and product differentiation in driving growth and staying ahead of competitors.

Recent Developments

• In January 2024, South Seas Distilleries and Breweries Private Limited, India's oldest malt whisky distillery, launched its single malt whisky, The Crazy Cock, in Goa. The brand, known for matured malt whiskies, has incorporated the symbol of the rooster to represent unconventional thinkers and passion-driven individuals. The launch marks a new era for the brand, expanding its portfolio and offering unique blends to Goa whisky enthusiasts.
• In June 2023, Ian Macleod Distillers launched two new single malt whiskies, The White Cask and Shieldaig, as part of its Speciality Malt Collection, in United Kingdom Travel Retail. The collection also includes As We Get It and The Six Isles single malt whiskies. The launch has been supported by activations at London Heathrow Airport T3 Digital Bar and London Luton Airport Discovery Bar. The White Cask is available at Lagardère’s United Kingdom stores, while Shieldaig and The White Cask are available in all World Duty-Free stores.

Key Companies

• London Dairy Co. Ltd (UK)
• Inc (USA), Conagra Brands
• Daiya Foods Inc. (Canada)
• General Mills Inc. (USA)
• Grupo Bimbo S.A.B.de C.V.(Mexico)
• Associated British Foods PLC (UK)
• Lantmännen Unibake (Denmark)
• Cole’s Quality Food Inc. (USA)
• Aryzta AG (Switzerland)
• Vandemoortele NV (Belgium)
• Europastry S.A. (Spain)
• Dun & Bradstreet
• Danone SA (France), ADM (USA)

Key Coverage in the Specialty Malt Market Report

• Global Market Study on Specialty Malts
• Industry Growth Factors for Specialty Malt
• Market Share of Specialty Malt Manufacturers
• Emerging Opportunities in the Specialty Malt Sector

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source
  • 5.1. Barley
  • 5.2. Rye
  • 5.3. Wheat
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form
  • 6.1. Dry Specialty Malts
  • 6.2. Liquid Specialty Malts
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
  • 7.1. Distilling
  • 7.2. Brewing
  • 7.3. Baking
  • 7.4. Non-Alcoholic Malt Beverages
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 8.1. North America
  • 8.2. Latin America
  • 8.3. Western Europe
  • 8.4. Eastern Europe
  • 8.5. South Asia and Pacific
  • 8.6. East Asia
  • 8.7. Middle East and Africa
• 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Key Countries Market Analysis
• 17. Market Structure Analysis
• 18. Competition Analysis
  • 18.1. Irekhs GmBh
  • 18.2. Malteurop
  • 18.3. Viking Malts Oy
  • 18.4. Group Soufflet
  • 18.5. Axereal
  • 18.6. Cargill Inc.
  • 18.7. Cooperative Agraria Agroindustrial
  • 18.8. Barmalt India Pvt Ltd
  • 18.9. Grain Corp Ltd
  • 18.10. Simpsons Malt Ltd
• 19. Assumptions & Acronyms Used
• 20. Research Methodology