Malt Ingredients Market

The global Malt Ingredients Market is valued at USD 24.4 Billion in 2023 and is projected to reach a value of USD 39.6 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 5.6% between 2024 and 2032

Key Highlights

• In 2023, Europe dominated the market with 38.4% of the market share, due to the rising consumption of alcoholic beverages and the increasing utilization of raw Malt Ingredients in breweries
• The Asia Pacific market is expected to experience the highest growth rate from 2024 to 2032
• Based on Application, the Brewing segment dominated the market in 2023 with 61.2% revenue share, due to the essential role of Malt Ingredients in beer production. Brewing relies heavily on malt for flavor, color, and body, making it a dominant application segment
• As plant-based diets gain traction, Malt Ingredients are being used as natural sweeteners and flavor enhancers in plant-based foods and beverages. The versatility of malt makes it a valuable ingredient in vegan and vegetarian products

Regional Overview

Europe dominated the global market, with 38.4% revenue share in 2023. This is due to the increasing consumption of alcoholic beverages and the growing use of raw Malt Ingredients in breweries. Historically, in Germany up to the Middle Ages, almost every malt grain was utilized for brewing. The region's growing number of craft breweries and the rising adoption of specialty malt among beer producers is fueling the sales of Malt Ingredients across European food and beverage industry. Additionally, Malt Ingredients are also widely used in bakeries, meat & meat alternatives, snacks, sauces, and other food products, further propelling market growth.

While the majority of malt produced in the region is used for beer production, it is also extensively used in the production of whiskey in Scotland. The remaining malt is utilized in the food industry as natural flavoring, in breakfast cereals, malted milk drinks, malt vinegar, and in the pharmaceutical industry. The significant presence of bakeries and breweries in countries such as Germany, France, Spain, Italy, the U.K., and the Netherlands contributes to the regional market growth.

The market is further strengthened by the growing number of breweries worldwide. For instance, the Brewers of Europe reported an increase in the number of breweries in the European Union from 9,206 in 2020 to 9,436 in 2023, highlighting the expansion as well as potential of the market.

The United Kingdom's growing significance as a key partner in Malt Ingredients supply can be attributed to the surging demand for alcoholic beverages, particularly beer from craft breweries. Additionally, the diverse applications in non-alcoholic beverages have significantly boosted sales in the country. With a substantial portion of the population aged 40 to 59, there is an increased prevalence of health concerns. Therefore, the demand for Malt Ingredients remains strong, as they play a vital role in managing cholesterol and heart issues that are common among the older demographic.

The ever-increasing food & beverage industry, particularly in the Asia Pacific region, is anticipated to present significant growth prospects for the global market. According to the India Brand Equity Foundation, the Indian food processing sector represents 32% of the country's total food market, making it one of India's largest industries and ranking fifth in terms of production, consumption, and export. In 2020, India's food processing exports reached $1.8 billion, highlighting the sector's potential to drive the market growth. Moreover, India's $33 billion spirits market is being transformed by the rise of local single malts. Indian brands like Indri, Amrut, and Rampur are gaining prominence, outpacing established global names. Driven by increased affluence and national pride, Indian single malts saw a 144% growth in 2021-22, surpassing Scotch's 32% growth.

Application Overview

The Brewing segment dominated the market with 61.2% revenue share in 2023. Based on Application, the market can be divided into Brewing, Distilling, Baking, Confectionery, Food and Beverage, Pharmaceutical, Cosmetics & Personal Care, and Other.

Malt Ingredients are crucial for beer production, making brewing a major segment. Distilling, especially for whiskey and spirits, also captures a significant portion of the market due to the use of malted grains in the distillation process. One notable example is the use of caramel malts in craft brewing. Caramel malts, which are kilned to develop rich, sweet flavors and a deep amber color, are popular among brewers for creating complex, flavorful ales and stouts. Breweries like Sierra Nevada Brewing Co. utilize these malts to enhance the character and depth of their flagship beers, demonstrating the critical role of Malt Ingredients in shaping distinctive brewing profiles and satisfying diverse consumer preferences.

Baking is another important segment, as Malt Ingredients are used to improve flavor and texture in various baked goods. While confectionery applications are notable, they are relatively smaller in comparison to brewing, distilling, and baking.

Top Trends

• The rise of craft breweries & microbreweries worldwide has significantly boosted the demand for high-quality Malt Ingredients. Consumers preference for unique and premium beer flavors is driving this trend.
• There is a growing consumer preference for natural and organic ingredients in food and beverages. Malt Ingredients, being natural and minimally processed, are increasingly being used in health-oriented products such as malt-based health drinks, nutritional bars, and snacks.
• Beyond traditional alcoholic beverages, Malt Ingredients are gaining popularity in non-alcoholic beverages like malt-based drinks, smoothies, & energy drinks. This expansion is driven by health-conscious consumers seeking flavorful yet nutritious beverage options.
• The bakery & confectionery industry is a significant consumer of Malt Ingredients. The demand for malt extracts, flour, and syrup is rising due to their applications in bread, cakes, biscuits, and other baked goods. Malt Ingredients enhance flavor, texture, and nutritional value.
• Manufacturers are focusing on innovation to meet diverse consumer needs. Developments include Malt Ingredients with enhanced flavors, organic & gluten-free options, and malt-based functional foods. These innovations aim to cater to niche markets and dietary preferences.
• Sustainability is becoming a crucial factor in the food & beverage industry. Consumers and companies are increasingly prioritizing sustainably sourced and produced Malt Ingredients. This trend is driving manufacturers to adopt eco-friendly practices and ensure traceability in their supply chains.
• Technological innovations in the brewing process are optimizing the use of Malt Ingredients. Advances in brewing technology allow for better extraction of flavors & nutrients from malt, improving the overall quality and efficiency of production.

Premium Insights

Barley malt, along with its by-products, plays a crucial role in food production. It aids in the fermentation of beverages and foods, adds natural color and flavor, enhances textures, and imparts a subtle sweetness. The most prominent applications of barley malt include beer and whisky production. For instance, single malt whisky exclusively uses barley malt, while blended whisky may incorporate other grains like corn, rye, and wheat. The malting process, including the roasting techniques, affects the taste and color of the final product. Lightly roasted malt results in a pale, mild-tasting beer, while dark roasted malt produces a stout with a rich color and intense flavor. The increasing production of beer is boosting the demand for Malt Ingredients, as barley malt is primarily used for flavoring beer. The National Beer Wholesalers Association reported that in 2020, the US beer industry shipped 243.6 million barrels of beer—equivalent to over 3.1 billion cases of 24-12 ounce servings and approximately 2.3 million barrels of cider, or more than 38.4 million cases.

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Market Dynamics

The global market is experiencing significant growth driven by the rising demand for plant-based ingredients & natural sweeteners, coupled with the increasing preference for versatile, and sustainable ingredients among brewers. Malt, recognized as a healthy alternative to traditional sweeteners, enhances the color, taste, and texture of food & beverage products, making it a favored choice among manufacturers. This trend is aligned with the broader consumer shift towards healthier and more sustainable food options.

The growing demand for alcoholic beverages such as whiskey, beer, vodka, and scotch, along with non-alcoholic beverages, is another significant driver of the market. Consumers are increasingly seeking distinctive & flavorful beers, stimulating the growth of Malt Ingredients in the beer industry. The craft brewing and distilling industries have witnessed substantial growth in recent years, highlighting the market expansion. Additionally, the rising interest in low-alcoholic beverages among health-conscious consumers is driving manufacturers to offer a broader range of products with improved taste & low alcoholic content, further boosting the market demand.

In terms of market trends, the rising consumption of non-alcoholic malt beverages is likely to contribute to the growth of Malt Ingredients demand. For example, in August 2019, Coca-Cola introduced its global brand Barbican in India, a notable player in the non-alcoholic malt drink market. These drinks, brewed similarly to beer or ale, are high-energy beverages that are fueling increased market growth.

Competitive Landscape

The market is highly fragmented due to the presence of numerous global, regional, and local players competing for substantial market share. Manufacturers are diversifying their ingredient sources to explore new applications. To gain a competitive edge, key players are employing strategies such as product innovation, partnerships, mergers, & market expansion. Changes in food safety & labelling regulations are also influencing the global market. Manufacturers are adapting to comply with stricter standards and ensuring transparency in their ingredient sourcing and production processes.

For instance, Muntons has introduced PlantMalt, a new range of Malt Ingredients designed for clean, plant-based foods that are rich in flavor. As the plant-based market grows, meeting consumer expectations to match meat-based products presents challenges. Collaborating with an industry expert consultant and leveraging their extensive malt expertise, Muntons developed PlantMalt to assist manufacturers in creating superior product ranges.

In March 2021, Simpsons Malt announced the acquisition of W.N. Lindsay Ltd to boost their market share. As a leading supplier of Malt Ingredients in Scotland, W.N. Lindsay Ltd's acquisition will enable Simpsons Malt to expand its market presence in Scotland.

The key players in the global Malt Ingredients market include - Cargill Incorporated, Simpsons Malt Limited, Boortmalt, GrainCorp Limited, Crisp Malting Group, VIVESCIA (Malteurop Groupe S.A.), Briess Malt & Ingredients, Polttimo, The Soufflet Group, Muntons PLC, BSG CraftBrewing among others.

Recent Market Developments

Boortmalt's Carbon-Reduced Malting Barley Supply Agreement

• In June 2024, Boortmalt Enhances Commitment to Regenerative Agriculture with New Carbon-Reduced Malting Barley Supply Agreement. Boortmalt has furthered its dedication to regenerative agriculture through a new carbon-reduced malting barley supply agreement with Cefetra Ecosystem Services. This 60,000-metric-ton multi-year sourcing agreement will involve barley produced by UK and Irish farmers under the Cefetra Ecosystem Services Farming Program. This initiative will enable Boortmalt to reduce its carbon footprint by over 10,000 tons of CO2e.

Simpsons Malt Ltd.'s Green Partnership

• In June 2023, Simpsons Malt Ltd. has entered into a long-term partnership with Yara UK and Varda to significantly cut the carbon footprint associated with malting barley and distilling wheat production. This collaboration will utilize fossil-free green fertilizers, data-driven precision farming, and Global Field ID to help Simpsons Malt meet its ambitious goal of carbon neutrality. As one of the largest independent, family-owned malting companies globally, Simpsons Malt aims to achieve carbon-neutral production for malting barley and distilling wheat by 2030, ultimately reducing the carbon footprint of prominent global beer and whisky brands.

Malteurop Expands Global Presence with New Malthouse in Mexico

• In October 2023, Malteurop is expanding its global footprint with the launch of a new malthouse in Mexico. The VIVESCIA Group, which oversees Malteurop's malting operations, celebrated the inauguration of the facility in Meoqui, Chihuahua. The new plant, boasting an annual production capacity of 120,000 tons of malt, positions Malteurop one of the world's leading maltsters to capture new business opportunities in Mexico. This facility represents the first investment by a malt industry player in the country.

The global Malt Ingredients market can be categorized as Product, Application, Form, Grade, and Region.