Specialty Malt Market

Specialty Malts Market Outlook (2023-2033)

The global Specialty Malts market is estimated to generate revenue of around US$ 2,351.8 Mn for year 2023 and will grow at value CAGR of 6.6% over the forecast period to reach the valuation US$ 4,272 Mn by end 2033.

Specialty Malts Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

For historical period of assessment, specialty malts market showed steady growth rate of around 4.7% value CAGR from year 2018-2022. The market in year 2018 registered the value of US$ 1,734 Mn and observed high demand of roasted malt, which pegged the value of approximately of around US$ 1,520.4 Mn for 2022.

Commercially, specialty malt is produced from grains such as barley, rice, wheat, corn, soybean, and many more. Western Europe is the largest region in terms of value of specialty malt consumption, followed by APEJ. France is one of the major exporters of specialty malt, followed by Belgium.

Furthermore, Malt antioxidants play a vital role in the preservation of the oxidative stability of beer, and is a natural source of antioxidants, which can limit the reactions caused by reactive oxidizing species (ROS). Moreover, specialty malt oxidants are also beneficial to consumer health by prevention and neutralization of ROS associated with various diseases, such as cancer, cardiovascular ailments, and neuronal diseases. The high anti- and pro-oxidant properties of specialty malt are expected to surge demand during the forecast period.

The global market for Specialty Malts is estimated to reach the valuation of US$ 4,272 Mn by end of 2033. Owing to demand in dairy & frozen food products industry the market is anticipated to grow at 6.6% over the forecast period.

What are the Key Trends in the Market for Specialty Malts?

“Rising Demand for Health Drinks Drive Specialty Malts Sales”

Non-alcoholic drinks are the new normal among consumers due to rising popularity of refreshment and energy drinks. The health drinks segment is set to surge at a value CAGR 8%. Specialty malt is manufactured from germinated cereal grains, usually barley. A method known as malting is used to dry cereal grains. The grains are first sprouted or germinated in water, then dried, cooked, and processed into a dry powder. Specialty malt contains minerals, fiber, proteins, and vitamin B. Specialty malt extracts are utilized as a nutritional supplement, especially in health drinks. Specialty malts are also extensively used as flavor enhancers in health drinks for growing children. India is the largest specialty malt-based health drink market in the world.

• Major brands in India such as Horlicks, Bournvita, Complan, Amul, etc., are utilizing specialty malt as a flavor and taste enhancer in their health drinks.

“Growing Number of breweries in developing countries like China and India”

China is expected to overtake the U.S. as the world’s largest beer market during the forecast period. With an increasing disposable income along with changing macroeconomic and demographic factors, the demand for beer is expected to increase during the forecast period. Snow beer, Tsingtao, Yanjing, Harbin, and Loashan are the major beer brands in China.

Factors such as favorable demographics, increasing disposable income, and urbanization have boosted the sales of specialty malt in India. There lies a major opportunity for U.S. exporters, who can supply liquid yeasts, hops, and specialty malt to the beer manufacturers. Craft beer consumption is growing at a rate of 20% annually in the country. Wild flavors and specialty ingredients in the beer mix and malt beverages are the growing opportunities in the market.

“Multi-functionality of Specialty Malts is Benefiting the Market”

Specialty malts are majorly used for brewing purposes in the food and beverage industry, owing to their functional properties. Specialty malts have multiple applications, as they help in providing taste, texture, appearance, and flavor to beer and beverages. The multi-functionality of specialty malt has resulted in the increasing demand, as it enhances the taste, texture, appearance, and flavor of the food products, and makes the whole procedure cost-effective.

Specialty malts are extremely versatile, multifunctional ingredients that help manufacturers solve the function, color, and flavor challenges, along with a clean label for health-conscious consumers.

• For instance, rye malt offers a unique contribution as a multifunctional and natural dough conditioner, along with a sweet, slightly tangy rye flavor. Mainly used in the bakery industry, it also allows for softer and more elastic dough, making the final product high in volume and also with shorter proof time.

“Growing demand for natural and organic Specialty Malts in bakery industry”

The increasing awareness amongst consumers about healthy living and consuming nutritious food products and ingredients has resulted in an evident shift in preference for organic and natural foods. Similar to yeast raised baked foods, specialty malt also enhances flavors and develops color in pizzas and tortillas. This has spurred the demand for specialty malt in the bakery sector. The health benefits of specialty malt has led to augmented acceptance in various bakery items.

For instance, malted barley is considered a natural sweetener with rich, distinguishing flavors and aroma in the bakery industry, and is a substitute for highly refined sugar and non-nutritive syrups. Another major factor driving the usage of specialty malt in the bakery industry is the rising implementation of rigid regulatory norms regarding food additives. Food manufacturers are now compelled to pay more attention to the amount or percentage of additives used, and focus on the development of clean label products.

Country-wise insights

Which country accounts for largest share for sales specialty malt in European Region?

The market for roasted malt is expected to see significant growth in the U.K. with a value share of around 13.9% in the European market. Market value is around US$ 312 Mn at present, and is expected to reach US$ 504.2 Mn by 2033.

What is China outlook in East Asia specialty malt market?

China accounts for a major share in the East Asian market for processed barley. This is due to high production and export capacity of the country. Market value share of China in the East Asia market for specialty malt is around 80.1%.

Category-wise insights

What is consumption outlook for end use industry in global specialty malts market?

Based on form, the market is segmented into dry specialty malt, liquid specialty malt, and malt flour. Out of these, powder specialty malt accounts for significant share in the global market, and is expected to witness lucrative growth over the forecast period, owing to rising demand from various end-use manufacturers such as dairy & frozen food products, bakery & confectionery, and other food products. Demand for the dry form of malted barley is set to expand at value CAGR 7.1% through 2033.

What is value share of hypermarkets/supermarkets for specialty malts in the global market?

Specialty malts products are used in the development of food various food items such as dairy & frozen food products, bakery products, and confectionery products. Specialty malt holds a major share in beverages industry, in which, the brewing segment holds 89.6% share globally.

Competitive Dashboard

Key manufacturers of specialty malt products are inclined toward innovation, development, acquisitions, mergers, and expansions to enhance product quality. Specialty malt producers are focused on enhancing their innovation capabilities and quality of product.

• In 2019, Boortmalt acquired Cargill Malt, which consists of 16 malt houses in nine different countries. Through this acquisition, the company produces 3 MT of malt from 27 malting plants on five continents.
• In 2021, Mich. Weyermann GmbH & Co. KG underwent a significant capacity expansion with the installation of new equipment.
• In 2021, Palatia Malz GmbH introduced two new diastatic barley malt and diastatic wheat malt into its diastatic malt category.
• In 2020, Patagoniamalt acquired Kosher certification for it products and aims to set industry standard in the production process for manufacturing of specialty malts.

Specialty Malts Industry Report Scope

Specialty Malts Industry Research by Category

By Grade:

• Food Grade
• Brewing Grade Organic

By Type:

• Caramelized Malt
• Roasted Malt

By Source:

• Barley
• Wheat
• Ryes
• Oat
• Others

By End Use:

• Food
  • Dairy & Frozen Food products
  • Bakery & Confectionery
  • Others
• Beverages
  • Alcoholic
    • Brewing
    • Distilling
  • Non-Alcoholic
    • Health Drinks
    • Energy Drinks
    • Others

By Extract Type:

• Dry
• Liquid
• Malt Flours

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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