Report Overview
The global malt market is witnessing substantial growth, valued at USD 9,639.44 million in 2023 and projected to reach USD 20,050 million by 2031, representing a compound annual growth rate (CAGR) of 7.6%. This expansion is largely driven by the increasing demand for malt across various sectors, particularly in the brewing, food, and beverage industries. The growing popularity of craft beer and premium alcoholic beverages, along with rising consumer preferences for health-conscious products, is significantly contributing to the market's growth. Additionally, the shift toward more sustainable and natural ingredients in food production is boosting the use of malt in functional foods and snacks. Key factors fueling this growth include advancements in brewing technology, such as automated systems, which enhance production efficiency and consistency. As global beer consumption continues to rise, particularly in emerging markets like Asia Pacific and Africa, the demand for malt is expected to increase. Furthermore, innovations in malt products, including specialty malts and malt extracts, are catering to the diverse needs of the brewing and food industries. As the malt market continues to expand, there are numerous opportunities for manufacturers to capitalize on these emerging trends, positioning the industry for significant advancement over the coming years.
Global Malt Market report scope and segmentation.
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Report Attribute |
Details |
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Base Year |
2023 |
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Forecast Years |
2024 – 2031 |
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Estimated Market Value (2023) |
USD 9,639.44 Million |
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Projected Market Value (2031) |
USD 1,14,200 Million |
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Segments Covered |
By Grain Source Type , By Form, By Application, By Distribution Channel,, & By Region. |
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Forecast Units |
Value (USD Million or Million) |
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Quantitative Units |
Revenue in USD million and CAGR from 2024 to 2031. |
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Regions Covered |
North America, Europe, Asia Pacific, Rest of the World. |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Middle East, Africa, Latin America, among others. |
Global Malt Market dynamics
The global malt market is influenced by various dynamics, including changing consumer preferences, economic factors, and industry innovations. One of the key drivers of the market is the growing demand for craft beer, especially in regions like North America and Europe. Consumers’ increasing preference for unique, locally brewed, and artisanal beers has led to an uptick in malt consumption, as craft breweries use a variety of specialty malts to differentiate their products. Additionally, the health and wellness trend is having a significant impact, as malt-based ingredients are becoming more popular in functional foods and beverages. Malt is considered a natural source of fiber and essential nutrients, making it an attractive component in health-conscious products like snack bars, breakfast cereals, and organic beverages. Furthermore, rising beer consumption in emerging markets like Asia Pacific and Africa is contributing to the expansion of the malt market. As the middle class in these regions grows, along with evolving lifestyles, beer consumption continues to rise, subsequently increasing the demand for malt. On the other hand, market dynamics are also shaped by economic factors, such as fluctuations in barley prices and the impact of supply chain disruptions. Despite challenges, these growth drivers present ongoing opportunities for the malt industry, shaping its future trajectory.
Global Malt Market drivers
1. Growing Demand for Craft Beer
The rise of the craft beer segment has been a key driver in the global malt market. Consumers' growing preference for unique, flavorful, and locally produced beers has led to an increased demand for high-quality malt, particularly in North America and Europe. Craft breweries prioritize specialty malts to differentiate their products, which boosts malt consumption.
Impact of COVID-19 Pandemic
The COVID-19 pandemic significantly impacted the global malt market, disrupting supply chains and altering consumer behavior. During the pandemic, restrictions on breweries and the closure of bars and restaurants led to decreased demand for malt in the alcoholic beverage sector. Conversely, the increased demand for at-home consumption and home brewing saw a temporary spike in malt sales. Supply chain disruptions, including delays in barley harvesting and transportation, also caused production delays and cost fluctuations. Additionally, the economic downturn and reduced disposable income led to cautious spending, affecting the overall growth of the malt market during the pandemic.
- Restraints:
1. High Production Costs and Limited Raw Material Availability
One of the primary restraints in the global malt market is the high production cost, which is influenced by the price of raw materials, primarily barley. Barley is the most common source of malt, and fluctuations in its price, due to factors such as weather conditions, crop yields, and transportation costs, can significantly impact malt production costs. Additionally, supply chain disruptions and the need for high-quality grains for specific malt applications, such as craft brewing, further elevate costs. As barley production is dependent on climate conditions, extreme weather events or droughts can lead to reduced harvests, making it harder to maintain a stable supply of high-quality raw materials. This volatility in barley production, coupled with labor and energy costs in malting facilities, adds to the overall expense of malt production. For malt manufacturers, these high operational costs may limit profit margins, particularly in price-sensitive markets. Small and medium-sized producers, in particular, are struggling with these challenges. These production constraints may result in higher prices for consumers, limiting market growth, especially in emerging regions where affordable products are critical for broader adoption.
2. Health Concerns and Dietary Preferences
Health concerns and changing dietary preferences represent a significant restraint on the global malt market. As consumers become more health-conscious, there is a growing preference for gluten-free, low-sugar, and low-calorie products. Malt, which is derived from barley, contains gluten, making it unsuitable for those with celiac disease or gluten sensitivity. This creates a barrier in markets where gluten-free diets are prevalent or growing in popularity, particularly in North America and Europe. Additionally, the increasing awareness of sugar intake and its associated health risks has led some consumers to avoid malt-based products, particularly in the food and beverage industry, where malt is often used as a sweetener. The growing popularity of plant-based alternatives, such as oat, almond, or rice-based products, further restricts the demand for traditional malt, especially in health-conscious consumer segments. The shift towards natural and organic ingredients also presents a challenge, as some consumers may perceive malt, especially processed malt extracts, as less natural compared to other sweeteners or flavoring agents. These evolving dietary preferences are forcing malt producers to innovate and diversify their product offerings, which adds complexity to production and market positioning.
- Opportunities:
Growth Driven by Craft Beer and Premium Alcoholic Beverages
The global malt market offers several opportunities driven by trends in consumer preferences and industry innovations. The growing demand for craft beers and premium alcoholic beverages presents significant opportunities, particularly in North America and Europe. Health-conscious consumers are increasingly seeking functional foods and beverages, leading to higher demand for malt-based products in nutrition bars, organic snacks, and plant-based beverages. Additionally, emerging markets in Asia Pacific and Africa offer untapped growth potential as beer consumption rises. Innovations in malt substitutes and sustainability efforts in production are also key drivers, enhancing market growth and diversification.
- Segment Overview
By Form
By form, malt is primarily available in two key types: malted barley and malt extracts. Malted barley is commonly used in its whole grain form or as grist in the production of beer, whiskey, and other alcoholic beverages. Malt extracts, which include liquid and dry forms, are more versatile, used in the food and beverage industry for flavoring, color, and nutritional purposes. These extracts are also incorporated into various health products and confectioneries.
By Application
By application, malt has a wide range of uses. The beverage industry is the largest consumer, particularly in beer brewing, where malt is a fundamental ingredient, contributing to the flavor, color, and texture of the final product. Malt is also used in the production of spirits like whiskey and vodka. In the food industry, malt is used in baking, as a sweetener, in breakfast cereals, and as a flavoring agent in various snack foods. It is also utilized in the production of malted milk, candies, and other confections. Additionally, malt is used in animal feed for its nutritional benefits. As the global demand for craft beers, health-conscious foods, and functional beverages rises, the malt market continues to evolve across these diverse applications.
Global Malt Market Overview by Region
The global malt market is segmented by region, with Europe dominating the market, driven by strong demand from the brewing industry. North America follows, particularly in the United States and Canada, where malt is a key ingredient in both craft and mass-market beer production. The Asia Pacific region is experiencing significant growth due to rising beer consumption and the expanding craft brewing sector, particularly in China and India. The Middle East and Africa also show potential, driven by increasing beer consumption in countries like South Africa. Latin America remains a smaller but steady contributor to global malt demand.
Global Malt market competitive landscape
The global malt market is highly competitive, with several key players dominating the industry. Leading companies like Simpsons Malt Limited, Rahr Corporation, Muntons PLC, Briess Malt & Ingredients, and Cargill, Inc. are at the forefront, focusing on strategic expansions, mergers, and acquisitions to strengthen their market presence. These companies offer a wide range of malt products, including whole grain malt, malt extract, and specialized forms like malt flour and liquid malt extract, catering to industries such as brewing, whisky distillation, food, and pharmaceuticals.
The competitive landscape is driven by innovation in product offerings, such as the development of organic and specialized malts, along with advancements in malt processing technologies. Additionally, sustainability initiatives and supply chain optimization are key focus areas as companies strive to meet growing demand and adhere to environmental regulations. Emerging markets, particularly in Asia-Pacific, present new growth opportunities, intensifying competition among established players.
Global Malt Market Recent Developments
- In In June 2023, Simpsons Malt Ltd collaborated with Yara UK and Varda for reducing the carbon footprint in malting barley and distilling wheat production with the use of fossil free green fertilisers, data-based precision farming and Global Field ID.
- In July 2022, Simpsons signed a long-term service agreement with Yaregrain, a premium storage and processing facility for combinable crops in the heart of Norfolk.
- In November 2020, Simpsons Malt acquired the grain merchanting business of W.N. Lindsay Ltd., thereby expanding its presence within the malt market.
Scope of global Malt market report
Global Malt report market segmentation
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ATTRIBUTE |
DETAILS |
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By Grain Source Type |
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By Form |
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By Application |
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By Distribution Channel |
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Customization Scope |
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Pricing |
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