Global Malt Ingredients Market Grows at a Staggering CAGR of 4.3%

Introduction

Malt ingredients are derived from cereal grains—most commonly barley—through a regulated process of germination and drying called malting. These ingredients, such as malt extracts, malt flour, and malted barley, are extensively utilized across the food and beverage industries to improve flavor, color, and nutritional value. In brewing and distilling, malt provides a primary source of fermentable sugars, while in baking and confectionery, it contributes to texture and sweetness. The global malt ingredients market involves the manufacturing, refining, and distributing of malt-based products obtained primarily from grains like barley, wheat, and rye.

The global malt ingredients market is steadily expanding, driven by the growing demand for craft beer, natural additives, and functional foods. Health-driven consumer behavior and the rising use of malt in non-alcoholic beverages and ready-to-eat foods are fueling growth across multiple regions. The brewing industry remains the dominant consumer of malt ingredients, especially for beer production, while other significant uses include baked items, confectionery, dairy, animal feed, and pharmaceuticals. Moreover, malt ingredients align with the modern preference for natural and clean-label products, adding appeal due to their health benefits, adaptability, and sustainability.

Market Dynamics

Growth in the beverage industry drives market growth

The beverage sector remains a primary driver for expanding malt ingredient use. Malt enhances sensory properties—taste, mouthfeel, and aroma—making it essential in alcoholic and non-alcoholic beverages. The craft beer and premium spirits boom in developed markets, alongside increased consumption of malt-based energy, sports, and wellness drinks in emerging economies, is driving demand. Functional beverages with added protein or probiotics using malt are also gaining market share.

• For example, in March 2024, Diageo reopened the Port Ellen distillery after a 40-year hiatus and a £185 million renovation. This move demonstrates Diageo’s push to boost production and integrate malt ingredients into various beverage types.

Additionally, firms such as SABMiller and Diageo invested in 2023 to modernize brewing operations and improve how malt is incorporated across product categories.

Expanding into emerging markets

Emerging markets are experiencing rapid processed food and beverage consumption growth, fueled by urbanization, economic growth, and a burgeoning middle class with changing lifestyles. Demand for malt ingredients is rising in places like India, China, Brazil, and South Africa as consumers gravitate toward premium, health-oriented products. These markets offer high potential for malt producers to build local infrastructure, tailor products to regional tastes, and tap into underdeveloped segments. Creating malt-based versions of traditional dishes or drinks can unlock significant opportunities.

• For example, in February 2024, Pernod Ricard India signed an MoU with the Maharashtra Government to set up Asia’s largest malt distillery and maturation unit in Nagpur. With a projected investment of ₹1,785 crore over a decade, it aims to produce 13 million pure liters of alcohol annually to meet emerging market demand.

Companies entering these regions are building local alliances and adapting product lines to include malt extracts and powdered formats suited for regional items like malted milk drinks, heritage sweets, and fermented beverages.

Regional Analysis

Europe still leads the global malt market, holding roughly half the market share. This is attributed to a rich brewing tradition in Germany, Belgium, the UK, and the Czech Republic. The region benefits from strong barley agriculture, advanced malting facilities, and a sustainability focus. Malt is also widely used in European culinary traditions, including bakery, confections, and health food products. EU trade rules and export ties support robust global demand for European malt.

Key Highlights

• The global malt ingredients market size was valued at USD 3.75 billion in 2024, and it is projected to grow from USD 3.91 billion in 2025 to reach USD 5.48 billion in 2033, exhibiting a CAGR of 4.3% during the forecast period (2025-2033).
• By Source, the market is bifurcated into barley, wheat, rye, and others. Barley segment holds the largest market share.
• By Application, the market is bifurcated into food, beverage, pharmaceutical, and others. Beverage holds the largest market share.
• Based on region, the global malt ingredients market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Europe dominates the global market.

Competitive Players

1. Cargill, Incorporated.
2. Axéréal
3. Crisp Malt
4. Muntons Plc
5. VIVESCIA
6. Soufflet Malt
7. Simpsons Malt
8. Briess Malt & Ingredients
9. ADM
10. GrainCorp
11. InVivo

Recent Developments

• In March 2025, Soufflet Malt partnered with Heineken to invest €100 million in constructing a malting factory in South Africa. This facility aims to source 100% of its barley locally, ensuring a shorter, more transparent supply chain and aligning with clean-label principles. The factory is expected to be operational by mid-2027 and will support over 200 local barley growers.

Segmentation

1. By Source
   1. Barley
   2. Wheat
   3. Rye
   4. Others
2. By Application
   1. Food
   2. Beverage
   3. Pharmaceutical
   4. Others
3. By Region
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa