Malt Extracts Market Size, Share & Trends Analysis Report By Source (Barley, Wheat, Rice, Rye, Others), By Grade (Standard, Specialty), By Type (Dry, Liquid), By Application (Beverage, Bakery, Confectionary, Pharmaceutical, Animal Feed) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Malt Extracts Market size was valued at USD 15.7 billion in 2023. It is projected to reach USD 21.9 billion by 2032, growing at a CAGR of 3.8% during the forecast period (2023–2032). Malt extracts are concentrated sweeteners derived from malted grains, primarily barley. Malting is soaking and germinating cereal grains, often barley, before drying them to produce malt. Malt extracts extract soluble sugars, enzymes, and other ingredients from malted grains. These extracts come in various forms, including liquid and dry, and are widely used in the food and beverage business.

Furthermore, the growing number of female customers worldwide is driving up demand for alcoholic beverages, and as a result, the malt and malt extract market is expanding. Malt is used in food and beverages for more than flavoring and coloring. Malt is used as a base product or raw material in several businesses, including baby food, health supplements, and protein-rich diets. With rising demand for these foods and supplements, the Malt ingredients market is likely to expand in tandem. Besides, rising health consciousness among consumers in significant regions has been a critical driver of market expansion. The growth of the malt extracts market is anticipated to be fueled by rising demand for organic food and increased knowledge of malt's nutritional properties.

Market Dynamics

Global malt extracts market drivers:

Growing demand in brewing industry

Malt extracts are essential in brewing, providing fermentable sugars for beer manufacturing. The global rise of the craft brewing business and consumer interest in different and specialized beers drive demand for malt extracts. The craft brewing industry has increased, with customers preferring distinctive and artisanal beers. In 2021, retail sales of craft beer climbed by 21% to USD 26.8 billion, accounting for roughly 27% of the USD 100 billion US beer market. In 2022, the number of craft brewers in the United States hit an all-time high of 9,552. 

Craft brewers frequently experiment with new flavors and styles, necessitating high-quality malt extracts to produce distinct and consistent beer characteristics. According to the Brewers Association, craft brewers in the United States produced 24.3 million barrels of beer in 2022, which is similar to the figure for 2021. Craft brewers frequently create unique and seasonal beers requiring distinct malt profiles for flavor, color, and fragrance. Malt extracts provide brewers with an accessible and reliable source of fermentable sugars, enabling more innovative and diverse beer choices. The increased production of specialty beers, consumer preference for different flavors, and general growth of the craft beer market all contribute considerably to the malt extracts market trend.

Global malt extracts market restraints:

Competition from alternative sweeteners

Malt extracts face stiff competition from many other sweeteners on the market. High-fructose corn syrup (HFCS), cane sugar, agave syrup, and other sugar replacements are often utilized in various industries. Competitive variables include cost-effectiveness, sweetness profiles, and consumer preferences. This competition limits the market share and growth potential of malt extracts, especially in applications where sweetness is essential. Alternative sweeteners offer various uses and can be chosen depending on price stability, availability, and unique flavor characteristics. 

Additionally, malt extract is a sweetener that contains minerals and antioxidants, although it is 50% less sweet than sucrose and fructose. It also costs more than other sweeteners. High-fructose corn syrup (HFCS) is a popular sweetener in the beverage sector, particularly in carbonated soft drinks. According to the United States Department of Agriculture (USDA), HFCS has been a critical sweetener in the US beverage sector, accounting for a sizable portion of total sweetener use. The USDA predicted worldwide sugar production would rise 4.7% in 2023/24 to 183.461 MMT. Global human sugar consumption is also expected to increase by 1.2% to 178.431 MMT. Health, taste, and perceived naturalness influence consumer preferences for certain sweeteners. For example, the demand for natural and clean-labeled sweeteners may favor agave syrup or honey over malt extracts.

Global malt extracts market opportunity:

Expansion in non-alcoholic beverage segment

The non-alcoholic beverage category represents a massive opportunity for malt extracts, allowing manufacturers to diversify their uses. As customers seek more unique and nuanced flavors in non-alcoholic beverages, malt extracts can be essential in providing a distinct, malty flavor character. Expanding the use of malt extracts in non-alcoholic beverages is consistent with customer aspirations for creative and premium drink options. The potential for malt extracts in this area is broad, encompassing non-alcoholic malt beverages, energy drinks, and functional beverages. Non-alcoholic beverages account for more than half of the global market, rising steadily in recent years.

Furthermore, malt extracts might be positioned in the rising market for functional beverages, which include vitamins, minerals, and other health-enhancing substances. The demand for drinks with flavor and nutritional advantages makes malt extracts a critical ingredient. For example, GlaxoSmithKline has expanded its malt-based beverage offerings with the Horlicks brand family, which includes Horlicks Lite and Women's Horlicks. These beverages are formulated to provide functional benefits to people with diabetes and pregnant women. 

Moreover, as customers seek premium alternatives to standard soft drinks, malt extracts can help to create sophisticated non-alcoholic beverages. This is consistent with the trend of "adult" or "grown-up" soft drinks, which provide sophisticated flavor profiles without the alcohol. By entering the non-alcoholic beverage category, malt extract manufacturers may demonstrate the variety of their goods while catering to a wide range of consumer tastes. The capacity to provide an authentic and distinct malty flavor in non-alcoholic beverages adds to the overall growth potential of malt extracts in the beverage industry.

Regional Analysis

Europe Dominates the Global Market

The global malt extracts market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe is the most significant global malt extract market shareholder and is estimated to grow at a CAGR of 4.0% over the forecast period. Europe is expected to dominate the malt extracts market in the following years due to consumer preference for lighter, healthier foods. Malt extracts are often used in European bakery goods. Health-conscious consumers buy more baked food using malt extracts due to an increased understanding of their health advantages. Food manufacturers are adopting natural food additives to address consumer demand for natural and organic food. Besides, Europe consumes the most alcohol, according to the WHO's 2021 European Health Report. On average, Europeans over 15 drink 9.5 liters of pure alcohol per year. This equals 190 liters of beer, 80 wine, or 24 spirits. Brewers of Europe said EU breweries increased from 9,500 in 2021 to 9,680 in 2022. Latvia had the highest alcohol consumption in Europe in 2021, with 12.2 liters per person. 

Moreover, Female beer drinkers are familiar in Europe because beer is part of the culture and tradition. British women binge drink the most, according to the OECD. At least 26% of UK women binge drink, compared to 12% globally, and this consumption is expected to rise in the future years, driving malt extract demand.

Asia-Pacific is anticipated to exhibit a CAGR of 4.1% over the forecast period. According to a 2023 WHO report, alcohol consumption rose 112% in Southeast Asia and 40% in the Western Pacific. Asia-Pacific alcoholic beverage sales are predicted to climb 4.3%. The region's vast population, rising spending power, and urbanization have attracted food and beverage, health and nutrition, and pharmaceutical companies in recent years. Young adults' growing preference for alcoholic beverages gives tremendous growth potential for the market and an opportunity for malt extract producers to expand across the regional market. China and India, two of the fastest-growing economies in Asia-Pacific, dominate the malt extract industry.

The North American malt extracts market is expected to be driven by rising young-adult alcoholic beverage consumption, female drinkers, animal husbandry practices, disposable income, and social dining out, according to Malt Extracts Market insights. A 2023 survey found that Americans drank three alcoholic beverages per week, down from four in 2022. However, a 2022 Overproof poll found that U.S. alcohol consumption rose by 45 million cases and is anticipated to expand by 10.51% annually through 2025. North America is a mature alcohol market. The growing interest in health and fitness has forced beverage manufacturers to focus on authentic products like craft brews. Young people who enjoy expensive drinks are driving this trend.

Segmental Analysis

The global malt extract market is segmented based on type, grade, application, and region.

The market is further segmented by type into Barley, Wheat, Rice, and Rye.

Barley accounts for the largest share of the market.

Barley

Barley is the primary and traditional source of malt extracts. Barley, known for its high enzymatic content and good malting properties, is often employed in producing malt extracts. The malty flavor obtained from barley adds a particular flavor profile to the extracts. Barley malt extracts are widely used in brewing, baking, and manufacturing malted drinks. The grains germinate and then dry to produce malt, which is then treated to extract valuable components like sugars, enzymes, and taste compounds.

Wheat

Wheat is another prominent grain utilized in the manufacturing of malt extracts. Wheat malt extracts have a different flavor profile than barley, providing a lighter and sometimes sweeter taste. Wheat malt extracts find use in various food products, including baked foods and breakfast cereals. Like barley malting, wheat malting consists of germination and drying to produce a malted product from which extracts are obtained. Wheat malt extracts can add a moderate, slightly fruity flavor to finished products.

Based on grade, the market is fragmented into Standard and specialty.

Specialty malt generates the most revenue in the market.

Specialty

Specialty-grade malt extracts are a higher-tier category with different properties. These extracts are designed to provide unique flavor profiles, smells, or other distinguishing characteristics that set them distinct from standard grades. Specialty malt extracts are frequently used by artisanal and craft companies looking to develop premium or specialty offerings. These extracts may be further processed or derived from certain malt varieties, resulting in a more complex and subtle flavor. The specialty grade is used for applications that require a premium and differentiated taste experience, catering to consumers who value unique and high-quality goods.

Standard

Standard-grade malt extracts are the market's most common and commonly utilized product category. These extracts are distinguished by their usual and constant flavor profile, making them appropriate for various applications. Standard-grade malt extracts are frequently chosen for their dependability and versatility, as they serve as key ingredients in different food and beverage items. They are widely used in commercial brewing, baking, and other industrial applications that require a consistent and recognized malt flavor. Standard-grade malt extracts give a base level of quality that meets industry standards.

Based on type, the market is sub-segmented into Liquid and dry.

Dry malt is a significant contributor to the market.

Dry

Dry malt extracts, as the name implies, are dehydrated or dried versions of malt extract. These extracts are dried to remove moisture, producing a powdered or granular product. The dehydration procedure extends the product's shelf life and reduces its bulk, making it easier to store and transport. Dry malt extracts preserve malted grains' essential sugars, enzymes, and tastes. They are widely used in brewing applications, particularly for homebrewing, due to their prolonged shelf life and ease of measurement. Dry malt extracts are also used to prepare baked goods, snacks, and other foods that require a strong malt flavor without the inclusion of liquid.

Liquid

Liquid malt extracts are a versatile type of liquid malt extract. They are made by dissolving the soluble components of malted grains, primarily sugars and taste compounds, into liquid form. Liquid malt extracts are easy to handle and have many applications. They are extensively used in the brewing industry to produce beer because they provide a concentrated source of fermentable sugars. Additionally, liquid malt extracts are used in baking, confectionery, and manufacturing malted beverages. Their fluidity makes them easier to incorporate into recipes and gives manufacturers the flexibility they need to get the suitable composition.

The market can be bifurcated by application into Beverages, Bakery, Confectionary, Pharmaceuticals, and Animal Feed.

Beverages are the most popular applications in the market.

Beverages

Malt extracts play an essential role in the beverage industry. They are widely utilized in the creation of a variety of beverages, both alcoholic and non-alcoholic. Malt extracts are a concentrated supply of fermentable sugars used in beer manufacturing. Non-alcoholic drinks that use malt extracts to add a characteristic malty flavor include malted shakes and malted drinks. Malt extracts can also be used to make energy drinks and functional beverages that are tasty and nutritious.

Bakery

The baking industry is a significant consumer of malt extract. Malt extracts add distinct aromas, increase crust color, and improve the overall sensory properties of baked foods. Malt extracts are frequently used in bread baking to improve dough fermentation, increase yeast activity, and promote crust browning. They can formulate various baked items, including bread, rolls, bagels, and desserts. Malt extracts enhance the flavor, texture, and appearance of baked products.

Recent Developments

• October 2023- Malteurop opened a malting factory in Mexico to enter new markets.
• November 2023- In collaboration with Vivagran, Boortmalt introduced newly created malt specialties that are unique novelties in the malt market.