Malt Vinegar Market Size, Share & Trends Analysis Report By Type (Dark, Light, Distilled), By End-User (Food and Beverage, Bakery and Confectionery, Processed Meat, Households, Sauces and Pickles, Seasonings and Blends, Savory Snacks), By Distribution Channel (B2B, B2C, Online Retail) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

Malt Vinegar Market Size is Anticipated to Touch a CAGR of 5.8% During the Forecast Period (2023-2031).

Malt vinegar is expected to witness a considerable growth rate during the forecast period. Traditionally, malt vinegar is manufactured from the crafted malt beer, which is made by producing fermented barley and grain mash. It finds application in various English food and snacks, mainly in the seasoning of fish and chips. Surging demand for malt vinegar in the growing food and beverage sector and the rising consumer spending are anticipated to drive the market dynamics in the coming years.

Additionally, the rapid rise in the packaged foods and processed meat for on-the-go consumption is expected to uplift the demand for malt vinegar. Increasing awareness among individuals associated with healthy food consumption, coupled with intense expansion strategies adopted by the malt extract manufacturers, is having a positive influence on market growth. For instance, Sarson's, a leading vinegar manufacturer in the U.K., has partnered with street food vendors and bloggers for the market awareness campaign.

Market Dynamics

Plethora of Health Benefits of Malt Vinegar to Drive the Market Growth

Along with its taste enhancing property, malt vinegar is known to offer many nutritional benefits from helping in regulating body glucose to weight management. The rising prevalence of obesity and diabetes in developed and developing economies are creating demand for malt vinegar. As per the statistical figures published by the Centres for Disease Control and Prevention (CDC), diabetes has become an epidemic in America, with more than 30 million people having the disease, and around 94% having type-2 diabetes.  

The fast-paced life, irregular eating patterns, and rising stress in people's lives are prime factors responsible for the mounting cases of heart attacks, further driving the demand for malt vinegar. In addition to this, probiotics present in the brown malt vinegar may facilitate weight reduction and help prevent obesity among individuals. Consuming probiotics helps in adding flavor to the food without calories. Although it is particularly used for food preservation and flavoring, the recent studies from the international institutions indicate newer applications of malt vinegar for its numerous health benefits.

Increasing Demand for Bakery Foods Globally to Drive the Demand for Malt Vinegar

There is a huge demand for bakery foods across the globe, backed by its improving nutritional value and affordability for many people. Individuals are consuming large amounts of bakery foods, particularly in the developing region. As people are getting conscious about their health, they are more inclined towards healthier food choices. Since malt vinegar is made from malted cereal grains and water, they are minimally treated and processed, making it a clean-label ingredient. Malt vinegar is extensively used in the bakery and confectionery food sector as it not only provides color but also enhances the flavor of the bread.

Some special kinds of bakery products require the use of the malt vinegar as it is sweeter than the white vinegar. The malt vinegar acts as a source of vitamins, essential amino acids, minerals, and various other antioxidants in the bakery products, further enhancing nutritional value. Rising consumption of bakery products, increasing population, and significant use of malt vinegar in certain types of bread are contributing to the growth trajectory of the market.

The availability of Balsamic Vinegar May Hamper the Market Growth

Malt vinegar is consumed for many years, which has resulted in the saturation of the global market. Umpteen players are continuously innovating and producing various other types of vinegar according to the debouching market trends. For instance, the high production and consumption of Balsamic vinegar in the past few years have adversely affected the demand for malt vinegar.

Many foodservice providers and restaurants are using balsamic vinegar for its enhanced properties, along with health functionalities. Moreover, the limited use of malt vinegar in the food and beverage industry when compared to its peers is considered as a threat to the market. The malt vinegar market is still projected to grow, owing to the different marketing and distribution strategies adopted by the players.

Regional Analysis

Europe: World's Largest Producer and Consumer of Malt Vinegar

Europe decisively dominates the malt vinegar market and is anticipated to continue the dominance in the forthcoming years. The region is the largest producer and consumer of malt vinegar in the world. Consumer preference for lighter and healthier food is a key driver for regional market growth. In Britain, most of the malt vinegar manufactured is consumed for seasoning of chips and salads. Furthermore, the presence of the leading players of malt vinegar in the European region is expected to strengthen the market growth.

The rising influence of street food traders and food bloggers are helping in re-establishing the popularity of malt vinegar in the U.K. The demand for fish and other seafood in the European region is experiencing a robust growth supported by rising household expenditures. Figures recorded by the European Commission, the fish and seafood consumption in 2017 were around 24.35 kg per capita. Research studies of the top players indicate that most consumers prefer fish and chips sprinkled with malt vinegar rather than other seasonings. The EU household expenditures continued to witness an upward trend in 2018, up by 24% from 2009, thus indicating higher demand for malt vinegar in the region.

Asia-Pacific: An Emerging Consumer for Malt Vinegar

Asia-Pacific is witnessing a lucrative growth rate in the malt vinegar market, owing to the growing population and rapid urbanization. The shift of people from rural to urban areas and improving the standard of living is expected to drive the demand for malt vinegar. China, Japan, Singapore, Maldives, and Thailand are at the forefront of the Asian malt vinegar market, supported by the rising fish consumption in these countries. Traditionally, vinegar has been widely used for pickling and as a preservative in many countries of Asia. Malt vinegar is gaining popularity for its pickling application in the region due to the incorporation of strong flavors in Asian food.

In the last few years, the region has witnessed a considerable rise in the consumer's purchasing power and increased urbanization, which has attracted the interest of several players from the burgeoning industries, such as food and beverage, pharmaceutical, and many others. Malt vinegar is the most common cooking ingredient in Chinese recipes and is incorporated in most sauces and dips, presenting ample growth opportunities for new players entering the market. The below-mentioned info-graph depicts the estimated market potential for the regions during the forecast period. 

Segmental Analysis

Extensive Application of Distilled Vinegar in the Food and Beverage Sector to Drive the Segment Growth

The distilled vinegar segment is projected to register the highest growth rate in the malt vinegar market. There are various types of distilled vinegar available in the global market, which include dark, light, and distilled. Distilled is the most common type, with a higher consumption rate due to its sharp taste. A growing number of people consuming fish and seafood is a prime driver for the malt vinegar market. Cooking enthusiasts are adding malt vinegar to various new recipes, including meat marinades, French fries, and salads for better taste and structure. Growing household demand for distilled vinegar and its inclusion in various recipes is fostering segment growth.

Ease of Buying from Online Stores to Augment Sales of Malt Vinegar

The online retail channel is predicted to have the fastest growth rate in the malt vinegar market. Globally, there is tremendous growth observed in the e-commerce platforms, owing to the higher internet penetration rate and growing young population. The increasing convenience and one-day delivery options offered by online players are attracting consumers to opt for online shopping. The emergence of specialized services for groceries and food product deliveries by e-commerce platforms is further easing online buying for consumers.

To capitalize on the growing opportunities, the key players are integrating online buying on the company's website, thereby providing customers with greater services. These players are also actively working to achieve higher sales through collaborations with huge e-commerce platforms, such as Amazon. Furthermore, the COVID-19 outbreak and severe lockdowns worldwide have surged online grocery shopping, which is anticipated to drive the growth of the segment.

Impact of covid-19

Since the outbreak of the Covid-19 pandemic, the logistics companies have been on the front line with fully-stocked warehouses and ongoing trade. However, the global supply chain disruption due to the lockdown imposed in the majority of the world further narrowed down the merchandise trade growth in the said logistics segment. But one thing which was notably remarkable in this Covid outbreak was the immense growth of the e-Commerce sector which introduced the consumers to digital business models and smart and safe logistics parameters. There has been a significant rise in the instant or same-day delivery patterns in online purchases with the increase in Covid-19 cases worldwide. Consumers feel safe ordering things online and getting them delivered to their doorstep without visiting a crowded place. In the meantime, follow the Covid guidelines given by the governing authorities.

Some reports say that the e-Commerce sales have grown by 30% in the first and second quadrant of 2020, during which the Covid outbreak was humongous. The said period saw a significant rise in daily parcels globally which reached 9 million parcels a day from 5.3 million parcels a day in the pre-pandemic times. The only positive thing the covid-19 pandemic did was to the e-Commerce industry. They generated a lot of revenue through the online selling portals and gained the consumers' trust by delivering their goods safely to their doorstep.

The global market of last mile delivery has seen a noteworthy increase in revenue with a sudden rise in delivery services during the pandemic. Many key players in the industry are planning to improvise and connect to more customers through safe and efficient delivery services. Even after the Covid-19 outbreak, the online sales and e-Commerce platforms are expected to keep their rising momentum in the global last mile delivery market growth with the increase in the online shopping trends and safe and sound fast delivery options.

Recent Developments