by The global Malt Ingredient Market is estimated to be valued at US$ 6.11 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Malt ingredients are commonly used to produce alcoholic beverages such as beer, whisky and ales. Various types of malted grains including barley, wheat and rye are allowed to germinate and then undergo kilning to stop the germination process. This modifies the grain’s enzymatic properties and adds sweetness, color and flavors. The modified grains are then used in the brewing process to produce various types of beers. The rising demand for specialty and craft beers has augmented the demand for unique malted barley varieties that impart specific flavors and tastes. Various seed and sprouted grain ingredients are also finding applications in nutritional supplements, baked goods and other food products owing to their nutrient-rich composition.
Market Key Trends:
One of the key trends in the malt ingredients market is the rising popularity of craft beers. There has been significant growth in the number of microbreweries and brewpubs globally that focus on producing specialty beers in small batches. These businesses are innovating with unique beer styles and flavors by experimenting with different malted grains andingredients. This is driving the demand for diverse varieties of specialty malts. Furthermore, the health-conscious consumer base is positively impacting the demand formalt ingredients in various baked goods, snacks and nutritional supplements. Malted grains are rich in antioxidants, vitamins, minerals and fibers that offer numerous health benefits. Hence, food companies are increasingly utilizing sprouted and malted ingredients in new product offerings catering to health-conscious consumers.
Porter’s Analysis:
- Threat of new entrants: The global malt ingredient market is moderately consolidated. Strict regulations and high capital requirement pose moderate threat from new entrants.
- Bargaining power of buyers: The global malt ingredient market has high bargaining power of buyers due to availability of substitute ingredients. Buyers can easily switch to alternatives.
- Bargaining power of suppliers: A few globally organized players control the supply of malt ingredients. This gives them moderate bargaining power over buyers.
- Threat of new substitutes: Threat from substitutes like molasses, corn syrup is moderate as malt ingredients offer distinct taste and are preferred for certain applications.
- Competitive rivalry: The global market faces high competitive rivalry due to established brands and new product launches. Key players focus on expanding production capacity and geographic footprint to increase market share.
Key Takeaways:
The global malt ingredient market size was valued at US$ 6.11 Bn in 2023 and is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing demand for craft beer.
Regional analysis: North America dominated the global malt ingredient market in 2023 and is expected to maintain its dominance over the forecast period. This is attributed to high beer consumption, widespread beer microbreweries, and legalization of cannabis-infused beverages. Asia Pacific is expected to be the fastest growing market during the forecast period, supported by growing middle-class population, rising disposable incomes, and changing consumer preferences in the region.
Key players: Key players operating in the malt ingredient market are Axereal Group, Cargill, Incorporated, RAGLETH LTD., GrainCorp Malt Group, IREKS GmbH, Dohler GmbH, VIVESCIA Industries, Muntons plc, Polttimo Oy, Malt Products Corporation, Briess Malt & Ingredients Co., Malteries Soufflet SAS, and Simpsons Malt Limited.
