Malt Market size is projected to grow substantially between 2023 and 2032, driven by the rapidly increasing production and consumption of beer across the world. Malt is an integral part of brewing and is used to impart a strong aroma, color, and flavour to different type of beers.
The market is further likely to benefit from the globally flourishing craft beer culture. In fact, as per American trade group, Brewers Association, the overall U.S. beer volume sales grew by 1% in 2021 while craft volume sales grew by 8%, hinting at the ongoing shift of consumer tastes towards craft beer.
Apart from beer, malt is also used in baked goods such as biscuits, bread rolls, pancakes, and beverages among others. With ongoing expansion of the bakery sector across emerging economies, the use of malt in baking is predicted to go up at a notable pace.
Despite an expanding application scope, the industry faces a major challenge in the form of a consumer exodus towards wine and other beverages due to rising health concerns related to increased consumption of beer.
Based on type, malt market from the liquid segment is slated to capture a considerable market share by 2032. Liquid malt extract is used to impart sweetness, aroma, and color to a dish while improving its overall appearance as well. These extracts are also used at scale in commercial brewing applications as a brew extender of straight malt replacement, when integrated with conventional mash. Growing brewery industry is poised to present a notable impetus for liquid malt.
With respect to application, malt market share from the beverages sector will build up a considerable revenue stream by 2032. Malt is loaded with essential vitamins and is being increasingly added to non-alcoholic beverages to enhance their taste profile. In fact, malt is now considered a common ingredient in non-alcoholic beer as it imparts a flavour and color that makes the beverage taste and appear just like a beer. Surging consumption of non-alcoholic beer owing to changing lifestyles is likely to bolster the market demand.
Based on brewers, malt industry from specialty segment is estimated to grow at a significant CAGR between 2023 and 2032. Specialty malt is commonly used in brewing to impart flavour and aroma to beer. It is also used in cereals, cookies, and different baked goods as well. Surging consumption of malt-infused beer is working in favour of segment growth. Additionally, growing usage of specialty malts in the pharmaceutical sector will augment market expansion.
On the regional front, Europe malt market will register substantial gains by 2032, attributed to an increase in the number of craft breweries fueled by the growing beer consumption in the region. In 2021, EU member states produced over 33.1 billion litres of beer having alcohol. In fact, Germany alone contributed 7.5 billion litres of beer in 2021, which accounts for 23% of the total production. Moreover, surging usage of malts in food industries and non-alcoholic beverages is further creating a strong impetus for regional expansion.
Prominent participants operating across the malt market are Soufflet, Crisp Malting, Bairds Heineken, and Cargill. Many of these companies are focusing on mergers and acquisition strategies to outshine the competition. Citing an instance, in March 2023, Malteries Soufflet, a France-based malt industry player, announced its plan to acquire United Malt Group Limited, the fourth largest maltster globally. It is expected to help the company strengthen its footprint in the malt sector.
The Russia-Ukraine war had a negative impact on global malt industry on account of disruptions in supply chains which made raw material procurement difficult. Both Russia and Ukraine are major cultivators of malt, but the war caused disruptions in agriculture sector of these economies. Additionally, sanctions introduced to bring the war to an end through geopolitical pressure have severely impacted trade practices world-over, hindering the business scenario.