The Hopped Malt Extract Market size is expected to reach US$ 2 billion by 2030, from US$ 1.28 billion in 2023, at a CAGR of 6.6% during the forecast period.
Hopped malt extract is derived from barley malt and imparts a bitter flavor. It is used extensively in the production of beer and whiskey to provide viscosity, foam retention and antioxidant properties. The growth in the market is driven by the rising demand for craft beer and whiskey across the world.
The Hopped Malt Extract Market is segmented by source, form, application, distribution channel and region. By source, the barley segment held the largest share of over 40% in 2023. Barley imparts a unique flavor and aids in foam stability, making it the preferred choice for beer and whiskey production.
Hopped Malt Extract Market Regional Insights
- North America is expected to be the largest market for Hopped Malt Extract Market during the forecast period, accounting for over 35% of the market share in 2023. The growth of the market in North America is attributed to the high production and consumption of craft beer and whiskey in the region.
- The Europe market is expected to be the second-largest market for Hopped Malt Extract Market, accounting for over 25% of the market share in 2023. The growth of the market in is attributed to the established food processing and brewing industry in the region.
- The Asia Pacific market is expected to be the fastest-growing market for Hopped Malt Extract Market, with a CAGR of over 8% during the forecast period. The growth of the market in Asia Pacific is attributed to the rising disposable incomes and rapid urbanization in the region.
Figure 1. Global Hopped Malt Extract Market Share (%), by Region, 2023
Hopped Malt Extract Market Drivers
- Surging demand for craft beer and spirits: The rising popularity of craft beer and artisanal spirits across the world is a major factor driving the growth of the hopped malt extract market. Craft brewers are using innovative hopped malt extracts to create unique flavors and enhance the aroma profile of their beers. The demand for premium craft spirits such as whiskey is also surging, creating lucrative opportunities for hopped malt extract suppliers. Market reports suggest the craft beer industry expanded at over 15% annually between 2015 and 2020. The thriving craft segment is expected to boost the application of specialty hopped malt extracts in the coming years.
- Growing adoption in F&B applications: Hopped malt extracts are increasingly being used as natural flavoring and coloring agents in various food products such as bakery items, confectionery, plant-based protein products, nutritional bars, non-alcoholic beverages and dairy items. Consumers are demanding clean-label products with natural ingredients, which is driving the use of hopped malt extracts in the F&B industry. Food manufacturers are using hopped malt extracts to add distinctive malty flavors and increase the nutritional value of products. The expanding F&B industry worldwide presents lucrative avenues for hopped malt extract manufacturers.
- Advancements in extraction technologies: Technological advancements in malt extraction methods are enhancing the efficiency, quality and functionality of hopped malt extracts. Manufacturers are adopting technologies such as cryogenic extraction to preserve delicate hop aromas and develop specialty flavor extracts tailored to specific beer styles. Enzyme-assisted extraction and molecular distillation techniques help obtain purer extracts with more concentrated hop flavors. Such advancements are resulting in premium quality hopped malt extracts, thereby fueling the market growth.
- Rise of e-commerce platforms: The flourishing e-commerce sector worldwide has opened new sales channels for players in the hopped malt extract market. Online stores offer convenience and greater accessibility to customers across geographies. Manufacturers are leveraging e-commerce platforms to expand their consumer base and geographic reach. Small craft brewers and homebrewers are among the key consumer segments purchasing hopped malt extracts through online retail channels to experiment with flavors. The proliferation of e-commerce is thus driving the hopped malt extract demand.
Hopped Malt Extract Market Opportunities
- Growing demand from emerging economies: Developing economies such as China, India, Brazil and Mexico represent lucrative markets for hopped malt extract manufacturers. Rising disposable incomes, increasing adoption of western lifestyles and expanding urban populations are leading to surging demand for premium alcoholic beverages in these regions. Local craft breweries are also mushrooming in emerging markets. To capitalize on this demand, manufacturers are setting up production facilities in developing countries. With the young demographic adopting craft beers in emerging economies, significant growth opportunities exist for the hopped malt extract market.
- Rising application in animal feed: Hopped malt extracts offer anti-oxidant, anti-inflammatory and antimicrobial properties, making them suitable as natural additives for animal feed. The extracts can potentially enhance the shelf-life, digestibility and nutritional profile of feed. Leading manufacturers are conducting R&D to explore the applications of hopped malt extracts in pet food, aquafeed and livestock feed. Positive research outcomes could significantly expand the customer base for hopped malt extract suppliers by tapping into the large animal feed industry.
- Growing demand for gluten-free offerings: Rising incidence of gluten intolerance and celiac disease worldwide has led to surging demand for gluten-free food and beverages. Certain hopped malt extract varieties made from gluten-free grains like sorghum, millet and rice cater to this consumer segment. Leading players are expanding their gluten-free product portfolio to meet the burgeoning market demand. The introduction of specialty gluten-free hopped malt extracts presents an attractive opportunity for manufacturers to attract new consumers and increase sales.
- Cannabis-infused edibles: The legalization of cannabis products in multiple countries has opened up opportunities for hopped malt extracts in cannabis-infused edibles like chocolates, baked goods, sweets, non-alcoholic beverages etc. Hopped malt extracts can mask the bitter taste and odor of cannabis ingredients in these products. Leading suppliers have commercialized cannabis-friendly malt extracts to gain a first-mover advantage in this nascent market. As cannabis edibles gain popularity, the application scope for hopped malt extracts is expected to widen.
Hopped Malt Extract Market Report Coverage
||Market Size in 2023:
||US$ 1.28 Bn
|Historical Data for:
||2017 to 2021
||2023 - 2030
|Forecast Period 2023 to 2030 CAGR:
||2030 Value Projection:
||US$ 2.0 Bn
- North America: U.S. and Canada
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East & Africa: GCC Countries, Israel, South Africa, North Africa, and Central Africa and Rest of Middle East
- By Source: Barley, Wheat, Rye, Others
- By Form: Liquid, Dry, Others
- By Application: Beer, Whisky, Food, Pharma, Others
- By Distribution Channel: B2B, B2C, Online, Specialty Stores, Others
Koninklijke DSM N.V., Muntons plc, Associated British Foods plc, The Malt Company, IREKS GmbH, Doehler, Briess Malt & Ingredients Co., Malteries Soufflet, PureMalt, Huajia Food Technology
- Rising demand for craft beer and whiskey
- Increasing adoption in food processing industry
- Growing health consciousness among consumers
- Advancements in extraction technologies
|Restraints & Challenges:
- Fluctuations in raw material prices
- High competition from cheaper synthetic substitutes
- Requirement of capital intensive equipment
- Stringent regulatory environment
Hopped Malt Extract Market Trends
- Increasing demand for organic hopped malt extracts: There is a growing consumer preference for organic ingredients driven by rising health consciousness. Organic hopped malt extracts are processed from barley and hops cultivated without chemical fertilizers or pesticides. They appeal to consumers seeking premium quality natural extracts. Manufacturers are obtaining organic certifications for their facilities and utilizing organic raw materials to cater to this demand. The rising popularity of organic hopped malt extracts is an emerging trend.
- Focus on enhancing functionality: Leading players are enhancing the functionality of hopped malt extracts to deliver additional benefits like high antioxidant activity, dietary fiber content etc. Manufacturers are using innovative processing and blending with superfoods to create premium multi-functional extracts. For instance, malt extracts infused with antioxidant-rich elderberry and wolfberry are gaining traction. The focus on functional and health-enhancing ingredients is a key trend in the hopped malt extract market.
- Customized solutions for craft brewing: Craft and micro breweries require specialized hopped malt extracts to produce unique flavored beers in small batches. Suppliers are offering customized extract solutions tailored to specific craft brewery needs like enhancing haze stability and foam adhesion. Manufacturers collaborate with craft brewers to understand flavor preferences and develop bespoke blends. The demand for customized hopped malt extracts by craft breweries is rising as a key trend.
- Clean-label declarations: Clean-labeling is a top priority in the F&B industry driven by consumer demand for natural, recognizable and minimally processed ingredients. Hopped malt extract manufacturers are catering to this trend by providing clear declarations regarding sourcing, processing aids and certifications. Suppliers also offer non-GMO, allergen-free, gluten-free and vegan claims on their products to attract discerning consumers. The focus on clean-labeling and transparency is aiding market growth.
Hopped Malt Extract Market Restraints
- High consolidation and influx of cheaper substitutes: The hopped malt extract market is highly consolidated with a few large suppliers dominating the share. This limits the scope for smaller and regional players. Also, cheaper artificial flavoring substitutes are flooding the market. The easy availability of lower-priced synthetic malt extracts with similar flavors is hampering the demand growth of natural hopped malt extracts to some extent.
- Fluctuations in raw material prices: The prices of key raw materials namely barley and hops used in producing hopped malt extracts are vulnerable to climatic changes, diseases and geo-political factors. Adverse weather conditions leading to poor harvests drive up barley and hop prices, thereby increasing production costs for manufacturers. The fluctuating supply and prices of raw materials pose challenges for players to maintain profit margins.
- Requirement of capital intensive extraction equipment: Hopped malt extract manufacturing involves specialized mashing, filtration, evaporation and blending equipment which require high capital investment. The production process also needs extensive R&D, skilled labor and stringent quality control. Not all players have the financial capability and technical expertise required for setting up large-scale production facilities. The capital intensive nature of hopped malt extract production hampers market entry of new players.
New product launches
- In March 2022, Döhler launched HopStar HMA hop extract, made from Hallertau Blanc hops using a gentle extraction process. It provides enhanced foam stability and prolonged beer freshness.
- In January 2021, Associated British Foods plc introduced a new instant light malt extract under its Muntons brand. It offers superior performance and an authentic malty flavor.
- In November 2020, Briess Malt & Ingredients launched its Cryo Hops products, made using a cryogenic hop-processing technique to preserve aromas. It is suitable for IPAs, APAs and craft lagers.
Acquisition and partnerships
- In October 2021, Döhler acquired a majority stake in nutri+ GmbH to expand its portfolio of plant-based extracts for food and beverages.
- In December 2020, Malteries Soufflet acquired malt extract company Saladin Malz to strengthen its presence in Switzerland.
- In September 2019, Koninklijke DSM partnered with Agristo NV to develop hop bittering solutions for plant-based protein applications.
Figure 2. Global Hopped Malt Extract Market Share (%), By Application, 2023
Top companies in Hopped Malt Extract Market
- Koninklijke DSM N.V.
- Muntons plc
- Associated British Foods plc
- The Malt Company (India) Pvt. Limited
- IREKS GmbH
- Briess Malt & Ingredients Co.
- Malteries Soufflet
- Huajia Food Technology
Definition: Hopped malt extract is a natural flavoring agent derived from malted barley and infused with hop bitterness. It is widely used in brewing beer, distilling whiskey, and manufacturing food products to impart a distinct malty flavor and aroma. With growing demand for craft beers and spirits, the hopped malt extract market has witnessed significant growth over the years. Key applications include enhancing the flavor, color, foam stability and shelf-life of alcoholic beverages as well as adding maltiness to baked goods, confectionery, non-alcoholic drinks, and plant-based protein products. With rising consumer inclination towards natural ingredients, hopped malt extracts are gaining popularity as a clean-label additive in the F&B industry.
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