Malt is produced from grains such as wheat, sorghum, rye, barley, and oats. Malt extracts are processed sweetening agents that are derived from malt ingredients. Malt extracts can be classified into specialty malt extracts, dark malt extract, standard malt extracts, and light malt extracts. Bakery, beverages, pharmaceuticals, and confectionary are some of the applications of malt extracts.

Europe Malt Extracts Market is estimated to account for US$ 8,781.9 Mn in terms of value and 13,481,593.1 Tonnes in terms of volume by the end of 2019.

Drivers:

Rising demand for clean label products among consumers due to rising health consciousness is projected to fuel the market growth of Europe malt extracts. Moreover, the growing demand for natural and organic food products coupled with the increasing demand for natural food flavors and colors is also expected to foster the market growth of malt extracts. Therefore, the growing demand for organic and natural food products is expected to augment the market growth.

Market Opportunities

Increasing production and consumption of craft beer is one of the major factors expected to serve major growth opportunities to the market growth of Europe malt extracts. According to Eurostat, Germany was the top producer of beer in 2018 with a production of 8.3 billion liters (or 21% of the EU total production). Moreover, the Netherlands exported 1.9 bn liters of beer containing alcohol in 2018. This made it the largest beer exporter of all EU Member States. Thus growing production of craft beer is expected to foster the market growth of malt extracts.

Market Restraints

Limited availability of malt due to rising use in breweries as malt is a since it is a crucial raw material used in the manufacturing of gluten-free beer is expected to hinder the market growth. According to the Coherent Market Insights analysis, around 75%–78% of total barley malt produced globally is utilized by brewing industries, and hence a moderate volume remains for other applications such as bakery, pharmaceuticals, food, and distillery applications.

Key Takeaways:

Among Source, barley accounted for a largest share of 75.2% in 2019. This is attributed to its growing production of barley in Europe. For instance, according to Food and Agriculture Organization (FAO), barley is produced in more than 100 countries and most of world’s barley is produced in Russia, followed by Germany and France.

Among applications, beverages dominated the Europe Malt Extracts market in 2019 and was valued at US$ 4,269.8 Mn in 2019. This is owing to increasing consumption of craft beer in this region.

Market Trends

Expansion of production capacities of the malt products by a major manufacturer is a current trend in the market. For instance, in October 2019, Puratos Group and Estonian Malt have announced the signature of a joint venture agreement launching ‘Puratos Malt’. The JV is the result of six years of close collaboration between the two companies and combines Estonian Malt’s expertise in sprouted and fermented whole grains with Puratos’ business insights and distribution network. The business goal of Puratos Malt is the production, sale, and distribution of malt flours and sprouted grains for the professional bakery, foodservice, and food industry sector and their customers.

Dry malt extract is gaining popularity which is available in the flakes, flour, and powder form and are used across various food application. They are widely used to enhance fermentation and improve yeast performance. Moreover, malt flakes enhance the texture of the products such as bread. Thus, the growing demand for dry malt across food &beverage applications is expected to upsurge the market growth of Europe malt extract.

Europe Malt Extract Market - Impact of Coronavirus (Covid-19) Pandemic

Covid-19 has drastically impacted the malt extract market. The beverage sector, has witnessed shrink in the adoption of Soft drinks, and café dinning, purely attributed to the lockdown measures. There has been an unprecedented demand in off premise alcohol sales in the countries such as Spain, Belgium and Britain. For instance, Alko, the alcohol retail monopoly of Finland, reports almost 25% increase in alcohol sales in the first month of coronavirus emergence. The company also revealed that it sold a total of 9.1 million litres of alcoholic beverages in April and the amount represents an increase of 23% from April 2019.

Competitive Section:

Key players are operating in the Europe Malt Extract market are Axereal Group, Cargill, Incorporated, IREKS GmbH, Doehler Group SE, VIVESCIA Industries, Polttimo Oy, Malt Products Corporation, Malteries Soufflet SAS, Simpsons Malt Limited and  Muntons Plc.

Few Recent Developments

Malt Products Corporation

In November 2019, Malt Products Corporation (MPC), a manufacturer of malted barley extract and other natural, nutritious sweeteners, has expanded its customer service portfolio by adding to its research and sampling capabilities.

Segmentation

By Application

  • Bakery
  • Confectionary
  • Beverages
    • Alcoholic
    • Non- Alcoholic
  • Animal Feed
  • Pharmaceuticals

By Source

  • Barley
  • Wheat
  • Rice
  • Rye

By Product Form

  • Dry
  • Liquid

By Product Type

  • Standard
  • Specialty
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