Malt ingredients are mainly produced from barley, rye, sorghum, wheat, and oats by using the malting process. Barley malt is widely used in the preparation of functional foods and beverages such as beer, malt vinegar, whiskey, and malted milk. It is a rich source of protein and vitamin-B thus its consumption supports good health. They are widely used as an additive and flavoring agent in the preparation of distilling, brewing, and in producing foods. They are available in the form of dry malt, liquid malt, flakes, and malt flour. Out of which liquid malt is commonly used as a syrup and toppings on the confectionery food products. Bakery and confectionery products, dairy and frozen products, alcoholic and non-alcoholic beverages, pharmaceuticals, and animal feed are some of the application areas of malt ingredients.

The global malt ingredient market is estimated to account for around US$ 4953.7 million in terms of value in the year 2018 and it predicted to grow at a CAGR of 4.7% during the forecast period (2019-2027)

Drivers

Rising health-conscious consumers around the globe are predominantly fueling the market growth of malt ingredients. According to the Coherent Market Insights analysis, malted barley extract replaces sugar needed for feeding yeast at a ratio of three- fourth in bakery products; 12 oz of malted barley extract replaces 16 oz of sugar. Health-conscious consumer prefers sugar-free or less sugary food products, and this is a factor projected to propel the demand for malt ingredient-based bakery products in the future.

Market Opportunities

The rising demand for the malt-flavored beverage is projected to foster market growth. For instance, in September 2019, United Brands announced the launch of SWIRL Beverage Company, an invigorating new brand with a multi-tiered product line under the United Brands umbrella. SWIRL’s debut product is zero sugar and a low-carb, 8% ABV flavored malt beverage that is at the front of the trend line for consumers and retailers alike.

Market Restraints

The shortage of grain supply is expected to hinder the market growth of malt ingredients. According to Coherent Market Insights analysis, in March 2016, owing to a poor harvest in most malt grain-producing regions of the world, beer, bakery, and pharmaceutical industries are beginning to face a shortage of grains required for malting. Thus, a shortage of grains is expected to hamper the market growth of malt ingredients over the forecast period.

Key Takeaways:

On the basis of the source, the barley segment dominated the global malt ingredient market in 2018 with a 58% of market share in terms of value, followed by wheat and others.

Market Trends

Increasing adoption of smart strategies such as partnerships and agreements for enhancing their market presence is expected to foster market growth. For instance, in October 2019, Puratos Group and Estonian Malt have announced the signature of a joint venture agreement launching ‘Puratos Malt’. The JV builds on that successful collaboration to allow both companies to shape the future of sprouted grains together. This is expected to augment the market growth.

The growing popularity of ready-to-eat food products is expected to foster market growth. For instance, in February 2015, the MOM Brands flagship Malt-O-Meal brand of ready-to-eat cereals announced the launch of a new national integrated marketing campaign focused on building awareness of its extensive assortment of great-tasting, affordable cereals.

Competitive Section:

Key players operating in global malt ingredient market includes 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

Few Recent Developments

Dohler GmbH

Key Developments:

  • In 2015, the company expanded its cereal ingredient portfolio by developing gluten-free barley malt extract that enhances the taste, texture, and appearance of baked food products 

Muntons plc

Key Developments:

  • In 2016, the company set up a distribution center in Colorado, U.S., to supply cost-effective malt products to breweries

Market Taxonomy

By Product Type

  • Dry Malt
  • Liquid Malt 
  • Malt Flour
  • Others

By Application

  • Bread
  • Biscuits
  • Brownie
  • Cookies
  • Cakes & Pastries
  • Doughnuts
  • Pizza
  • Others (Deserts & Puddings)

By Source

  • Barley
  • Wheat
  • Others (Rye)

By Grade

  • Specialty
  • Standard

By Region

  • North America
  • Latin America
  • Asia Pacific (APAC)
  • Europe
  • Middle East & Africa (MEA)
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