The 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 cereal grains or blends of cereal grains that have been allowed to germinate by soaking and then halted from germinating further by drying with hot air. The main advantages of malt ingredients are that they add desirable flavor, color and nutritional value to food and beverage products. In beer brewing, malt ingredient act as a source of sugar for fermentation and adds proteins, color and flavors.

Market Key Trends:

One of the primary market trends driving the growth of malt ingredient market is the rising demand for craft beers. According to the Brewers Association, craft beer volume in the United States increased 7% in 2020, with 25.2 million barrels brewed. Additionally, number of breweries registered in the United States nearly doubled from 2010 to 2020. Craft beer consumption is driven by rising demand for locally brewed, high-quality beers with distinct flavor profiles. This rising demand for craft beers indirectly augments the consumption of malt ingredients, as they play a key role in determining the flavor, color and nutritional value of the beer. The availability of wide range of malt varieties such as caramel, crystal and chocolate malts is allowing brewers to experiment and introduce unique beer flavors and styles, thus fueling the demand for malt ingredients in the overall craft beer market.

Porter’s Analysis:

• Threat of new entrants: The malt ingredient market is dominated by well-established players and requires high initial investments, technology and resources which restricts the entry of new players.
• Bargaining power of buyers: Buyers in the market have moderate bargaining power due to the presence of well-established brands and variety of product offerings from key players.
• Bargaining power of suppliers: Suppliers have moderate bargaining power owing to availability of raw materials from multiple regional and global suppliers.
• Threat of new substitutes: Substitutes like barley flour, wheat flour pose low threat due to unique attributes and functionality provided by malt ingredients.
• Competitive rivalry: High as key players compete on the basis of product quality, innovation, and pricing.

SWOT Analysis:

• Strengths: Established distribution network, brand recognition, wide product portfolio and technology leadership for major players.
• Weaknesses: Seasonal availability of raw materials impact supplies, price volatility of raw materials increases input costs.
• Opportunities: Growing demand for convenience food and beverages, expansion in emerging markets of Asia Pacific and Latin America.
• Threats: Stringent food safety regulations, rising environmental concerns around agricultural practices.

Key Takeaways

The global malt ingredient market is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing demand for gluten-free and organic products. The North America malt ingredient market accounted for largest share of over 30% in 2023 supported by rising consumption of beverages and snack food. Europe is the second largest region with over 25% share backed by strong presence of breweries and distilleries in countries like Germany, UK and Belgium.

Regional analysis fastest growing and dominating region. Asia Pacific is expected to be the fastest growing region in the malt ingredient market owing to rising health-conscious population, growing middle class, and increasing disposable incomes in major countries like China and India.

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. These players are focusing on new product launches, expanding production capacity and partnerships to strengthen their market position.