Global Malt Extracts & Ingredients Market Outlook, 2029

Malt is a type of cereal grain that is soaked in water to facilitate germination and then exposed to hot air to inhibit further germination of the seeds or cereal. Certain enzymes, including alpha- and beta-amylase, grow in the malting grains because of this process. These enzymes play a crucial role in the conversion of the cereal's starch to glucose, maltose, and other higher sugars. Fructose and sucrose are present in malt, albeit at lesser levels. Malted grains are utilized in the production of malt vinegar, whiskey, beer, and malted milk. The cereal most frequently utilized in this method is barley. High-protein barley is utilized in the production of baked goods. Diastatic malt has active enzymes, while no diastatic malt has inactive enzymes. Specialty malts and base malts are the two varieties of malts. Speciality malts, which are mostly utilized in the production of beer, have very little diastatic power while base malts can convert starch on their own. Throughout the world, malt extract is a sweet material that is utilized as a nutritional supplement. Most of the ingredients required to make beer are malt extracts. Grain barley is the primary ingredient.

According to the research report, “Global Malt Extracts and Ingredients Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 30 Billion by 2029.Rising demand in a number of industries, such as food and beverage, pharmaceuticals, and personal care, is propelling the global market for malt extracts and components. Malt extracts are vital components that give a variety of goods flavor, color, and nutritional advantages. They are mostly made from barley, wheat, and other cereals. This industry is a vital and dynamic part of the global economy because of its innovation, expanding applications, and changing customer tastes.The industry that uses malt extracts and components the most is still the food and beverage industry. Malt extracts are essential for making beer because they add body, color, and flavor to the finished product. The market demand for premium malt extracts has increased dramatically as a result of the expanding appeal of craft beers and the growing trend toward artisanal and specialty brews. Moreover, dairy goods, confections, and baking all contain malt extracts. These naturally sweet, flavorful, and nutritious ingredients make them a desirable ingredient for health-conscious consumers looking for minimally processed, clean-label meals. The use of malt extracts in a variety of food products has increased due to the popularity of health trends including plant-based diets and consumer demand for natural ingredients.

Market Drivers

The demand for products that use malt extras and ingredients in their manufacture is the reason behind the rise in demand for malt extracts and ingredients. The industry is expanding since Mold-based beverages and confections contain a variety of useful elements. In addition to B, other non-alcoholic malt beverages are gaining popularity in numerous nations worldwide. Beverages with malt extract Sandhills have a high fibre and vitamin B content, and the market is anticipated to expand. These businesses are moving to produce non-alcoholic beverages that employ malt extracts and other substances, even though the distribution of alcoholic beverages is strictly regulated in many nations throughout the world.
These goods have a long shelf life, and it is anticipated that these aspects will propel market expansion. To get market share, producers are concentrating on offering a variety of Flavors for their products. Market expansion is also anticipated because of the growing usage of malt extracts in the baking of goods. Due to its ability to give products a natural colour and flavour, malt extract is frequently utilized in the creation of baked goods.

Market Challenges

Due to the high cost of these goods and the difficulty local manufacturers have in making significant profits from this industry, malt producers are benefiting from increased business from exporting their goods. Growing raw material costs are impeding this market's expansion. The outcome is also influenced by the quality of the crops that are obtained for this method. It is anticipated that each of these factors will impede market expansion in the upcoming years.
The quality of crops needed to make malt extracts and components is being impacted by seasonal variations, which is predicted to provide a significant obstacle to the market's expansion. Another obstacle to this market's expansion would be the rising cost of raw materials brought on by the widespread use of malt extracts and components in sectors other than beverages.



Market Trends

The malt ingredients industry is undergoing dynamic movements that are reshaping the brewing and food production landscapes. The need for a diverse range of malt varieties is being driven by the development of craft brewing, but innovation and adaptability are also key factors in the expanding popularity of malt-based snacks and beverages. Moreover, the focus on sustainable and organic procurement is influencing the production and sourcing processes for malt ingredients, indicating the industry's wider commitment to environmental consciousness.
• Craft and Flavour Explosion: Customers are looking for distinctive beers with robust flavour profiles. This drives up demand for speciality malts, which impart subtle notes beyond bitterness to beer, resulting in variations like smoked, caramel, and crystal. Craft brewers are setting the standard in this area, even if big brands are beginning to include speciality malts in their high-end products. Expect more investigation and testing about different malt kinds and their impact on flavour.
•Ecological Sustainability Is Everything: Environmental responsibility and ethical sourcing are becoming requirements for ethical consumers. As a result, maltsters are adopting environmentally friendly practices, working with sustainable farms, and widening their supply networks. Growing in importance are reduced energy and water consumption, fair trade activities, and traceability as marketing advantages. Look for new ways to malt barley and work with local growers to minimize your ecological impact.
• Functional Focus Outside of Beer: People outside of breweries are becoming interested in malt due to its health benefits. Protein bars, snacks, and baked goods are starting to use malt extracts and flours because of their natural sweetness, high fibre content, and potential prebiotic properties. More research on the functional qualities of malt is to be expected, as is the development of malt ingredients with value-added targeted at the food industry and health-conscious customers. These advancements suggest that malt components will have a dynamic and creative future that will be influenced by changing customer preferences, sustainability concerns, and the exploration of malt's possibilities in non-traditional brewing applications.

Based on the report, the Product segment is segmented into Extracts & Ingredients. Extract segment is leading in the Malt Extracts & Ingredients market due to its versatility and convenience in various applications, such as brewing, baking, and confectionery. Extracts provide a concentrated source of malt flavour and nutrients, making them a preferred choice for manufacturers seeking consistent quality and enhanced product taste while streamlining production processes.

Malt extracts are derived through the process of malting, where barley or other grains are germinated and then dried, converting starches into fermentable sugars. This concentrated form of malt offers several advantages in various industries, particularly in brewing and baking. Firstly, in the brewing industry, malt extracts serve as essential ingredients for producing beer. They provide brewers with consistent fermentable sugars and malt flavours without the need for extensive mashing and lautering processes, thereby reducing production time and costs. This convenience makes malt extracts especially popular among smaller breweries and homebrewers looking to maintain product quality and flavour profiles. Secondly, in the food industry, malt extracts are valued for their natural sweetness and distinctive malt flavour. They are used in bakery products like bread, biscuits, and cakes to enhance taste and improve crust colour and texture. Malt extracts also find application in confectionery, where they contribute to the characteristic caramel notes in candies and chocolates. Moreover, malt extracts are rich in nutrients such as vitamins, minerals, and amino acids, adding nutritional value to food and beverage products. This nutritional profile aligns with the growing consumer preference for healthier and natural ingredients. Furthermore, technological advancements in extraction processes have improved the quality and versatility of malt extracts, expanding their applications beyond traditional uses. Manufacturers are increasingly developing new formulations and blends to cater to diverse consumer preferences and industry demands.

Based on the report, the Application segment is segmented into Beverage & food. The beverage segment is estimated to grow at a higher growth rate in the Malt Extracts & Ingredients market due to increasing consumer demand for natural and nutritious beverages, as well as the versatility of malt extracts in enhancing flavours and nutritional profiles across alcoholic and non-alcoholic drinks.

The growth of the beverage sub-segment within the malt extract & ingredients market can be attributed to several key factors that underline its increasing popularity and demand. Firstly, malt extracts are valued for their ability to impart unique flavours and enhance the sensory profile of beverages. In the brewing industry, malt extracts are crucial for the production of beer, providing fermentable sugars and contributing to the characteristic malt taste and aroma that beer enthusiasts seek. This application ensures a steady demand from breweries worldwide, both in traditional beer styles and in craft brewing, where experimentation with flavours is highly valued. Secondly, malt extracts are increasingly recognized for their natural and wholesome attributes, aligning with consumer preferences for clean label products. With growing awareness of health and wellness, consumers are seeking beverages that offer nutritional benefits without compromising on taste. Malt extracts naturally contain vitamins, minerals, and antioxidants derived from malted barley, making them attractive ingredients for functional beverages and malt-based health drinks. These products appeal to health-conscious consumers looking for alternatives to sugary drinks and artificial additives. Furthermore, the versatility of malt extracts extends beyond alcoholic beverages. They are utilized in non-alcoholic malted drinks, malted milkshakes, energy drinks, and sports beverages, offering manufacturers opportunities to innovate and diversify their product portfolios. This versatility allows beverage companies to cater to a wide range of consumer preferences, including those seeking natural ingredients, unique flavours, and functional benefits in their beverages. Innovation and product development also play a significant role in driving the growth of the beverage sub-segment

Europe is dominating the Malt Extracts & Ingredients market due to its long-standing tradition of brewing and distilling, coupled with advanced production technologies and a strong emphasis on quality. The region's diverse agricultural base also ensures a reliable supply of high-quality barley and other raw materials essential for malt production.

The market for malt extracts and components is dominated by Europe for a number of reasons, all of which work together to foster innovation and industry growth. First of all, Europe has a long history of brewing and is a skilled region in the art of it; nations like Germany, Belgium, and the United Kingdom are well known for their abundant beer cultures and superior brewing techniques. Thanks to this legacy, Europe has become a leader in the production and innovation of malt thanks to a solid infrastructure and extensive knowledge base in brewing and malting. Demand is consistently driven by the region's brewers, who are constantly searching for superior malt extracts to create a wide variety of beers, ranging from classic lagers to inventive specialty brews.Moreover, quality, safety, and traceability are highly valued in the European food and beverage business. The demand for malt extracts in food applications including baking, confectionery, and morning cereals has surged due to European consumers' growing health consciousness and preference for natural and clean-label products. This tendency is further supported by the region's legislative framework, which has strict guidelines for food safety and labeling and promotes the use of premium, traceable products.The strong research and development (R&D) efforts carried out by both academic institutions and industrial companies are another factor supporting Europe's supremacy. In response to changing customer demands, European industries heavily spend in research and development to create novel malt extracts with improved functions and nutritional profiles. This emphasis on creativity guarantees that European malt extract products remain competitive and meet the diverse needs of the global market.

• In September 2019, Malteurop established a new manufacturing unit or malthouse facility in Meoqui. This facility's construction in northern Mexico is anticipated to spur market expansion and be operational by 2021.
•In February 2020, a collaboration was created between BSG and the Leopard Bros. The distribution of handcrafted malts is the goal of this collaboration. The goal of this collaboration is to take a share of the growing handcrafted beer market.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Malt Extracts & Ingredients Market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product
• Extracts
• Ingredients

By Source
• Soy
• Wheat
• Rye

By Grade
• Standard malt
• Specialty malt

By Application
• Beverage
• Food

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Malt Extracts & Ingredients industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.