Malt Ingredients Industry Set to Expand to USD 15.2 Bn by 2032 at 3.26% CAGR, Driven by Rising Demand for Craft Brewing

Malt Ingredients Market Research Report By Type, By Application, By Form, By Functionality and By Regional -Forecast to 2035

NEW YORK, NY, UNITED STATES, May 2, 2025 /EINPresswire.com/ -- The global Malt Ingredients Market is poised for substantial growth in the coming years, driven by increasing demand from various industries such as food and beverages, brewing, and animal feed. The market, which includes products like malt extract, malt powder, and malted barley, is benefiting from innovation, product diversification, and evolving consumer preferences. According to a recent report by Market Research Future, the market is segmented based on type, application, form, functionality, and region. This press release aims to provide a comprehensive analysis of these segments, industry development, key trends, market drivers, and challenges that could shape the future of the malt ingredients market.

The Malt Ingredients Market was valued at USD 10.35 billion in 2023 and is projected to reach USD 10.68 billion in 2024. The market is expected to expand to USD 15.2 billion by 2035, with a compound annual growth rate (CAGR) of approximately 3.26% from 2025 to 2035.

Market Segmentation and Insights

The Malt Ingredients Marketcan be broadly categorized into several segments, each contributing uniquely to the market's growth trajectory. These include segmentation by type, application, form, functionality, and regional markets.

By Type: Malt Extract, Malt Powder, and Malted Barley
Malt Extractholds the largest share in the market. It is widely used as a sweetener in beverages, confectionery, and other processed foods due to its natural sweetness and flavor-enhancing properties. The demand for malt extract is particularly high in the brewing industry, where it plays a critical role in producing high-quality beer and other alcoholic beverages.

Malt Powderis another key segment, commonly used in baking, ready-to-eat meals, and snacks due to its ease of use and ability to deliver consistent flavor. It also has a growing presence in the nutritional supplements market.

Malted Barley, one of the most traditional forms of malt, is used extensively in the brewing industry. Barley is the primary raw material for producing both malt extract and malt powder, making it a cornerstone of the industry.

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By Application: Food and Beverages, Brewing, Animal Feed
Food and Beveragesare the largest application segment in the malt ingredients market. Malt extract and malt powder are used in various food products like breakfast cereals, energy bars, sauces, and confectioneries due to their nutritional benefits and flavor-enhancing properties.

The Brewingsegment is another significant consumer of malt ingredients, particularly malt extract and malted barley. Breweries globally use malt in the production of beer, whiskey, and other alcoholic beverages, capitalizing on the unique flavors and fermentation properties it provides.

Animal Feedis also a growing application, where malt by-products are used to improve the digestibility and nutritional content of animal feeds, particularly in livestock and poultry industries.

By Form: Liquid, Dry, Granular
The Liquidform of malt ingredients is widely used in the beverage and brewing industries due to its easy incorporation into liquid formulations, especially in the brewing process.

Drymalt ingredients, especially in powdered form, are extensively used in the food industry for baking and snacks. Dry malt provides convenience in terms of storage and shelf life, making it a preferred choice for food manufacturers.

Granularmalt is gaining popularity, especially in animal feed and brewing applications, due to its ease of use and effective dissolution properties in the brewing process.

By Functionality: Sweetening Agent, Flavoring Agent, Fermentation Aid
Malt ingredients serve as essential sweetening agents in a variety of applications. Due to their natural sweetness, malt extract and malt powder are replacing artificial sweeteners in many processed foods and beverages, driven by the growing consumer demand for clean-label products.

As flavoring agents, malt ingredients enhance the taste of food and beverages, imparting a rich, malty flavor profile that is especially valued in the brewing and snack industries.

The fermentation functionality of malt extract and malted barley is a cornerstone in the brewing process. These ingredients promote optimal yeast activity, ensuring the production of high-quality alcohol and beer. Their role as fermentation aids also extends to other sectors, including the production of bioethanol.

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Regional Market Insights

The Malt Ingredients Market is further segmented based on regions, with North America, Europe, South America, Asia Pacific, and the Middle East & Africa (MEA) emerging as significant contributors to market growth.

North America is the largest market for malt ingredients, primarily driven by the booming brewing industry in the United States and Canada. The growing consumer interest in craft beer and alcoholic beverages, coupled with a preference for natural and organic ingredients, is propelling the demand for malt ingredients in this region.
Europe is another key market, especially due to the rich tradition of brewing in countries like Germany, the United Kingdom, and Belgium. The demand for malt in the production of high-quality beers, coupled with the growing use of malt ingredients in the food and beverages industry, supports growth in this region.
Asia Pacific is experiencing rapid growth in the malt ingredients market, driven by increasing urbanization, rising disposable incomes, and a growing consumer base in countries like China, India, and Japan. The food and beverage industries, particularly in emerging markets, are expanding rapidly, increasing the demand for malt-based products.
South America and the Middle East & Africa regions are also witnessing moderate growth. The demand for malt ingredients in these regions is largely driven by the brewing industry and a growing awareness of the nutritional benefits of malt in food products.

Industry Development and Key Trends
The malt ingredients industry is undergoing significant developments, driven by technological innovations, evolving consumer preferences, and market dynamics.

Clean Label Trends: One of the most prominent trends in the malt ingredients market is the shift towards clean label products. Consumers are increasingly seeking products with natural, simple ingredients, and malt ingredients offer a clean, non-GMO alternative to artificial sweeteners and flavorings.
Innovations in Brewing and Fermentation: The brewing industry is witnessing advancements in brewing technology, with the use of malt extracts and powdered forms gaining popularity. These innovations improve production efficiency, reduce waste, and offer brewers more control over the final product.
Rise of Plant-Based and Health-Conscious Consumers: With a growing preference for plant-based and healthier diets, malt ingredients are gaining traction in the production of vegan and gluten-free products. Additionally, malt is being incorporated into energy bars, snack foods, and ready-to-eat meals, all of which align with the health-conscious consumer's demands.
Sustainability Initiatives: Sustainability is a significant driver of change in the malt ingredients industry. Companies are focusing on improving the sustainability of their supply chains, reducing waste, and using eco-friendly packaging materials. Many are also working to improve water and energy efficiency in the production process.

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Market Drivers

Several factors are driving the growth of the Malt Ingredients Market:

Growing Demand for Craft Beer: The increasing popularity of craft beer, especially in North America and Europe, is driving the demand for malt ingredients, as small and independent brewers seek unique flavors and high-quality products.

Healthier Alternatives: As consumers increasingly look for natural and clean-label products, malt ingredients are being adopted in place of artificial sweeteners and flavorings. The use of malt in functional food products is also expanding, particularly in energy and protein bars.

Technological Advancements: Innovations in production technologies are improving the efficiency and scalability of malt ingredient production, helping meet the growing demand.

Challenges

Despite its promising growth, the Malt Ingredients Market faces several challenges:

Supply Chain Volatility: The malt ingredients industry is highly dependent on agricultural production, particularly barley. Weather conditions, price fluctuations, and crop failures can lead to supply chain disruptions.

Intense Competition: The market is fragmented with numerous local and global players, leading to intense competition. Companies need to differentiate through innovation, quality, and sustainability efforts to maintain a competitive edge.

The global Malt Ingredients Market is witnessing strong growth, fueled by key drivers such as increasing demand from the brewing and food industries, technological innovations, and evolving consumer preferences. With a diverse range of applications and growing regional markets, the future of the malt ingredients sector looks promising. However, companies must navigate challenges like supply chain volatility and intense competition while capitalizing on emerging trends like sustainability and health-conscious consumer demands.

TABLE OF CONTENTS

EXECUTIVE SUMMARY
2 Market Introduction

3 RESEARCH METHODOLOGY

4 MARKET INSIGHTS

5 Market Dynamics

6 Market Factor Analysis

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