Malt Market By Type (Dry Extract, Malt Flour, And Liquid Extracts), By Source (Barley, Rice , Rye, And Others), By Application (Beer, Food And Beverages, Pharmaceuticals, And Whiskey), And Region - Global Forecast To 2027

Global Malt Market: Introduction

The global malt market is expected to value at approximately US$ 20 Bn in 2019 and is expected to register a CAGR of 6.7%.

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Malt is germinated cereal grain which is been dried in a procedure known as malting. The malting method modifies the grain in order to make the sugars trapped inside the kernel available for mashing. There are three major steps for the malting process namely; steeping, germination, and kilning. The major purpose of malting a grain is to release enzymes that are used by the brewer. Any of a variety of cereal grains including wheat, oats, rye, and rice can be used for making malt.

Global Malt Market: Dynamics

Changing eating habits and increasing consumption and production of beer in developed and developing countries are the major factor expected to drive the growth of the target market.  For instance, according to the National Brewers Association, in 2015 approximately 3,72,387 thousand hl of beer was consumed in Europe.

In addition, increasing awareness about health benefits of malt due to the high content of protein and minerals such as magnesium, calcium, zinc, and potassium is another factor expected to drive the growth revenue of the global malt market.

Furthermore, higher usage of barley malts liquid extracts in wide range of malted food drinks owing to high content of all essential vitamins B such as niacin, riboflavin, nicotinic acid, pantothenic acid, thiamin, folic acid and biotin plus amino acids, Vitamin B6 (pyridoxine),  is another factor expected to support the growth of the market over the forecast period.

However, prolonged consumption of an excessive amount of protein with steroids for longer periods of time can be harmful to the kidneys and result in the formation of kidney stones is a major factor expected to hamper the global malt market to a significant extent. In addition, the availability of alternative alcoholic beverages is other factor expected to hamper the growth of the target market to a certain extent.

Companies can develop products that can reduce risks of diseases such as type 2 diabetes, protein malnutrition, post-recovery illness, and inflammatory bowel disease, and is expected to create opportunities for existing as well as new entrants’ players operating in the target market. In addition, in developing countries increasing westernization and changing eating habits has led to high demand for bakery products and beers and is expected to create lucrative opportunities for the player in the global malt market.

The key trend witnessed in the target market is companies are strategically expanding by setting up manufacturing plants or by collaborating with local companies in order to cater to the growing demand for malt, which in turn can enable access to a reliable and efficient supply chain.  For instance, In January 2019, Muntons plc sets sight to expand its liquid malt extract plant production capacity with the support of HSBC UK, in order to meet the requirement of malt.

Global Malt Market Analysis by type:

On the basis of type, the liquid extracts segment is expected to contribute major revenue share in the global malt market and is expected to register the highest CAGR of over 6.5% over the forecast period. This is primarily attributed, increasing application in manufacturing of pharmaceutical, health drinks, and biscuit & confectionery products. In addition, liquid malt extract is less expensive than dry malt extract which is estimated to be a factor driving the market growth.

Global Malt Market Analysis by Source:

Among the source segments, the barley segment is expected to contribute major revenue share in the global malt market and is expected to register the highest CAGR of over 6.5% over the forecast period. This can be attributed to a high protein, carbohydrates, and enzymes content in barley. In addition, malted barley is the source of sugars which are later fermented into beer.

Global Malt Market Analysis by Brewer:

Among the brewer segments, the standard and base malt segment is expected to contribute major revenue share in the global malt market and is expected to register the highest CAGR of over 6.3% over the forecast period. Increasing demand for beer is anticipated to boost the demand for standard and base malt brewer and is expected to support growth of the target market over the forecast period.

Global Malt Market Analysis by Application:

Among the application segments, the beer segment is expected to contribute major revenue share in the global malt market and is expected to register the highest CAGR of over 6.4% over the forecast period.

Global Malt Market Analysis by Region:

Europe market is expected to dominate the global malt market and is projected to account for the largest revenue share as compared to that of markets in other regions. The major driving factors for growth of the malt market in this region are product innovation for developing high-quality protein and new product launches in countries in the region. In addition, prominent companies are collaborating with European companies as a part of the expansion strategy in order to produce high-quality malt in the region.

For instance, In December 2018, Cargill Incorporated and Axéréal announced their intention to enter into an agreement under which Cargill will sell its malt business to Axéréal’s malt subsidiary, Boortmalt N.V. The transaction is expected to close in the second half of 2019 and will be subject to regulatory and other approvals

North America market is expected to register second highest revenue in the global malt market. This is due to, increasing demand for craft beer, owing to factors such as easy availability in different flavors. For instance, in 2016, according to Canadian Malting Barley Technical Center, 1.96 Mn hl of beer produced in Canada

Asia Pacific market is expected to register the highest CAGR of over 6.6% over the forecast period. This is primarily attributed to increasing consumption of beer, the inclination of the younger generation towards beverage with a unique taste, and changing regulatory scenarios related to consumption of alcohol in countries such as India, China, and Australia.

Global Malt Market Segmentation:

Global Malt Market Segmentation, by type:

• Dry Extract
• Malt Flour
• Liquid Extracts

Global Malt Market Segmentation, by the source:

• Barley
• Rice
• Rye
• Wheat
• Others

Global Malt Market Segmentation, by the brewer:

• Single Malt
• Specialty Malt
• Standard and Base Malt

Global Malt Market Segmentation, by the application:

• Beer
• Food and Beverages
• Pharmaceuticals
• Whiskey

Global Malt Market Segmentation, by region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa