Specialty Malt Market Size (2024-2030)

The Global Specialty Malt Market was valued at USD 3.2 billion in 2023 and is projected to grow at a CAGR of 6.8% from 2024 to 2030. The market is expected to reach USD 5.1 billion by 2030.

Specialty malt is a crucial ingredient in the production of beer, whiskey, and various baked goods, offering unique flavor, color, and texture enhancements. Increasing demand for craft beer, coupled with rising consumer preferences for innovative malt-based beverages, is propelling the specialty malt market's growth. Additionally, the growing application of specialty malt in bakery, confectionery, and distilling industries further contributes to the market's expansion.

Key Market Insights:

Roasted malt held the largest market share in 2023, accounting for over 40% of the market, due to its rich flavor and color properties, making it a preferred choice for brewing and distilling.

The brewing segment dominates the application category, contributing to over 60% of the market revenue, with craft breweries driving the highest demand for specialty malt varieties.

Europe accounted for the largest share of the global market in 2023, with a market share of 35%, led by countries like Germany, Belgium, and the UK, which have a strong beer-brewing culture.

The bakery and confectionery segments are expected to witness the fastest growth, with a CAGR of 7%, as specialty malt becomes increasingly popular in the production of malt-flavored breads, cakes, and snacks.

Asia-Pacific is expected to grow at the highest CAGR of 7.5%, driven by the increasing consumption of alcoholic beverages and baked goods in countries like China, India, and Japan.

Global Specialty Malt Market Drivers:

Growing Craft Beer Industry and Rising Consumer Preferences for Premium Alcoholic Beverages are driving the market growth
The global craft beer movement is a significant driver of the specialty malt market. Craft breweries rely heavily on specialty malts to create distinct flavors, colors, and textures in their beers, which cater to the increasing consumer demand for unique and high-quality alcoholic beverages. Specialty malts such as caramelized and roasted malts are particularly sought after in the production of darker ales, stouts, and porters. The growing number of microbreweries, especially in Europe and North America, has fueled the demand for a wide variety of malt types to meet the diverse flavor preferences of consumers. Moreover, the premiumization trend in the alcoholic beverages market is encouraging large-scale breweries to incorporate specialty malts in their product lines, offering consumers a more diverse range of flavors.

Expanding Application of Specialty Malt in the Bakery and Confectionery Industry is driving the market growth
Specialty malts are increasingly being used beyond brewing, particularly in the bakery and confectionery sectors. In bakery products, specialty malt imparts a rich flavor and enhances the texture and shelf life of goods like breads, cakes, and cookies. Additionally, malt extracts derived from specialty malt are being utilized in confectionery products to add sweetness and depth of flavor. The rising demand for malt-flavored bakery and snack products is particularly noticeable in Europe and North America, where consumers are gravitating towards traditional and artisanal baked goods. As the market for clean-label and natural ingredients grows, specialty malt is gaining traction as a flavor-enhancing and natural coloring agent in these industries, driving further demand.

Innovation and Expansion of Low-Alcohol and Alcohol-Free Beverages is driving the market growth
The increasing focus on health and wellness has led to a surge in demand for low-alcohol and alcohol-free beers. These products require specialty malts to ensure that the beer retains a rich and satisfying flavor despite the reduced alcohol content. As more consumers shift towards healthier drinking options, the demand for high-quality specialty malts that can offer distinctive taste profiles and aromas is rising. Brewers are using specialty malts to differentiate their low-alcohol and alcohol-free offerings, providing consumers with a premium drinking experience without the full alcohol content. The growing popularity of these beverages, particularly in regions like Europe and North America, is expected to contribute significantly to the growth of the specialty malt market.

Global Specialty Malt Market Challenges and Restraints:

Volatility in Raw Material Prices and Supply Chain Disruptions is restricting the market growth
One of the major challenges faced by the specialty malt market is the volatility in the prices of raw materials, particularly barley. Barley, being the primary ingredient for malt production, is subject to fluctuations in price due to climatic conditions, geopolitical issues, and changes in agricultural policies. Adverse weather conditions such as droughts or excessive rainfall can impact barley yields, leading to supply shortages and price hikes. Additionally, the global supply chain for specialty malts has been disrupted by various factors, including the COVID-19 pandemic, which caused delays in shipping and production. These supply chain disruptions have resulted in increased operational costs for malt producers and, in some cases, shortages of specific malt varieties, impacting the profitability of market players.

Increasing Competition from Alternative Ingredients is restricting the market growth
The specialty malt market faces growing competition from alternative ingredients such as flavor enhancers, synthetic colorants, and other natural flavoring agents. In industries like bakery and confectionery, manufacturers are exploring alternative ways to enhance flavor, texture, and color without relying on specialty malt. Furthermore, the development of synthetic malt flavors in the food and beverage industry poses a potential threat to the specialty malt market. These alternatives can be produced at a lower cost and are more readily available, offering manufacturers a cost-effective solution. However, while these alternatives may provide similar functionalities, they often lack the authenticity and natural appeal of specialty malt, which could limit their long-term impact on the market.

Market Opportunities:

The Global Specialty Malt Market presents significant opportunities for growth, particularly in emerging markets and new product applications. In recent years, the demand for craft beer and premium beverages has expanded beyond traditional markets like Europe and North America to regions such as Asia-Pacific and Latin America. The growing middle-class population and increasing disposable incomes in these regions are driving demand for premium alcoholic beverages, thereby boosting the demand for specialty malts. Additionally, the rise of e-commerce platforms for craft beers and specialty food products is opening up new distribution channels for specialty malt producers, allowing them to reach a wider customer base. Another promising opportunity lies in the development of organic and non-GMO specialty malts, as consumers increasingly seek out clean-label and sustainable ingredients in their food and beverage products. Manufacturers that invest in sustainable sourcing and certification for organic specialty malt can capture a growing segment of environmentally conscious consumers. Furthermore, the application of specialty malt in the non-alcoholic beverage segment is expected to rise, with malt-based soft drinks gaining popularity in markets like Asia and the Middle East. As manufacturers innovate with new malt varieties and applications, the global specialty malt market is poised for continued expansion.

SPECIALTY MALT MARKET REPORT COVERAGE:

Specialty Malt Market Segmentation:

Specialty Malt Market Segmentation By Type:

• Roasted Malt

• Caramelized Malt

• Others

Roasted malt is the dominant product segment, holding over 40% of the market share in 2023. Roasted malt is highly sought after for its deep color and strong flavor profile, making it a preferred choice in brewing and distilling applications. Its ability to impart rich, toasty flavors and dark hues makes it ideal for creating stouts, porters, and darker ales. In addition to brewing, roasted malt is increasingly used in bakery products to add complexity and a distinctive roasted taste, further contributing to its dominance in the market.

Specialty Malt Market Segmentation By Application:

• Brewing

• Bakery

• Confectionery

• Distilling

The brewing segment dominates the specialty malt market, accounting for more than 60% of total market revenue. Specialty malts are essential in the brewing process, where they provide flavor, color, and texture to different beer styles. The growing popularity of craft breweries and the demand for unique beer flavors has driven the use of specialty malts, particularly in the production of ales, stouts, lagers, and porters. Additionally, the rise of home brewing has contributed to the growth of this segment, as more consumers experiment with specialty malts to create personalized beer recipes.

Specialty Malt Market Regional Segmentation:

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Europe holds the largest market share in the Global Specialty Malt Market, accounting for 35% of the total revenue in 2023. The region's dominance is attributed to its rich brewing history and the presence of leading beer-producing nations such as Germany, Belgium, and the UK. The strong demand for specialty malt in these countries is driven by the flourishing craft beer culture, which emphasizes unique flavor profiles and artisanal brewing techniques. In addition, the European bakery industry is increasingly incorporating specialty malt into traditional baked goods, further boosting demand. The region's focus on premium quality and traditional production methods positions Europe as the leader in the global specialty malt market.

COVID-19 Impact Analysis on the Global Specialty Malt Market:

The COVID-19 pandemic had a mixed impact on the Global Specialty Malt Market. While there was a temporary decline in demand from the brewing industry due to the closure of bars, restaurants, and pubs during lockdowns, other sectors such as bakery and confectionery saw increased demand as consumers shifted to home-based cooking and baking. Craft breweries, in particular, faced significant challenges due to reduced on-premise consumption, leading to a slowdown in specialty malt orders. However, the pandemic also accelerated the growth of e-commerce platforms for specialty beverages and food products, providing new opportunities for malt producers to reach consumers directly.

Latest Trends/Developments:

The specialty malt market is witnessing several key trends, including the growing demand for organic and non-GMO malt varieties, driven by consumer preferences for natural and clean-label products. Additionally, advancements in malt processing technologies are enabling manufacturers to create new malt varieties with enhanced flavor profiles and functional properties. The increasing popularity of alcohol-free and low-alcohol beers is also driving demand for specialty malts that can enhance the flavor of these beverages. Another notable trend is the expansion of specialty malt applications in non-brewing industries, particularly in bakery, confectionery, and malt-based soft drinks, offering new avenues for growth.

Key Players:

1. Cargill, Inc.

2. Malteurop Group

3. GrainCorp Ltd.

4. Muntons Plc

5. Viking Malt

6. Simpsons Malt Ltd.

7. Soufflet Group

8. Crisp Malting Group

9. Axereal Group

10. Rahr Corporation