Specialty Malt Market

Specialty Malt Market Size

The global Specialty Malt Market size was valued at USD 2,674.2 million in 2022 and is projected to reach USD 4,257.3 million by 2030, growing at a CAGR of 6.14% from 2023 to 2030. The craft brewing industry has experienced substantial growth worldwide in recent years, according to the Brewers Association (BA). In 2021, the collective production of small and independent brewers was 24.8 million barrels of beer, resulting in 8% growth and uplifting crafted beer market share by volume to 13.1%, up from the previous year's 12.2% in the U.S. This upward trajectory is expected to continue in the forthcoming years also. While this growth has not converted into an overall increase in malt demand, it has led to the rising demand for specialty malts utilized in greater quantities by craft brewers.

Rising barley prices and increasing packaging and transportation expenses limit the market growth. Malting barley is more expensive as compared to feed barley. The price of malting barley is primarily determined by the malt supply in the worldwide and domestic market and the demand for malt-related products. However, malting barley prices are increasingly affected by spring wheat and corn prices, which serve as feasible production replacements.

Analyst’s Review

The specialty malt market is growing because every year approximately 25 million tons of malt and 2 billion hectoliters of beer are produced worldwide. As the demand for malt is increasing there is a high demand for equipment such as malt roasters to process the raw materials into finished specialty malts.

Malt roasters can improve the efficiency of special malt production lines and are equipped with environmental protection equipment. This equipment of the roasting plant includes malt cooling, product storage, recording, packaging, and a sophisticated system for culm aspiration and flue gas.

Market Definition

Malting starts with the process of soaking sprouts in water and then preventing them from further germination by drying them with heated air. Specialty malt is used in a variety of applications in the beverage industries, particularly in the production of barley-based spirits and beer, where it serves as a coloring and flavoring ingredient.

The growing consumption of malt-based alcoholic and non-alcoholic products, particularly in developing countries such as India and China, is a key factor driving the development of the specialty malt market. However, unfavorable climatic conditions could limit the production of cereal grains which can decrease the production of the specialty malt sector. An increase in the demand for clean-label ingredients, malt-based drinks, and snacks is expected to provide development opportunities.

Market Dynamics

The growing trend of microbreweries and craft beer production has led to an increased demand for specialty malts, as these breweries search for unique and distinctive brews that set them apart from others in the market. The increase in demand for specialty malt has caught the attention of industry manufacturers, leading to the availability of more small-batch malt systems for micro and craft malting applications. As a result, the popularity of craft beers is driving the growth of craft breweries worldwide, which is contributing to the growing demand for specialty malt.

The supply of raw materials is an important consideration for companies, particularly as competition and portfolio diversification continue to grow. The growing demand for raw materials has resulted in rising prices, which can have a significant impact on profit margins. As a result, key players may need to shift their sourcing strategies to maintain margins. These fluctuations in raw material prices can also potentially impact the supply chain of the specialty malt industry, which may hinder the growth of the market during the forecast period.

 Segmentation Analysis

The global specialty malt market is segmented based on form, source, type, application, flavor, and geography.

By Form

Based on the form, the market is bifurcated into dry and liquid forms. The dry-form segment held the largest market share and is growing at a CAGR of 6.47% during the forecasted period. The dry malt segment is expected to expand during this period due to increasing beer consumption globally and the dry form having a longer shelf life when compared to the liquid form and is preferred by most of the major players in the market such as IMPERIAL MALTS LIMITED, Barmalt, Viking Malt, Agromalte Agraria, Simpsons Malt LTD. and few others.

By Source

Based on the source, the market is categorized into barley, wheat, rye, and others. The barley segment dominated the market with a share of 55.65% in 2022. Barley malt is a natural sweetener derived from barley that offers robust and distinct flavors and aromas, making it an excellent substitute for highly refined sugar and non-nutritive syrups in the beverage industry. The use of specialty malt in beverages is also driven by increasingly stringent regulatory standards regarding food additives.

Some of the major importing countries include China, Saudi Arabia, Netherlands, and Germany whereas the major exporters are Australia, France, Ukraine, Russia, and Canada.

By Type

Based on the type, the market is categorized into crystal, roasted, dark, and others. The crystal segment dominated the market with a market share of 42.87% in 2022. Crystal malts also known as caramel malts are specialty grains that add flavor and color to any brew. These malts are used in many beer styles, from pale ales to porters, and are the most widely used type of specialty grain.

These crystal malts come in different concentration levels such as extra light crystal malt, light crystal malt, medium crystal malt, and dark crystal malt, and most of them are used to provide sweet flavor and light golden color to beverages due to which the demand for crystal malt is increasing.

Specialty Malt Market Regional Analysis

Based on regional analysis, the global specialty malt market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

The Asia Pacific will dominate the market and is growing at a CAGR of 7.96% during the forecast period from 2023 to 2030. The specialty malt market in India, Australia, China, and other Asian countries is expected to be driven by the significant amount of raw material production in the Asia Pacific region.

Additionally, the rising awareness regarding the benefits of healthy food consumption could lead to an increase in demand for non-alcoholic malt beverages. For example, Anheuser-Busch InBev launched its non-alcoholic beers in India, which seeks to cater to the growing demand for non-alcohol beverages.

Competitive Landscape

The global specialty malt market study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization.

List of Key Companies in Specialty Malt Market

• Viking Malt
• Agraria
• Simpsons Malt
• GrainCorp
• Anheuser-Busch InBev
• Barmalt
• Milwaukee, WI
• Imperial Malts Ltd.
• Bar Malt India Pvt. Ltd.
• IREKS GmbH

 Key Developments

• February 2021 (Product Innovation): Weyermann GmbH & Co. KG experienced a substantial increase in production capabilities through the implementation of newly installed equipment.

The global Specialty Malt Market is segmented as:

By Form

• Dry
• Liquid

By Source

• Barley
• Wheat
• Rye
• Others

By Type

• Crystal
• Roasted
• Dark
• Others

By Application

• Brewing
• Distilling
• Baking
• Others

By Flavor

• Aromatic
• Coffee
• Smoked
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America