Global Specialty Malt Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

Recent Developments:

• In May 2016, Viking Malt acquired Carlsberg’s subsidiary—Danish Malting Group A/S (DMG). DMG had three malting plants (one in Denmark and two in Poland) with a combined annual capacity of 220,000 tons.
• In May 2015, GrainCorp significantly expanded the malt production capacity at its Great Western Malting facility in Pocatello, Idaho, U.S. The project would increase the capacity at Pocatello by 120,000 tons, bringing the total annual malting capacity of the facility to 220,000 tons.
• In April 2015, Malteurop launched a new line of premium quality kiln-dried specialty malts. This extended Malteurop North America’s offering to satisfy the distinctive malt needs of craft brewers throughout the region.
• In November 2014, Axereal (France) and Tereos SA (France) France’s major sugar group, entered into long-term strategic partnership to develop an innovative range of solutions for their brewery and distillery customers. This partnership enabled Axereal to add value to the malting and glucose production activities.
• In October 2013, Cargill acquired Joe White Maltings (Australia) from Glencore International (Switzerland); this provided Cargill with a global footprint in all key global barley production areas, particularly in the Australian continent.

The Global Specialty Malt Market is segmented based on type, application, and region. By type, the market is divided into crystal malt, roasted malt, dark malt, and others. Each type offers distinct characteristics that cater to different brewing and distilling needs. Crystal malt, known for its sweet flavor and caramel color, is widely used in brewing ales and lagers. Roasted malt provides a rich, dark color and robust flavor, essential for stouts and porters. Dark malt, which includes varieties such as chocolate and black malt, imparts deep colors and complex flavors to specialty beers. This diversity in malt types allows brewers and distillers to craft a wide range of products to meet consumer preferences.

In terms of application, the specialty malt market is segmented into brewing, distilling, food, and others. The brewing segment dominates the market, driven by the rising popularity of craft beers and the increasing number of microbreweries worldwide. Specialty malts are integral to producing unique and high-quality craft beers, contributing to the segment's growth. The distilling segment also holds a significant share, as specialty malts are essential for creating premium whiskeys and other spirits. Additionally, the food segment is experiencing growth, with specialty malts being used in baked goods, confectioneries, and malted beverages, adding flavor, color, and nutritional value to these products.

The specialty malt market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Europe holds the largest market share, attributed to its rich brewing tradition and the presence of numerous breweries and distilleries. North America follows closely, with a thriving craft beer industry and increasing consumer interest in premium malt-based products. The Asia-Pacific region is witnessing rapid growth, driven by rising disposable incomes, changing lifestyles, and the growing popularity of Western alcoholic beverages. Latin America and the Middle East & Africa are also emerging markets, with increasing investments in the brewing and distilling industries and a growing interest in specialty malt products.

Global Specialty Malt Segment Analysis

In this report, the Global Specialty Malt Market has been segmented by Source, Application, Form and Geography.

Global Specialty Malt Market, Segmentation by Source

The Global Specialty Malt Market has been segmented by Source into Rye, Barley and Wheat.

The Barley is the most commonly used grain in malt production due to its favorable malting characteristics, such as high enzyme content, which is essential for converting starches into fermentable sugars. Barley malt is prized for its versatility and is used in a wide range of beers, from light lagers to dark stouts, and in various food products for its distinct flavor and nutritional benefits. The dominance of barley in the specialty malt market is bolstered by the continuous innovation in barley breeding, resulting in varieties that offer improved yield, disease resistance, and malting quality.

Rye malt, though less common than barley, is gaining popularity due to its unique flavor profile, which imparts a distinctive spiciness and complexity to beers and spirits. Rye malt is particularly favored in the production of rye beers and whiskeys, where its robust flavor enhances the character of the final product. In addition to its application in brewing and distilling, rye malt is also used in baking to produce traditional rye breads, contributing to its growing demand. The rising interest in craft beverages and artisanal food products is driving the increased use of rye malt, as consumers seek out new and unique flavors.

Wheat malt is another important segment in the specialty malt market, known for its ability to produce a smooth and creamy mouthfeel in beers. Wheat malt is a key ingredient in the production of wheat beers, such as Hefeweizens and Witbiers, which are characterized by their light, refreshing taste and hazy appearance. Beyond brewing, wheat malt is also utilized in the baking industry, where it enhances the texture and flavor of various baked goods. The nutritional benefits of wheat, including its high protein and fiber content, further contribute to its popularity. The demand for wheat malt is supported by the growing trend of health-conscious consumers seeking wholesome and natural ingredients in their beverages and food products.

Global Specialty Malt Market, Segmentation by Application

The Global Specialty Malt Market has been segmented by Application into Brewing, Distilling, Non-Alcoholic Malt beverages and Baking.

The brewing industry, specialty malts are essential for producing a wide range of beer styles. They provide the necessary color, flavor, and aroma profiles that differentiate various types of beers, from pale ales to stouts. The growing craft beer movement, particularly in regions such as North America and Europe, has driven the demand for unique and high-quality specialty malts. Breweries are continually experimenting with different malt types to create distinct flavors and innovative beer offerings, which in turn fuels the specialty malt market.

Distilling is another major application of specialty malts, particularly in the production of whiskey and other spirits. Specialty malts are used to impart specific characteristics to the distilled beverages, including unique flavors and enhanced mouthfeel. The rise in premium and craft spirits has led to an increased demand for specialty malts that can provide distinctive taste profiles. Distillers are increasingly seeking out specialty malts to create high-end products that stand out in a competitive market. This trend is particularly noticeable in regions with a rich tradition of whiskey production, such as Scotland and the United States.

Non-alcoholic malt beverages and baking also represent significant segments within the specialty malt market. Non-alcoholic malt beverages, including malt-based energy drinks and soft drinks, have gained popularity due to their health benefits and unique taste. The versatility of specialty malts allows manufacturers to cater to a broad range of consumer preferences, from sweet and caramel-like flavors to more robust and roasted notes. In the baking industry, specialty malts are used to enhance the flavor, color, and texture of baked goods. Artisan bakeries and large-scale producers alike utilize specialty malts to create breads, pastries, and other baked items with improved quality and distinctive tastes, further driving the market demand.

Global Specialty Malt Market, Segmentation by Form

The Global Specialty Malt Market has been segmented by Form into Liquid Specialty Malts and Dry Specialty Malts.

The liquid Specialty Malts are made by extracting the malted grain into a liquid concentrate, which is then used in brewing and food production. These liquid malts provide ease of use, consistent quality, and uniform flavor profiles, making them popular among large-scale brewers and food manufacturers. They are particularly advantageous in the brewing process due to their solubility and ability to integrate seamlessly, reducing the brewing time and improving efficiency.

Dry Specialty Malts, on the other hand, are produced by drying the malted grains to reduce moisture content, resulting in a powder or granulated form. These dry malts are favored for their longer shelf life, ease of storage, and versatility in various applications. In the brewing industry, dry specialty malts are valued for their ability to add distinct flavors, colors, and textures to beer, providing brewers with greater control over the final product. Additionally, dry malts are extensively used in the food industry for producing malted milk, cereals, and confectioneries, where they enhance flavor and nutritional content.

Both liquid and dry specialty malts are pivotal in meeting the diverse needs of the beverage and food industries. The choice between liquid and dry forms often depends on the specific requirements of the production process and the desired characteristics of the end product. As consumer demand for unique and high-quality malt-based products continues to rise, the specialty malt market is expected to grow, with both liquid and dry forms playing essential roles in driving innovation and expanding the range of malt applications. This segmentation allows manufacturers to cater to a wide array of preferences and operational needs, contributing to the overall growth and dynamism of the specialty malt market.

Global Specialty Malt Market, Segmentation by Geography

In this report, the Global Specialty Malt Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Specialty Malt Market Share (%), by Geographical Region, 2023

In North America, the market is driven by the increasing demand for craft beer and specialty beverages. The United States, in particular, has a robust craft brewing industry that emphasizes the use of specialty malts to create unique flavors and profiles. Canada also contributes significantly to the market with its expanding brewing sector and consumer inclination towards premium alcoholic beverages.

Europe holds a substantial share in the specialty malt market due to its rich brewing heritage and the presence of numerous established breweries. Countries like Germany, Belgium, and the United Kingdom are prominent consumers of specialty malts, owing to their long-standing traditions of producing high-quality beers. Additionally, the region's growing trend towards organic and natural ingredients in food and beverage production further fuels the demand for specialty malts. The European market also benefits from a well-developed supply chain and technological advancements in malt production.

The Asia Pacific region is witnessing rapid growth in the specialty malt market, driven by increasing consumer interest in craft beer and innovative alcoholic beverages. Countries such as China, Japan, and India are emerging as significant markets due to rising disposable incomes and changing consumer preferences towards premium and artisanal products. The Middle East and Africa and Latin America are also showing promising growth, albeit at a slower pace. These regions are gradually embracing specialty malts as local breweries and beverage producers seek to diversify their product offerings and cater to evolving consumer tastes.

This report provides an in depth analysis of various factors that impact the dynamics of Global Specialty Malt Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Craft Beer
• Flavor Innovation

• Health Trends : Health trends significantly influence the Global Specialty Malt Market, as consumers increasingly seek natural and nutritious ingredients in their food and beverages. Specialty malts, known for their rich nutritional profile, cater to this demand by offering vitamins, minerals, and antioxidants. Barley malt, a common base for specialty malts, is particularly valued for its high fiber content, which supports digestive health. As health-conscious consumers prioritize ingredients that contribute to overall well-being, the demand for specialty malts in products like health bars, cereals, and functional beverages continues to rise.

  The growing interest in clean label products also drives the specialty malt market. Consumers today prefer products with minimal processing and recognizable ingredients, and specialty malts align perfectly with this trend. Specialty malts are often produced through traditional malting processes without the need for artificial additives or preservatives, making them an attractive choice for clean label products. This trend is evident in the increasing use of specialty malts in the production of organic and natural foods, where their inherent qualities enhance flavor, color, and nutritional value naturally.

  Specialty malts are gaining traction in the non-alcoholic beverage sector, where health trends are particularly prominent. Non-alcoholic malt beverages, which offer the benefits of malt without the effects of alcohol, are becoming popular among health-conscious consumers. These beverages are often fortified with vitamins and minerals, making them a healthy alternative to sugary soft drinks. The use of specialty malts in such products not only provides a unique taste but also taps into the growing market of consumers seeking healthier lifestyle choices. This intersection of health trends and the versatile applications of specialty malts is driving innovation and growth in the global specialty malt market.

Restraints

• Limited availability
• High costs

• Quality variability : The Global Specialty Malt Market exhibits notable variability in quality across different regions and types of malt products. Quality standards in specialty malts can vary significantly due to several factors, including raw material sourcing, production processes, and regional brewing traditions. In North America and Europe, where the craft brewing industry is well-established, there is a strong emphasis on consistent quality and flavor profiles. Maltsters in these regions often adhere to stringent production standards and utilize advanced technology to ensure the desired characteristics in their malts, catering to the discerning preferences of craft brewers.

  In Asia Pacific, the quality variability in specialty malts reflects the region's diverse brewing landscape and varying levels of technological adoption. Countries like Japan and South Korea are known for their meticulous approach to brewing and malt production, resulting in high-quality specialty malts that cater to both traditional and innovative brewing practices. On the other hand, emerging markets in Southeast Asia may experience more variability in quality due to factors such as infrastructure limitations and varying levels of technical expertise among malt producers.

  In the Middle East and Africa, as well as Latin America, the quality of specialty malts can vary depending on local brewing traditions, access to raw materials, and technological advancements. These regions are increasingly adopting specialty malts to meet growing consumer demand for premium beverages, but the maturity of their malt production industries may result in some variability in product quality. Overall, while global standards for specialty malts continue to evolve, ensuring consistent quality remains a priority for both malt producers and brewers aiming to deliver distinctive flavors and experiences to consumers worldwide.

Opportunities

• Craft Beer
• Health Consciousness

• Product Innovation : Product innovation in the Global Specialty Malt Market is a key driver of growth, characterized by ongoing advancements aimed at enhancing flavor profiles, improving brewing efficiency, and expanding application possibilities. Manufacturers and researchers are continually developing new malt varieties and refining production techniques to meet evolving consumer preferences and industry demands. Innovations in malt processing have led to the creation of specialty malts with unique characteristics such as specific flavors, colors, and aromas, catering to the diverse needs of brewers, distillers, and food manufacturers worldwide.

  One significant area of innovation lies in the development of malt varieties optimized for specific brewing techniques and beverage styles. For instance, malt producers are focusing on creating malts that deliver consistent and distinctive flavors essential for craft beers, whiskies, and other spirits. Innovations also target improving the functional properties of specialty malts, such as their solubility, enzymatic activity, and stability during brewing processes. These advancements not only enhance product quality but also contribute to operational efficiencies for breweries and distilleries.

  Product innovation in the specialty malt market extends beyond alcoholic beverages to include non-alcoholic applications in the food industry. Specialty malts are increasingly being used in baking, confectionery, and breakfast cereals to impart natural sweetness, enhance texture, and add nutritional value. Innovations in malt-based food products are driven by consumer demand for healthier, natural ingredients and the versatility of malt in providing unique sensory experiences. As a result, ongoing research and development efforts continue to push the boundaries of what specialty malts can offer, positioning the market for sustained growth and diversification in the years to come.

Key players in Global Specialty Malt Market include:

• Cargill (US)
• Malteurop Groupe (France)
• GrainCorp Ltd. (Australia)
• Soufflet Group (France)
• Axereal Group (France)

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis