Global Malt Ingredient Market - Drivers
Growing demand for functional food among consumers is expected to foster the market growth of malt ingredients. According to the report published by the Institute of Food Technologists in April 2020, sales of natural and organic foods reached US$ 262 billion in 2020; functional/fortified foods totalled US$ 251 billion. Hence, the rising demand for functional food is expected to accelerate the market growth of malt ingredients.
The market for malt ingredients is driven primarily by rising demand from the worldwide food and beverage industry. It is also expected that increased demand for dairy products and beer will fuel the demand for malt ingredients in the years to follow. However, the emerging market for malt ingredients is expected to open up new opportunities. For instance, The global food and beverages market grew from $6,729.54 billion in 2022 to $7,221.73 billion in 2023 at a compound annual growth rate (CAGR) of 7.3%.
Global Malt Ingredient Market - Restraints
The non-availability of substitutes with the same characteristics as malts can lead to a shortage of malt ingredients, which is expected to hinder the market growth. However, the shortage can be met by using other types of grains, such as rice, which does not contain the same nutritional as well as other qualities as barley and wheat. Hence, this is expected to restrict market growth over the forecast period. Moreover, the increasing usage of malt in breweries is leading to a shortage of malt ingredients, which is expected to restrict market growth. Malt is a crucial raw material used in the manufacturing of gluten-free beer. According to the Coherent Market Insights analysis, around 75%–78% of total barley malt produced globally is utilized by the brewing industries, and hence a moderate volume remains for other applications such as bakery, pharmaceuticals, food, and distillery applications. Moreover, seasonal variations and the availability of cereal grains of good quality are likely to limit the growth of the global market.
Global Malt Ingredient Market - Opportunities
Expanding food and beverage industry, especially in the Asia Pacific region is expected to provide potential growth opportunities for the malt ingredient. India Brand Equity Foundation, the Indian food processing industry accounts for 32 percent of the country’s total food market, one of the largest industries in India, and is ranked fifth in terms of production, consumption, and export. In 2020 India’s exports stood at US$ 1.8 billion. Hence, the growing food processing industry is expected to accelerate market growth.
Growing production of beer is expected to propel the market growth of malt ingredients. Barley malt is mainly used as a flavor in the production of beer. According to the National Beer Wholesalers Association, in 2020, the U.S. beer industry shipped (sold) 243.6 million barrels of beer – equivalent to more than 3.1 billion cases of 24-12 ounce servings. In addition, the industry shipped approximately 2.3 million barrels of cider, equivalent to more than 38.4 million cases.
Malt Ingredient Market Report Snapshots
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