Specialty Malt Market size is estimated to reach $5.1 billion by 2027, growing at a CAGR of 4.7% during the forecast period 2022-2027.
Specialty Malt Market - Forecast (2022 - 2027)
Specialty Malt Market size is estimated to reach $5.1 billion by 2027, growing at a CAGR of 4.7% during the forecast period 2022-2027. Malts are delineated as cereal grains that are first soaked in water to germinate or sprout seedlings from them and then dried by making use of hot air. Barley is the most commonly considered for the preparation of non-alcoholic malt beverages like beer. Whereas specialty malts are nothing, but a variety of grains used in brewing processes to enhance the flavor of the final product. Accruing trends of ready-to-eat foods are stimulating the demand for the usage of yeasts, malt, and other starch powders like maltodextrin in food items to improve the flavor, promote enzyme activity, and elevate their shelf life. Malts are rich in vitamin B6, fibers, and potassium, therefore, helping in the prevention of cardiovascular diseases, and skincare. The specialty malt market outlook is quite enchanting as the demand for non-alcoholic and low-alcoholic beverages is plunging upward precipitously. Proliferating trends of low alcoholic beverages among teenagers, and rising disposable income are factors set to drive the growth of the Specialty Malt Industry for the period 2022-2027
Report Coverage
The report: “Specialty Malt Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Specialty Malt Market.
By Type: Scorched/Caramel and Roasted.
By Source: Rye, Wheat, Barley.
By Form: Liquid, Dry.
By Application: Alcoholic and Non-Alcoholic beverages, Dairy items, Confectionery and Bakery, and others.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).
Key Takeaways
- Geographically, Europe’s Specialty Malt Market accounted for the highest revenue share in 2021. However, Asia-Pacific is poised to dominate the market over the period 2022-2027.
- Augmenting demand for state-of-the-art flavors is said to be a preeminent driver driving the growth of the Specialty Malt Market. Hampered supply chain and reduced incomes of people due to the COVID-19 outbreak are said to reduce the market growth.
- Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Specialty Malt Market report.
Specialty Malt Market Segment Analysis-By Source
The Specialty Malt Market based on the source type can be further segmented into rye, wheat, and barley. The barley segment held the largest share in 2021. The growth is owing to the high efficacy in the fermentation process of crafted beer. The effectiveness of these cereal grains’ is attributed to their structure and the level of enzymes they hold. Barley usually contains diastatic power enzymes like Alpha-amylase and beta-amylase which helps in the swift breakdown of starches into sugars. Diabetes has been turning into a global concern, as more than 490 million people across the globe have had diabetes, which further increases their chances of contracting various diseases. Moreover, they extend several health benefits such as lowering cholesterol levels, preventing heart attacks, improving digestion, and perishing kidney stones. On another hand, they exhibit a high level of starches which gives a more alcoholic touch to beverages. Moreover, the barley segment is estimated to be the fastest-growing segment with a CAGR of 5.6% over the forecast period 2022-2027. This growth is owing to factors such as high awareness among consumers regarding the health benefits of barley proliferating the demand for beers.
Specialty Malt Market Segment Analysis-By Application
The Specialty Malt Market based on the application can be further segmented into alcoholic and non-Alcoholic beverages, dairy items, confectionery and bakery, and others. The alcoholic and non-alcoholic segments held the largest share in 2021. The growth is owing to growing trends of drinking alcohol on special occasions. Rising western influence in developing nations is gravitating youth toward drinking. Moreover, specialty malts add extra and enhanced flavor to drinks which are stimulating cravings among people. Additionally, the number of craft breweries is swelling in regions such as the U.S. In 2014, around 3814 craft breweries were present which swelled up to touch 7346 in 2018. Similarly, the alcoholic and non-alcoholic segments are estimated to be the fastest-growing segment with a CAGR of 5.8% over the forecast period 2022-2027. We can’t deny the fact that specialty malts have a big share in confectionery and bakery products’ production also but still, this segment cannot outperform the beverage segment considering the alcohol consumption trends. We are living in a dynamic era where people's lives are full of events which is the biggest reason for stress and depression also. Therefore, people often use alcohol as a medium to escape mental stress and tension.
Specialty Malt Market Segment Analysis-By Geography
The Specialty Malt Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held the largest share with 31% of the overall market in 2021. The growth in this segment is owing to the factors such as the presence of countries that are the biggest consumers of alcohol. Germany, Lithuania, Romania, Ireland, and many more consume more than 12 liters of alcohol every year. The European Union is the biggest producer of barley around the globe. Moreover, a study shows that Europeans are genetically prone to drink alcohol and high caloric foods. Ascribing to full-fledged economies European public has more purchasing power as compared to developing nations. However, the Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period 2022-2027. This growth is owing to growing western influence among the colossal Asian population. Any trend adopted by Asians is destined to become hit considering the size of the population that this continent holds. With rapid industrialization living standards of people are rising and Asia is emerging as a world leader in many sectors. All these factors are cementing the growth of the respective segment in the specialty malts market.
Specialty Malt Market Drivers
Surging per capita income is Anticipated to Boost Product Demand
Swift globalization and industrialization is expanding the world economy. The world economy has witnessed a spike of $9.3 trillion and reached $93.86 trillion as of 2021. As a result, the economies of individual nations are also augmenting, and subsequently, peoples’ purchasing capacity is swelling. The majority of European countries have more than $60,000 in GDP per capita. On another hand, developing nations are also witnessing a surge in purchasing power such as Bangladesh’s per capita income in the financial year 2020-21 witnessed a 10% hike and reached an all-time high of $2,227. Therefore, with more purchasing capacity the people are making more purchases and shooting up the demand for top-notch goods and services.
Specialty Malt Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Specialty Malt Market. Specialty Malt Market key companies are-
Cargill
GrainCorp Ltd
Axereal group
Malteurop Groupe
Soufflet Group
Crisp Malting
Muntons PLC
Barrett Burston Malting Company
Simpsons Malt
RAHR Cooperation
Recent Developments
- On September 1, 2021, a famous US-based food company Cargill, Inc, broadcasted the successful acquisition of Aalst Chocolate, a Singapore-based organization that delivers products to several countries including India, China, Japan, and the rest of southeast Asia. This step is going to help Cargill to enlarge its presence in the Asian chocolate market.
- On August 9, 2021, two food companies have signed an agreement to acquire a US-based company “Sanderson farms.” The first company is Minnesota-based “Cargill, Inc.” and the second firm “Continental Grain Company” is based in Belgium. Both firms agreed to pay an amount of $4.53 billion collectively to Sanderson in order to complete the acquisition process. Every existing shareholder of Sanderson receive $203 for every single share they were holding.
- On November 4, 2019, France-based food processing company “Axereal” announced that it has successfully acquired the malt business of US-based food company “Cargill.” The step will help Boortmalt, a subsidiary company of Axereal in expanding its market share and acquire the leading position in malt production. Further, Azereal spans over four primary barley growing regions, with a production output of over two million metric tons annually. The following strategy would allow the company to grow exponentially in the years to come.
