1 Global Malt Extract Market Insight Analysis
The global malt extract market is valued at USD 846.67 million in 2024, growing at a CAGR of 3.14% from 2024 to 2033.
Malt extract is concentrated sugar extracted from germinated barley grains. They fall into two categories: dry malt extracts and liquid malt extracts. Liquid malt extract is a thick syrup. The dry malt extract is dried by a special process to remove almost all the moisture, and the shelf life is long.
Figure Global Malt Extract Market Size (M USD) and CAGR (2024-2033)
2 Malt Extract Market Growth Drivers and Restraints
Food and beverage market expansion and low-sugar development trend: With the global population growth, the improvement of people’s income level and the development of e-commerce platforms, the scale of the food and beverage market continues to expand. Malt extract, as a natural food ingredient derived from grains, is rich in a variety of nutrients, such as maltose, protein, vitamins, etc., which can add flavor and nutrition to food.
At the same time, consumers’ demand for low-sugar and sugar-free products is growing. Food manufacturers can reduce the sugar content of products by adding malt extract, which makes malt extract more widely used in the food and beverage industry and strongly promotes market growth. For example, in the candy market, the use of malt extract can not only meet consumers’ demand for sweetness, but also meet the consumption trend of low sugar and health.
Application expansion in the field of medicine and health products: Malt extract is widely used in the pharmaceutical and health care products industry. It can be used as a raw material for medicines and health care products, a carbon source and nitrogen source for culture media, and a pharmaceutical excipient. Studies have shown that malt extract has multiple functions such as promoting digestion, anti-oxidation, lowering cholesterol, lowering blood sugar and antibacterial.
For example, in terms of lowering blood sugar, its rich maltose can not only supplement the sugar needed by the human body, but also help lower blood sugar, and is an ideal hypoglycemic substance. These functions have led to an increasing demand for malt extract in the field of pharmaceuticals and health products, becoming an important driving force for market growth.
Intensified market competition: With the rapid development of the malt extract market, downstream demand has continued to expand, and more and more companies have entered the industry, resulting in increasingly fierce market competition. In addition to peer competition, malt extract also faces competition from barley substitutes, other natural sweeteners and synthetic sweeteners. In the small and medium-sized enterprise market, low-price competition is relatively common, which not only reduces the profit level of products, but also is not conducive to the long-term healthy development of the industry. In order to compete for market share, some small companies may lower product quality standards and affect the reputation of the entire industry.
Raw material supply and price fluctuations: The main raw materials for the production of malt extract are barley and malt, and their costs account for a high proportion of the main business costs. Therefore, the supply and price fluctuations of barley raw materials will have a significant impact on the company’s continued profitability. On the one hand, climate change has led to frequent natural disasters, affecting barley planting, and may cause a shortage of raw material supply. On the other hand, rising raw material prices will increase the production cost of malt extract, compress product profit margins, and force companies to adjust their production and operation plans, which to a certain extent restricts the development of the market.
Food safety risks and brand barriers: Malt extract is directly related to food safety issues. Any negligence in the production, procurement and sales process may cause food safety problems and affect product quality and corporate reputation. In addition, consumers are paying more and more attention to food safety, and their requirements for the brand and quality of malt extract are getting higher and higher.
If new entrants want to gain recognition from downstream customers, they not only need to invest a lot of money in brand marketing, but also need long-term accumulation and precipitation. Large brand companies have already occupied a dominant position in the market with their strict quality control system and strong R&D capabilities, which has formed a high brand barrier for new entrants, limiting the competitive vitality of the market and the development space for new companies.
3 Technological Innovations in the Malt Extract Market
Improvement of production process: The production process of malt extract is constantly optimized to improve product quality and production efficiency. In the traditional production process, from raw material processing to finished product extraction, multiple processes are involved, and there are problems such as high energy consumption and low efficiency.
Nowadays, some companies have introduced advanced enzymatic hydrolysis technology, which can more accurately control the decomposition of starch and protein in malt and improve the purity and quality of malt extract. In the concentration and drying process, the use of advanced technologies such as vacuum concentration and spray drying can not only effectively retain the nutrients and flavor of malt extract, but also shorten the production cycle and reduce production costs.
Product innovation and research and development: As consumers’ demand for healthy and functional foods increases, malt extract continues to make breakthroughs in product innovation. Companies have developed a variety of malt extract products with specific functions, such as high-energy malt extracts for sports people, which are rich in various nutrients and can quickly replenish energy; there are also low-sugar malt extracts suitable for diabetic patients, which meet the dietary needs of special groups while ensuring taste. Some companies are also exploring the application of malt extracts in new foods and beverages, developing functional beverages and baked goods fortified with malt extracts, etc., expanding the market application scope of malt extracts.
Integrate resources and expand market share: Enterprises integrate resources through mergers and acquisitions, achieve complementary advantages, and then expand market share. For example, Döhler acquired Zucasa, a Spanish juice, puree and sweet fruit concentrate manufacturer. By integrating Zucasa’s production facilities and market channels, Döhler can further expand its business in the European market and enhance its competitiveness in the field of food ingredients. This kind of merger and acquisition behavior helps enterprises achieve economies of scale, reduce production costs, and improve market bargaining power.
Expand business areas and achieve diversified development: Some enterprises enter new business areas through mergers and acquisitions and realize diversified development strategies. Germany’s Ireks entered the ownership structure of Croatian counterpart Glazir. The two parties cooperated in the baking and pastry industry and improved their position in the new market by expanding sales channels. This not only helps Ireks expand its business scope, but also can use Glazir’s resources and market advantages to enrich its own product range, meet the needs of different customers, and reduce the market risks brought by a single business.
4 Global Malt Extract Market Size by Type
In 2024, the revenue for Dry Malt Extract is forecasted to reach $159.01 million. This type of malt extract is characterized by its low moisture content, typically around 2%, making it highly stable and suitable for long-term storage. Dry Malt Extract is produced by removing almost all the water from the malt wort through a specialized drying process. It is widely used in various applications due to its convenience and long shelf life. The growth in demand for Dry Malt Extract is driven by its versatility in applications such as animal feed, pharmaceuticals, and confectionery, where its stability and ease of handling are highly valued.
The revenue for Liquid Malt Extract in 2024 is projected to be $687.65 million. Liquid Malt Extract is a thick syrup produced by extracting sugars from malted barley and concentrating them. It is known for its rich, malty flavor and is widely used in the food and beverage industry, particularly in the production of beer, milk, and other beverages. The growth in the Liquid Malt Extract market is driven by its unique ability to impart a full-bodied malt aroma and flavor to products, making it a preferred choice for many manufacturers. Additionally, its ease of use and compatibility with various production processes contribute to its widespread adoption.
Table Global Malt Extract Market Size by Type in 2024
Type | Market Size (M USD) 2024 |
|---|---|
Dry Malt Extract | 159.01 |
Liquid Malt Extract | 687.65 |
5 Global Malt Extract Market Size by Application
The animal feed application is projected to generate a revenue of 24.45 million USD in 2024. Although it might seem relatively small compared to some other applications, it plays a vital role in the agricultural and livestock – related industries. The demand for animal feed is closely tied to the growth of the livestock population, as well as the increasing focus on providing high – quality nutrition for animals. This sector is expected to see a steady growth trend over the forecast period, reaching 27.52 million USD by 2028.
The pharmaceutical application is forecasted to have a revenue of 14.80 million USD in 2024. The pharmaceutical industry is highly regulated and research – intensive. The revenue in this sector is driven by the development and production of various medications, including those for human and veterinary use. As the global population continues to grow and the demand for healthcare services increases, the pharmaceutical application is likely to experience a slow but steady growth, reaching 17.34 million USD by 2028.
The bakery application is one of the significant contributors to the global market revenue. In 2024, it is expected to generate 268.11 million USD. The bakery industry encompasses a wide range of products, from bread and pastries to cakes. The revenue in this sector is influenced by factors such as consumer preferences for baked goods, changes in dietary trends, and the expansion of the food service and retail sectors. By 2028, the revenue from the bakery application is projected to reach 310.20 million USD, indicating a healthy growth trajectory.
The confectionary application is forecasted to bring in a revenue of 147.87 million USD in 2024. Confectionery products, such as chocolates, candies, and gums, are popular among consumers worldwide. The market revenue in this sector is driven by consumer demand for indulgent treats, as well as innovation in product development, such as the introduction of new flavors and healthier alternatives. The revenue is expected to grow to 172.44 million USD by 2028.
The beverages application is a major player in the global market, with a projected revenue of 313.65 million USD in 2024. This sector includes a diverse range of products, such as soft drinks, juices, and alcoholic beverages. The revenue in the beverages industry is influenced by factors like consumer preferences for different types of drinks, marketing strategies, and changes in consumer spending habits. By 2028, the revenue from the beverages application is expected to reach 352.75 million USD, reflecting its continued importance in the global market.
Table Global Malt Extract Market Size by Application in 2024
Application | Market Size (M USD) 2024 |
|---|---|
Animal Feed | 24.45 |
Pharmaceuticals | 14.80 |
Bakery | 268.11 |
Confectionary | 147.87 |
Beverages | 313.65 |
Others | 77.78 |
6 Global Malt Extract Market Size by Region
In 2024, the North American malt extract market is expected to generate a revenue of $217.15 million. This region has historically been a significant market for malt extract, driven by strong demand from the food and beverage industry, particularly in the United States and Canada. The presence of major players and a well-developed industrial infrastructure supports the growth of this market. Additionally, the region benefits from a high level of consumer awareness regarding health and nutrition, which drives the demand for natural and low-sugar products like malt extract.
Europe continues to be the largest market for malt extract, with a projected revenue of $345.12 million in 2024. The region’s dominance is attributed to its robust food and beverage industry, especially the beer and craft beer sectors. The use of malt extract in traditional European brewing processes is well-established, and the growing trend of craft brewing further boosts its demand. Moreover, the region’s focus on food safety and quality standards ensures a steady market for high-quality malt extract products.
The malt extract market in China is expected to experience significant growth, with revenue projected to reach 55.75 million US dollars by 2024. This growth is mainly due to the booming development of the food and beverage industry.
In 2024, the South American malt extract market is projected to generate a revenue of $27.30 million. The region’s market growth is driven by its strong agricultural sector, which provides a steady supply of raw materials like barley. Brazil, in particular, plays a significant role in the region’s malt extract market due to its large-scale production of malted products. The growing food and beverage industry in South America, especially in countries like Argentina and Chile, also supports the market’s expansion.
The Middle East and Africa region is expected to generate a revenue of $31.17 million in 2024. The market in this region is driven by increasing demand from the food and beverage industry, particularly in countries like Saudi Arabia and South Africa. The region’s growing population and rising disposable incomes are leading to an increased demand for processed foods and beverages, which in turn drives the demand for malt extract. Additionally, the region’s focus on food safety and quality standards ensures a steady market for high-quality malt extract products.
Figure Global Malt Extract Market Size (M USD) by Region in 2024
7 Global Malt Extract Market Analysis by Major Players
Muntons
Company Profile: Muntons is a leading supplier of brewed and distilled malt and malt ingredients to the food and beverage industry. Established in 1921, Muntons is headquartered in the UK and operates manufacturing facilities across the globe.
Business Overview: Muntons is renowned for its wide range of malt products, particularly suitable for food and beverage manufacturers looking for clean-label, plant-based ingredients. The company has a strong focus on innovation and sustainability, offering a variety of malt extracts tailored to specific industry needs.
Products Offered: Muntons offers a diverse range of malt extracts, including Pale Ale Malt Extract, which is a highly concentrated wort made from low-color spring barley malt. This product is ideal for brewing applications and can be used as a direct replacement for malt.
2023 Performance: In 2023, Muntons achieved a revenue of $79.78 million, with a gross margin of 31.59%. This performance highlights Muntons’ strong market position and its ability to maintain high-quality standards in its products.
Wander AG
Company Profile: Wander AG, established in 1865, is a leading food manufacturer based in Switzerland. The company is known for its internationally successful brands such as Ovomaltine®, Caotina®, and Twinings®.
Business Overview: Wander AG specializes in the production of malt extracts and other food ingredients. The company’s product line includes tea and breakfast drinks, breakfast cereals, spreads, chocolates, cookies, snack bars, and desserts. Wander AG’s focus on innovation and quality has made it a preferred choice for many food manufacturers.
Products Offered: Wander AG offers a variety of malt extracts, including Diastatic Malt Extracts, which are used to accelerate the fermentation process in baking applications. These extracts are available in both liquid and powdered forms, catering to different customer needs.
2023 Performance: In 2023, Wander AG reported a revenue of $42.58 million, with a gross margin of 27.73%. This performance underscores Wander AG’s strong market presence and its ability to meet the diverse needs of its customers.
Harboes
Company Profile: Harboes, established in 1883, is a leading manufacturer of malt extracts based in Denmark. The company has a global presence and is known for its high-quality malt extracts used in various industries.
Business Overview: Harboes is a leading supplier of malt extracts to the European food industry, with a focus on providing natural and sustainable ingredients. The company’s products are widely used in the bakery, chocolate, and breakfast product sectors.
Products Offered: Harboes offers a range of malt extracts, including Malt Extract, which is a natural alternative to flavoring and coloring agents in a wide range of foods. These extracts are known for their rich flavor and ability to enhance the structure and durability of baked goods.
2023 Performance: In 2023, Harboes achieved a revenue of $37.75 million, with a gross margin of 31.86%. This performance highlights Harboes’ strong market position and its ability to maintain high-quality standards in its products.