Global Specialty Malt Market Size By Form (Dry, Liquid), Source (Barley, Wheat, Rye, Others), Type (Crystal, Roasted, Dark, Others), Application (Brewing, Distilling, Baking, Others), Flavor (Aromatic, Coffee, Smoked, Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Specialty Malt Market was worth around USD 11.2 billion in 2022 and is anticipated to grow to around USD 22.5 billion by 2030 at a CAGR of around 8.6% over 2023 - 2030.

Specialty malts, which play a crucial role in the beverage industry, include various malt products used in spirits and beer to enhance flavor and color. The market is thriving due to the increasing demand for unique brews, driven by the growth of microbreweries and craft beer production. To meet this demand, manufacturers are developing small-batch malt systems. While fluctuations in the supply of raw materials pose a challenge, the market benefits from the rising demand for malt-based alcoholic and non-alcoholic products in developing countries like India and China. The Asia Pacific region is expected to dominate the market, thanks to abundant raw material production and a growing interest in healthier consumables, particularly non-alcoholic malt beverages. These factors collectively contribute to a promising future for growth and innovation in the specialty malt market.

Key Insights

• Based on from, the dry segment accounted for the largest market share of 64.30% in 2022
• Based on source, the crystal segment generated the highest revenue of USD 1.48 billion in 2022
• Based on application, the brewing segment is expected to grow with the highest CAGR of 6.52% through the forecast period
• On the basis of region, Asia-Pacific accounted for the largest market share of 33.48% in 2022

Growing Craft Beer Movement Spurs Specialty Malt Demand

The specialty malt market is experiencing significant growth, due to the expanding craft beer movement. Craft breweries around the world are looking for distinctive and unique brews to stand out in a competitive market, driving up the demand for specialty malts. These malts offer a wide range of flavors, colors, and characteristics that cater to the creative ambitions of craft brewers. As the craft beer trend gains momentum, the demand for specialty malts continues to increase, leading manufacturers to innovate and offer a broader range of options. This trend not only boosts revenue but also encourages collaboration and experimentation within the industry, shaping the future of the specialty malt market.

Raw Material Price Volatility Impedes Specialty Malt Market Growth

The specialty malt market is facing a significant challenge in the form of unpredictable fluctuations in the prices of raw materials. The prices of key raw materials, such as barley, can vary greatly, impacting the profit margins and sourcing strategies of industry players. As the demand for specialty malts continues to grow, the pressure on raw material supply increases, leading to higher prices and intensifying the challenge. These price swings can disrupt the supply chain, affecting production costs and overall market stability. Additionally, the uncertainty of raw material costs makes long-term planning difficult, creating obstacles for manufacturers trying to maintain consistent pricing and profitability.

Recent Development

June 2023: Invivo Group's subsidiary, Malteries Soufflet, acquired United Malt Group in a significant USD 1.08 billion deal. This strategic move underscored the evolving landscape of the malt industry, as consolidation continued to shape the market. The acquisition aligned with the growing demand for specialty malt products, driven by factors like craft brewing expansion and consumer preferences for unique beverages.

Segmentation Analysis

Based on form, the market is bifurcated into dry, and liquid. The dry form segment dominated the market in 2022 by holding the largest market share. It is also expected to grow at a promising CAGR of 6.47% between 2023 and 2030. This growth can be attributed to rising global beer consumption. Dry malt's longer shelf life compared to liquid malt, along with its popularity among major market players contributes to its dominant position in the specialty malt market.

Based on source, the market is segmented into barley, wheat, rye, and others. In 2022, the barley segment stood out as the leading segment in the market, capturing a significant market share of 55.8%. This dominant position highlights the crucial role that barley malt plays in the specialty malt market. Known for its unique flavors and aromas, barley malt acts as a natural sweetener and flavor enhancer in a variety of beverages. Its extensive use across the beverage industry, combined with its strong market share, emphasizes the significance of barley malt as a key driver in the specialty malt market.

Based on type, the market is classified into crystal, roasted, dark, and others. In 2022, the crystal segment had a strong presence in the market, holding a substantial market share of 42.87%. This dominant position highlights the significance of crystal malts, also known as caramel malts, which are highly regarded for their ability to add both flavor and color to a variety of brews. Crystal malts are versatile and widely used in different beer styles, making them a preferred choice among brewers. Their popularity contributes significantly to their prevalent market share in the specialty malt industry.

Asia Pacific Emerges as Dominant Growth Region in Specialty Malt Market

The specialty malt market in the Asia Pacific region is expected to experience strong growth, with a robust CAGR of 7.96% from 2023 to 2030. This growth can be attributed to several factors, including the significant production of raw materials in the region and the increasing demand for healthier consumables, particularly non-alcoholic malt beverages. Countries like India, Australia, and China are witnessing a rise in consumer interest in specialty malt-based products, positioning the Asia Pacific region as a key player in shaping the market's landscape. The region is set to drive innovation and expansion in the specialty malt sector.

Europe is the Second-Fastest Growing Region Owing to a Rich Brewing Heritage

Europe is emerging as the second fastest-growing region in the specialty malt market, projected to achieve a notable CAGR of 6.41%. This growth can be attributed to several factors. Europe has a rich brewing heritage, with a strong tradition of producing diverse and high-quality beverages that utilize specialty malts. The region's growing craft beer movement and increasing demand for unique flavors align well with the characteristics that specialty malts offer. Moreover, changing consumer preferences towards premium and craft beverages are prompting breweries to incorporate specialty malts into their production processes. These trends, combined with the rising popularity of malt-based products, position Europe as a significant growth driver in the specialty malt market. This fosters innovation and aids market expansion.

Competitive Landscape

The global specialty malt market is fragmented with key players such as IREKS GmbH, Viking Malt, Agraria, Simpsons Malt, GrainCorp, Anheuser-Busch InBev, Barmalt, Milwaukee, WI, Imperial Malts Ltd., and Bar Malt India Pvt. Ltd., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

The global Specialty Malt Market is segmented as follows:

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