The malt extracts and ingredients market is projected to grow at a CAGR of 4.07% to reach US$37.624 billion by 2025, from US$29.615 billion in 2019.
Increasing usage of malt extract in beer by brewing bubs and breweries in surging due to the cost savings and time savings it leads to
Beer breweries and brewpubs are increasing throughout the world owing to the rising consumption of craft beer. According to the statistics provided by the Trade and Tax Bureau, there were around 5,648 reporting locations for breweries in the U.S. in 2017, as compared to 5,096 in 2016, which is an increase of 552. The production of beer involves the use of many extensive and intricate processes that have conditions that need to be met and requires the employment of skilled workforce and proper quality control techniques. Thus, it is pushing the home-brewers to switch to using malt extracts due to the lack of proper equipment and encouraging the breweries and brewpubs to adopt malt extracts to achieve costs and time savings. In addition, as malt beverages such as non-alcoholic beer, among some other malt-based beverages which is available in exciting flavors, appeals to the teenagers and is gaining traction among the adolescent population, which is leading to increase in the demand for malt extracts and ingredients and boosting the market growth.
The increasing consumption of beer and malt beverages among the younger and the middle-aged population is leading to a surge in the demand for malt extracts among the alcoholic and non-alcoholic beverage manufacturers.
The consumption of beer is augmenting among the young and the middle-aged population, which is attributable to the increasing propensity to spend on recreational beverages facilitated by the increase in disposable incomes. According to the statistics provided by the Beer Institute in 2018, the U.S. beer industry sells beer and other malt-based beverages amounting to about $119.3 billion to consumers every year. According to the Tax and Trade Bureau and U.S. Commerce Department data, around 82% of beer was domestically produced and the remaining of the 18% beer was imported from 100 different countries around the world in 2018. In addition, according to the NBWA Industry Affairs, U.S. consumers who are above 21 years of age and considered to be of legal drinking age consumed about 26.5 gallons of beer and cider per person in 2018, based on the beer shipment data and U.S. Census population statistics. This steady increase in the beer production and beer consumption among the individuals in the population is leading to an increase in the demand for the malt extracts so that the beer producers are able to maximize their profits by streamlining their operations, increasing efficiency in order to gain a competitive edge over their rivals. Thus, leading to a surge in the market growth.
The use of malt extracts Nutraceuticals and pharmaceuticals to show growth over the forecast period
The awareness among individuals is rising and encouraging them to shift their preference towards healthier foods and move away from sedentary lifestyles and have started consuming foods and beverages such as nutraceuticals and dietary supplements loaded with malt extracts as malt extracts are able to provide various health benefits. These include promoting athletic recovery (which is essential for increasing the performance levels), supports digestive health (as it is rich in fibers and helps in improving digestion), promotes heart health (by reducing the risk of heart problems by lowering the cholesterol levels) among some other health benefits. In addition, Nestle, one the leading company dealing in the provision of food and beverage products globally offers its new and improved cocoa-malt beverage product called “Milo”. It has been powered with the ACTIV-GO formula, which contains PROMALT, which a unique type of malt extract that has been specifically designed and developed using a combination of 9 essential micronutrients (vitamin B2, B3, B6, B12, C, D) and some other essential minerals.
Thus, the use of malt extracts in nutraceuticals and pharmaceuticals is poised to show considerable growth over the forecast period.
The Asia Pacific region followed by the North American region to hold a noteworthy share over the forecast period
The North American region is expected to hold a significant share over the forecast period owing to the fact that the number of individuals consuming non-alcoholic malt beverages and the total beer consumption is increasing the countries such as the U.S. In conjunction, there are standards and strict guidelines in place also in respect to the CFR (Code of Federal Regulations).
In addition, the Asia Pacific region is expected to hold a noteworthy share over the forecast period on account of the fact that there are proper standards and guidelines in place. The standards in place by the Bureau of Indian Standards (BIS) namely BIS IS 204:1993, have been accepted by the FSSAI. In conjunction market players are involved in promoting and providing their products with proper quality assurance and compliance and in different flavors. For instance, Barmalt Malting India Pvt. Ltd., one of the producers and sellers of malt extracts and malt products in India assures that their products are in compliance with the ISO 9001:2008 guidelines and also adhere to the HACCP (Hazard Analysis and Critical Control Points) certification. Mahalaxmi, one of the companies that are involved in the provision of malt extracts and malt products in India offers three types of malt extracts in liquid or powder form in three different colors, which are light cream, cream yellow and light brown, to cater to the needs of the consumers.
Bakery Products are getting increasingly popular and consumed more among the younger population and middle-aged population
The bakery products are getting increasingly popular and consumed in European countries such as Germany, France, and the UK, which is partly attributed to the increasing disposable incomes. This is causing the market players to offer the bakery products with added flavor, textures and essential benefits by making using malt extract ingredients. For example, offers a gluten-free barley malt extract in the liquid form for use in bakery applications.