1. Global Malt Market Overview and Future Growth
The global malt market continues to expand, with a projected value of 19,308.3 million USD in 2024. This growth is driven by a steady compound annual growth rate (CAGR) of 3.49% from 2024 to 2029.
Malt, a crucial ingredient in the production of beer and whiskey, is made from grains that have been steeped, germinated, and then dried. The process involves converting the starches in grains into sugars, which are then used in fermentation. Barley is the most commonly used grain for malting due to its high enzyme content, though rye, wheat, and other grains are also utilized.
The malt market’s growth is influenced by several key factors. The booming beer industry is a major driving force, as malt provides essential enzymes for converting starch into sugar, which is then fermented to produce alcohol. Additionally, malt contributes to the color, flavor, and body of beer. As social gatherings and the popularity of unique craft beers increase, the demand for malt in the brewing industry continues to rise. Furthermore, malt’s applications extend beyond beverages to include food products such as malt vinegar, malted milkshakes, and baked goods, adding to its market value.
Despite these growth drivers, the malt market faces several challenges. One significant factor is the rising sales of alternative wines and other beverages, which can divert consumer spending away from malt-based products. Additionally, the production costs of malt are highly volatile, influenced by fluctuations in energy prices, raw material costs, and transportation expenses. The ongoing energy crisis, exacerbated by geopolitical conflicts, has led to increased production costs, impacting the profitability of malt manufacturers. Climate change also poses a threat, as extreme weather conditions can affect the harvest of grains like barley, wheat, and rye, leading to supply uncertainties and potential price increases.
Figure Global Malt Market Revenue (M USD) in 2024
2. Malt Market Dynamics: Innovation and Industry Consolidation
Innovation in the malt market is primarily focused on improving the efficiency and sustainability of the malting process. Technological advancements have led to the development of more energy-efficient malting facilities, which not only reduce production costs but also minimize environmental impact. For instance, some companies are implementing advanced drying and ventilation systems that optimize energy use while maintaining the quality of the malt. Additionally, there is a growing emphasis on developing new malt varieties that offer enhanced flavor profiles and improved brewing characteristics, catering to the increasing demand for specialty beers and spirits.
Corporate mergers and acquisitions have also played a significant role in shaping the malt market. These strategic moves allow companies to expand their market reach, consolidate production capacities, and enhance their product offerings. For example, the acquisition of Balcones Distilling by Diageo in 2022 highlights the trend of large beverage companies seeking to strengthen their presence in the malt-based spirits segment. Similarly, the takeover of Soufflet by Invivo Group aims to double Soufflet’s malting business within five years, positioning Invivo as a leading player in the global malt market. Such consolidations enable companies to leverage synergies, improve operational efficiencies, and better compete in the competitive malt industry.
Furthermore, there is a notable trend of malt producers diversifying their product portfolios to cater to evolving consumer preferences. This includes the development of organic and specialty malts, which cater to the growing demand for natural and unique flavor profiles in beverages and food products. By investing in research and development, malt manufacturers are able to innovate and differentiate their offerings, ensuring that they remain competitive in a dynamic market landscape.
3. Analysis of Malt Product Types: Definitions and Market Size in 2024
The global malt market is segmented into several product types, primarily categorized as barley malt, rye malt, wheat malt, and others. Each of these types plays a significant role in the brewing and distilling industries, contributing to the overall market dynamics.
Barley Malt is the most widely used type, accounting for approximately 84.69% of the total malt production in 2024. This dominance is due to barley’s high enzyme content, which is essential for converting starches into sugars during the brewing process. The projected market size for barley malt in 2024 is expected to reach 16353.14 million USD, making it the largest segment in the malt market. Its established use in beer production and the growing demand for craft beers continue to solidify its market position.
Wheat Malt, while smaller in market share compared to barley malt, is projected to grow at a faster rate. The market size for wheat malt in 2024 is estimated at 1674.37 million USD, with a growth rate driven by the increasing popularity of wheat beers and the demand for unique flavors in brewing. Wheat malt is known for its ability to produce lighter beers with a refreshing taste, appealing to a segment of consumers seeking variety in their beverage choices.
Rye Malt accounts for about 2.81% of the market, with a projected size of 856.10 million USD in 2024. Although it has a smaller market share, rye malt is gaining traction due to its distinct flavor profile, often used in specialty beers and whiskies.
Overall, while barley malt maintains the largest market share, wheat malt is recognized as the fastest-growing product type in the malt market, reflecting changing consumer preferences and the craft brewing trend.
Table Market Revenue and Shares of Malt Types in 2024
|
Type of Malt |
Revenue (M USD) |
Market Share (%) |
|---|---|---|
|
Barley Malt |
16,353.14 |
84.69% |
|
Rye Malt |
856.10 |
4.43% |
|
Wheat Malt |
1,674.37 |
8.67% |
|
Others |
424.692 |
2.20% |
4. The Malt Market: A Deep Dive into Applications and Consumption Trends
The malt market is a vibrant and diverse sector of the global food and beverage industry, with applications spanning from beer to whisky and beyond. In 2024, the malt market is projected to show significant consumption across various applications, each with its own unique role in driving market growth.
Beer remains the dominant application in the malt market, commanding a substantial market share of 87.62%. This translates to a consumption of approximately 21,988.3 K Tons, a testament to beer’s enduring popularity and its central role in the global malt demand. The beer industry’s reliance on malt for fermentation and flavoring is a key factor in this substantial market share. As the preference for craft and specialty beers grows, so does the demand for high-quality malt, ensuring a robust market presence for beer-related malt applications.
Whisky, while currently a smaller in market share at 2.41%, or about 604.9 K Tons, is one of the fastest-growing segments within the malt market. This growth is attributed to the rising affluence of premium spirits and the increasing appreciation for the nuanced flavors that malt can bring to whisky. Distilleries are leveraging the unique characteristics of malt to craft whiskies with distinct profiles, appealing to a segment of consumers seeking premium and artisanal spirits.
Table Market Consumption and Shares of Malt Applications in 2024
|
Application |
Consumption (K Tons) |
Market Share (%) |
|---|---|---|
|
Beer |
21,988.3 |
87.62% |
|
Whisky |
604.9 |
2.41% |
|
Others |
2,501.7 |
9.97% |
5. Analysis of Global Malt Production by Major Regions in 2024
The malt market is a dynamic and expanding sector with significant production across various regions worldwide. In 2024, the global malt production is anticipated to be distributed across key regions, each contributing to the total market output. The following analysis provides an overview of the malt production by major regions in 2024, identifying the largest market by production and the fastest-growing region.
Europe stands out as the largest regional market by production in 2024, with an estimated output of 10,439.5 K Tons. This region’s dominance can be attributed to its well-established brewing traditions and the presence of numerous craft breweries. The European market is characterized by a mature beer industry and a high demand for both traditional and specialty malts, driving the need for substantial production capacities.
North America follows as a significant player in the malt market, with a production of 4,180.0 K Tons in 2024. The region’s production is supported by a strong beer industry, particularly in the United States and Canada, where craft breweries are increasingly popular and contribute to the demand for malt.
China is projected to be the fastest-growing region in terms of malt production, with an estimated output of 3,287.4 K Tons in 2024. The growth in China’s malt market is driven by the rising middle class and increasing urbanization, which are leading to a surge in demand for beer and, thereby boosting the need for malt. The Chinese market is also influenced by the government’s efforts to promote domestic production and reduce reliance on imports.
Australia, though a smaller market compared to Europe, North America, and China, is also a notable producer with an estimated 2024 production of 1,064.5 K Tons. The Australian malt market benefits from a strong local brewing culture and a growing export market, particularly to Asia.
Figure Global Malt Market Production by Region in 2024
6. Leading Companies in the Global Malt Market: An In-Depth Analysis
6.1 Boortmalt
Company Introduction and Business Overview:
Boortmalt, established in 1927 and headquartered in Belgium, is recognized as the world’s leading malting company. With a production capacity of 3 million tons, Boortmalt operates 27 malting plants across five continents. The company is a wholly-owned subsidiary of Axereal, a major agricultural and agribusiness cooperative in Europe.
Products Offered:
Boortmalt specializes in providing a range of malt products tailored to meet the specific needs of brewers, distillers, and the food industry. Their product portfolio includes barley malt, which is the most common and widely used type of malt.
Sales Revenue in 2022:
In 2022, Boortmalt achieved a revenue of approximately 2510.28 million USD, marking a significant presence in the global malt market. The company’s commitment to quality and its expansive global reach have solidified its position as a market leader.
6.2 Malteurop Group
Company Introduction and Business Overview:
Founded in 1961 and headquartered in France, Malteurop Group stands among the largest malt producers worldwide. With 24 industrial sites, Malteurop supplies over 900 customers globally, catering to both craft breweries and major beer corporations.
Products Offered:
Malteurop Group offers a diverse range of malt products, including base malts like Pilsen and specialty malts such as Caramel and Chocolate malt. They also provide distillers malts, specifically formulated for American whiskey and pot still production.
Sales Revenue in 2022:
Malteurop Group reported a revenue of around 1736.40 million USD in 2022. Their extensive product range and global distribution network have been pivotal in achieving this substantial revenue figure.
6.3 Soufflet
Company Introduction and Business Overview:
Soufflet, originating from France and established in 1990, operates as an international-scale agricultural products group. While their primary focus is on agricultural commodities, Soufflet’s Malteries Soufflet division is a significant player in the malt market, known for its high-quality malts.
Products Offered:
Soufflet provides a variety of malts, including standard and specialty malts like pilsen, roasted, and organic malts. They are dedicated to meeting the demanding specifications of large brewers and craft brewers.
Sales Revenue in 2022:
In 2022, Soufflet’s malt division, Malteries Soufflet, generated a revenue of about 1202.67 million USD. Their focus on quality and sustainability has helped them earn the trust of customers in various countries.