The sales of malt ingredients is expected to record a value of about $21 billion in 2019, driven by increasing demand from food and beverage, pharmaceuticals, and personal care industries. These were the findings of a new study.
In the food industry, it is used in many products, such as bakery products, confectionery, dairy and frozen food, and pet food, while in beverages, malt ingredients are used in brewing and distilling of non-alcoholic beverages and other healthy drinks.
The growing trend of adopting natural ingredients in the food and beverage industry is directly impacting the demand for malt ingredients.
They are associated with a number of properties such as, rich in natural sugar constituents, a good source of fibre, low in fat, complex carbohydrate, more vitamins and protein, making them an ideal food and beverage ingredient.
On the account of multiple beneficial properties, the demand for malt ingredients is also rising in pharmaceutical industry, for use in medicines and nutraceuticals.
A recently published report revealed that the global malt ingredients market was projected to reflect a CAGR (compound annual growth rate) of about five per cent over the forecast period of 2019-2029.
Gains underpinned by increasing popularity of malternatives
Malternatives are gaining significant traction as a substitute of beer, which contain malt alcohol in low proportion mixed with other types of alcohol.
The wide acceptance of malternatives among the young and urban consumers is likely to complement the growth of the malt ingredients market.
Hard lemonade, malt-based coolers, and a new breed of spirits are growing at a rapid rate, potentially raising the demand for malt ingredients.
Bacardi silver is positioned as the only malternative with the flavour of rum, and the product was launched with a full-scale television, radio, and print media campaigns.
Key producers of malternatives include Anheuser-Busch Inc, Arizona Beverage Company LLC, Brown-Forman Corporation, Bacardi USA Inc, Molson Coors Brewing Company, and Cruzan Rum Distillery.
Factors fuelling malt ingredients market growth
Non-alcoholic brews and malt bases of soft drinks are gaining popularity in Central Europe and the Middle-East. Malt-based beverages are alcohol-free and hence, are exactly lined up with halal regulations.
This, in turn, is creating relatively high demand for malt ingredients, especially in Islamic and GCC countries, thereby contributing to the market growth.
Although the demand for malt ingredient-based products continue to move on an upward spiral, fewer number of market players are unable to meet the growing demand in the current scenario.
This, in turn, is likely to generate opportunities for new players to enter into the market and serve a large segment of the consumers.
Malt is produced from the barley grains in a process called malting, and is used in the production of beer. Malt ingredients work as a source of starch, contributing to beer’s organoleptic and colour characteristics.
These ingredients also play an important role in preserving the oxidative stability of beer as the natural source of antioxidants. Growing awareness of these beneficial effects among consumers is likely to fuel the growth of the malt ingredients market.
During the process of malting and brewing of grains for the production of malt ingredients, the leftover by-products are utilised to feed animals, as it consists carbohydrates (cellulose and hemicellulose) and proteins even after the removal of sugar during brewing process.
The utilisation of by-product in the animal feed industry is likely to work to the advantage of the malt ingredients market players.
