Specialty Malt Market to Exceed USD 4.5 Billion by 2035, Fueled by Rising Demand in Craft Beer and Food Sectors: FMI

Driven by rising consumer preference for craft beverages and natural ingredients, the specialty malt market is poised for notable growth over the next decade. Valued at USD 3,102.4 million in 2024, the market is projected to grow to USD 3,201.7 million in 2025. With a steady compound annual growth rate (CAGR) of 3.7% during the forecast period from 2025 to 2035, global specialty malt sales are expected to reach an impressive USD 4,599.4 million by the end of 2035. The demand surge is being driven by diversified applications across brewing, distilling, baking, and snacking industries.

Explore Key Insights - Request Your Sample Now! https://www.futuremarketinsights.com/reports/sample/rep-gb-2439

Surge in the Craft Beer Segment is Fueling Demand for Premium Specialty Malts

One of the primary growth engines for the specialty malt industry is the surge in the craft beer segment, which is pushing breweries to seek more flavorful and unique malt profiles. Craft brewers are increasingly turning to premium specialty malts to enhance aroma, color, and mouthfeel in their signature brews. As consumer interest in artisanal, limited-edition, and locally produced beers rises, so does the need for distinctive malt bases that go beyond standard barley malt.

Specialty malts like caramel, chocolate, and smoked variants are enabling craft brewers to create complex flavor layers, which appeal to both seasoned connoisseurs and curious first-time drinkers. This has led to a symbiotic growth trend between craft beer and the specialty malt market.

Kettle and Cooler: The Rise in Demand for Specialty Malts in NA and Functional Beverages

A notable increase in the consumption of functional beverages-from malt-based health drinks to non-alcoholic brews-is driving specialty malt innovation in North America. The region is witnessing the rise in demand for specialty malts in NA and functional beverages, particularly among younger consumers seeking low-alcohol or alcohol-free options without compromising on flavor.

Kettle and cooler-style beverages, which use malt bases for added richness and complexity, are gaining market traction. These malt-infused drinks are often enhanced with botanicals, adaptogens, and probiotics, making them appealing alternatives in the growing wellness beverage space.

Specialty Malts Making Inroads into Bakery, Confectionery & Snack Segments

Beyond brewing and beverages, specialty malts are making inroads into bakery, confectionery & snack segments. Their natural sweetness, enzymatic behavior, and coloring properties are being utilized in bread, biscuits, cereal bars, and chocolates.

Malt extracts and powders are valued for their ability to improve crust color, shelf life, and nutritional profile in baked goods. In snacks and confectionery, malt ingredients add depth and richness that elevate flavor perception. This diversification of application is not only expanding the market size but also helping manufacturers offer clean-label, appealing alternatives to artificial flavor enhancers.

The Emerging Trend of Organic and Heritage Grain Specialty Malts to Meet Sustainable Demands

Amid growing environmental awareness, a significant shift is occurring toward organic and heritage grain specialty malts. Brewers and food producers alike are embracing heirloom barley, wheat, and rye varieties that are organically grown and sustainably processed. This emerging trend of organic and heritage grain specialty malts reflects consumer interest in provenance, transparency, and minimal environmental impact.

Maltsters are responding by partnering with regenerative farms and regional grain networks to develop malts that align with eco-conscious branding. Products made from ancient grains also cater to premium positioning in both the beverage and bakery industries, offering authenticity and tradition in every sip or bite.

Increasing Demand for Specialty Malts in Craft Distilling for Premium Spirits

The increasing demand for specialty malts in craft distilling for premium spirits is another influential factor in market expansion. Distillers are exploring a wide spectrum of specialty malts-from peated to roasted-to bring complexity and character to their small-batch whiskeys, gins, and vodkas.

Unlike large-scale distillers who focus on consistency, craft distillers are innovating with unique grain bills and fermentation techniques, where the role of specialty malt becomes central. Specialty malt not only enhances flavor but also contributes to smoother mouthfeel and richer aging profiles, making it indispensable in the premium spirits space.

Unlock Comprehensive Insights - Get the Full Report Now: https://www.futuremarketinsights.com/reports/specialty-malt-market

Regional Trends and Growth Outlook

North America and Europe remain the leading markets, with a well-established network of craft breweries and artisanal distilleries. However, Asia Pacific and Latin America are witnessing a gradual uptick in specialty malt adoption, thanks to rising middle-class incomes, changing taste preferences, and a shift toward Western-style craft beverages.

In particular, India, China, and Brazil are becoming lucrative markets where the expansion of microbreweries and gourmet food manufacturing is translating into greater specialty malt consumption.

Competitive Landscape and Innovation

The specialty malt market is moderately consolidated with key players including Malteurop Groupe, Viking Malt, Simpsons Malt, Briess Malt & Ingredients, and Weyermann. These companies are investing in R&D, sustainability initiatives, and regional production capacity to meet the rising global demand.

New entrants and regional players are differentiating themselves by focusing on organic malt production, custom malt roasting, and heritage grain sourcing. Collaborations with local farmers and brewers are giving rise to community-based supply chains that promote traceability and brand authenticity.

Key Companies

• London Dairy Co. Ltd (UK)
• Inc (USA), Conagra Brands
• Daiya Foods Inc. (Canada)
• General Mills Inc. (USA)
• Grupo Bimbo S.A.B.de C.V.(Mexico)
• Associated British Foods PLC (UK)
• Lantmännen Unibake (Denmark)
• Cole's Quality Food Inc. (USA)
• Aryzta AG (Switzerland)
• Vandemoortele NV (Belgium)
• Europastry S.A. (Spain)
• Dun & Bradstreet
• Danone SA (France), ADM (USA)

Key Segments of the Report

By Application:
By application, the industry has been categorized into Distilling, Brewing, Baking, and Non-alcoholic Malt Beverages.
By Source:
By source, the industry has been categorized into Barley, Rye, and Wheat.
By Form:
By form, the industry has been categorized into Dry Specialty Malts and Liquid Specialty Malts.
By Region:
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.

Explore Functional Food Ingredients Industry Analysis: https://www.futuremarketinsights.com/industry-analysis/functional-food-ingredients

Explore FMI's related ongoing Coverage in Food and Beverage Domain:

Malt Ingredients Market Outlook 2025 to 2035: https://www.futuremarketinsights.com/reports/malt-ingredients-market

Malted Milk Powder Market Trends: https://www.futuremarketinsights.com/reports/malted-milk-powder-market

Malt Beverage Market Insights: https://www.futuremarketinsights.com/reports/malt-beverages-market

Maltodextrin Market Trends: https://www.futuremarketinsights.com/reports/maltodextrin-market

Contact Us:
Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware - 19713, USA
T: +1-347-918-3531
Website: https://www.futuremarketinsights.com

About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

This release was published on openPR.