Specialty Malt Market Expands from USD 3.4 Bn to USD 5.1 Bn by 2035 - Strong Momentum in Europe, North America, USA, and Canada - Fact.MR

The global specialty malt market is witnessing robust growth, underpinned by rising demand from craft breweries, premium alcoholic / non-alcoholic malt beverages, and food / bakery applications. Specialty malts are prized for their ability to impart unique flavors, colors and aromas to beers, spirits, health drinks, baked goods and more.

Manufacturers are expanding malting capacity, improving roasting / caramelization processes, and optimizing extraction methods to produce specialty malt in forms like dry malt, liquid malt and malt flour. Increasing adoption of organic, clean-label, non-GMO specialty malts is further accelerating market growth in both developed and emerging markets.

➤Key Market Insights at a Glance

Market Value (approx. 2025): ~ USD 3.20 billion

Forecast Value (2035): ~ USD 4.60 billion

CAGR (2025-2035): ~ 3.7%

Dominant product types: Roasted malt and caramelized malt

Leading applications: Brewing (alcoholic beverages) plus non-alcoholic malt beverages, bakery/confectionery and other functional food uses

Key growth regions: Asia Pacific, North America, Europe

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➤Five Forces Driving Market Growth

Craft brewing & premium beverages: Craft and microbreweries demand specialty malts to create distinct flavor profiles, richer colors, and complex malt character.

Functional & non-alcoholic malt beverages: Specialty malts are used to create malt-based drinks with natural sweetness, flavor, fiber and nutritional benefits, aligning with clean-label demand.

Bakery & food applications: Specialty malts help enhance color, texture, flavor, and nutritional value in baked goods, cereals, confectionery and other food products.

Raw material sourcing & processing innovation: Malt producers are investing in improved malting, roasting, kilning and extraction to produce more consistent and high-quality specialty malts.

Competitive expansion & premium product positioning: Key players are scaling production, introducing organic and non-GMO lines, and offering multiple forms (dry, liquid, flour) for various applications.

➤Regional Outlook

Asia Pacific: Expected to be among the fastest growing regions, driven by rising disposable incomes, expansion of craft beer and malt beverage consumption, and local malting capacity expansion.

North America: Well-established craft brewing industry and demand for specialty / non-alcoholic malt beverages support steady growth.

Europe: Mature market with strong malting industry, high craft brewing penetration, and stringent quality / organic demand.

Latin America: Emergent demand as local breweries and malt beverage producers adopt specialty malt for premium offerings.

Middle East & Africa: Growing potential as specialty malt finds use in non-alcoholic malt drinks and bakery / functional food segments.

➤Recent Developments

Specialty malt manufacturers have announced expansions of malting and roasting capacity to meet increasing demand from craft breweries and malt beverage producers.

Partnerships have been formed between malt producers and beverage / bakery companies to create organic, clean-label specialty malt lines tailored for non-alcoholic health drinks and baked goods.

Innovations in roasting / caramelization processes have resulted in newer malt variants offering more intense roasted or caramel flavors, richer color and higher nutritional fiber content.

Companies are launching specialty malt flours and liquid malt extracts for easier incorporation into bakery mixes, functional health drinks, and premixed malt beverage formulations.

➤Competitive Landscape

The specialty malt market includes major maltsters and ingredient suppliers operating on a global scale.
Key players are investing in capacity expansion, process improvements (kilning, extraction, roasting), and development of organic / non-GMO specialty malt lines for brewing, non-alcoholic beverages, and food applications.

➤Market Outlook & Strategic Insights

Over the forecast period, the specialty malt market is expected to grow steadily, driven by increasing demand from craft beer, premium malt beverages, and functional / clean-label food applications.
Suppliers that invest in high-quality specialty malts (dry, liquid, malt flour), maintain consistent roasting / extraction profiles, and offer organic / non-GMO options will be best positioned.

Emerging markets such as Asia Pacific and Latin America represent strong growth opportunities due to increasing consumption, rising incomes, and growing local malting / beverage manufacturing infrastructure.

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