The South America malt ingredient market is expected to grow at a CAGR of XX % during the forecast period of 2017–2022. The market, estimated at USD XX billion as of 2016, is projected to reach USD XX billion by 2022. Malt is a mixture of sugars produced from starch, which can be found in cereal grains such as barley, wheat, rye or spelt. Malt has been traditionally used for beer-making through fermentation, along with whisky. Malt ingredients are used in the food industry as food additives, which impart desirable flavor and color to the finished product.
The increase in consumption of processed and convenience food products in emerging markets of South America have contributed to a growth in the sales of malt ingredients. An increase in consumer awareness regarding the health benefits of malt ingredients and the wide-range of applications in the food industry are driving the market. The region has been a very strong performer, consumers have traded up, buying more expensive beer, which is evident in the rising popularity of craft beer. South America used to be a major importer from Europe; however, improvements in malt and malting barley production in Argentina have made the continent more self-sufficient. The demand in developing regions is driven by the increase in disposable income. Malt ingredients are used in bakery and confectionery products as it imparts color and flavor to the finished products. The growth can also be attributed to the increase in the spending capacity of buyers in the region. The major opportunities are the increasing demand for all natural food products and the rising demand for ready-to-eat and packaged food.
The market has been segmented by ingredient type, source type, application type, commercial grade type and by geography. Malt produced from malting grains is available in various forms such as malt, malt flour, dried malt extract, liquid malt extract, kibbled malt, malt flakes, malt vinegar, malt syrup and others. Malt and malt flour hold the largest share of the market due to their direct consumption for beer, whisky and beverages manufacturing. Alcoholic beverage industries have a direct contract with the malt suppliers for two-row, four-row, and six-row malt grains or for malt flours which create an unbeatable demand in the market. Barley holds the largest market share due to its preferable malt consumption in the beverage industry. It has unique enzyme property that makes it dominant over other grains. However, oats and rye are the fastest-growing segments due to their nutritional profile and increasing application in various flavored food products. Malt has several end applications such as in brewery, distillery, bakery, cereals, confectionery, non-alcoholic beverages and others such as snacks, savories, etc. Brewery application consumes more than 90% of the malt and has dominated the market share. By the commercial grade type, the malt market is segmented into standard malt and specialty malt.
South America malt ingredient market is divided into Brazil, Argentina and Others. The growing demand for alcoholic and non-alcoholic beverages and food products in the South American region drives this market. The regional markets are dominated 100% by dark malts. The region sources both, malt and malting barley, domestically.
The South African market for malt ingredients is highly fragmented and is characterized by the presence of large and small vendors. The market is highly competitive, with all players competing to gain a greater market share. Vendor performance in the malt ingredients market may be impacted by the changing consumer spending pattern and preferences due to the increase in disposable incomes and changing lifestyles. The vendors compete regarding numerous factors such as price, quality, product differentiation, distribution, and promotion.
The major companies in the market are:
Products designed, based on the malt flavor and kibbled malt in various food products, hold the future spotlight. Companies are focusing on different flavored malt beverage products such as - fruit flavored malt beverage targeting especially female consumers. Wild flavors and specialty ingredients in beer mix and malt beverage are the growing opportunities for the market. Moreover, in developing regions, the introduction of healthier products made from malt such as malt energy drink, has been a targeted product for the market.
Key Deliverables in the Study