Specialty Malt Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Specialty Malt Market Trends and Insights

Explosion of the craft brewing industry

The growth of the craft brewing industry has become a significant driver of the specialty malt market, changing both demand patterns and product development. Consumer preferences have shifted from mass-produced lagers toward distinct flavors and craft beer experiences offered by independent breweries. To create unique products, craft brewers use specialty malts, including caramel, chocolate, and smoked varieties, which provide distinct aromas, colors, and textures in their beers. This trend is particularly evident in North America and Europe, where established craft breweries influence malt suppliers to diversify their product range and develop new grain varieties and roasting processes. The expansion of craft beer production has increased both the volume and value of the specialty malt market globally. The rise in microbreweries has created a mutually beneficial relationship, where craft beer's success directly increases specialty malt usage. Consumer demand for local, traceable, and distinctive beers has encouraged malt producers to collaborate with brewers, expand into organic and heritage grains, and develop customized malt profiles for specific market segments.

Gluten-free brewing is gaining mainstream shelf presence

The surge in gluten-free brewing and its ascent into the mainstream has become a significant growth driver for the specialty malt market. As consumer awareness of celiac disease, gluten intolerance, and general wellness trends rises, breweries are adapting their portfolios to include gluten-free options that appeal to both health-conscious and gluten-sensitive demographics. Key beer brands and craft breweries are now prominently positioning their gluten-free products on retail shelves, and this is translating to increased demand for alternative grains such as sorghum, millet, rice, and buckwheat, grains naturally devoid of gluten and frequently processed into specialty malts with unique flavor attributes. The increasing prevalence of celiac disease in North America and Europe drives the demand for gluten-free beer and specialty malt products. In Italy, the Ministero della Salute reported approximately 265,000 individuals with celiac disease in 2023, with Lombardy recording the highest concentration at 49,200 cases^{[1]Source: Ministero della Salute, "RELAZIONE ANNUALE AL PARLAMENTO SULLA CELIACHIA," static.celiachia.it}. These numbers demonstrate the substantial consumer base requiring gluten-free options, prompting brewers and malt producers to adapt their offerings. The specialty malt market has responded by developing products using gluten-free grains, contributing to market growth and product diversification.

Expanding non-alcoholic and functional beverage segment

The non-alcoholic beverage segment's rapid expansion represents a fundamental shift in consumer behavior that transcends demographic boundaries and geographic markets. Health-conscious consumers demonstrate increasing willingness to pay premium prices for products that deliver complex flavors without alcohol content, driving substantial demand for specialty malts that enhance flavor, color, and mouthfeel characteristics. Muntons' introduction of alcohol-free malt extract in 2024 exemplifies how maltsters are developing products specifically formulated for non-alcoholic applications while addressing technical challenges related to flavor development and stability. The segment's expansion into functional beverages creates significant opportunities, as malt extracts provide natural sweetness, protein content, and enzymatic activity that enhance nutritional profiles. Young consumers' growing association of non-alcoholic beers with refreshment and responsible drinking behaviors indicates sustained demand growth, particularly in markets where health and wellness trends influence purchasing decisions.

Artisanal bakery demand is boosting the use of flavor-rich malt flours

Artisanal bakery applications present significant opportunities for specialty malt producers, as premium bread and confectionery manufacturers require ingredients that provide distinct flavor profiles and functional benefits. Studies indicates that malted triticale flour enhances dietary fiber content while improving starch and protein digestibility, offering potential applications in pasta and bakery products. The malting process modifies grain structure and enzyme activity, enabling bakers to develop complex flavors and improve texture characteristics that distinguish artisanal products from mass-produced items. The higher price points of artisanal bakery products support the use of specialty malt flours, despite their processing requirements and lower production volumes. The increasing demand for clean-label ingredients and traditional production methods aligns with specialty malt producers' capabilities, fostering direct partnerships between maltsters and artisanal bakeries.

Volatility in barley and grain prices

Barley price volatility has become the primary constraint on specialty malt market growth, affecting sourcing decisions and product development across the industry. US barley farm prices rose 7.54% year-over-year to USD 7.70 per bushel in 2024, creating significant cost pressures for malt producers and downstream manufacturers. Western Canadian barley production decreased 10% to 7.84 million tonnes due to adverse weather conditions and reduced seeding area, further straining global supply chains. The supply disruption's effect on malt pricing intensified due to quality issues, as heat stress during the 2024 growing season led to lower test weights and smaller kernel sizes, impacting malting performance and extract yields in production facilities. Companies have responded with vertical integration initiatives and long-term supply agreements to secure consistent barley supplies, though these solutions require substantial capital investment and can reduce operational flexibility during market changes. The industry continues to explore alternative sourcing strategies and process optimizations to mitigate the impact of ongoing price volatility.

Stricter acrylamide limits in bakery ingredients

The specialty malt industry faces regulatory challenges regarding acrylamide levels in food products, particularly affecting producers serving bakery and confectionery markets. The European Union's Commission Regulation 2023/915, which took effect in January 2025, sets maximum contaminant levels in cereals, malt, and related food products^{[2]Source: European Union, "Commission Regulation (EU) 2023/915 of 25 April 2023 on maximum levels for certain contaminants in food and repealing Regulation (EC) No 1881/2006 (Text with EEA relevance)," europa.eu}. The regulation includes specific provisions for cadmium levels in beer production, allowing exemptions when cereal residue is not sold as food. While the regulation focuses on cadmium, it indicates increased regulatory oversight of contaminants in grain-based ingredients. Acrylamide formation during roasting and kilning processes has emerged as a significant concern for specialty malt producers. The FDA's Good Manufacturing Practice regulations under 21 CFR Part 117 require food facilities to implement hazard analysis and preventive controls, including monitoring of chemical contaminants^{[3]Source: Code of Federal Regulations, "PART 117—CURRENT GOOD MANUFACTURING PRACTICE, HAZARD ANALYSIS, AND RISK-BASED PREVENTIVE CONTROLS FOR HUMAN FOOD," ecfr.gov}. To achieve compliance, producers must invest in analytical capabilities, process monitoring systems, and production parameter adjustments, which may impact flavor development and product characteristics. Small specialty malt producers face a greater burden due to limited economies of scale in compliance infrastructure. This situation may result in market consolidation and reduced product variety.

Segment Analysis

By Product Type: Crystal Malts Drive Premium Positioning

In 2024, crystal and caramel malts command a 42.58% share of the market, thanks to their widespread use in brewing and food production. Valued for their ability to enhance beer profiles and elevate food quality, these malts play a pivotal role in meeting the demands of both commercial and craft brewers. Their versatility allows them to be used in a variety of beer styles, contributing to the growing popularity of craft beers globally. Meanwhile, roasted and chocolate malts are on an upward trajectory, boasting a 7.33% CAGR through 2030. Crystal malts lead the pack, imparting color, flavor, and sweetness without the need for mashing. This quality makes them indispensable for craft brewers, whether they're crafting amber ales or dark lagers, as they provide consistency and depth to the final product.

The rising popularity of roasted and chocolate malts underscores a growing consumer appetite for premium offerings, especially those boasting intricate flavors and natural hues. This trend is evident in both the brewing world and the confectionery realm, notably in artisanal chocolates and specialty drinks. These malts are increasingly used to create unique flavor profiles that cater to evolving consumer preferences for high-quality, authentic products. Dark and black malts are staples in stout and porter crafting, lending distinct coffee and roasted undertones that define these beer styles. At the same time, specialty malts—such as smoked, peated, and acidulated—present fresh avenues for differentiation in both craft brewing and food production. These specialty varieties enable manufacturers to experiment with innovative recipes, offering products that stand out in a competitive market.

Note: Segment shares of all individual segments available upon report purchase

By Source Grain: Barley Dominance Faces Alternative Grain Challenge

In 2024, barley commands a dominant 66.19% share of the market. Oats, however, are on the rise, boasting the highest growth rate at an impressive 8.52% CAGR projected through 2030. This surge in oat popularity is largely attributed to their incorporation in plant-based dairy alternatives, such as oat milk, and the burgeoning gluten-free beer segment, which continues to attract health-conscious consumers. Barley maintains its market leadership, bolstered by established supply chains that ensure consistent availability, robust processing capabilities that meet large-scale demand, and a regulatory framework that champions traditional malting practices, ensuring quality and compliance. Meanwhile, wheat malt plays a pivotal role in German-style wheat beers, enhancing key beer attributes like head retention, mouthfeel, and flavor profile, which are critical to consumer satisfaction and product differentiation in the competitive beer market.

Rye malt, with its distinct spicy notes and aromatic compounds, is a favorite among craft brewers aiming for unique and complex brews that appeal to niche markets. Alternative grains such as rice, sorghum, and quinoa are carving out niches, especially in gluten-free and specialty products. These grains cater to consumers with dietary restrictions, such as gluten intolerance, and those on the lookout for novel taste experiences, driving innovation in product development. The rising popularity of oats underscores their adaptability, not just in brewing but also in culinary applications, including baked goods and snacks. This trend is further validated by research highlighting the benefits of enzymatic starch processing for oat milk stability, which improves shelf life and texture, and the enhanced nutritional profiles of oat-based products, making them a preferred choice for health-conscious consumers.

By Form: Liquid Extracts Gain Traction in Functional Applications

In 2024, dry and whole kernel malts command a significant 54.27% market share, thanks to their cost-effectiveness and adaptability in brewing and distilling. These malts are widely preferred due to their ability to enhance production efficiency and reduce overall costs for manufacturers. Meanwhile, the liquid extract segment is on an upward trajectory, boasting a 9.15% CAGR through 2030. Dry malts solidify their market leadership, leveraging advantages like extended shelf life, reduced transportation costs, and flexible timing in production. On the other hand, liquid extracts are witnessing robust growth, favored for their convenience by small-scale brewers and their ability to offer precise flavor control in non-alcoholic and functional beverages. This growth is further supported by the increasing demand for innovative beverage formulations and the rising popularity of craft brewing.

Malt flours and powders find their niche in bakery and confectionery, delivering distinct flavor profiles and functional benefits. These products are essential for achieving specific textures and enhancing the overall sensory experience in baked goods and sweets. In the realm of plant-based dairy, liquid extracts are gaining traction, adding natural sweetness and boosting protein content. This advantage is especially pronounced for craft brewers, who often grapple with limited storage and handling capabilities. Moreover, advancements in processing liquid extracts, such as enhanced concentration and stabilization techniques, are broadening their applications and extending shelf life. These innovations are enabling manufacturers to cater to a wider range of consumer preferences and expand their product portfolios.

Note: Segment shares of all individual segments available upon report purchase

By Application: Plant-Based Dairy Emerges as Growth Driver

Brewing applications hold a dominant 72.08% market share in 2024, reflecting the specialty malt market's core position in alcoholic beverage production. Plant-based dairy analogues represent the fastest-growing segment, with a 9.83% CAGR through 2030. The brewing segment's prominence extends across traditional beer production and newer categories, including non-alcoholic beers, hard seltzers, and functional beverages. The distilling segment benefits from growth in premium spirits, notably American single malt whisky, which received official TTB - Alcohol and Tobacco Tax and Trade Bureau's recognition in January 2025, requiring 100% malted barley content^{[4]Source: TTB - Alcohol and Tobacco Tax and Trade Bureau, "TTB Establishes 'American Single Malt Whisky' Standard of Identity," ttb.gov}.

Malt finds its way into bakery and confectionery applications for both its flavor and functional properties, enhancing the overall quality and appeal of the final products. Meanwhile, breakfast cereals and snacks harness malt for its nutritional and taste advantages, contributing to their health benefits and consumer satisfaction. The surge in plant-based dairy analogues is largely fueled by a rising consumer appetite for sustainable protein sources and lactose-free options, with oat milk applications notably propelling the demand for malt extract due to its ability to improve texture, flavor, and nutritional profile.

Geography Analysis

Europe holds a dominant 34.25% market share in 2024, supported by centuries-old traditional brewing expertise, sophisticated supply chain networks, and comprehensive regulations favoring artisanal production methods. Companies like Malteurop demonstrate this regional strength, operating 23 industrial sites across 14 countries and maintaining extensive partnerships with 10,500 farmers to ensure consistent high-quality raw material standards. Germany and the United Kingdom represent the largest markets within Europe, supported by well-established craft brewing segments, extensive distribution networks, and successful premium product positioning strategies.

From 2025 to 2030, the Asia-Pacific region is set to lead with a robust 9.61% CAGR. This surge is fueled by progressive market deregulation, rising consumer incomes, and a swift shift in preferences towards premium alcoholic beverages. In India, modernized production facilities and a trend of urban consumption are driving notable market expansion, supported by increasing disposable incomes and a growing middle-class population. Meanwhile, China's burgeoning craft brewing sector stands poised for significant growth, bolstered by its vast population, rapid urbanization, and a more discerning consumer base, which is increasingly seeking unique and high-quality beverage options.

North America sustains its market position through ongoing innovation in craft brewing, advanced production technologies, and premium spirits production capabilities. The introduction of American Single Malt Whisky standards by the TTB, mandating 100% malted barley content, has significantly increased demand for specialty malting barley and impacted production trends. Additionally, research from the University of Arkansas has demonstrated that malted rice can reduce brewing costs by 2-12% compared to milled rice. This finding is particularly noteworthy as rice produces more sugar per acre than barley while requiring less land for cultivation.