Specialty Malt Market Report 2025

The specialty malt market size has grown strongly in recent years. It will grow from $3.66 billion in 2024 to $3.88 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to craft brewing revolution, consumer taste preferences, artisanal and small-scale production, rise of microbreweries, focus on regional and local ingredients.

The specialty malt market size is expected to see strong growth in the next few years. It will grow to $4.89 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to health-conscious consumer preferences, expansion of barley varieties, shift in consumer lifestyles, rising demand for organic malt, e-commerce expansion. Major trends in the forecast period include regulatory impact on labeling and production, diversity in malt profiles, innovative beer styles, health-conscious beverage choices, preference for unique and flavored beers.

The increasing demand for craft beer is anticipated to drive the growth of the specialty malt market in the future. Craft beer is produced by specialty breweries, which often operate independently and produce significantly smaller quantities than larger brewers. In the brewing process, malt provides the carbohydrates necessary for fermentation and enhances the beer's mouthfeel by adding lingering malt sweetness. Additionally, malt is rich in nutrients like silica and vitamin B, which are present in higher concentrations in beer than in wine or other spirits and are preserved throughout brewing. Thus, the rising demand for craft beer will boost the need for specialty malt. For example, according to the Brewers Association, a US-based non-profit organization, retail dollar sales of craft beer increased by 3%, reaching $28.9 billion, which now accounts for 24.7% of the $117 billion U.S. beer market, up from $115 billion previously. Therefore, the growing demand for craft beer is fueling the specialty malt market.

The increasing preference for clean-label products is expected to contribute to the growth of the specialty malt market in the coming years. Clean-label products are food and consumer items that feature simple, transparent, and easily understandable ingredient lists, avoiding artificial additives, preservatives, and chemicals. This trend towards clean-label products is driven by rising consumer awareness of health and wellness, leading to a demand for ingredient transparency and a preference for products free from artificial additives. Specialty malts utilize clean-label ingredients to offer a blend of naturalness, flavor enhancement, and transparency to customers. For instance, in April 2023, the International Food Information Council reported that 52% of Americans followed specific diets, a figure that remained steady from the previous year. Gen Z (66%) and Millennials (63%) were more likely to adhere to these diets compared to Gen X (50%) and Boomers (41%), with Boomers showing a notable increase in adherence, up from 29% in 2022. Popular diets included high-protein diets (18%), mindful eating (17%), and intermittent fasting (12%). Therefore, the growing preference for clean-label products is driving the growth of the specialty malt market.

Major companies in the specialty malt market are concentrating on developing and innovating new products, such as the third single malt whisky, which emphasizes unique flavor profiles and sustainable practices. Malt whisky is primarily made from malted barley and produced at a single distillery, recognized for its rich flavors and complexity, and is typically aged in oak barrels for a minimum of three years. For example, in July 2024, Holyrood Distillery, a UK-based whisky company, launched Ambir. This whisky offers a complex flavor profile by combining heritage malts with innovative techniques for a distinctive experience. Moderate consumption may offer health benefits, including improved heart health and cognitive function. It represents both a cultural connection to Edinburgh's whisky heritage and a delightful option for social gatherings.

Major players in the specialty malt market are demonstrating innovation through the introduction of new products, exemplified by offerings such as Godawan Century. Launched by Diageo India, an India-based beverage and alcohol company, Godawan Century is an artisanal single malt paying tribute to the heritage, culture, and flavors of Rajasthan. This limited-edition single malt, released in May 2021, is a bespoke 100-bottle batch featuring a distinctive image of the Great Indian Bustard, known as Godawan, on a custom label. The cases for each bottle are carefully crafted from old whiskey casks previously used for maturing the liquid. This product showcases Diageo India's commitment to providing unique and culturally inspired offerings in the specialty malt market.

In March 2023, Malteries Soufflet, an international maltster company based in France, acquired Castle Malting for an undisclosed amount. This acquisition is aimed at expanding Malteries Soufflet's presence in the craft beer market and enhancing its product offerings with a wide range of specialty malts. This strategic decision also aligns with their sustainability objectives and global reach in the brewing sector. Castle Malting, a Belgian malting company, specializes in high-quality specialty malts that enhance the flavor, color, and aroma of beer. Their expertise combines traditional methods with innovation, enabling brewers to create unique and varied beer profiles.

Major companies operating in the specialty malt market are Muntons Malt plc, Malteurop, Cargill, Incorporated, Castle Malting, Briess Malt & Ingredients Co., Weyermann Malting, Soufflet Group, Simpson’s Malt, BSG Craft Brewing Supplies, Rahr Corporation, CoorsTek, Inc., A. W. H. Malt, D. E. M. A., maltsters.com, Crisp Malting Group, Boortmalt, J. Stout & Co., Lindeboom Brewery, Great Western Malting, Pilsner Urquell, Haystack Mountain, Old Dominion Brewing Company, H. D. H. Malting, D. A. B. Malting, Castle Rock Brewery, Thomas Fawcett & Sons, MaltEurop Group.

North America was the largest region in the specialty malt market in 2024. The regions covered in the specialty malt market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the specialty malt market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Specialty malt encompasses a diverse range of malts that undergo distinctive processing techniques and utilize various grain types. These malts typically undergo similar malting procedures as standard malts but undergo additional treatments, often involving specific heat and moisture conditions aimed at altering their flavor, color, and functional properties.

The primary products derived from specialty malt include caramelized malt, roasted malt, and other specialized variants. Caramel malts, for instance, impart a unique caramel flavor to beer due to an additional stewing process during malting, often conducted in a roasting drum between germination and kilning stages. These malts are derived from barley, rye, and wheat, and are available in both dry specialty malt and liquid forms. They find application across various industries, including dairy and frozen products, bakery and confectionery items, alcoholic and non-alcoholic beverages, as well as other diverse applications.

The specialty malt market research report is one of a series of new reports that provides specialty malt market statistics, including specialty malt industry global market size, regional shares, competitors with specialty malt market share, detailed specialty malt market segments, market trends, and opportunities, and any further data you may need to thrive in the specialty malt industry. This specialty malt market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The specialty malt market consists of sales of light munich malt, dark munich malt, dextrin malt, wheat malt, rye malt, and naked oat malt. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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