Malted Milk Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Malted Milk Market is projected to expand from USD 2.25 Billion in 2025 to USD 3.11 Billion by 2031, registering a CAGR of 5.54%. Comprising a powdered blend of malted barley, wheat flour, and evaporated whole milk, this product is widely valued for its nutritional benefits and unique taste. The market's growth is largely propelled by increasing consumer demand for functional beverages that offer convenient sources of essential nutrients and fortified energy. Additionally, the industry benefits significantly from the widespread use of malted powder as a flavor enhancer in the baking and confectionery sectors. Underscoring the scale of industrial support for these ingredients, Euromalt reported that the total EU malting capacity hit 10,237,085 tonnes in 2024, confirming the extensive infrastructure dedicated to securing supply.

Despite strong demand, the market faces substantial hurdles related to the price volatility of key agricultural inputs. Unpredictable cost fluctuations for dairy and barley, frequently triggered by changing climatic conditions, lead to instability within the supply chain. These variations can severely squeeze manufacturer profit margins, thereby hindering consistent commercial expansion and posing a significant challenge to the market's long-term growth trajectory.

Market Drivers

The growing appetite for functional and nutritional beverages acts as a major engine for the global malted milk market. With modern consumers prioritizing fortified drinks that deliver specific health advantages, such as sustained energy and immune support, manufacturers are strategically rebranding traditional malt beverages as functional wellness products. This shift toward health-focused positioning is generating measurable financial success for leading companies. For instance, Hindustan Unilever Limited’s 'Integrated Annual Report 2023-24', published in March 2024, revealed that its Foods & Refreshment division - home to the prominent Horlicks brand - achieved a 4% underlying sales growth. This performance was attributed to targeted communications regarding nutritional benefits and market share expansion in the health food drinks sector, highlighting the strong demand for malt-based products aligned with wellness trends.

Furthermore, the market is being bolstered by the expanding use of malt extracts in the bakery and confectionery industries, where they are valued for their natural coloring, sweetening, and texturizing abilities. As the clean-label trend gains momentum, industrial bakers are increasingly replacing synthetic additives with malt-based alternatives to attract health-conscious consumers. This is reflected in Associated British Foods' 'Annual Results Announcement' from November 2024, which noted a 2% growth in Ingredient sales for the year, driven primarily by strong performance in bakery ingredients involving malt products. However, the sector must navigate upstream supply pressures; the Canadian Grain Commission estimated in 2024 that western Canadian barley production fell by approximately 10% to 7.839 million tonnes, a decline that threatens to tighten the global supply available to malt processors.

Market Challenges

The most significant obstacle hindering the Global Malted Milk Market is the volatility of essential agricultural commodity prices, specifically dairy inputs. Manufacturers depend on stable input costs to effectively manage production overheads and sustain consistent retail pricing. However, erratic shifts in the costs of milk solids and milk, often resulting from supply adjustments and variable environmental conditions, establish a financially precarious environment. This volatility severely compresses profit margins, compelling companies to restrict investment in distribution or capacity, which directly hampers the sector's ability to maintain steady commercial growth.

Recent statistics underscore the severity of these cost pressures on the supply chain. Data from European Dairy Farmers indicates that in August 2025, the average calculated farm gate milk price rose to €49.83 per 100 kg, marking a 7.5% increase compared to the same month the prior year. Such a significant escalation in the cost of a primary ingredient intensifies financial risks for producers of malted milk. Consequently, the difficulty in securing predictable and stable raw material costs stands as a critical barrier, preventing the market from achieving its full developmental potential.

Market Trends

The shift toward sustainable sourcing and clean-label adoption is rapidly redefining procurement strategies within the global malted milk market. Facing increased scrutiny regarding environmental impacts, major malt processors are actively adopting regenerative agriculture initiatives to decarbonize supply chains and secure the future of barley farming. This transition has evolved from a compliance measure into a core value proposition, appealing to environmentally conscious consumers who require transparency regarding ingredient origins. Leading industry players are solidifying these commitments with ambitious environmental targets. For example, Boortmalt’s 'Sustainability Report 2024', released in January 2025, confirms the company has aligned its operations with the 1.5°C Paris Agreement scenario, setting a specific goal to cut carbon emissions per metric tonne of malt by 50% by 2030, highlighting the industry's urgency to embrace greener processing methods.

In parallel, the rise of Direct-to-Consumer (DTC) models and digital retail strategies is reshaping the marketing and distribution of malted beverages. Established brands are increasingly circumventing traditional physical intermediaries to connect with shoppers via proprietary online platforms, gaining better control over consumer data and brand narratives. This digital shift enables manufacturers to leverage the convenience-seeking habits of modern households by offering exclusive products and subscription services for powdered formulations. The magnitude of this channel transition is illustrated by the financial results of market leaders; Nestlé’s 'Annual Review 2023', published in February 2024, reported a 13.4% increase in e-commerce sales, which now account for 17.1% of total group sales, emphasizing the vital role of digital platforms in driving growth for shelf-stable beverage categories.

Key Players Profiled in the Malted Milk Market

• Nestle S.A.
• The Hain Celestial Group, Inc.
• Associated British Foods PLC
• Reckitt Benckiser Group PLC
• Malt Products Corporation
• King Arthur Baking Company, Inc.
• Imperial Malts Ltd.
• Unilever PLC
• Insta Foods
• Hoosier Hill Farm LLC

Report Scope

In this report, the Global Malted Milk Market has been segmented into the following categories:

Malted Milk Market, by Source:

• Wheat
• Barley
• Others

Malted Milk Market, by Product Type:

• Powder
• Milk

Malted Milk Market, by Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others

Malted Milk Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Malted Milk Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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