Malt extract is a sweet substance extracted from malted grains which are germinated cereal grains dried during malting process. It is produced in two forms dried and liquid malt extracts. The liquid malt extracts is a liquid with high viscosity used as a natural food ingredient. It is available in different color levels ranging from light to dark shades whereas the dry malt extracts is made by further spray drying of liquid extract. Malt extract is extensively used in the brewing of beer. It has been in use in multiple products for its unique flavor characteristics, and works as a sugar or honey substitute in many recipes such as baked good like bars, cereals, cookies, bars, and many others. It helps in enhancing flavors, aromas, and colors. It is also used as dietary supplement besides baking and brewing. Increasing adoption of malt extracts in various applications is expected to drive the demand for malt extracts during the forecast period.
GROWING POPULARITY OF CRAFT BEERS INFLUENCE THE MALT EXTRACTS MARKET GLOBALLY
Malt extract is majorly used in the manufacturing of alcoholic beverages such as beer and whiskey, among others. It is used to add a distinct flavor to the product. Malt extracts are also used in craft beers by small scale or home-based breweries to cut down on the process of costing and deliver a superior product. The craft beer market nearly holds 15% market share of the total beer market. The increasing number of beer drinkers and their shifting preferences towards craft beer for its unique taste is driving the demand for malt extracts beer. An increasing number of lounges, breweries, and bars is also boosting the growth of craft beer. The growing popularity of craft beer with exotic flavors is gaining traction among Gen Y and Gen X population. Gen Y or millennial who are major consumer group of craft beer are open to experimenting with new beer products. This has encouraged most of the breweries have introduced their own unique craft beers. The growing number of microbreweries and craft brewers in developed regions such as North America and Europe will propel the market in next few years which indirectly drives the demand for malt extracts. In addition, the rising disposable income and changing lifestyles has increased demand for craft beers in developing countries such as India and China this further boosts the demand for malt extracts in craft beer industry. Furthermore, today’s consumers have shifted their preference towards organic and natural food products hence there is a growing demand for organic beer in the global market. Organic malt extract is rich in antioxidants, vitamins, minerals, and amino acids, and thus they are used as a base for these organic beers which further drives the market for malt extracts. Malt extracts are also used in preparation of non-alcoholic beverages such as malted milk and sports drink, non-alcoholic beers, and soft & energy drinks. Thus, the increasing demand for malt extracts in beverages industries is expected to propel the market during the forecast period.