Malt Drink Market

Malt Drink Market Size, Share, Growth (2023-2028)

Malt Drink Market was worth US$ 6.28 Billion in 2022, with a CAGR of 10.5% to reach US$ 15.21 Billion by 2028.

Malt Drink Market Overview

Malt drink is produced by fermentation, where the main ingredient is grains of the barley plant. Malting is the traditional process where the grains of barley plants are allowed to sprout, followed by boiling and drying. The formed product is known as malt, which is rich in minerals, proteins, nutrients, and various dietary benefits. Malt drink is considered "non-alcoholic beer" where it contains a negligible alcohol content of less than 0.5%, called low-alcohol beers. Malt drinks are categorized based on the alcohol percentage into – Non-alcoholic malt drinks, Low-alcoholic malt drinks, Average-alcoholic malt drinks, and High-alcoholic malt drinks. Beer was considered the barley-based beverage consumed most worldwide.

Malt Drink Market Drivers

The increased demand for flavored drinks in recent years drove primarily the value of the malt drink market. Further research and development led to the production of different new varieties of beverages, which include alcoholic beverages, giving a prominent increase in the growth of the malt drink market. The increase in the production of health-based malt drinks has gained traction as they are rich in calcium, vitamins, and minerals. The awareness of healthy living in the developed countries was also influencing the revenue of the malt drink market. The advancement in living and the influence of social media was making people rely on the habituation of alcoholic beverages in their daily lives, which was increasing the malt drink market value. Alcoholic malt drinks are considered an essential economic product, but non-alcoholic drinks are considered safe and beneficial for health. The mindset of many people regarding being fit and healthy was an increase in the market demand for low-alcoholic and non-alcoholic drinks.

Malt Drink Market Restraints

Increased the product's prices with growing cost of raw materials is the restraining factor for the malt market growth. The shutdown of sports events, gatherings, and social distancing during COVID and post-COVID had decreased the consumption of beer, which is the main economic product developing a challenge for market growth. In consideration of health, many people are avoiding alcoholic drinks, which restrains the market value. The malt drink production rate was directly affected by the quality of barley, where seasonal changes may hinder the Malt Drink Market share.

COVID-19 Impact on the Malt Drink Market

The Pandemic introduced social distancing in protocol to avoid the spread of COVID disease. This social distancing had an impact on gatherings and crowded areas. The sale of drinks was huge during the gatherings and at parties. This led to a decrease in sales, which impacted market size. The supply chain was also disrupted during the lockdown, which decreased the revenue of the market value. The raw material procurement has faced challenges due to the shutdown regulations issued during the lockdown. The production was also difficult due to less labor. Due to the lockdown, people can stay home where they cannot leave for work, which decreased the staffing in the manufacturing and production departments. In the POST-COVID phase, the malt drink market demand has increased in the areas given relaxation on liquor sales. The overall COVID-19 strict regulations have negatively impacted the malt drink market value during the Pandemic.

Malt Drink Market Segmentation

By Type:

• Flavored

• Unflavoured

The flavored segment has the largest market demand in 2022. Many people prefer flavored drinks compared to unflavoured drinks. Flavored drinks attract children and many adults regarding the taste, which raises the market demand for the Malt Drink Market.

By Source:

• Barley

• Wheat

• Rye and Others

The Barley segment had the greatest share in the Malt Drink Market. The production of malt was high in the barley segment. Alcoholic beverages are produced by using barley, where barley is the main component. Barley crops also produced healthy drinks and non-alcoholic beverages. The researchers are now developing new techniques to replace barley with other crops to decrease the demand for barley crops. It was expected that the expansion of market size would occur during the forecast period by replacing barley.

By Distribution Channel:

• Business-to-Business

• Business-to-Consumer

• Supermarkets

• Department stores

• Online Retail

The business-to-business segment has the highest market value due to the bulk sale of the product. The business-to-business segment has business entities on both sides, which will have a profitable deal, leaving no loss. The business-to-consumer segment has also grown in recent years when people are addicted to online shopping. The supermarkets are also bringing the market demand as families are habituated to shop at supermarkets, increasing the market value. The business-to-consumer segment was expected to increase in the malt drink market in the upcoming years.

By Product Type:

• Health Drinks

• Alcoholic Beverages

• Non-Alcoholic Beverages

The Alcoholic Beverages segment has the highest demand in the malt drink market value in 2022. The increase in lounges and bars was expected to boost the market growth. The alcohol consumption in the population was expected to increase in the forecast period, which was an opportunity for the malt drink market. 

Health and non-alcoholic beverages were also in demand as the population having malt drinks is in consideration of health. In the population of malt drinks, 30% are children who consume healthy and non-alcoholic drinks. The increased health consciousness among people who prefer organic malt beverages influenced the market demand. The medical benefits of malt drinks have increased demand for the market growth of malt drink beverages

By Application:

• HoReCa (Hotels, Restaurants and Cafes)

• Beverage Industry

The Beverage industry segment held the most significant market revenue share as the production of malt drinks was high compared to malt powder. Alcoholic and Non-alcoholic beverages are high in sales, which brings demand for the malt drink market. All age groups can consume malt drinks respective to product type, such as alcoholic and non-alcoholic beverages and health drinks.

The HoReCa segment includes hotels, restaurants, and cafes that provide alcoholic beverages to customers; these mostly serve only alcoholic beverages, which only increases demand for alcoholic companies. This segment was expected to expand in the malt drink market in the forecast period of 2023 to 2028.

Malt Drink Market Regional Analysis:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa

The European region holds the largest share of the malt drink market. Due to the increase in consumers and manufacturers, France has the most considerable portion of Europe's demand in the malt drink market. Europe had the largest market for alcoholic beverages around the world. Europe has the greater potential to increase with a market share of 36.8% in the malt drink market in the forecast period of 2023 to 2028.

Asia-Pacific region is in second position in dominating the share of the malt drink market. This region was expected to expand in the malt drink market in the forecast period at a CAGR of 9%. The innovations in the flavor, health benefits, and new product launches all influence the value of the malt drink market. The Asia-Pacific region holds a significant market share due to the increased consideration of health concerns.

North America holds the third largest market share in the malt drink market. It held the market share of 28.3% in 2022. It was expected to have decent growth in the malt drink market value in the forecast period of 2023 to 2028.

Malt Drink Market Key Players

1. Busch Malt Beverages

2. Asahi Breweries Malt Beverages

3. Bavaria Brewery Malt Beverages

4. Ceres Brewery Malt Beverages

5. Fayrouz

6. Coors Brewing Company Malt Beverages

7. Nestle SA

8. Moussy

9. Guinness Nigeria Malt Beverages

10. Suntory International Corporation

11.