Europe malt ingredient market was valued at USD 62.8 billion in 2016 and is expected to grow with a CAGR of 6.9% during the forecast period 2018 2023. European region is the major producer and consumer owing to increasing consumer trend towards craft beer consumption. With the growing awareness of malt benefits, the scope of it has tapped the food industry as an additive, flavor, colorant and ingredient. Beer, milk powders, snack bars, flakes, syrups, and cookies are the major applications of malt as ingredient.
Increasing Demand for Craft Beer
The key driver for this market is the use of malt in the beer industry, which is growing at a fast rate. Its widespread use in the food industry is another drive for the growth of this market. The use of different types of malt extracts in various food products is an opportunity for the players in the industry. Growing popularity of wine and other beverages acts as a hindrance in the growth of this market, as this would reduce the consumption of beer. Increase in the use of organic malt in making breweries is boosting the growth of the market. The major challenge to this market is the entry of local players in the market. They offer low quality product, and thus are able to generate a broader customer base.
Barley holds the highest Market
Even though other cereal grains may be made into malt, barley is the preeminent cereal for this process. Barley gives a superior flavor profile and has varied processing advantages in beer production. Barley holds the highest share of 35% in the Europe malt ingredient market followed by wheat. The increasing consumption of beer and nonalcoholic malt beverages in Europe is driving the growth of barley use in malt production.
There are two types of barley: winter 2R or 6R and spring 2R. The advantage of winter barley is that it can benefit from fall soil moisture, which ensures higher yields as compared with spring barley. Winter malting barley was mostly grown in the milder arid and semiarid regions of Europe. Wheat has higher protein content than barley, which produces beers with a fuller mouthfeel and a rich, creamy head, but can also result in hazy beers. This enables the companies to focus on wheat malt as well.
Germany is dominating the Europe Malt Ingredient Market
Western Europe and Central Europe are one of the key malt markets. Germany holds one of the highest share in the malt ingredient market and has highest application of malt in beer, traditional alcoholic beverages and nonalcoholic malt beverage. European flavors, changing cultural and social factors have also strengthened the potential of Europe's malt ingredient market.
Major Players: MALTEUROP GROUP, BOORTMALT, CARGILL BELGIUM, BESTMALZ, BAIRDS MALT, GLEN GRANT, THE MALT MILLER, CASTLE MALTING, SIMPSONS MALT
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