The Malted Milk Powder Market size was estimated at USD 1.1 billion in 2023 and is projected to reach USD 1.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.20% during the forecast period (2024-2030).

Malted Milk Powder Market

Market Summary

The malted milk powder market is a niche yet significant segment within the global food and beverages industry, characterized by its versatile applications and steady demand. This market revolves around the production and distribution of a powdered substance made from a mixture of malted barley, wheat flour, and evaporated whole milk, which is prized for its distinctive sweet and nutty flavor profile. Primarily utilized as a key ingredient in the manufacturing of various food and beverage products, malted milk powder serves as a flavor enhancer, nutritional supplement, and texturizing agent. The market is supported by a robust supply chain involving agricultural sourcing, processing, and distribution networks that cater to both industrial manufacturers and retail consumers. Key end-use sectors include the confectionery industry, where it is used in chocolates and candies, the bakery industry for breads and biscuits, and the beverage industry for health drinks and milkshakes. The market demonstrates resilience against economic fluctuations due to the consistent consumption of comfort and indulgent foods. Innovation in product formulations, such as the development of organic and gluten-free variants, is gradually gaining traction, appealing to health-conscious demographics. The competitive landscape is fairly consolidated with a few major players holding significant market share, yet opportunities exist for regional and niche manufacturers to capitalize on localized demand and specialty product offerings.

Key Highlights

The malted milk powder market is distinguished by several key highlights that underscore its strategic importance and growth potential. A prominent feature is the product's multifunctional nature, acting as a natural flavoring agent, coloring agent, and nutritional fortifier, which reduces the need for artificial additives in food production. This aligns with the growing consumer preference for clean-label and naturally sourced ingredients, providing a competitive edge to manufacturers who leverage this attribute. Another significant highlight is the deep-rooted heritage and nostalgic value associated with malted milk products, particularly in Western countries, which fosters brand loyalty and steady consumption patterns. The market benefits from continuous research and development activities focused on enhancing product quality, extending shelf life, and developing innovative applications in non-traditional sectors such as sports nutrition and dietary supplements. Strategic collaborations and partnerships between manufacturers and food service chains or retail giants are common, facilitating wider distribution and market penetration. Furthermore, the adaptability of malted milk powder in various culinary traditions globally allows for cross-cultural product innovations, enabling companies to tap into emerging markets with customized offerings. The emphasis on sustainable sourcing and production practices is increasingly becoming a critical differentiator, influencing purchasing decisions among environmentally conscious businesses and consumers.

Drivers, Opportunities & Restraints

The malted milk powder market is influenced by a combination of drivers, opportunities, and restraints that shape its trajectory. Key drivers include the rising consumer demand for convenience foods and ready-to-drink beverages, which extensively utilize malted milk powder for flavor and texture. The growing health and wellness trend is another significant driver, as malted milk is perceived as a nutritious ingredient rich in vitamins and minerals, supporting its incorporation into functional foods and health supplements. Increased disposable incomes in developing regions are fueling the demand for premium and indulgent food products, thereby boosting market growth. Opportunities abound in the expansion of product applications beyond traditional uses, such as in the pharmaceutical industry for nutrient delivery systems and in the personal care industry for innovative cosmetic formulations. The surge in e-commerce and digital marketing presents a substantial opportunity for brands to enhance their visibility and reach a broader audience. However, the market faces restraints including fluctuating prices of raw materials like barley and milk, which can impact production costs and profit margins. Stringent food safety regulations and quality standards across different regions pose challenges for manufacturers in terms of compliance and certification. Additionally, the growing popularity of plant-based alternatives may restrain growth, as some consumers shift towards dairy-free options, although this also opens avenues for the development of plant-based malted powder variants.

Concentration Insights

The concentration insights of the malted milk powder market reveal a landscape that is moderately concentrated, with a handful of established players dominating a significant portion of the market share. These leading companies possess extensive production capabilities, robust distribution networks, and strong brand recognition, which create high barriers to entry for new participants. The market concentration is further reinforced by long-standing relationships with large-scale buyers in the food and beverage manufacturing sector, as well as contracts with retail chains and food service providers. However, the market is not devoid of competition from smaller regional players and private label brands that cater to specific geographic areas or niche consumer segments. These smaller entities often compete on the basis of price, localized taste preferences, and agility in responding to market trends. The concentration is also evident in the research and development sector, where major investors continuously innovate to maintain their competitive edge through product improvements and new application discoveries. Strategic mergers and acquisitions are occasionally observed as a means for larger companies to consolidate their market position and expand their product portfolios. This concentrated nature ensures a certain level of market stability but also necessitates that smaller players adopt innovative strategies to carve out a sustainable niche.

Type Insights

Type insights in the malted milk powder market indicate a segmentation primarily based on composition and functionality, catering to diverse industrial and consumer needs. The market is broadly divided into diastatic and non-diastatic malt powder varieties. Diastatic malt powder contains active enzymes that break down starches into sugars, making it particularly valuable in baking applications to improve yeast activity, dough handling, and crust coloration. Conversely, non-diastatic malt powder, which has been heat-treated to deactivate enzymes, is predominantly used for flavor enhancement, sweetening, and coloring in a wide array of products such as beverages, confectioneries, and desserts. Within these categories, there are further differentiations based on factors like organic certification, gluten-free status, and fortification with additional nutrients. The demand for organic malted milk powder is witnessing an uptick, driven by the global shift towards organic and natural food products. Similarly, gluten-free variants are gaining traction in response to the rising prevalence of celiac disease and gluten intolerance. Manufacturers are increasingly focusing on producing specialized types to meet the precise requirements of various end-use industries, thereby enhancing the versatility and application scope of malted milk powder in the global food and beverage sector.

Application Insights

Application insights reveal that malted milk powder is utilized across a diverse spectrum of industries, underscoring its versatility and functional benefits. In the food and beverage sector, it is a fundamental ingredient in the production of chocolate confectioneries, where it imparts a rich, creamy flavor and smooth texture. The bakery industry extensively employs malted milk powder in bread, biscuits, cookies, and cakes to enhance flavor, improve browning, and extend shelf life. The beverage industry represents a significant application area, with malted milk powder being a key component in health drinks, nutritional shakes, malted beverages, and instant drink mixes, valued for its nutritional profile and solubility. Beyond traditional uses, there is growing adoption in the pharmaceutical and nutraceutical industries, where it is used as an excipient and nutrient carrier in various formulations. The personal care industry is exploring its use in cosmetic products for its skin-nourishing properties. Additionally, the food service sector, including cafes and restaurants, utilizes malted milk powder in the preparation of specialty drinks and desserts. This wide array of applications ensures a consistent demand stream and encourages continuous innovation tailored to specific industry needs.

Regional Insights

Regional insights highlight varying dynamics and growth patterns of the malted milk powder market across different geographies. North America holds a substantial market share, driven by high consumption of convenience foods, baked goods, and nutritional beverages, with the United States being a major contributor due to the presence of key manufacturers and a strong culture of malt-based products. Europe follows closely, with countries like the United Kingdom and Germany showing significant demand rooted in historical consumption patterns and a robust food processing industry. The Asia Pacific region is identified as a high-growth market, fueled by rising disposable incomes, urbanization, and the increasing influence of Western dietary habits in countries such as China, India, and Japan. Rapid expansion of the food and beverage sector in these economies, coupled with growing health awareness, is propelling the adoption of malted milk powder. Latin America and the Middle East and Africa present emerging opportunities, though growth is moderated by economic volatility and lower per capita consumption. However, increasing investment in food processing infrastructure and rising consumer expenditure on packaged foods are expected to drive future growth in these regions. Each region exhibits distinct preferences and regulatory landscapes, necessitating tailored strategies for market penetration and expansion.

Company Insights

Company insights into the malted milk powder market underscore the strategic approaches and competitive positioning of key players. Prominent companies such as Nestl? SA, GlaxoSmithKline plc (Horlicks), and Briess Industries Inc. are recognized for their extensive product portfolios, strong research and development capabilities, and global distribution networks. These industry leaders focus on continuous product innovation, often introducing variants that cater to evolving consumer trends such as organic, non-GMO, and fortified offerings. They engage in strategic initiatives including mergers, acquisitions, and partnerships to strengthen their market presence and expand into new geographic territories. For instance, the acquisition of Horlicks by Unilever from GSK was a significant move that altered competitive dynamics in certain regions. Other notable players like Muntons PLC, Imperial Malts Ltd., and Food & Biotech Engineers India Pvt. Ltd. compete by specializing in niche segments, offering customized solutions, and maintaining cost competitiveness. Regional companies often leverage local sourcing advantages and deep understanding of domestic taste preferences to secure a loyal customer base. Sustainability practices, including ethical sourcing and environmentally friendly production processes, are increasingly becoming focal points for companies aiming to enhance their brand image and meet corporate social responsibility goals.

Recent Developments

Recent developments in the malted milk powder market reflect a trend towards innovation, expansion, and strategic realignments. Key industry players have been actively launching new product variants to meet the demand for health-oriented and specialty products, such as organic malted milk powder and options with reduced sugar content. There has been a noticeable increase in investment towards enhancing production technologies to improve efficiency, product quality, and sustainability metrics. Several companies have expanded their manufacturing capacities in high-growth regions, particularly in Asia Pacific, to capitalize on rising local demand and reduce logistical costs. Strategic mergers and acquisitions continue to shape the market landscape, as seen in transactions involving major brands aiming to consolidate their market position or acquire niche capabilities. Collaborations with food service chains and retail partners have been intensified to boost product visibility and accessibility. Additionally, there is a growing emphasis on digital marketing and e-commerce strategies to engage directly with consumers and gather valuable insights for product development. Regulatory approvals for new health claims and applications have also been a focus, enabling companies to promote the nutritional benefits of their products more effectively and tap into new consumer segments.

Report Segmentation

The report on the malted milk powder market is meticulously segmented to provide a comprehensive analysis that caters to the strategic needs of businesses and investors. The segmentation is structured along several key dimensions to offer detailed insights. By type, the market is categorized into diastatic and non-diastatic malt powder, each analyzed for their distinct properties and applications. Application-wise segmentation covers confectionery, bakery products, beverages, pharmaceuticals, and others, highlighting the utilization and demand drivers in each sector. Geographical segmentation breaks down the market into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa, with further country-level analysis for major economies to understand regional nuances and growth potential. Additionally, the report may include segmentation based on distribution channel, such as business-to-business and business-to-consumer, including sub-channels like supermarkets/hypermarkets, online retail, and specialty stores. This multi-faceted segmentation enables stakeholders to identify specific growth pockets, understand competitive dynamics in each segment, and make informed decisions regarding investment, marketing, and expansion strategies. The analysis within each segment delves into trends, opportunities, and challenges, providing a holistic view of the market landscape.

FAQs

What is malted milk powder made from? Malted milk powder is primarily made from a combination of malted barley, wheat flour, and evaporated whole milk. The process involves malting the barley to activate enzymes, then drying and grinding it along with the other components to create a fine powder.

How is malted milk powder used in baking? In baking, malted milk powder is used as a natural flavor enhancer and to promote browning. It can improve yeast activity in bread dough, resulting in better rise and texture, and adds a rich, creamy taste to cookies, cakes, and other baked goods.

Is malted milk powder gluten-free? Traditional malted milk powder is not gluten-free because it contains barley and wheat. However, some manufacturers produce gluten-free versions using alternative grains and processes to cater to consumers with gluten intolerance or celiac disease.

What are the health benefits of malted milk powder? Malted milk powder offers several health benefits as it is a good source of vitamins, minerals, and carbohydrates. It provides energy, supports bone health due to its calcium content, and can be a valuable nutritional supplement when added to foods and beverages.

Can malted milk powder be used in beverages? Yes, malted milk powder is commonly used in beverages. It is a key ingredient in traditional malted milkshakes, hot chocolate, and instant drink mixes. It dissolves easily, adding flavor, sweetness, and nutritional value to various drinks.

Citius Research has developed a research report titled “Malted Milk Powder Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Malted Milk Powder Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Malted Milk Powder Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Malted Milk Powder Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Malted Milk Powder Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Malted Milk Powder Market
• Research Methodology
• Executive Summary
• Market Dynamics of Malted Milk Powder Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Malted Milk Powder Market
• Cost and Gross Margin Analysis of Malted Milk Powder Market
• Malted Milk Powder Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Malted Milk Powder Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Malted Milk Powder Market Key Stakeholders

Below are the key stakeholders for the Malted Milk Powder Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Malted Milk Powder Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Malted Milk Powder Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Malted Milk Powder Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Malted Milk Powder Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

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