Malted Milk Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Malted Milk Market size was estimated at USD 7,670 million in 2024 and is projected to reach USD 12,478.3 million in 2031 at a CAGR of 7.2 % during the forecast period 2025-2031.

The malted milk market refers to the production and consumption of milk-based beverages and powders that are flavored with malt extract. Malted milk is made by blending malted barley, wheat flour, and milk, which is then processed into a powder or liquid form. The beverage has been popular for many years, particularly as a nutritional supplement and comfort food. It is commonly consumed as a warm or cold drink, and its mild, sweet flavor and energy-boosting properties have made it a favorite among both children and adults. Additionally, malted milk is also used in the production of various confectionery items and baked goods.

The scope of the malted milk market is broad, encompassing different product forms such as powdered malted milk, ready-to-drink beverages, and malty flavoring agents used in snacks and desserts. It is consumed in a variety of regions, with particular popularity in North America, Europe, and parts of Asia. The demand for malted milk products has been driven by their association with childhood nostalgia, their perceived health benefits, and their use as an ingredient in several food products. The market also includes the growing trend of convenience, with ready-to-consume drinks gaining popularity among busy consumers who seek quick, nutritious options.

Key trends in the malted milk market include the growing preference for healthier and organic variants, as consumers become more health-conscious and seek products with fewer artificial additives. There is also an increasing demand for premium malted milk products, with flavored options such as chocolate, vanilla, and strawberry gaining traction. Additionally, the market is seeing innovation in the form of plant-based alternatives to traditional malted milk products, catering to the rising number of vegans and lactose-intolerant consumers. The convenience factor of ready-to-drink beverages and single-serve packaging is also shaping the product offerings, as manufacturers look to meet the evolving needs of busy lifestyles.

The growth of the malted milk market is primarily driven by increasing consumer awareness of the nutritional benefits of the product, including its role in improving digestion and providing energy. The rising demand for convenient and ready-to-drink options, along with a growing preference for indulgent yet nostalgic treats, also fuels market expansion. Furthermore, the growing middle-class population, particularly in emerging markets, is contributing to the increased consumption of packaged food and beverages, including malted milk. Advances in production techniques and packaging are making malted milk products more accessible, while the rise of e-commerce is providing consumers with greater access to a wide range of options.

Delvens Industry Expert's Standpoint

Experts in the Malted Milk Market highlight several key trends driving growth and innovation. The malted milk market involves the production and consumption of milk-based beverages and powders flavored with malt extract, popular for their sweet taste and nutritional benefits. The market spans various product forms, including powdered milk, ready-to-drink beverages, and flavoring agents used in snacks and desserts. Key trends include increasing demand for healthier, organic, and premium options, along with plant-based alternatives and convenient packaging. Growth is driven by consumer interest in nutritious, convenient products, along with rising middle-class populations in emerging markets. Innovations in production and packaging, along with the rise of e-commerce, further support market expansion.

Market Portfolio

Key Findings

• Wheat held the dominant position in the market, accounting for the largest revenue share of 63.6%. This leadership is largely due to wheat's nutritional benefits and its widespread use in various malted milk products. Wheat-based malted milk is rich in vitamins, minerals, and dietary fiber, making it a preferred choice among health-conscious consumers. Its mild flavor and digestibility make it suitable for all age groups, from children to the elderly. Additionally, wheat malted milk is extensively used in beverages and culinary recipes, further strengthening its market position. Ongoing innovations and the introduction of new wheat-based products continue to boost its popularity and market share.

• Barley is projected to experience a notable CAGR of 5.9% during the forecast period. This growth is driven by barley’s nutritional value and its increasing appeal to health-conscious consumers. Barley is packed with dietary fiber, vitamins, and minerals, making it an important ingredient in nutritious food and beverages. The growing demand for natural and organic products has also led to greater interest in barley-based malted milk. Its versatility in culinary uses and distinct flavor make it attractive to a wide consumer base. As manufacturers introduce new barley-based products, the segment is poised for significant growth in the years ahead.

• Milk liquid malted milk products hold a significant portion of the market. These products are rich in essential nutrients like calcium, vitamins, and proteins, making them a popular choice for consumers across all age groups. The convenience and ease of preparation of liquid malted milk contribute to its popularity, as it can be quickly enjoyed as a beverage or incorporated into various recipes. The availability of diverse flavors and fortified options further enhances the appeal and market share of milk liquid malted milk products.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific region is projected to hold the largest market share. Factors such as Health awareness, convenience, culinary versatility, flavoured milk demand, functional foods, plant-based alternatives, emerging markets, rising disposable incomes, growing popularity of ready-to-drink products, increasing demand for nutritious snacks, expanding e-commerce, innovation in product offerings, urbanization, and growing awareness of the benefits of malted milk have triggered the Malted Milk Market in the region.

Regional Analysis

Asia Pacific to Dominate the Market

• Asia Pacific's malted milk industry held a dominant position in the global market with the largest revenue share of 38.1%. This dominance is driven by the region's expanding population and rising disposable incomes, which have increased demand for nutritious and convenient food and beverage options. The cultural importance of malted milk drinks in countries like India, where they are consumed both as health drinks and enjoyable snacks, also plays a significant role. Furthermore, the growing retail infrastructure and the increasing influence of Western dietary trends have boosted the popularity of malted milk in the region. Innovative product offerings and extensive marketing by both local and international brands have reinforced the Asia Pacific region's leading role in the global malted milk market.

• The North American malted milk industry maintained a notable share. The region’s robust retail infrastructure and the expanding availability of malted milk products in supermarkets, convenience stores, and online platforms have supported market growth. The influence of Western dietary habits and an increasing preference for natural and organic products also contribute to this expansion. Moreover, the introduction of innovative products and new flavors catering to local tastes is attracting a wider consumer base, driving the growth of the market in North America.

• The U.S. malted milk industry is expected to see substantial growth during the forecast period. Increasing health awareness and a preference for fortified products rich in vitamins and minerals are significantly boosting the market. Additionally, the rise of on-the-go lifestyles and demand for quick, healthy meal alternatives have made malted milk an appealing choice. The presence of established brands and extensive marketing campaigns further propel the market's growth in the U.S., catering to a variety of consumer preferences and improving product accessibility.

• Europe’s malted milk industry is anticipated to experience a significant CAGR of 6.2% over the forecast period. Growing health consciousness among European consumers is driving demand for nutritious beverages, with malted milk being viewed as a source of essential nutrients. The trend towards fortified and functional foods is particularly prevalent in this region. Additionally, the increasing popularity of malted milk as an ingredient in various culinary applications, such as baking and confectionery, is broadening its market reach. Well-established retail networks and the growing demand for organic and natural products are also encouraging more consumers to choose malted milk. As manufacturers continue to innovate with new flavors and formulations, the European malted milk industry is expected to grow significantly.

Competitive Landscape

• Nestlé
• Unilever
• GSK plc
• Briess Malt & Ingredients
• Imperial Malts Ltd.
• SSP Private Limited
• Family Cereal Sdn. Bhd.
• Muntons Plc
• Food And Biotech Engineers India Private Limited
• Insta Foods

Recent Developments

• In September 2024, Boeing entered into a partnership with Sagar Defence Engineering to collaborate on the production of unmanned vehicles. This agreement underscores Boeing’s commitment to expanding its presence in the Indian market while supporting the development of advanced unmanned systems. It is part of broader efforts to promote innovation and foster technological collaboration between the US and India in the defense and aerospace sectors.

• In May 2024, Textron Systems, a division of Textron Inc., teamed up with Kodiak Robotics, Inc., a leader in autonomous driving technology, to develop a fully autonomous military ground vehicle. This initiative involves integrating Kodiak’s advanced self-driving system, the Kodiak Driver, into a prototype military vehicle designed by Textron Systems specifically for driverless operations.

• In April 2024, IAI signed a memorandum of understanding (MoU) with Aerotor Unmanned Systems to advance unmanned aerial system (UAS) technologies. IAI will leverage its expertise in aviation and unmanned platforms, while Aerotor will contribute its Apus multicopter, which features a central heavy-fuel propulsion system and a variable-pitch mechanism.

• Also in April 2024, Insitu, a subsidiary of Boeing, received an $84.47 million contract modification from NAVAIR (US) for the ScanEagle and RQ-21A UAV programs. The contract includes the procurement of six RQ-21A UAVs and 20 ScanEagle UAVs, along with associated equipment, training, and technical support services. The work will primarily take place in Bingen, Washington, with an expected completion date of June 2026.

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