Malted Milk Market Size - By Product Type (Organic Potato Peel Powder, Conventional Potato Peel Powder), By Distribution Channel (Direct Sales, Supermarkets/Hypermarkets, Specialty Stores, Online Retail, Others), By Application & Forecast, 2024-2032

Malted Milk Market Size

Malted Milk Market size was valued at USD 2.01 billion in 2023 and is expected to grow at 6.1% CAGR from 2024 to 2032. The market, a niche yet influential segment within the global food and beverage industry, has undergone significant evolution over the past decade. For stakeholders, grasping the current and emerging business trends in this market is vital to navigate its complexities and effectively harness growth opportunities.
 

A primary driver is the rising consumer inclination towards nutritious and functional beverages. Malted milk, celebrated for its rich nutritional profile—boasting high levels of vitamins, minerals, and carbohydrates—has resonated with health-conscious consumers. This trend is especially pronounced in North America and Europe, regions known for their heightened health and wellness awareness.
 

Moreover, as disposable incomes rise in emerging economies like those in the Asia Pacific and Latin America, there's been a marked uptick in the consumption of premium malted milk products. Consumers in these regions are increasingly prioritizing high-quality, nutritious food and beverage options, bolstering the demand for malted milk. The introduction of innovative flavors and formulations—ranging from chocolate and vanilla to fruit-infused variants—has expanded the consumer base, particularly attracting younger demographics in search of diverse and flavorful options.
 

For instance, between 2018 and 2022, the average annual consumption of dairy and plant-based milk declined by 1.7%. The decline is being driven by a decrease in the consumption of regular dairy milk, which accounts for 85.9% of total ounces. Milk consumption fell 6.6% between 2018 and 2022, with ordinary dairy milk falling 11.9%. As the coronavirus (COVID-19) spread over the world in early 2020, consumers’ food consumption patterns shifted. In mid-March 2020, numerous states in the United States began implementing business shutdowns and stay-at-home directives. Consequently, there was a notable surge in consumer spending on groceries.
 

Another noteworthy trend is the surging popularity of plant-based and dairy-free alternatives. With lactose intolerance and dairy allergies on the rise, manufacturers are pivoting towards plant-based malted milk products, utilizing bases like almond, soy, or oat milk. This shift is in harmony with the broader movement advocating for veganism and environmentally sustainable food choices.
 

Technological advancements and shifting consumer behaviours are shaping emerging trends in the malted milk market. A standout trend is the heightened adoption of e-commerce and digital marketing strategies by malted milk brands. The COVID-19 pandemic acted as a catalyst, propelling the shift towards online shopping. In response, companies are channelling significant investments into digital platforms, aiming to broaden their audience reach and provide a tailored shopping experience. Regions with pronounced internet penetration, notably North America, Europe, and select parts of Asia, are witnessing this trend most prominently.
 

Malted Milk Market Trends

The malted milk industry has undergone a profound transformation, spurred by shifts in consumer preferences, technological progress, and regulatory changes. A decade ago, the market was predominantly centered around traditional malted milk beverages, characterized by limited product differentiation and innovation. However, as health and wellness trends gained momentum and food technology advanced, the market landscape began to shift.
 

Today's consumers are more discerning and informed, seeking products that not only tantalize the taste buds but also offer tangible functional benefits. This evolution has catalyzed a wave of innovation, with manufacturers delving into novel flavors, ingredients, and packaging formats to meet diverse consumer demands. Furthermore, as sustainability and ethical consumption take precedence in consumer values, companies are re-evaluating their sourcing, production, and marketing strategies to resonate with these evolving sentiments.
 

Malted Milk Market Analysis

Powdered malted milk segment held USD 893 million in 2023 and it is anticipated to expand at an 6.7% of CAGR during 2024-2032. Powdered malted milk stands out as the most favored type, lauded for its versatility and extended shelf life. It's widely utilized in households and commercial venues, including bakeries and foodservice establishments, both as a beverage base and an ingredient in diverse recipes. This product resonates with consumers prioritizing convenience, especially in regions where climatic conditions necessitate ambient storage.
 

Conversely, liquid malted milk is surging in popularity, thanks to its ready-to-drink nature, catering to urban consumers' fast-paced, on-the-go nutritional needs. This trend is notably strong in North America and Europe, where busy lifestyles amplify the demand for convenient food choices. Flavored malted milk is witnessing dynamic growth, spurred by innovations in flavors like chocolate, vanilla, and fruit blends.
 

The malted milk market from beverage segment was valued at USD 694.8 million in 2023 and garner a 6.9% CAGR from 2024 to 2032. Beverages led the pack, buoyed by the appeal of malted milk drinks as nutritious energy boosters for all ages. This segment's growth is further propelled by the rising trend of functional beverages, positioning malted milk as a health-centric drink.
 

In confectionery, malted milk enhances flavors in chocolates and candies, tapping into consumers' nostalgic tastes. This segment sees steady growth, especially in regions with high confectionery demand. Bakery products also prominently feature malted milk, enhancing both flavor and nutritional value. This is especially true for artisanal and specialty bakeries that prioritize unique flavors and wholesome ingredients. The infant formula segment, while specialized, is on the rise, fueled by the demand for fortified nutrition for young ones.
 

The malted milk market from supermarkets and hypermarkets segment were valued at USD 856.8 million in 2023 and garner a 6.4% CAGR from 2024 to 2032. Supermarkets and hypermarkets dominate, thanks to their expansive reach, varied product selections, and the allure of one-stop shopping, especially in urban locales where consumers favor multi-item purchases. Convenience stores are pivotal, particularly for liquid malted milk, addressing the immediate needs of customers seeking quick purchases. Online retail is rapidly gaining traction, spurred by e-commerce's rise and evolving shopping habits, especially among millennials and Gen Z who favor home delivery and a broader product exploration.
 

North America malted milk market is expected to hold a USD 656.5 million in 2023 and expected to grow at a 6.6% CAGR. North America's market boasts a robust presence, featuring both time-honored and cutting-edge products. The primary drivers of demand include the widespread love for malted milkshakes and related confectionery items. Furthermore, mirroring the region's overarching health and wellness movement, there's an increasing inclination towards plant-based and low-sugar alternatives.
 

Malted Milk Market Share

The malted milk industry competitive terrain is a blend of established multinational giants and agile regional players. Dominating the scene are industry behemoths like Nestlé and Muntons Plc, wielding extensive product portfolios, formidable brand recognition, and expansive distribution networks. In contrast, niche players such as King Arthur Baking Company, Inc., and Briess Industries, Inc. are carving out their space in regional markets, championing unique offerings like organic and artisanal products.
 

Specialized companies in food technology and innovation, such as Food and Biotech and SSP Pvt Limited, are also making their mark. Leveraging their prowess in ingredient processing and formulation, they're catering to the surging demand for avant-garde malted milk products by providing tailored solutions to food manufacturers. Product innovation stands out as a cornerstone strategy.
 

Companies are not just introducing new flavors and formulations but are also innovating packaging formats to resonate with a diverse consumer base. For instance, brands are rolling out malted milk variants boasting added functional benefits—think protein fortification or a reduction in sugar content—to appeal to the health-conscious demographic.
 

Malted Milk Market Companies

Top companies operating in the malted milk industry include:

• King Arthur Baking Company, Inc
• Food and Biotech
• Briess Industries, Inc.
• Insta Foods
• Nestlé 
• SSP Pvt Limited
• Muntons Plc
• Soda Fountain
• Ovaltine
• Hoosier Hill Farm
   

Malted Milk Industry News

• In September 2023, Nestlé reformulated its malted milk powder products to incorporate more natural ingredients. This move not only aligns with the company's sustainability objectives but also caters to consumer demands for cleaner labels and healthier choices.
   
• In November 2023, Muntons Plc ramped up its production of malted milk powder, citing heightened demand from both domestic and international markets, especially within the snack and beverage sectors. In tandem with this growth, the company is channeling investments into new technologies to bolster production efficiency.
   

The malted milk market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Million) (Tons) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Product Type

• Powdered Malted Milk
• Liquid Malted Milk
• Flavored Malted Milk

Market, By Application

• Beverages
• Confectionery
• Bakery Products
• Infant Formula
• Nutritional Supplements       

Market, By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retail
• Specialty Stores
• Foodservice

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA