Malted Milk Market Size

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.