Malted Milk Market Size was estimated at 15.34 (USD Billion) in 2022. The Malted Milk Industry is expected to grow from 16.01(USD Billion) in 2023 to 23.5 (USD Billion) by 2032. The Malted Milk Market CAGR (growth rate) is expected to be around 4.36% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
The malted milk market is poised for sustained growth in the coming years. Rising health consciousness among consumers, coupled with the increasing popularity of fortified foods and beverages, is driving demand for malted milk products. The market is also witnessing a surge in demand for natural and organic malted milk options as consumers seek healthier alternatives.
Key market drivers include the growing adoption of malted milk as a nutritious and convenient breakfast option, its use as an ingredient in various food and beverage applications, and its perceived health benefits such as improved digestion and bone health. Additionally, the expansion of the food and beverage industry in developing countries presents significant opportunities for market growth.
Recent trends in the malted milk market include the emergence of innovative flavors and formulations, such as gluten-free and low-sugar variants. Increasing consumer preference for on-the-go snacks and beverages is also driving demand for portable malted milk products. Furthermore, the rising popularity of plant-based diets is expected to create opportunities for the development of non-dairy malted milk alternatives.
Consumer preference is notably leaning towards healthy options and well-balanced diet choices. Malted milk is packed with protein, calcium, and vitamin D, making it a viable option for the health-conscious consumer. This is expected to steer the growth of the significant malted milk market in a skyrocketing progression. In relation to the noticeable and accelerating consumer abandonment of unhealthy options, I personally feel that the food and beverage market applicable to malted milk will progressively reap more from malted milk brands.Malted milk is also used in a number of beverages, including shakes and smoothies. Malted milk is not only used in the food and beverage market; it is also used in a number of baked items such as cookies, cakes and other sweet treasures. Malted milk is, therefore, expected to attract courageous growth opportunities attributed to its versatility in the market in an exceptional unique manner. One of the most attractive functions reactive causative variables that are expected to steer the growth inclination of malted milk is its multi-functional uniqueness, which is clearly justified through its varied uses, from baked products to a beverage ingredient.
Emerging markets are the main growth trend of the malted milk market. The reason for this rapid growth in these countries, there is a growing demand for low-cost, and at the same time, healthy food and beverages. Malted milk is one of such relatively inexpensive and nutritious products that can meet the interests of local consumers. In this regard, in the next few years, the demand for malted milk in emerging markets will increase significantly.Moreover, due to the growth in middle-class representatives in these countries, the demand will also rise for more expensive beverages. The growing middle class is the second factor that will influence the growth of the malted milk market in emerging markets.
Functional ingredient Malted milk is extensively used as a functional ingredient in various foods and beverages. Functional ingredients are those ingredients that provide particular health benefits beyond basic nutrition. Malted milk is a good source of several essential nutrients, including protein, calcium, and vitamin D. Malted milk is a good source of prebiotics, too. Prebiotics are good for the gut and have a positive effect on the gut microbiota.Thus, the usage of malted milk as a functional ingredient is likely to support the growth of the malted milk market in the years to come. As buyers become more knowledgeable about the health benefits associated with malted milk, they are likely to show a higher interest in foods and beverages that contain this ingredient. The increasing usage of malted milk as a functional ingredient is likely to generate new growth avenues for the malted milk market.
The Malted Milk Market is divided by flavor into Chocolate, Vanilla, Strawberry, and Other. Due to the booming demand for confectionery in developing countries, Chocolate is the largest segment, representing over 35% of the total market volume in 2023. Vanilla is the second largest segment in the overall market, accounting for 25% of the market share. Approximately 40% of the malted production is represented by a Strawberry or Other flavor. The Chocolate malt segment is expected to continue to be a market leader in the future, with a CAGR of 4.2% from 2023 to 2032.This is not surprising since historians say that the oldest-known malt is chocolate-flavored.
The popularity of this flavor will continue to grow as it is suitable for all age groups. Not only the drinks themselves but also chocolate-flavored malt powder are used in the production, for example, ice cream, candy, other sweets, and baked goods. Another segment that is expected to grow relatively steadily in the future is the Vanilla flavor with a forecast CAGR of 3.8% from 2023 to 2032. Vanilla is often declared "the world’s favorite flavor”.As for the consumption of malt beverages flavored with this flavor, they are also very popular. Vanilla malt powder is also used to prepare milkshakes, smoothies, and desserts. The Strawberry malt segment is expected to grow slightly more slowly than the Chocolate and Vanilla segments, at a CAGR of 3.5% from 2023 to 2032. Strawberries are a very popular flavor, but not as moe as Chocolate and vanilla. The strawberry-flavored malt powder is used for the preparation of, for example, milkshakes, smoothies, and ice cream. The last segment includes all other flavors, such as Caramel, Banana or Peanut Butter.
These minor segments are also expected to grow relatively rapidly at a CAGR of 4.0% from 2023 to 2032. These flavors are getting more popular and, of course, are widely used in milkshakes, smoothies, and desserts. Over the years, the Malted Milk Market is expected to grow at a moderate pace. The increasing use of malted milk drinks and malted milk powder is driving growth in the sector.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
The Malted Milk Market is segmented by Packaging Type into Powder Form and Liquid Form. Powder Form held a dominant position in the Malted Milk Market in 2023, accounting for more than 60% of the market revenue. The ease of storage and transportation of powder form makes it a preferred choice for consumers. Additionally, the powder form has a longer shelf life compared to the liquid form, making it suitable for long-distance distribution. Liquid Form is expected to witness steady growth during the forecast period. The increasing demand for convenience food products is driving the growth of liquid-form malted milk.Moreover, liquid form is preferred in the food service industry, as it is easy to incorporate into various recipes and beverages.
The Malted Milk Market segmentation by Distribution Channel includes Supermarkets/Hypermarkets, Convenience Stores, Online Retailers, and Others. Supermarkets/Hypermarkets hold the largest market share, accounting for over 55% of the Malted Milk Market revenue in 2023. This is attributed to the wide availability of malted milk products in these retail formats and the convenience they offer to consumers. Online Retailers are expected to witness the fastest growth during the forecast period, owing to the increasing penetration of e-commerce and the growing popularity of online grocery shopping.Convenience Stores hold a significant market share due to their convenience and accessibility, particularly in urban areas. The "Others" segment includes specialty stores, independent retailers, and food service establishments, which collectively contribute to the overall Malted Milk Market data.
The Malted Milk Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest region in the Malted Milk Market, accounting for a significant share of the market in 2023 and is projected to continue to dominate the market throughout the forecast period. The growth in this region can be attributed to the increasing demand for malted milk products in the United States and Canada. Europe is the second-largest region in the Malted Milk Market and is expected to grow at a steady pace during the forecast period.The growth in this region can be attributed to the increasing demand for malted milk products in the United Kingdom, Germany, and France. APAC is the third largest region in the Malted Milk Market and is expected to grow at a rapid pace during the forecast period. The growth in this region can be attributed to the increasing demand for malted milk products in China, India, and Japan. South America and MEA are relatively smaller regions in the Malted Milk Market, but they are expected to grow at a moderate pace during the forecast period.The growth in these regions can be attributed to the increasing demand for malted milk products in Brazil, Argentina, and Saudi Arabia.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key industry players in the malted milk market are primarily focusing on new product development to cater to changing consumer demands. Moreover, the leading malted milk market players are spending heavily on research and development activities to enhance the nutritional and taste value of their product offerings. The increasing popularity of convenient, healthy food options is also driving the malted milk market. Consequently, manufacturers are introducing new products with low sugar and fat, high protein and fiber. Malted Milk Market Competitive Landscape is expected to remain high over the coming years.
Nestlé is the dominant player in the malted milk market with a presence. The company has a wide range of product portfolios in the malted milk market, such as Nesquik, Milo, and Nido, and many others. The company is also very strong in developed as well as emerging markets. Nestlé's success in the malted milk market is attributed to its strong brand portfolio, a strong distribution network, and highly innovative marketing strategies.Horlicks is a significant player in the malted milk market, having a stronghold in India and other South Asian markets. Horlicks malted milk powder is one of the most selling health drinks. The high sales of Horlicks are credited to its focus on health and nutrition, strong brand value, and long distribution network.
Malted Milk Market Industry Developments
The Malted Milk Market is projected to grow from USD 16.01 billion in 2023 to USD 23.5 billion by 2032, at a CAGR of 4.36% during the forecast period. Increasing demand for fortified food products, rising disposable income, and growing awareness of the health benefits associated with malted milk are driving the market growth. Moreover, the growing popularity of malted milk as a natural sweetener and flavor enhancer in food and beverage applications is further contributing to market expansion.
Recent news developments in the market include the launch of new innovative malted milk products by key players such as Nestle and Horlicks. These companies are focusing on introducing healthier and more convenient options to cater to evolving consumer preferences. Additionally, strategic collaborations and partnerships between market players are expected to drive innovation and expand the product portfolio in the coming years.
Malted Milk Market Segmentation Insights
| Report Attribute/Metric | Details |
| Market Size 2022 | 15.34(USD Billion) |
| Market Size 2023 | 16.01(USD Billion) |
| Market Size 2032 | 23.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 4.36% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2022 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Abbott Laboratories, GlaxoSmithKline, Nestle, Yili Group, FrieslandCampina, Fonterra, PepsiCo, Kraft Heinz, Unilever, Arla Foods, Mead Johnson Company, Danone Dumex, Inner Mongolia Mengniu Dairy (Group) Co., Ltd., Danone |
| Segments Covered | Flavor, Packaging Type, Distribution Channel, Regional |
| Key Market Opportunities | 1 Rising demand for convenience foods2 Growing health consciousness3 Increasing demand in developing countries4 Expansion of retail channels |
| Key Market Dynamics | Rising Health Consciousness Growing Demand for Convenience Foods Increasing Disposable Income Health and Wellness Trend Expansion in Emerging Markets |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Malted Milk Market reached a valuation of 16.01 billion USD in 2023.
The Malted Milk Market is projected to grow at a CAGR of 4.36% from 2024 to 2032.
The Asia-Pacific region is expected to hold the largest market share in the Malted Milk Market, owing to the increasing demand for malted milk products in countries such as India and China.
Malted milk has applications in various products, such as infant formula, nutritional drinks, baked goods, and confectionery products.
Key competitors in the Malted Milk Market include Nestle, Danone, Arla Foods, and Mead Johnson Nutrition.
Factors driving the growth of the Malted Milk Market include the increasing demand for fortified and nutritious food products, rising disposable income, and growing awareness of the health benefits of malted milk.
Challenges faced by the Malted Milk Market include intense competition, fluctuating raw material prices, and changing consumer preferences.
Opportunities for growth in the Malted Milk Market lie in the expansion of emerging markets, product innovation, and strategic partnerships.
Key trends shaping the Malted Milk Market include the growing demand for clean-label products, the rise of e-commerce, and the increasing popularity of plant-based alternatives.
The Malted Milk Market is expected to reach a valuation of 23.5 billion USD by 2032.
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