Industry Insights
The global malt drinks market was valued at USD 18.54 billion in 2017. The rising importance of malt-based health drinks on account of their rich content of vitamin B, calcium and essential amino acids is expected to drive the market. These products are gaining popularity among adults on account of improving bone and skin health, maintaining blood circulation.
Global malt drinks market revenue, by region, 2015 - 2025 (USD Billion)
Over the past few years, the manufacturers of alcoholic as well as non-alcoholic beverages have been increasing their spending towards the incorporation of malt extracts on account of being one of the vital ingredients for maintaining the digestive system. Rising concerns associated with gastrointestinal disorders owing to fluctuating diet patterns and hectic workstyle is also expected to promote the consumption of malt drinks as a nutraceutical product in the near future.
Segmentation by Product
• Alcoholic
• Non-Alcoholic
In 2017, alcoholic product forms were the largest segment accounting for 63.0% of the global market. The segment is expected to remain the largest product segment over the next eight years as well. The growth is attributed to the predominant consumption of malt-extract beers and wines in developed economies including Germany and the U.K.
The non-alcoholic malt drinks are expected to grow at a CAGR of more than 5.0% from 2017 to 2025. The rising disposable income along with the growing health awareness in the developing countries are expected to promote growth in the malt-based health drinks market. India, Taiwan, and Nigeria are the fastest growing markets for the non-alcoholic malt drinks.
Some of the leading malt-based health drinks brands in these countries include Horlicks, Bournvita, Boost, and Complain. Over the past few years, these products have acquired a strong place in the kid’s diet as they are a good source of essential nutrition.
Segmentation by Distribution Channel
• Offline
• Hypermarkets and supermarkets
• Other retail stores
• Online
In 2017, offline channel accounted for more than 48.0% of the market. The increasing brand awareness and growing penetration of offline channel are accelerating demand growth from the offline channel. In 2017, hypermarkets and supermarkets were the dominant store format for malt drinks. The majority of the middle-class population prefers shopping in hypermarkets and supermarkets as they stock a broad range of malt drink brands at various price points at a single place.
On the other hand, the online distribution channel is expected to grow at a CAGR of more than 7.0% from 2017 to 2025. The channel is preferred by the younger generation that technology savvy, time-pressed, and prefers to shop on-the-go. Prevailing penetration of smartphones and mobile internet are among the supporting factors for the increasing prevalence of online channel.
Segmentation by Region
• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa
In 2017, Europe dominated the market for malt drinks, accounting for more than 28.0% of the market. The region is the largest market for alcoholic beverages in the world. Germany, UK, France, Finland, Moldova, Italy, Spain, and the Netherlands hold a significant share in the European alcohol beverages market. Over the past few years, craft beer, which is made from malt, has gained popularity in Europe. Product innovation and new product launches are a key trend in the malt beverages market in Europe.
Asia Pacific is expected to be the fastest growing market growing at a CAGR of more than 8.0% from 2017 to 2025. Growing health concern and the rising per capita income in countries such as China, India, and Taiwan are expected to be among the factors driving the demand for malt-based health drinks. In terms of alcoholic malt drinks, South Korea, China, Myanmar, Indonesia, Philippines, and Thailand represent potential growth markets in the Asia Pacific region.
Competitive Landscape
The global malt drink market has the presence of established players such as Anheuser-Busch, Asahi Breweries, Bavaria Brewery, Heineken N.V., and COORS BREWING COMPANY. The market is highly competitive and companies focusing on strengthening their presence through geographical expansion and mergers & acquisitions.
In September 2016, Anheuser-Busch acquired SABMiller, an international beverage company, for USD 107.0 billion. The acquisition helped Anheuser-Busch expand its product portfolio and presence to many new countries. On similar lines, in December 2018, Hindustan Unilever Ltd (HUL) acquired the health food drinks portfolio of GlaxoSmithKline Consumer Healthcare Ltd., which helped HUL expand its presence to more than 20 Asian countries including India and Bangladesh. Some other companies in the market include MondelÄ“z International, The Kraft Heinz Company, Nestlé, and Abbott.
