Malted Food Drinks Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (With Cocoa, Without Cocoa), By Distribution Channel (Pharmacies/Drug Stores, Supermarket/Hypermarkets, Departmental/Grocery Stores, Online, Others), By Region & Competition, 2020-2030F

Market Overview

The global Malted Food Drinks Market was valued at USD 6.89 Billion in 2024 and is expected to reach USD 9.38 Billion by 2030 with a CAGR of 5.33% during the forecast period. Malted food drinks are powdered gruels made from a combination of wheat flour, malted barley, and evaporated whole milk. These beverages are low in protein and serve as effective dietary supplements. They contain around 30 essential minerals and elements, including important vitamins such as D, A, and E. Additionally, malted food beverages are a good source of folic acid, a vital nutrient for the development of children and the well-being of pregnant women.

The market for malted food drinks is expected to grow rapidly in the coming years, driven by the increasing demand for barley malt-based beverages and their enhanced nutritional content, including biotin, vitamin B, and folic acid. Due to their health benefits, malted food beverages are gaining popularity as low-protein foods and supplements, supporting overall market growth. Additionally, drinks like cocoa-based malted beverages have seen a rise in popularity because of their appealing taste and nutrients such as potassium, calcium, zinc, copper, phosphorus, sodium, and magnesium. These drinks are often used as flavor enhancers to encourage children to drink more milk. White Malt Powder and Brown Malt Powder are the two primary types of malt health drinks.

Malt-based ready-to-drink (RTD) beverages, such as Cayman Jack Margaritas and Clubtails, are gaining significant attention alongside hard teas, sodas, and seltzers. Customers continue to favor malt-based cocktails due to their lower cost and fewer regulatory restrictions compared to spirit-based RTD drinks, which face high prices and strict regulations on where they can be sold. The category has been driven forward by frequent product launches. In February 2024, Captain Morgan introduced a new range of malt-based RTD drinks, offering four "cocktail-inspired" flavors: Pineapple Daiquiri, Strawberry Margarita, Passionfruit Hurricane, and Mango Mai Tai, each with an ABV of 5.8%. Furthermore, advancements in brewing technology have expanded the variety of malt flavors and types, appealing to a broad spectrum of consumer tastes. The marketing and distribution networks for beer are well-established, ensuring wide accessibility and visibility. For example, in the 52 weeks after its 2022 launch, the Corona Hard Seltzer brand led in media spending, with USD 113.8 million, followed by High Noon at USD 103.4 million, Truly Iced Tea at USD 90.5 million, and Michelob Ultra Organic Seltzer at USD 87.2 million.

Market Drivers

Health Consciousness and Nutritional Benefits

As global awareness of health and wellness continues to rise, consumers are increasingly seeking beverages that not only satisfy their taste but also provide nutritional benefits. Malted food drinks, especially those enriched with vitamins, minerals, and other health-boosting ingredients, cater to this growing demand. The increasing focus on functional drinks, such as those fortified with essential nutrients like calcium, zinc, and vitamins, is a key driver in the market. Consumers are becoming more conscious of their dietary choices, and there is a growing preference for drinks that contribute positively to physical health, digestion, and overall well-being. Malted drinks are often marketed as energy-boosting, easy-to-digest options, which appeal to both children and adults. Additionally, fortified malt drinks are seen as suitable alternatives for individuals with dietary restrictions or those looking for a healthier substitute for sugary, carbonated drinks. In particular, the non-alcoholic malt drinks offer the benefits of malt, which is rich in essential nutrients that support immunity, bone health, and metabolic functions. This trend toward health-conscious consumption is driving innovation in the malted drinks segment, with manufacturers introducing low-sugar, high-protein, and plant-based options. As people become more focused on balanced diets and functional foods, malted food drinks are increasingly being seen as an appealing, nutritious choice.

Rising Demand for Convenience and Ready-to-Drink (RTD) Products

In an increasingly fast-paced world, the demand for convenient, ready-to-consume products has been a key driver in the expansion of the malted food drinks market. Busy lifestyles, especially in urban areas, have led to an increased preference for ready-to-drink beverages. These drinks provide an easy, on-the-go option for people who need a quick energy boost, without compromising on nutrition. RTD products are particularly popular among working professionals, students, and athletes who need a quick source of energy. The convenience of pre-packaged malted drinks, often available in various formats such as cans, bottles, and sachets, has made them a preferred choice for those who do not have the time to prepare a meal or snack. Furthermore, as consumer preferences shift toward healthier options, manufacturers have responded by offering malted food drinks that are not only convenient but also packed with added health benefits like vitamins, minerals, and fiber. The expansion of distribution channels, including supermarkets, convenience stores, and online platforms, has also played a significant role in driving the popularity of RTD malted drinks. With the increasing demand for hassle-free, nutritious beverages, the malted food drinks market is positioned for continuous growth, fueled by the preference for quick and convenient options.

Growing Popularity of Plant-Based and Vegan Alternatives

The global shift toward plant-based and vegan lifestyles is another important driver of the malted food drinks market. As more consumers adopt vegan and plant-based diets, there is a rising demand for alternatives to traditional dairy-based drinks. Malted food drinks are well-positioned to cater to this demand, as they can be made with non-dairy ingredients like almond, oat, or soy milk. These plant-based alternatives appeal to those who are lactose intolerant, vegan, or simply looking to reduce their dairy consumption for health or environmental reasons. The plant-based trend is also driven by concerns over the environmental impact of animal agriculture and the growing recognition of the health benefits of plant-based diets, including improved heart health and weight management. As a result, manufacturers are introducing new formulations of malted drinks that cater to vegan and dairy-free consumers, ensuring that these products retain the same nutritional value as traditional options. In response to this demand, various brands are innovating by offering plant-based, fortified malted food drinks with added benefits like probiotics, protein, and fiber. This trend has opened up new market opportunities and further expanded the reach of malted food drinks to a wider audience, including those with specific dietary preferences. The growing interest in plant-based nutrition and sustainable eating practices continues to drive growth in this segment of the malted food drinks market. 

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Key Market Challenges

Intense Competition and Price Sensitivity

One of the major challenges in the global malted food drinks market is the intense competition among brands, particularly from both established and emerging players. The market is flooded with numerous brands offering a variety of malted drinks, often with similar ingredients and benefits. This high level of competition can lead to price wars, which affect profitability for many companies. Consumers are becoming increasingly price-sensitive, especially in developing regions where disposable income is lower. As a result, companies may have to lower their prices or offer promotions to stay competitive, which could hurt their margins. Additionally, the presence of strong competitors in both the malted drinks category and other beverage categories, such as soft drinks, energy drinks, and juices, puts further pressure on companies to differentiate their products. Despite the nutritional benefits, malted drinks are not immune to the growing trend of low-sugar, low-calorie beverages, which consumers increasingly prefer. In response, brands need to invest heavily in marketing, brand positioning, and product innovation to stand out in a saturated market.

Fluctuating Raw Material Prices

Another significant challenge faced by the global malted food drinks market is the fluctuating prices of raw materials, such as malted barley, cocoa, and other essential ingredients. The prices of these materials are heavily influenced by factors like climate change, agricultural production cycles, and supply chain disruptions. For example, poor harvests or adverse weather conditions, such as droughts, can lead to shortages of key ingredients, driving up costs for manufacturers. Additionally, the cost of transportation and logistics can fluctuate due to global fuel price changes and supply chain inefficiencies, further impacting the cost of production. This volatility makes it challenging for companies to maintain consistent pricing for their products, which can affect their profitability. For smaller manufacturers or those operating in emerging markets, these price fluctuations can be particularly detrimental, as they may not have the same financial resources to absorb the increased costs.

Key Market Trends

Innovation in Flavors and Product Variants

Innovation in flavors and product variants is another significant trend driving growth in the global malted food drinks market. Consumers are increasingly looking for new and exciting flavors to enhance their drinking experience, leading brands to diversify their offerings. While traditional malted drinks have been popular for years, there has been a noticeable shift toward introducing more exotic and innovative flavors to meet evolving consumer preferences. Brands are experimenting with flavors such as chocolate, vanilla, caramel, fruit blends, and even spices like cinnamon and cardamom to cater to a broader audience. These innovations not only appeal to diverse taste preferences but also allow companies to target niche markets, including younger consumers, who are looking for more adventurous beverage options. Additionally, malted drinks with seasonal or limited-edition flavors, such as pumpkin spice in autumn or tropical fruit blends in the summer, are becoming increasingly popular as brands create excitement around new launches. Alongside flavor innovation, product variants are also on the rise. These include malted food drinks with different formulations, such as high-protein versions for fitness enthusiasts, low-sugar or sugar-free variants for health-conscious consumers, and drinks enriched with probiotics or other functional ingredients. By offering a variety of options, companies are not only catering to different taste preferences but also addressing specific dietary needs, such as gluten-free, vegan, or low-calorie options.

Plant-Based and Vegan Alternatives

The growing preference for plant-based and vegan diets has significantly influenced the malted food drinks market. As more consumers adopt vegan lifestyles and reduce their reliance on animal products, there has been a surge in demand for plant-based and dairy-free alternatives. This trend is particularly relevant to malted food drinks, as many consumers who are lactose intolerant, vegan, or seeking to reduce dairy consumption are looking for plant-based options. Manufacturers have responded by introducing a wide range of plant-based malted drinks made from ingredients like almond milk, soy milk, and oat milk, catering to the rising demand for vegan and dairy-free beverages. These plant-based options not only offer a suitable alternative for people avoiding dairy but are also seen as a more sustainable choice, as plant-based diets generally have a lower environmental impact compared to animal-based products. In addition to being dairy-free, these plant-based malted drinks often feature added nutritional benefits. Many are fortified with vitamins and minerals to ensure they provide comparable benefits to traditional malted drinks, such as calcium, vitamin D, and B vitamins. As plant-based diets continue to gain popularity due to their perceived health benefits and environmental sustainability, the demand for plant-based malted food drinks will continue to grow. This trend is influencing both large multinational brands and smaller, niche companies to innovate and expand their product offerings.

Segmental Insights

Product Type Insights

With Cocoa segment was the dominant product type in the global malted food drinks market, primarily due to its rich, indulgent flavor and widespread consumer preference. Cocoa-infused malted drinks offer a unique combination of malted barley’s nutritional benefits and the familiar, comforting taste of chocolate, making them particularly popular among children, young adults, and families. The inclusion of cocoa not only enhances the flavor profile but also adds to the drink's appeal by introducing additional health benefits, such as antioxidants and mood-boosting properties attributed to cocoa. The popularity of With Cocoa malted drinks is also driven by their ability to meet the growing demand for functional beverages. Many brands incorporate cocoa’s beneficial properties, such as magnesium, iron, and flavonoids, which support heart health and cognitive function. As consumer preferences shift towards indulgent yet nutritious beverages, cocoa-based malted drinks are seen as a satisfying, energy-boosting option. Furthermore, cocoa-based products often enjoy strong brand loyalty, with well-established brands offering a wide range of products in this category. Their deep-rooted presence in the market, coupled with consistent innovation and marketing strategies, reinforces the dominance of the With Cocoa segment in the global malted food drinks market.

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Regional Insights

Asia Pacific was the dominant region in the global malted food drinks market, experiencing significant growth driven by rapid urbanization, rising disposable incomes, and changing consumer lifestyles. Countries like India, China, and Japan are leading the demand for malted food drinks, with consumers increasingly prioritizing convenient, nutritious beverages. In particular, the rising middle-class population in these countries is fueling the demand for ready-to-drink (RTD) malted beverages, as consumers seek healthier alternatives to sugary soft drinks and more convenient nutritional options. The popularity of malted drinks in Asia Pacific can also be attributed to the region’s strong cultural preference for beverages that provide both taste and nutritional value. Many consumers in Asia Pacific view malted drinks as a source of energy and essential nutrients, especially for children, which has led to widespread consumption across various age groups. The growing focus on functional drinks, enriched with vitamins, minerals, and plant-based ingredients, is also shaping the market, aligning with consumer preferences for healthier beverages. Additionally, the region has witnessed increasing product innovation, with brands introducing various flavors and formulations tailored to local tastes and dietary preferences. With the expanding health-conscious consumer base and the growing availability of malted drinks, Asia Pacific is expected to continue leading the global market in the coming years.

Recent Developments

• In 2024, E-tailers in India have started reclassifying health drinks as nutrition drinks in response to government directives. Beverages like Bournvita, Horlicks, and Boost, which were previously labeled as health drinks, are now categorized as functional nutrition drinks. This change aligns with food regulations, as the term health drinks is not recognized under current guidelines. E-commerce platforms like BigBasket and Amazon have removed health drinks from their product listings, transitioning to terms like nutrition drinks or malt-based food drinks.
• In 2024, Hindustan Unilever (HUL) has rebranded its health food drinks category to functional nutritional drinks, following a directive from India's Ministry of Commerce and Industry. This change comes after concerns raised by the National Commission for Protection of Child Rights (NCPCR) regarding misleading labeling. Popular malt-based beverages like Horlicks and Bournvita, previously classified as health drinks, will now be categorized under FND.
• In 2024, Grace Foods has launched a 99p price-marked pack (PMP) of its Mighty Malt drink. The PMP format, introduced following the success of their Say Aloe Vera drink, offers a competitive price while ensuring value for both consumers and independent retailers. The move aims to make leading Caribbean drink brands more accessible, helping retailers demonstrate the affordability of premium products.

Key Market Players

• Nestlé S.A.
• Abbott Laboratories
• Associated British Foods Plc
• GlaxoSmithKline plc
• Mondelēz International, Inc.
• Danone S.A.
• Zydus Wellness Limited
• Cytosport Inc.
• Continental Milkose (India) Ltd.
• CTL Foods, Inc.

Report Scope:

In this report, the global Malted Food Drinks Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•  Malted Food Drinks Market, By Product Type:

o   With Cocoa

o   Without Cocoa         

•         Malted Food Drinks Market, By Distribution Channel:

o   Pharmacies/Drug Stores

o   Supermarket/Hypermarkets

o   Departmental/Grocery Stores

o   Online

o   Others

•         Malted Food Drinks Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  Germany

§  Spain

§  Italy

§  United Kingdom

o   Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Kuwait

§  Egypt

o   South America

§  Brazil

§  Argentina

§  Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Malted Food Drinks Market.

Available Customizations:

Global Malted Food Drinks Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).