The worldwide Malt Beverage Market size is estimated to be USD 7,375.6 million in 2024. Displaying a CAGR of 9% through 2034, the sector is slated to be worth USD 17,465.6 million by the end of the forecast period.
Rising disposable income among the working population throughout the globe has prompted party culture to escalate to newer heights. As a result, bars, restaurants as well as general alcohol distributors are enjoying unprecedented demand.
Malted drinks are the drinks of choice for a significant number of parties as well as bargoers. Thus, the increasing instances of eating out, partying, and social occasions are benefitting the industry.
A considerable number of beer drinkers are moving away from commercial tastes and looking for unique formulations. Thus, the number of establishments providing craft beer is increasing. Craft beer is a significant avenue of growth, especially for stakeholders with smaller operations.
Global Malt Beverage Industry Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 6,705.1 million |
| Estimated Size, 2024 | USD 7,375.6 million |
| Projected Size, 2034 | USD 17,465.6 million |
| Value-based CAGR (2024 to 2034) | 9% |
It is not just the alcohol segment through which manufacturers are benefitting. Consumers enamored of the taste of malted beverages but who do not drink alcohol are turning majorly to non-alcoholic versions. For example, it is estimated that by 2033, non-alcoholic beer sales will have exceeded USD 45,000 million. Thus, makers of malt drinks are giving more attention to non-alcoholic beverages.
The sector has not escaped from the clutches of the organic trend prevalent in the beverage realm. To satisfy rising natural demand, manufacturers have undertaken the production of organic malt drinks. While conventionally made drinks are still the top dog, organic versions of the product are a promising segment.
Urbanization is increasing the scope of the product. Nations like China and India are seeing huge swathes of people moving to cities, creating greater demand for bars, eateries, and beer shops. Thus, mass migration to cities is helping demand for the product to climb.
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The below table presents the expected CAGR for the global malt beverage market over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is expected to grow at a CAGR of 8.8%. For the second half (H2), growth is predicted at a CAGR of 9.1%.
| Particular | Value CAGR |
|---|---|
| H1 | 8.8% (2023 to 2033) |
| H2 | 9.1% (2023 to 2033) |
| H1 | 9.4% (2024 to 2034) |
| H2 | 9.3% (2024 to 2034) |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be 9.4% in the first half and 9.3% in the second half. Thus, progress in the second half is foreseen to be slightly slower than in the first half. But progress in both periods from 2024 to 2034 is set to outstrip growth in 2023 to 2033 significantly.
Growing Fascination with Malt Whisky Encouraging Sales
Whisky as a drink of choice for people is increasing. The drink is associated with high class and standard. The smooth taste of malt whisky also endears the product to consumers. Thus, sales of malt whisky are climbing at a swooning rate.
2waWhile Western nations are traditional bastions of malt whisky, the drink is becoming more popular by the day in regions far and wide. For example, the Indian malt whisky Indri, in 2024, crossed the mark of 100,000 cases sold.
This mark was crossed within just two years of its launch. Thus, opportunities for significant sales of malt whisky are present in both developed and developing nations.
Experimentation with Flavors and Tastes Expanding Industry Scope
Flavored malt drinks are winning over consumers, both in the alcoholic and non-alcoholic categories. Flavored beer has found a passionate fan base that has seen demand grow steadily. Flavors like strawberry and blackberry offer fresh tastes to beer drinkers and have formed a nice consumer base. Alcoholic energy drinks are also winning over consumers rapidly.
Non-alcoholic malt drink demand is also expanding. Manufacturers are willing to diversify tastes, to the point that non-alcoholic versions of beer are now offering a unique taste that deviates from the alcoholic version. Peach and cranberry are examples of flavors in non-alcoholic beers that are earning more admirers.
Continued Blockage of Alcohol and Costly Nature of Malted Beverages Cut Down on Growth
Alcohol being a banned substance in certain areas of the globe, notably in the Middle East, continues to be a problem for the alcohol sector, including the malt drinks. While manufacturers are making inroads in these regions with the help of non-alcoholic drinks, a significant portion of the potential consumer base remains untapped.
There remains a notion among consumers that malt drinks are costly. Though manufacturers are striving to make drinks available cheaply, especially in the case of beer, the stigma still remains. Malt whisky is typically seen as a fancy drink out of the reach of a certain portion of the population.
The industry size was tipped to be USD 5,686 million in 2019. Throughout the historical period, the industry grew at a CAGR of 9.1%, reaching a size of USD 6,705.1 million in 2023.
During the historical period, malt sales rose as disposable income among consumers multiplied at a rapid rate. Manufacturers investing more heavily in non-alcoholic drinks also saw them reap rewards. While the pandemic had the effect of closing down bars and other alcoholic establishments, the re-opening of these places gave the sector a second wind.
The forecast period is set to see the industry progress at a slightly lower rate as compared to the historical period. However, a myriad of opportunities lurk for investors poised to take them. Continued fascination among consumers for low-alcoholic and non-alcoholic malt drinks drives the sector forward.
Governments’ focus on tourism is a boon for the food service sector. As a result, bars, restaurants, and other places for the sale of the product are opening up. Ready-to-drink cocktails and overall convenient malt drinks are increasing the access of consumers to the product.
The rising popularity of craft beer is also shaping up demand. Overall, the way forward for players is seen to be innovativeness in the beverages with the help of different flavors.
Tier 1 companies that have a notable presence in the industry include Anheuser-Busch Malt Beverages, Asahi Breweries Malt Beverages, and Bavaria Brewery Malt Beverages. Tier 1 companies are tipped to generate 35% of the revenue of the sector.
Anheuser-Busch Malt Beverages prides itself on the premium range of products it offers. Asahi Breweries Malt Beverages, on the other hand, offers a variety of beers, of both conventional and craft varieties. Bavaria Brewery has enhanced its reputation with its non-alcoholic malt drinks.
Some notable tier 2 companies are Ceres Brewery Malt Beverages, Guinness Nigeria Malt Beverages, and Molson Coors. The revenue share of tier 2 companies is established to be 10.4%, lower than both tier 1 and tier 3 companies.
Ceres’ beer brand has become iconic, even as the brewery no longer exists in its original form. Guinness Nigeria continues going from strength to strength, with Tolaram acquiring Diageo’s share in the entity in June 2024. Molson Coors, meanwhile, has various world-famous drinks in play, such as Coors Light and Carling Cider.
Some notable tier 3 companies are Fayrouz, Moussy, and Suntory International Corporation. Tier 3 companies are set to account for the majority of the revenue share in the sector, standing at 54.6%.
Thus, it is clear that the industry is a diverse one, with opportunities for players of all scales. Fayrouz is famous for its blinding of various fruit flavors, such as pineapple and pear, to appeal to a hipper crowd.
The rising number of metropolitan cities in the Asia Pacific is creating a conducive environment for the sector in the region. Europe and North America are traditional bastions for the product and the demand for it is not slowing down in the region.
| Countries | CAGR (2024 to 2034) |
|---|---|
| Italy | 10.6% |
| United States | 8.7% |
| United Kingdom | 9.1% |
| Spain | 10.3% |
| France | 9.9% |
The industry is penned in to progress at a CAGR of 8.7% in the United States. Manufacturers in the nation are concentrating on keeping the product line moving. They understand the restless nature and appetite of consumers in the nation.
New launches are coming fast on both the alcoholic and non-alcoholic fronts. For example, in February 2024, Diageo launched a range of malt-based RTDs, including drinks inspired by pineapple daiquiris and strawberry margaritas. This was followed in March by the launch of the Starbucks Reserve malt. It is thus clear that in the United States, manufacturers need to stay on their toes.
Demand in Italy for the product is set to register a CAGR of 10.6% over the next decade, making it one of the most lucrative countries in Europe. Italian malt is famous and its making constitutes a big part of the business of multiple Italian companies.
A significant number of breweries relied on imported malt before the boom in production for Italian malt. Now, with Italian malt going strong, craft beer demand in the country is booming. Craft brewers like Birra Due Tocchi and Eastside Brewing are thus thriving. Italian malt production is also undertaken with sustainability in mind, thus providing more positivity to the product in Italy.
The sector in the United Kingdom is anticipated to book a CAGR of 9.1% over the next ten years. Parents in the United Kingdom have put their trust in malted health beverages like those produced by Horlicks and Ovaltine. These brands have crossed the threshold and are even renowned internationally.
While parents are feeding malted health drinks to their children, they are likely to enjoy a pint or two at the local pub. The pub culture in the nation is one of the most vibrant in the world. The United Kingdom is one of the top 10 beer-drinking countries in the world and thus the path is laid out for stakeholders for growth.
Conventional still rules the roost when it comes to the making of the product. Energy drinks have slithered to the top of the product type segment. Segmental analysis reveals that old methods of making are still in vogue, but health trends are changing the dimension of the industry.
| Segment | Conventional (Nature) |
|---|---|
| Value Share (2024) | 89.9% |
Conventional versions of the product are estimated to account for 89.9% of the industry share in 2024. Conventional malt drinks have a long and storied history. Both manufacturers and consumers have become used to conventional drinks. Consumers especially are enamored by the tastes and sensations of conventional malt drinks.
The demand for organic malt drinks is rising up as the all-natural and health trends catch up to the industry. However, organic production is costly and the prices of the drinks go up. Thus, conventional beverages still control the majority of the segment.
| Segment | Energy Drinks (Product Type) |
|---|---|
| Value Share (2024) | 26.5% |
Energy drinks are anticipated to account for 26.5% of the industry share in 2024. Thriving sports culture is seeing the demand for energy drinks shoot up. Complemented by the rise in people going to gyms, energy drinks are becoming a common source of energy boost for the younger generations.
Both alcoholic and non-alcoholic versions of energy drinks are seeing a rise in admirers. The general taste of alcoholic energy drinks, mixing malt with caffeine, has also made them popular among drinkers.
However, alcoholic energy drinks are regulated heavily and even banned in certain countries, such as Canada. Manufacturers thus have to comply with stringent regulatory laws in the distribution of the product.
The malt beverage market is fairly fragmented in nature. Several big-name players control a major portion of the industry. However, that does not mean there is no room to play for medium and small-scale players. Especially with the rise of craft breweries, the conditions in the industry are right for small-scale players to thrive.
The sector is experiencing dynamic competition influenced by consumer preferences, innovation, and regional trends. Major players like Anheuser-Busch InBev, Heineken, and Molson Coors dominate the industry with extensive portfolios and strong brand recognition. These companies are focusing on expanding their product lines with flavored and low-alcohol variants.
Emerging players and regional breweries are also gaining traction by offering unique and locally crafted beverages. These smaller companies leverage their artisanal appeal and local sourcing to differentiate themselves. Additionally, health-conscious consumers are driving demand for non-alcoholic malt drinks.
The market is also witnessing strategic mergers and acquisitions as companies aim to consolidate their positions and expand their geographical reach. Technological advancements in brewing processes and sustainable packaging solutions are becoming crucial competitive factors.
Companies investing in eco-friendly practices and packaging are likely to gain favor among environmentally conscious consumers. Overall, the malt beverage market is characterized by intense competition, with both established giants and innovative newcomers vying for a share of the pie.
Industry Updates
The sector is set to reach USD 7,375.6 million in 2024.
A CAGR of 9% is predicted over the forecast period.
The malt beverage market is forecast to reach USD 17,465.6 million by 2034.
Anheuser-Busch Malt Beverages and Molson Coors are key companies in the industry.
The United States is set to progress at a CAGR of 8.7% over the next ten years.
Based on the product type, the malt beverage market is divided into health drinks, alcoholic beverages, and energy drinks.
Based on the buyer type, the malt beverage industry is categorized into HoReCa, individual buyers, and institutional buyers.
Popular sales channels include direct sales, retail sales, and e-commerce. Retail sales can be further sub-segmented into liquor stores, specialty stores, e-commerce, and other sales channels.
Based on its nature, the malt beverage market is bifurcated into organic and conventional.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
Malt Beverage Market
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