The global Malted Milk Powder industry is estimated to be worth USD 7,600.4 Million by 2025. It is anticipated to reach USD 12,738.7 Million by 2035, reflecting a CAGR of 5.3% over the assessment period 2025 to 2035.
Malted milk powder is an extremely versatile powdered food component made from barley malt, wheat flour, and milk solids. It is an important component in many food and beverage items, including beverages, baked goods, and infant formulae. Malted milk powder dates back to the late nineteenth century when it was invented by British chemists.
Its discovery revolutionized the food industry, giving individuals, especially children, an easy and healthy adjunct product that could provide an energy-rich and nutritious product. The milk powder was received well by all because of its taste and nutritional value, giving a uniqueness as a complement to the natural sweetness of malted barley and the creamy richness of milk.
Malting, the process of converting starch into fermentable sugars, occurs after the barley grains have been soaked and germinated. During this process, enzymes convert complex carbs into simple sugars like maltose. This enhances the taste and sweetness of the finished powder.
Next, the malted barley is dried and mixed with wheat flour which would give a fine texture as well as added nutrients like fiber and protein. It's mixed with milk solids that will provide a creamy flavor and nutritional value like proteins, vitamins, especially vitamin D and B12, calcium, and phosphorus which are all vital for bone growth and general development.
| Attributes | Description |
|---|---|
| Estimated Global Malted Milk Powder Industry Size (2025E) | USD 7,600.4 Million |
| Projected Global Malted Milk Powder Industry Value (2035F) | USD 12,738.7 Million |
| Value-based CAGR (2025 to 2035) | 5.3% |
After these components are blended, the mixture is spray-dried or roller-dried to remove moisture and create a dry, shelf-stable powder. The resultant milk powder is light and fine-textured, with a somewhat sweet, malted flavor characteristic that distinguishes the products.
The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global market. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 4.8% (2024 to 2034) |
| H2 | 4.9% (2024 to 2034) |
| H1 | 5.1% (2025 to 2035) |
| H2 | 5.3% (2025 to 2035) |
In the first half (H1) of the decade from 2025 to 2035, the business is predicted to surge at a CAGR of 5.1%, followed by a higher growth rate of 5.3% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase to 4.8% in the first half and remain considerably high at 4.9% in the second half. In the first half (H1) the sector witnessed an increase of 15 BPS while in the second half (H2), the business witnessed a decrease of 10 BPS.
Advancements in Spray-Drying and Powder Production Technologies Bolstering the Market
Innovations in spray-drying and powder production technology have transformed the milk powder sector by increasing product quality, efficiency, and adaptability. Spray-drying is a key method in the production of milk powder that converts liquid malted milk into a dry, fine powder by quick drying with hot air.
Some of the most recent advancements in this technology are greater thermal efficiency, reduced energy usage, and consistent particle size distribution. Manufacturers have been able to expand output while preserving product quality. This has made malted milk powder more accessible to a large consumer base.
One of the most significant advances in the field of spray drying is the use of multiple-stage drying methods. Multi-stage spray-drying reduces the danger of heat damage to milk powder's delicate tastes and nutrients by removing moisture in an equal and progressive manner. This method has enhanced the end product's popularity among consumers by preserving its natural sweetness, malted taste, and nutritional value.
Furthermore, enhanced atomization techniques, such as rotary and ultrasonic atomizers, have enabled greater control over droplet size, resulting in powders with higher solubility and smoother texture. Such powders are very useful in applications where instant dissolvability is critical, such as in beverages or infant formulas.
The development of energy-efficient spray-drying technology has also been a major changer. Manufacturers are progressively using systems that use waste heat recovery, improved airflow, and low-energy drying cycles to cut operating costs and environmental effects.
These solutions not only save energy usage but also align with the rising need for sustainable manufacturing processes, assisting firms in meeting environmental compliance regulations and appealing to eco-conscious consumers. Furthermore, advancements such as spray-drying towers with integrated control systems allow for real-time monitoring of temperature, humidity, and airflow, resulting in constant output quality and reduced waste.
Increasing Popularity of Malt-Based Drinks among All Age Groups Driving Market Growth
The increased popularity of malt-based beverages among people of all ages has emerged as a significant driver of the malted milk powder sector. Malt-based drinks, previously considered a healthy beverage for young ones, have evolved into a well-known product that caters to a diverse spectrum of client interests and lifestyles.
All these factors, from the distinct flavor of malt-based beverages to their nutritional benefits and versatility, have led them to become very popular among diverse spectrums of demographics. This type of milk powder, naturally rich in proteins, carbs, vitamins (such as vitamin D and the B-complex), and minerals such as calcium and phosphorus, forms the base of these beverages.
These nutrients play a role in energy metabolism, hence general well-being. Parents find malt-based beverages as a convenient way to add to their children's diets to ensure them sufficient nutrition during the early years of life. Old people and the aged view these drinks as a supply of easily digested nourishment to meet their needs.
Malted beverages have gained popularity among adults as a quick energy alternative to tea and coffee. Malt-based beverages have been developed in low-sugar, high-protein, and fiber formulations to cater to fitness enthusiasts and individuals with special dietary needs as these brands often contain additional active ingredients such as probiotics, omega-3 fatty Acids, or herbal extracts, and are also suitable for a number of consumers looking for health benefits.
Increasing Consumer Preference for Convenient and Nutritionally Enriched Products Shapes the Market
Increasing consumer demand for convenient and nutritious products has emerged as a powerful driver for the malted milk market. In today’s fast-paced world, consumers are constantly looking for solutions that fit into their busy lifestyles and offer important health benefits. Malted milk powder satisfies this goal by offering a versatile, quick-to-prepare, nutrient-dense product that appeals to a wide spectrum of customers. The combination of convenience, flavor, and health benefits has made it a household, office, and on-the-go need, boosting its popularity across several nations and consumer categories.
With an increasing emphasis on health and wellbeing, people are looking for items that provide critical elements including proteins, vitamins, minerals, and carbs. This type of milk powder, which is high in calcium, vitamin D, B-complex vitamins, and natural energy sources, meets these requirements adequately.
The quest for on-the-go sustenance has increased the popularity of malted milk powder. Consumers, particularly working professionals, students, and fitness enthusiasts, are turning to portable and ready-to-eat options to help them maintain their dietary habits despite demanding schedules. Single-serve sachets, ready-to-drink malted milk drinks, and pre-mixed powders address this requirement by offering convenience without sacrificing quality.
Global sales increased at a CAGR of 4.8% from 2020 to 2024. For the next ten years (2025 to 2035), projections are that expenditure on such products will rise at 5.3% CAGR.
Between 2020 and 2024 owing to its association with health and nutrition, which gained heightened importance during the historical period. It’s high in key nutrients and simple to include in everyday meals and has gained popularity as a home pantry staple. Sales through e-commerce channels increased while lockdowns and social distancing techniques restricted access to traditional retail stores.
Product formulation innovations, such as low-sugar, fortified, and plant-based variations, have helped to attract a larger consumer base, including health-conscious people and those with dietary restrictions. Furthermore, expanding urbanization and the development of organized retail outlets in emerging economies increased sales throughout this period.
From the year 2025 to 2035, the expansion of the global market is projected to be driven by worries about food security in the region brought on by population growth, particularly in developing nations like China and India. On the other hand, advancements in spray-drying and powder processing technologies will enhance product quality, shelf-life, and affordability, further boosting consumer adoption.
Tier 1 companies are the essential factors in the market for malted milk powder, accounting for a significant share of the global market. These industry leaders are at the cutting edge of innovation, continually establishing trends with their superior research and development skills.
These companies have a worldwide presence and very strong malt-based beverages for different age groups and regions. Such companies have a strong emphasis on sustainability, sophisticated spray-drying technologies, and product fortification with vitamins, minerals, and probiotics, all of which contribute to their market leadership. Some of the tier 1 companies are Unilever, Nestlé S.A., and Associated British Foods.
Tier 2 Companies are the regional players with adequate market coverage and are known for offering niche products. They are typically more localized and address specific issues of more general ones.
Tier 3 Companies are smaller players who are usually limited to the local or regional areas. They tend to service localized areas and do not possess the same level of research & development as bigger companies but are nonetheless helpful in satisfying local needs. Local players producing malted milk powder with heritage grains or organically sourced barley cater to consumers seeking authenticity and traditional values in their food choices.
The following table shows the estimated growth rates of the top three territories. China and Japan are set to exhibit high consumption, recording CAGRs of 4.9% and 5.9%, respectively, through 2035.
| Countries | CAGR (2025 to 2035) |
|---|---|
| The USA | 5.4% |
| Brazil | 6.5% |
| India | 7.8% |
| Japan | 5.9% |
| China | 4.9% |
The demand for malted milk powder in the United States is expanding as it is used in culinary applications other than conventional drinks. As the American culinary landscape welcomes inventiveness and fusion cuisine, malted milk powder has become a popular component in sweets, baked products, and gourmet dishes.
It is known for its distinct flavor profile, which includes a rich, nutty sweetness and subtle malt overtones, and is used to add depth and complexity to a variety of items such as cookies, cakes, ice cream, and milkshakes. Chefs and amateur bakers alike are experimenting with malted milk powder to create innovative recipes that capitalize on its propensity to increase flavor and texture.
The rise of artisanal and craft food trends, combined with consumer preferences for nostalgic flavors, has accelerated its adoption; additionally, social media platforms and food blogs highlighting recipes featuring malted milk powder are increasing its appeal, making it a versatile and trendy choice for American kitchens.
German companies are succeeding by matching their manufacturing techniques with the country's strong emphasis on sustainability and organic products. German customers are particularly sensitive to their environmental effects and the quality of the food they consume, which drives demand for malted milk powder manufactured from sustainably sourced components and processed using environmentally friendly processes.
Manufacturers are responding by investing in renewable energy for their production facilities, employing low-waste processing processes, and providing organic-certified products free of artificial chemicals and preservatives.
Furthermore, there is a major emphasis on traceability, with enterprises providing detailed information about the sources of fundamental commodities like barley and milk. These initiatives not only meet German statutory requirements and customer preferences but also position enterprises as European market leaders, allowing them to charge higher prices while establishing strong brand loyalty.
| Segment | Value Share (2025) |
|---|---|
| Barley (By Type) | 29.2% |
Barley has become the most popular kind on the global market due to its numerous applications, natural sweetness, nutty flavor, and high nutritional fiber content, making it a popular option among health-conscious consumers.
Interestingly, unlike other varieties, lentils contain beta-glucans, known to support heart health and boost digestion; this has made it increasingly popular among functional food enthusiasts and, with its corresponding sugar-free plant-based snacks, has driven demand for high again, especially in areas where consumers adopt healthier lifestyles; and the adaptability of barley to production methods enables cost-effective production without compromising on quality. It provides them a competitive advantage over other options like wheat flour or blended rice. The combination of nutritional advantages, flavor, and processing flexibility has cemented barley's position as a market leader.
| Segment | Value Share (2024) |
|---|---|
| Beverages (By End Use Industry) | 31.4% |
Beverages dominated the market globally, fueled by their massive application in the traditional and novel formulations of beverages. This powdered milk has been a classic addition to malted beverages for generations, appreciated for its rich taste and nutritional properties. The category has, however, evolved more recently with ready-to-drink malted beverages, protein drinks, and healthy drink mixes addressing busy lifestyles and wellness-conscious consumers.
The ability to adapt to hot and cold beverage applications, such as malted hot chocolates and milk-based energy drinks, has helped to improve its position in the market. The increased popularity of plant-based and fortified beverages has broadened its usage, making it a necessary ingredient in both dairy and non-dairy products. This adaptability, along with the potential to improve flavor and give functional advantages, has resulted in beverages being the biggest end-use industry throughout the projection period.
The competition landscape of the malted milk powder market is intense. Nestlé S.A., Cliff Foods, and Associated British Foods companies lead the industry owing to their significant R&D spending, cutting-edge product advancements, and powerful distribution networks. They concentrate on creating fortified and health-focused formulations, such as low-sugar and plant-based malted milk powders, to meet different customer expectations while preserving outstanding quality and manufacturing efficiency.
To increase sales, companies are using a variety of techniques, including strategic and vertical acquisitions. Nestlé S.A., for example, has made significant investments in clean-label and organic food development in response to changing customer preferences. Collaborations with retailers and investments in e-commerce platforms have also become critical tactics for manufacturers, allowing them to expand their reach and profit on the rising desire for easy spending options.
For instance:
As per Type, the industry has been categorized into Wheat Flour, Barley, Whole Milk, and Mixed Grains.
As per End Use Industry, the industry has been categorized into Beverages, Confectionery, Bakery, and Dairy.
As per the Distribution Channel, the industry has been categorized into B2B and B2C.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltics, and the Middle East & Africa.
The global industry is estimated at a value of USD 7,600.4 Million in 2025.
Sales increased at 4.8% CAGR between 2020 and 2024.
Some of the leaders in this industry include Briess Malt & Ingredients, Custom Food Group, Unilever(Horlicks), Imperial Malts Ltd., Cliff Foods, Muntons plc, Nestlé S.A., Larissa Veronica, Hoosier Hill Farm, and Associated British Foods (Ovaltine), among others.
The European territory is projected to hold a revenue share of 22.4% over the forecast period.
The industry is projected to grow at a forecast CAGR of 5.3% from 2025 to 2035.
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Malted Milk Powder Market
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