Malted Milk Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Source (Wheat, Barley, Others), By Product Type (Powder, Milk), By Sales Channel (Supermarkets/Hypermarkets, Convenience Stores, Online, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.25 Billion
CAGR (2026-2031)	5.54%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Market Size (2031)	USD 3.11 Billion

Market Overview

The Global Malted Milk Market will grow from USD 2.25 Billion in 2025 to USD 3.11 Billion by 2031 at a 5.54% CAGR. Malted milk is a powdered food product derived from a mixture of malted barley, wheat flour, and evaporated whole milk, widely utilized for its nutritional value and distinct flavor profile. The global market is primarily supported by the rising consumer demand for functional beverages that serve as convenient sources of fortified energy and essential nutrients. Furthermore, the extensive application of malted powder as a flavor enhancer within the confectionery and baking industries constitutes a fundamental driver of commercial growth. According to Euromalt, in 2024, the total EU malting capacity reached 10,237,085 tonnes, illustrating the massive industrial infrastructure currently established to secure the supply of the primary ingredient for these formulations.

Despite the robust demand, the market encounters a significant challenge regarding the price volatility of essential agricultural raw materials. Unpredictable fluctuations in the costs of barley and dairy inputs, often caused by variable climatic conditions, create supply chain instability and can severely constrain profit margins for manufacturers, thereby impeding consistent market expansion.

Key Market Drivers

Rising Consumer Demand for Functional and Nutritional Beverages serves as a primary catalyst for the global malted milk market. Modern consumers are increasingly prioritizing fortified drinks that offer specific health benefits, such as immune support and sustained energy, prompting manufacturers to reposition traditional malt beverages as functional nutritional products. This strategic pivot towards health-centric formulations is driving tangible commercial gains for major industry players. According to Hindustan Unilever Limited, March 2024, in the 'Integrated Annual Report 2023-24', the company's Foods & Refreshment business, which houses the leading malted drink brand Horlicks, delivered an underlying sales growth of 4%, driven by focused communications on nutritional benefits and market share gains in the health food drinks category. This growth underscores the robust appetite for malt-based formulations that align with wellness trends.

Expanding Applications in the Confectionery and Bakery Industries also significantly influence market expansion, as malt extracts are increasingly utilized for their natural sweetening, coloring, and texturizing properties. As the clean-label movement intensifies, industrial bakers are substituting synthetic additives with malt-based ingredients to appeal to health-conscious buyers. According to Associated British Foods, November 2024, in the 'Annual Results Announcement', sales in the Ingredients segment grew by 2% for the year, driven largely by a strong performance in bakery ingredients where malt products play a key role. However, the sector faces upstream pressure from raw material fluctuations; according to the Canadian Grain Commission, in 2024, barley production in western Canada was estimated at 7.839 million tonnes, representing a decrease of approximately 10% compared to the previous year, a trend that could tighten global supply for malt processors.

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Key Market Challenges

The primary constraint hampering the growth of the Global Malted Milk Market is the significant price volatility associated with essential agricultural raw materials, particularly dairy inputs. Manufacturers rely heavily on consistent input costs to manage production overheads and maintain stable retail pricing. However, unpredictable fluctuations in the cost of milk and milk solids, often driven by variable environmental factors and supply adjustments, create a precarious financial landscape. This instability severely compresses profit margins, forcing companies to limit reinvestment in capacity or distribution, which directly impedes the sector's ability to sustain steady commercial expansion.

Recent data highlights the extent of this cost pressure on the industry's supply chain. According to European Dairy Farmers, in August 2025, the average calculated farm gate milk price reached €49.83 per 100 kg, representing a 7.5% increase compared to the same period in the previous year. This substantial rise in the cost of a fundamental ingredient exacerbates the financial risks for malted milk producers. Consequently, the inability to predict and secure stable raw material costs remains a critical barrier, preventing the market from realizing its full growth potential.

Key Market Trends

The Adoption of Clean-Label and Sustainable Sourcing is rapidly becoming a decisive factor in the global malted milk market, fundamentally altering upstream procurement strategies. As industrial processors face scrutiny over environmental impact, major malt producers are aggressively implementing regenerative agriculture programs to decarbonize their supply chains and ensure the long-term viability of barley cultivation. This shift extends beyond simple compliance, becoming a core value proposition for brands targeting environmentally conscious demographics who demand transparency in ingredient origin. Major players are formalizing these commitments with aggressive targets to reduce their environmental footprint. According to Boortmalt, January 2025, in the 'Sustainability Report 2024', the organization has aligned its operations with the 1.5°C Paris Agreement scenario, establishing a concrete target to reduce carbon emissions per metric tonne of malt produced by 50% by 2030, reflecting the sector-wide urgency to adopt greener processing methodologies.

Simultaneously, the Acceleration of Direct-to-Consumer (DTC) and Digital Retail Strategies is transforming how malted beverages are distributed and marketed. Legacy brands are increasingly bypassing traditional brick-and-mortar intermediaries to engage shoppers through proprietary online channels, enabling greater control over brand storytelling and consumer data acquisition. This digital pivot allows manufacturers to offer subscription models for powdered formulations and exclusive access to premium variants, effectively capitalizing on the convenience-driven behaviors of modern households. The scale of this channel shift is evident in the financial performance of market leaders who have prioritized digital infrastructure. According to Nestlé, February 2024, in the 'Annual Review 2023', the company recorded that e-commerce sales grew by 13.4%, reaching 17.1% of total group sales, a statistic that underscores the critical importance of digital platforms in sustaining growth for shelf-stable beverage categories.

Segmental Insights

The online distribution segment represents the fastest growing category in the global malted milk market due to the increasing penetration of e-commerce platforms and evolving consumer purchasing habits. This growth is sustained by the convenience of home delivery and the ability for shoppers to access a wider variety of international and specialized product formulations that are often unavailable in physical retail outlets. Additionally, the proliferation of smartphone usage and targeted digital marketing campaigns by manufacturers have significantly enhanced product visibility, encouraging consumers to shift from traditional grocery shopping to digital marketplaces for their nutritional beverage needs.

Regional Insights

Asia Pacific maintains the leading position in the global malted milk market, driven primarily by deep-rooted consumption habits in South Asian nations where these beverages are considered essential nutritional supplements. The region benefits from a large young population base and rising disposable incomes that enable consistent spending on health-focused food products. Unlike in Western markets where malted milk is often a niche confectionery ingredient, consumers in this region utilize it as a daily functional drink to address dietary gaps, ensuring steady volume growth and widespread household penetration.

Recent Developments

• In December 2024, Ovaltine unveiled an upgraded 'Malt Power' formula in Thailand, featuring a richer taste and enhanced nutritional benefits to cater to evolving consumer preferences. The product launch was accompanied by a new marketing campaign titled 'Brighten Your Life,' which emphasized positive energy and family support. The brand introduced the new formula in updated packaging designed to appeal to modern consumers and reinforce its market presence. This development aimed to strengthen the company's position in the competitive malted beverage sector by offering a product that combined traditional malt flavor with improved functional ingredients.
• In November 2024, the manufacturers of Horlicks in the United Kingdom expanded their portfolio with the launch of a new product variant, 'Horlicks Kids, Chocoland.' This development marked the brand's strategic entry into the young family market segment with a product designed to be dairy-free and vegan-friendly. The new malted drink featured a unique vitamin mix tailored to children's dietary requirements. To support the launch, the company collaborated with a popular science fiction series for a promotional campaign, aiming to engage a younger demographic and deliver nutritious malted goodness to a new generation of consumers.
• In July 2024, Muntons, a prominent malt and malted ingredients manufacturer, reported that its subsidiary in Thailand had achieved a significant turnaround by securing a major contract with a UK-based malted milk powder producer. The company announced these details alongside its annual financial results, highlighting a 34% increase in pre-tax profits to £8.6 million. The firm also celebrated receiving a top sustainability rating and a King’s Award for Enterprise, attributing its commercial success to long-term capital investments and the strategic expansion of its customer base in the global malted ingredients sector.
• In June 2024, Nestlé Australia announced a strategic partnership for its Milo brand by appointing a prominent professional football goalkeeper as its latest brand ambassador. This collaboration was initiated with a new campaign titled 'It’s Go Time,' which was designed to promote the values of resilience and determination learned through sports. The Dairy Business Manager at the company stated that the partnership aimed to strengthen the connection between the malted energy drink and junior sports participation. The initiative included in-store activations and digital content to encourage children to stay active and embrace a healthy lifestyle.

Key Market Players

• Nestle S.A.
• The Hain Celestial Group, Inc.
• Associated British Foods plc
• Reckitt Benckiser Group PLC
• Malt Products Corporation
• King Arthur Baking Company, Inc.
• Imperial Malts Ltd.
• Unilever PLC
• Insta Foods
• Hoosier Hill Farm LLC

By Source	By Product Type	By Sales Channel	By Region
Wheat Barley Others	Powder Milk	Supermarkets/Hypermarkets Convenience Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Malted Milk Market, By Source:

• Wheat
• Barley
• Others

• Malted Milk Market, By Product Type:

• Powder
• Milk

• Malted Milk Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others

• Malted Milk Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE