Specialty Malt Market Size & Share, by Source (Barley, Wheat, Rye, Other Grains); Application; End use; Type; Form; Extraction Rate - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2026-2035

Specialty Malt Market - Regional Analysis

Europe Market Insights

Europe is dominating the specialty malt market and is expected to hold the market share of 32.5% by 2035. The market is well defined by its deep-rooted brewing traditions, high concentration of global maltsters, and robust agricultural and food safety regulations. The primary demand driver is the large, established beer industry that is increasingly premiumizing and innovating the craft style offerings, thereby requiring a greater diversity of specialty malts. A significant trend is the strong regulatory and consumer push toward sustainability and circular economy principles within the agri-food chain, influencing farming practices and supply chain partnerships. Further, the growth of non-beer applications, such as in distilling breakfast cereals and savory foods, provides additional demand channels.

Germany is projected to hold the highest revenue share by 2035 in Europe and is fueled by its unparalleled brewing industry scale and relentless product innovation. As Germany is the largest beer producer in Europe and has reached over 87.8 million hectoliters in 2022, it directly strengthens the demand for specialty malts. The higher brewing output directly increases the consumption of caramel, roasted, and kilned malt varieties across the country’s regulated beer manufacturing ecosystem. Furthermore, the value-added brewers use a higher proportion of specialty malts per batch compared to mass-market brewers, based on the Brewers of Europe report in October 2024. These value-added goods are one of the most important demand categories for specialty malt providers, pushing the purchase of premium malt varieties and accelerating innovation in malt processing and formulation. Moreover, the trend towards regionality and ingredient traceability further boosts the demand for locally sourced, specialized barley varieties.

Value Added Brewing Companies in Germany

Source: Brewers of Europe October 2024

The UK is projected to be the second-highest revenue shareholder in the Europe specialty malt market and is driven by its dynamic craft brewing revolution and a globally influential whisky industry. The UK craft beer sector’s demand for innovative malt profiles is a primary driver. The Scotch Whisky Association report in February 2023 has indicated that in 2022, scotch whisky exports reached £6.2 billion, which is a massive consumer of specialty malts, mainly peat and high color varieties for flavor. Government influence is evident via bodies such as the UK Research and Innovation, which funds agri-tech research, including projects on sustainable cereal production under initiatives such as the Transforming Food Production Challenge. This supports the development of resilient barley strains directly addressing the supply needs of both the malt-driven whisky and craft beer sector, securing the UK's high-value market position.

The Largest Export Destinations for Scotch Whisky (2022 vs 2021)

Source: Scotch Whisky Association report in February 2023

APAC Market Insights

Asia Pacific is the fastest-growing specialty malt market and is defined by a rapid expansion driven by rising urbanization, the swift adoption of Western-style premium beverages. The primary demand driver is the explosive growth of craft and premium beer segments in countries such as China, India, and Vietnam, which are moving beyond the traditional lagers to styles requiring caramel roasted and colored malts. A parallel and powerful secondary driver is the established whisky and spirits culture in Japan and South Korea demands high-quality malts for distillation. A key trend is the localization of supply chains with multinational malsters such as Cargill and Boortmalt establishing major production facilities in Australia and China to serve the region, minimizing the import dependency. The region's growth is further fueled by the increasing use of malt extracts in the burgeoning healthy snack and beverage sector.

The China specialty malt market in the APAC is the primary volume and value driver, fueled by the world’s largest beer industry. The demand is mainly due to the multinational and large domestic brewers are reforming the mainstream brands with specialty malts to capture higher margins, and a fast-growing urban craft segment explicitly seeks diverse caramel and roasted malts for innovation. A key structural driver is government policy to upgrade domestic manufacturing quality, indirectly pushing the entire beverage supply chain toward superior ingredients. The OEC report has indicated that China has exported USD 446 million of beer made from malt in 2023, indicating a strong domestic brewing capacity and high malt procurement. This export data further shows that export beer usually involves premium styles that use greater proportions of specialty malt per batch.

By 2035, the specialty malt market in Japan is expected to grow rapidly and is defined by the advanced and stable demand driver of its renowned whisky industry and mature quality-focused craft beer sector. Unlike the volume-driven market, growth in Japan is predicted on ultra-premiumization precision and the development of niche products with distinct terroir. The whisky industry is a global benchmark and is a massive consumer of high-quality distilled malts, with the production processes demanding exact specifications. The National Tax Agency report in 2024 has shown that Japan has experienced a high in export volume of liquor in 2022, reaching 139,194 million yen. This data provides a crystal clear record of the scale of base malt demand in specialized roasted and peated varieties.

Trends in Export of Liquor Made in Japan

Source: NTA 2024

North America Market Insights

The North America specialty malt market is expanding rapidly and is driven by a mature and innovative craft brewing industry and a growing premium spirits sector. The sector’s constant pursuit of new flavors and premium products creates a sustained high-value demand for diverse malt varieties. The market is further boosted by a robust and growing distilled spirits industry. The key trends include a strong movement towards supply chain localization and grain-to-glass transparency, as well as the expansion of the malt applications into the non alcoholic beverage and food industries. The competition is intense, requiring suppliers to demonstrate not only consistent quality and technical expertise but also commitments to sustainability and secure traceable agricultural partnerships.

The U.S. specialty malt market is defined by the scale and advancement in the craft brewing sector, which remains the primary driver for specialty malt innovation and volume. The key trend is intense flavor innovation and product segmentation, requiring a wide portfolio of caramel roasted and unique base malts. According to the USDA November 2025 report, the production volume of barley in 2022 was 2,626 thousand tonnes. This data supports a stable raw material base for malt processors. The demand is further reinforced by the vital input for craft breweries, mainly for producing differentiated flavor profiles, color ranges, and specialty beer styles. The report from the Brewers Association data shows 9,796 operating U.S. craft breweries in 2024, including microbreweries, brewpubs, taproom breweries, and regional craft breweries, which represent one of the largest demand pools for caramel, roasted, dark, and flavor-enhanced malt varieties.

U.S. Barley Yeilds

Source: USDA November 2025

The specialy malt market in Canada is heavily export-oriented, with its specialty malt industry utilizing a reputation for high-quality barley to supply global brewers and distillers. A primary trend is the strategic focus on agricultural sustainability and climate adaptation to protect barley yield and quality, a critical concern following significant drought events. The growth of the domestic craft distilling sector, mainly for rye and whisky, is a rising secondary demand driver. The 2022 Canadian Barley Research Coalition report states that the Barley Council of Canada administrator of USD 10.2 million National Barley Cluster under the federal AgriScience Program, focusing on research in yield, disease resistance, and climate adaptation to support the grain's market position. This investment underpins the export model by ensuring the long-term yield, quality, and reliability.