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.This growth is attributed to technological advancements in food processing, evolving consumer dietary preferences, and the growing demand for convenient, nutrient-rich products across the globe.
Malted Milk Powder Market Overview and Historical Background:
Malted milk powder, made from barley malt, wheat flour, and milk solids, is a versatile and nutritious ingredient used in a wide range of applications such as beverages, bakery, confectionery, and infant formulas. Originating in the late 19th century in Britain, the product gained popularity for its energy-rich and easily digestible properties, particularly beneficial for children and individuals seeking nutritional convenience.
The production process involves malting, where starch in barley is converted into fermentable sugars through enzymatic activity. This enhances the powder’s sweetness and flavor. The malted barley is then combined with wheat flour for texture and milk solids for richness and nutrition before undergoing spray drying or roller drying to create a shelf-stable, fine powder with a characteristic malted flavor.
Malted Milk Powder Market Key Highlights:
Technological Advancements in Spray-Drying and Powder Processing: Modern innovations in spray-drying technology have significantly enhanced product quality, production efficiency, and sustainability. The introduction of multi-stage drying systems minimizes nutrient loss and heat damage, maintaining the powder’s nutritional integrity and natural flavor.Enhanced atomization techniques, such as rotary and ultrasonic atomizers, have improved particle uniformity and solubility, essential for applications like instant beverages and infant nutrition. Furthermore, energy-efficient systems with waste-heat recovery and low-energy drying cycles are being adopted to reduce operational costs and carbon footprints, aligning with global sustainability goals.
Malted Milk Powder Market Drivers:
Rising Popularity of Malt-Based Beverages Across Age Groups: Malt-based drinks, traditionally consumed by children, are now favored by all demographics for their taste, versatility, and health benefits. They are rich in proteins, carbohydrates, vitamins (D and B-complex), calcium, and phosphorus, providing a balanced energy source.New formulations including low-sugar, high-protein, and probiotic-enriched variants are catering to diverse consumer needs such as fitness, digestion, and cognitive health. Malted milk-based drinks are also increasingly replacing tea and coffee as a natural energy alternative for adults.
Demand for Convenient and Nutrient-Dense Foods: As lifestyles become busier, consumers prefer instant, ready-to-mix nutrition products. Malted milk powder fulfills this need with its quick preparation, portability, and rich nutrient content. The introduction of single-serve sachets, ready-to-drink beverages, and pre-mixed powders has made it an essential household and on-the-go product.
The product’s high nutritional value especially in calcium, vitamin D, and protein aligns with global wellness trends. Consequently, malted milk powder is increasingly used in fortified foods and beverages targeting students, working professionals, and athletes.
Malted Milk Powder Market Analysis (2020–2035):
Between 2020 and 2024, global sales increased at a CAGR of 4.8%, driven by growing awareness of nutrition and health, particularly during the pandemic. E-commerce platforms played a major role in driving product accessibility amid restrictions on traditional retail.
From 2025 to 2035, the CAGR is expected to rise to 5.3%, fueled by population growth in developing regions such as India and China, improvements in processing technologies, and an expanding middle-class consumer base with higher disposable incomes.
Malted Milk Powder Market Concentration and Competitive Landscape:
The malted milk powder industry is moderately consolidated, with Tier 1 companies like Nestlé S.A., Unilever (Horlicks), and Associated British Foods (Ovaltine) holding a significant market share. These global leaders drive innovation, focusing on fortified formulations, clean-label ingredients, and sustainable production.
Tier 2 players, such as Muntons plc and Briess Malt & Ingredients, serve regional markets, offering niche and organic variants. Tier 3 companies operate locally, targeting traditional consumers and those seeking authentic, small-batch or heritage products.
Malted Milk Powder Market Regional Insights:
United States: Expanding Culinary Applications: In the U.S., malted milk powder’s use extends beyond beverages into baked goods, ice creams, desserts, and gourmet recipes. Its nostalgic flavor has gained traction in the artisanal and craft food segment. Chefs and food influencers are driving its popularity through creative recipe integration and social media exposure.
Germany: Focus on Sustainability and Organic Ingredients: Germany’s strong preference for sustainable, organic, and traceable food products has led local manufacturers to adopt eco-friendly processes and renewable energy sources. Companies emphasize organic certification and ingredient transparency, enhancing consumer trust and enabling premium pricing.
Malted Milk Powder Market Category-Wise Insights:
Barley Dominates the Market (29.2% Share by 2025): Barley remains the most preferred ingredient due to its nutritional superiority, natural sweetness, and beta-glucan content, which supports heart health and digestion. Its versatility and cost-effectiveness make it ideal for large-scale production without compromising quality.
Beverages Lead by End-Use Industry (31.4% Share by 2024): The beverage segment dominates the market, supported by demand for ready-to-drink malted beverages, health drinks, and energy mixes. Its adaptability in hot and cold beverages, including malted milkshakes and fortified dairy drinks, underpins this dominance.
Malted Milk Powder Market Key Players:
Major players shaping the global malted milk powder market include:
- Nestlé S.A.
- Unilever (Horlicks)
- Associated British Foods (Ovaltine)
- Briess Malt & Ingredients
- Imperial Malts Ltd.
- Muntons plc
- Cliff Foods
- Larissa Veronica
- Hoosier Hill Farm
- Custom Food Group
Malted Milk Powder Market Recent Developments and News:
Nestlé S.A. launched a low-sugar malted milk powder fortified with vitamins and minerals, alongside a plant-based variant catering to vegan and lactose-intolerant consumers.
Unilever’s Horlicks introduced a probiotic-enriched malted milk powder, supporting digestive wellness and catering to the functional nutrition market.
Ovaltine (Associated British Foods) unveiled a high-protein malted milk powder aimed at fitness enthusiasts and athletes, expanding its health-oriented portfolio.
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Malted Milk Powder Market Trends and Challenges:
Key Trends:
- Rising adoption of fortified and plant-based formulations
- Growth of organic and sustainable production practices
- Increasing popularity of instant, on-the-go nutrition
- Expanding use of malted milk in culinary and functional foods
Challenges:
- Fluctuating prices of raw materials like milk and barley
- Competition from alternative protein and nutritional powders
- Energy-intensive processing and sustainability concerns
The malted milk powder market is on a strong upward trajectory, driven by technological innovation, health-conscious consumer behavior, and product diversification. With leading players investing in sustainability, digital retail, and fortified product lines, the industry is well-positioned for sustained global expansion through 2035.
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