South America Malt Ingredient Market - Growth, Trends, and Forecast (2018-2023)
The South America malt ingredient market is expected to register a CAGR of 6.81%, during the forecast period of 2018–2023. Malt has been traditionally used for beer making through fermentation, along with whisky, which is driving the demand of malt. Malt ingredients are used in the food industry as food additives, which impart desirable flavor and color to the finished product.
The increase in consumption of processed and convenience food products in emerging markets of South America have contributed to a growth in the sales of malt ingredients. An increase in consumer awareness regarding the health benefits of malt ingredients and the wide-range of applications in the food industry are driving the market. The region has been a very strong performer, consumers have traded up, buying more expensive beer, which is evident in the rising popularity of craft beer. South America used to be a major importer from Europe, however, improvements in malt and malting barley production in Argentina have made the continent more self-sufficient. The demand in developing regions is driven by the increase in disposable income. Malt ingredients are used in bakery and confectionery products as it imparts color and flavor to the finished products. The growth can also be attributed to the increase in the spending capacity of buyers in the region. The major opportunities are the increasing demand for all natural food products and the rising demand for ready-to-eat and packaged food.
South America malt ingredients market has been segmented by ingredient type, source type, application type, and commercial grade type and by geography. Malt produced from malting grains is available in various forms, such as malt, malt flour, dried malt extract, liquid malt extract, and kibbled malt, malt flakes, malt vinegar, malt syrup, and others. Malt and malt flour hold the largest share of the market due to their direct consumption for beer, whisky, and beverages manufacturing. Alcoholic beverage industries have a direct contract with the malt suppliers for two-row, four-row, and six-row malt grains or for malt flours, which create an unbeatable demand in the market. Barley holds the largest market share due to its preferable malt consumption in the beverage industry. It has unique enzyme property that makes it dominant over other grains.
South America malt ingredient market is divided into Brazil, Argentina, and Others. The growing demand for alcoholic and non-alcoholic beverages & food products in the South American region drives this market. The regional markets are dominated 100% by dark malts. The region sources both, mal and malting barley, domestically.