Global Malted Milk Market Outlook
Revenue, 2024
$9.5B
Forecast, 2034
$16.6B
CAGR, 2025 - 2034
5.8%
The Malted Milk industry revenue is expected to be around $10.0 billion in 2025 and expected to showcase growth with 5.8% CAGR between 2025 and 2034. The market shows strong potential because malted milk serves as a fundamental ingredient in family friendly nutritious drinks and because malted milkshakes have returned to foodservice establishments and because new branded malted milk drinks are quickly expanding into supermarket and convenience store markets. The value creation process depends on powder form because malted milk powder generated $7.77 billion in revenue during 2025 to support both instant drink mix production for households and industrial applications. The demand side of Ready to Drink Beverages and Bakery & Confectionery applications together use 78.9% of malted milk for their operations because this product serves as both a flavor enhancer and a functional ingredient which improves dairy based beverage texture and body and nutritional value.
The product consists of a precisely manufactured mixture which contains malted barley and wheat flour and milk solids to create its distinctive malty flavor and caramelized sweetness and creamy texture and high dissolving power for use in instant drink mixes and flavored milk and nutritional beverages. The product features three main characteristics which include its natural cereal dairy taste and its ability to work well with cocoa and vanilla and coffee and its power to improve both flavor and nutritional value in Ready to Drink Beverages and Bakery & Confectionery products and desserts and ice creams. Premium malted milk drinks and malt infused chocolate bars and biscuits and breakfast products now use malted milk powder as their base because food and beverage companies want to meet consumer demands for convenient everyday foods and acceptable treats. The market continues to grow because consumers now want reduced sugar recipes and high protein and vitamin enriched malted dairy beverages and they seek transparent clean label information and they want to try new flavors and packaging designs.
Market Key Insights
The Malted Milk market is projected to grow from $9.5 billion in 2024 to $16.6 billion in 2034. This represents a CAGR of 5.8%, reflecting rising demand across Ready-to-drink Beverages, Bakery & Confectionery, and Dairy Desserts.
The market competition exists between Nestlé S.A., Unilever Plc and Associated British Foods plc who lead the industry.
The Malted Milk market shows its highest demand through the United States and China which will experience market expansion at 3.8% to 5.6% annual rates from 2024 to 2030.
The research predicts that Indonesia along with Nigeria and Vietnam will experience the most significant market expansion at rates between 6.7% and 8.0% CAGR.
The U.S. and Chinese markets value chain will experience more significant effects from Transition like Next-Gen Functional Formulations which will generate $407 million of additional market value for the Malted Milk industry throughout 2030.
.The Malted Milk market will experience $7.2 billion growth during 2024-2034 because manufacturers will focus on Bakery & Confectionery & Dairy Products & Desserts Application to achieve higher market penetration.
With
rising demand for functional malted milk beverages and technological advances in malt extraction and formulation processes, and
Expansion of malted milk in premium bakery and confectionery applications targeting indulgent yet nutritious products, Malted Milk market to expand 76% between 2024 and 2034.
Opportunities in the Malted Milk
Premium bakery and confectionery manufacturers in Western Europe are also actively reformulating to meet stricter clean label expectations. Malted milk ingredients deliver natural sweetness and rich caramel flavors and attractive browning effects without using any artificial flavorings or colorings. More and more artisanal cookie producers along with chocolate makers and cake artists choose to use malted milk powder instead of intricate sweetener combinations. The process of product development becomes faster when grains processors team up with boutique patisseries for collaborative work. The segment will see its highest growth rate from powdered malted milk which will find increasing demand for use in bakery and confectionery products throughout Germany and Scandinavian countries and Benelux region.
Growth Opportunities in Asia-Pacific and Europe
In Asia Pacific, malted milk demand is increasingly concentrated in ready to drink beverages, where instant malted drink mixes and on the go formats align with fast paced urban lifestyles and a young, expanding middle class, while dairy products and desserts such as malted milk ice cream and flavored milk provide incremental value in modern retail and foodservice. The market offers four main business opportunities which include functional nutrition drink development through fortification of malted milk powder with proteins and vitamins and probiotics and the creation of localized flavors for different markets and the development of premium small pack products for convenience stores and quick commerce channels through co branding with cafe chains for their shakes and specialty drinks. The market competition remains strong because established regional beverage companies and flexible local dairy businesses and fast growing private label brands require businesses to develop unique products and prove their nutritional value and use digital marketing to reach customers. The market adoption of malted milk products advances because consumers now have more money to spend and parents want better nutrition for their children and modern trade operations have grown and e commerce grocery platforms have entered the market. The market adoption of malted milk products grows because consumers now use it for breakfast and after school snacks and casual eating occasions throughout Southeast Asia and Chinas secondary cities and Indias secondary cities.
The European market shows the strongest connection between malted milk and bakery and confectionery industries because the powder adds flavor and color and texture to their products including biscuits and chocolate and snack bars and premium baked goods. The retail and foodservice channels receive additional demand for dairy products and desserts which include ice cream and puddings and chilled desserts. The main business opportunities exist in clean label organic sustainably sourced malted milk ingredients which serve industrial bakers and chocolatiers and high protein or reduced sugar malted formulations that follow current nutritional standards and the creation of indulgent snacks which use malts natural sweetness and complex flavors. The market requires advanced technical assistance and customized applications and clear supply chain operations from ingredient suppliers because established bakery and confectionery companies and retailer brands maintain their market power. The market depends on several essential regional elements which include consumer demand for genuine traditional taste profiles in biscuits and confectionery products and the need for businesses to modify their formulations because of sugar and additive regulations and retailer requirements and the increasing popularity of home baking and consumer interest in dairy plant based malted milk drinks that use barley malt with oats or other grains to meet both pleasure and health requirements.
Market Dynamics and Supply Chain
01
Driver: Rising demand for functional malted milk beverages and technological advances in malt extraction and formulation processes
People now choose functional malted milk beverages because they want to consume products which contain proteins and vitamins and minerals thus malted milk has also become a simple daily nutritional drink for families and athletes and health conscious adults. The market now sees manufacturers introducing malt based drinks which contain less sugar and fiber and use clean labeling while they develop ready to drink malted milk shakes and instant drink mixes for school going children and people who lead active lifestyles. The development of malt extraction and formulation technologies through controlled enzymatic modification and spray drying and microencapsulation methods has also enhanced the solubility and flavor stability and nutrient preservation of malted milk powder. The processing innovations enable better dispersion of ingredients in cold liquids and they extend the storage duration of fortified products and they allow malted milk to blend perfectly with dairy ingredients and plant based alternatives and hybrid functional beverages. The production process enables companies to create distinct products through their ability to achieve uniform texture and maintain consistent sweetness levels and they can also also modify nutritional content to match both local consumer preferences and applicable laws.
The bakery and confectionery industry now uses malted milk as a distinctive flavor component and texture enhancer in their high end cookie and cake products and ice cream and chocolate filling creations which follow the market demand for rich dessert products with health benefits. Artisanal brands together with large manufacturers now use malted milk powder in their product development because it adds caramelized flavors and also creates better Maillard browning and softer crumb texture which also drives premium product sales in both retail stores and food establishments. The market shows evidence of this trend because customers choose to spend extra money on traditional malted beverages which contain protein together with essential micronutrients.
02
Restraint: Health driven shifts toward low sugar, lactose free diets are eroding demand for traditional malted milk products
The growing number of people who suffer from obesity and diabetes and lactose intolerance has led consumers to choose dairy alternatives and plant based nutrition drinks instead of malted milk which results in decreased sales at retail stores and food establishments. Major beverage brands have redirected their innovation funding from traditional malted milk powder and ready to drink malt beverages to develop low sugar functional drinks which has resulted in reduced product introductions and marketing efforts for the malted category. The market shows this trend most clearly through urban consumer behavior which favors healthy products with clean labels thus reducing malted milk availability in both physical stores and digital platforms which limits manufacturers and ingredient suppliers from achieving sustainable revenue expansion.
03
Opportunity: Growing demand for fortified malted milk beverages among health conscious urban families in India and Southeast Asia and Expanding use of malted milk powder in high protein sports nutrition products across North America and Europe
The urban middle class population across India and Southeast Asia now looks for budget friendly nutritional beverages which they can drink every day. Malted milk provides consumers with a recognized flavor profile and market appeal for children and simple nutritional enhancement through vitamin and mineral and probiotic additions. The global market for powdered malted milk will expand from 7.77 billion in 2025 to 10.10 billion by 2030 while surpassing numerous established dairy market segments. The market has not only yet fully exploited functional beverages which serve the needs of children who need growth support and mothers who need health benefits and senior citizens who want to stay active. The market will experience its most significant expansion through fortified powdered products which will gain popularity through specific flavor options and educational institutions will serve as distribution channels.
North American and European consumers who focus on performance have started to move away from traditional malt beverages toward specific sports nutrition products. Malted milk powder provides fast energy release together with its ability to create creamy textures and its powerful flavor concealment properties which make it suitable for high protein product development. The worldwide market value of liquid malted milk products reached 1.69 billion dollars during 2025 and experts predict it will expand to 2.44 billion dollars by 2030 because of increasing demand for ready to drink products. The combination of fitness influencer partnerships with gym establishments enables businesses to establish higher market values. The market will experience its fastest expansion through liquid malted milk shakes and recovery beverages which target daily athletes who engage in sports activities.
04
Challenge: Raw material price volatility and logistics disruptions are compressing malted milk margins and destabilizing downstream demand
Malted milk producers must raise their prices either by increasing costs of barley malt and wheat and dairy products and energy expenses and transportation fees or by reducing their packaging sizes because of unstable ingredient prices. The use of malted milk in food and beverage products for confectionery and bakery applications has led companies to reduce or replace malt in their formulations because of cost concerns which results in reduced ingredient usage despite unchanged end product sales. The supply instability in emerging markets together with high import expenses limit promotional efforts which slows down the market entry of this product category while private label products increase their market presence to reduce profitability and make investors less likely to support long term malted milk processing infrastructure development.
Supply Chain Landscape
1
Grain Malting
Briess Malt and Ingredients Co.Associated British Foods plc
2
Dairy Ingredient Processing
AmulAssociated British Foods plc
3
Malted Milk Manufacturing
Nestl S.A.Unilever PlcAmul
4
Malted Milk
beveragesbakery and confectionerynutritional supplements
1
Grain Malting
Briess Malt and Ingredients Co.Associated British Foods plc
2
Dairy Ingredient Processing
AmulAssociated British Foods plc
3
Malted Milk Manufacturing
Nestl S.A.Unilever PlcAmul
4
Malted Milk
beveragesbakery and confectionerynutritional supplements
Use Cases of Malted Milk in Ready-to-drink Beverages & Dairy Desserts
Ready-to-drink Beverages : The ready to drink malted milk beverage segment represents the biggest market application which will reach USD 5.87 billion in 2025 while showing 5.4% annual growth from 2026 to 2030 because people now select malted dairy drinks for their easy consumption and their nutritional value and functional properties. The manufacturing industry uses malted milk powder as their primary ingredient because it represents 82.1% of total form requirements in 2025 for instant mix production and concentrate and ready to mix sachet manufacturing. The production of bottled and canned drinks primarily uses liquid malted milk which accounts for 17.90% of the market share. Beverage companies can benefit from four main advantages which include their unique malted milk taste and smooth texture and their built in natural sweetness and their ability to work well with vitamin and mineral and protein based and fortified products. The unique characteristics of malted milk drinks allow companies to market them as regular food products which provide additional health benefits to consumers. Nestl S.A. maintains its market leadership through its worldwide malted milk drinks portfolio and its advanced research and development operations and its wide reaching distribution network which serves both developed and developing countries. Unilever Plc uses its dominant position in ready to drink dairy and ice cream brands to launch malted milk based beverages into new high growth markets. The Indian market belongs to Amul because they provide affordable malted milk drinks and maintain a broad network of cold storage facilities. The beverage brands receive their malted milk powder solutions from Associated British Foods plc and Briess Malt and Ingredients Co. who function as specialized ingredient partners that deliver dependable high quality malted milk powder products.
Bakery & Confectionery : The market for bakery and confectionery products using malted milk shows strong growth potential because it reached USD 1.59 billion in 2025 while experts predict it will expand at 6.3% CAGR from 2026 to 2030. Manufacturers use malted flavors to create premium versions of cakes and biscuits and chocolate bars and fillings. The application uses finely ground malted milk powder throughout all dry mixtures and cocoa blends and fillings and coatings and inclusions because it provides dependable flavor and better Maillard browning and improved color and better crumb texture and deeper dairy taste without requiring additional processing steps. Malted milk enables the creation of premium bakery and confectionery items through its ability to enhance flavor depth while providing authentic milk and cereal ingredients which match consumer demands for genuine products with high quality standards. The company Associated British Foods plc together with Briess Malt and Ingredients Co. maintain their position as top malted milk powder suppliers to industrial bakers and confectionery manufacturers through their wide product ranges and laboratory facilities and ability to customize their products for flavor and color and functional properties. The ingredient expertise of Nestl S.A. and Unilever Plc enables them to enhance their worldwide chocolate and biscuit and snack product lines which strengthens their premium brand reputation and product development capabilities. The Indian dairy company Amul uses malted milk as a key ingredient to launch new bakery and confectionery products in specific regions for gaining market share in the value added food segment.
Dairy Desserts : The dairy dessert market which includes malted milk ice cream and puddings and shakes and yogurts reached USD 0.88 billion in 2025 while showing the highest growth rate of 7.2% CAGR from 2026 to 2030 because consumers want to experience both the pleasure of indulgent treats and the comfort of traditional malted dairy desserts. The main ingredient in this application is malted milk powder which serves as the base component for ice cream mixtures and yogurt blends and dessert powder formulations to increase solid content and texture and air incorporation. The production team uses liquid malted milk concentrates to create variegates and sauces and toppings which deliver stronger malted milk flavor than the powder form. The main operational benefits for dairy processors include their ability to produce products with better flavor integration and creamier texture and their power to develop premium malted milk desserts through existing production methods. The three leading brand owners in this market segment include Nestl S.A. and Unilever Plc and Amul which use their dairy and frozen product lines and their cold chain infrastructure and marketing strength to expand their malted milk dessert range into different price segments. The B2B market leadership of Associated British Foods plc and Briess Malt and Ingredients Co. stems from their ability to deliver customized malted milk powder products which meet the requirements of frozen desserts and cultured products and ambient dairy desserts.
Impact of Industry Transitions on the Malted Milk Market
As a core segment of the Packaged & Processed F&B industry,
the Malted Milk market develops in line with broader industry shifts.
Over recent years, transitions such as Next Gen Functional Formulations and Omnichannel Indulgence Experiences have redefined priorities
across the Packaged & Processed F&B sector,
influencing how the Malted Milk market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Next Gen Functional Formulations
The Malted Milk market is undergoing a significant transformation, shifting from traditional dairy products to innovative functional food formulations that cater to health conscious consumers. This evolution is driven by the introduction of malted milk powders enriched with protein and fiber while reducing sugar content, enabling the creation of high protein cookies, breakfast bars, and fortified chocolates. As a result, bakery and confectionery sectors are poised to capitalize on this trend, particularly in the U.S. and Chinese markets, where the value chain is projected to generate an additional $407 million by 2030. Furthermore, the incorporation of barley malt extracts into dairy alternatives and plant based beverages not only enhances flavor and texture but also positions malted milk as a healthier choice, aligning with the growing demand for functional nutrition.
02
Omnichannel Indulgence Experiences
The industry underwent its second significant transformation when it shifted from selling malted milk products through retail shelves to creating complete indulgent experiences which spanned foodservice establishments and digital distribution channels. Restaurants that serve Cafes and quick service restaurants now offer their own signature malted drinks and premium sweet treats and milkshakes made with malt which helps them increase customer spending and create unique dining options. The market continues to grow through e commerce platforms which offer instant drink mixes and ready to drink malted milk products with subscription services that enable data driven personalization. The changing consumer behavior pattern affects three industries which include retail and packaging and logistics because brands now use smaller multi pack formats and limited edition flavors and influencer led product launches to reach younger consumers who live in urban areas.