The malt extracts market in SAM is expected to reach US$ 117.89 million by 2027 from US$ 75.05 million in 2018; it is expected to grow at a CAGR of 5.2% from 2019 to 2027.
Rising demand for malt extracts in the food & beverage industry is bolstering the growth of the malt extracts market in the SAM region. Increasing consumer demand for healthier foodstuff is spreading throughout all categories of the food & beverage sectors. Food processors and manufacturers all over the world are finding better ways to formulate their current products along with creating more innovative and newer products to meet this increasing demand. At present, there are two trends in the milk drink and soft drink sector that manufacturers merely cannot ignore, viz., beverage should contain no added sugar, and it should be prepared with 100% natural extracts and ingredients. Extracts and ingredients which fit these two may be hard to find, but beverage processors and manufacturers have already begun to explore paths to create beverages in line with these trends. Rather than replacing the sugar component, leading manufacturers are looking for novel natural ingredients that they can integrate into their products for not only sugariness but also for functional benefits. As a natural ingredient or food additive that contains sweet properties of its own, eradicating the need for sugar, malt extract is a food additive that is in line with both trends that consumers look for in beverages.
Based on form, the malt extracts market is segmented into liquid and powder. The powder segment is expected to be a faster growing segment during the forecast period. Malt extract powder is one of the most important ingredients used in health drinks for body and muscle growth. It is a non-diastatic powder mainly derived from liquid malt extract. It provides a beautiful color, lasting flavor, mild sweetness and numerous health benefits. Dried malt extract is the primary sugar source in the brewing industry and can be used in partial-mash or all-grain brewing for adjusting flavor, color, and gravity of brews. Dried extracts further offer various benefits and have the characteristics such as non-diastatic, coarse powder, easily soluble, additional flavor derived from 'cooking' process, and inclusion of other ingredients like milk powder, fat, and sugar. These are also used in nutritious food, milk-based health care drinks, pharmaceuticals, biscuits, beverages, confectionery, bakery products, home brewing, and cereals. Malt extract powder products are basically made by introducing the liquid malt extract into a slowly moving band passing through the vacuum. The vacuum then allows evaporation to happen at a lower temperature as well as aids the extract to puff. The resultant honeycomb material is further milled into a coarse powder before packing. Malt extract powder is sweet in taste, slightly acidic, pale yellow or yellow in color, highly hygroscopic, and free flow in nature.
COVID-19 pandemic has affected industries and economies in various countries due to lockdowns, business shutdowns, and travel bans. Brazil has the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina, among others. The government of SAM has taken an array of actions to protect their citizens and contain the spread of COVID-19. It is anticipated that SAM will face lower export revenues, both from the drop in commodity prices and reduction in export volumes, especially to China, Europe, and the US, which are important trade partners. Containment measures in several countries of SAM will reduce economic activity in the manufacturing sectors for at least the next quarter, with a rebound once the epidemic is contained.
The overall SAM malt extracts market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the SAM malt extracts market with respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the SAM malt extracts market. Maltexco S.A., Ireks Gmbh, Groupe Soufflet, Malt Products Corporation, Muntons Plc, CALSA SA, and Liotecnica are among a few players operating in the SAM malt extracts market.