Malt beverage brands must innovate to maintain impressive growth: Canadean
But innovation in key regions - MENA, Africa, and Latin America - is important to keep driving success in the future, it adds.
With alcoholic products banned in many MENA (Middle East and North Africa) countries, Canadean predicts the category will continue to show strong volumes in the future.
Unfermented, clear malt is the only malt sold in the region: and with a growth rate of 76% it is the fastest-growing market. It has seen volumes almost double in the last five years.
Michael Ramsell, beverage analyst, Canadean, said regional malt brands are starting to turn to different flavors to maintain their appeal. Fayrouz and Moussy - regional malt brands from Heineken and Carlsberg - are already offering different fruit flavours.
“Manufactures need to innovate to keep consumers interested,” he said. “Malt brands will stay innovative by offering clear malt in a diverse range of flavors such as peach, pomegranate and raspberry.”
Where’s biggest malt market?
Dark malts - brewed with roasted barley - dominate the market in Africa and Latin America. Ramsell says the sweeter taste of these beverages helps companies market them to children and working class consumers.
“However, clear malts have become more popular in Africa, after being introduced as an adult beverage in an attempt to attract a more affluent and wider audience,” he added.
Malt has grown 62% in Africa over the last five years. Nigeria is the biggest malt market in the world, taking 72% of sales in Africa.
A poor economic climate in Venezuela and Colombia has hit the Latin American market in recent years (the countries hold a 33% and 36% market share respectively). As a result, the Latin American market has only grown by 4% since 2009.
“Manufacturers need to innovate and branch out to different markets,” Ramsell said.
