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When you look from the broaders perspective, malt extract liquid or liquid malt extract is used more in the production of food than in the brewing processes. These types of extracts are the main source of flavour and colour in many breakfast cereals.
Along with the use of malt extract in the baked products, malt extract and malted milk powder is also commonly used in the confectionery goods and frozen desserts in the form of biscuit confectionery grade malt extract and in non-alcoholic beverages in the form of Non Alcoholic
Beverages Grade Malt Extract. Not only this, barley malt products also include Malted milk balls, candy bars such as Milky Way, malt cups, malted milk shakes etc.
Malted Milk Food, on the other hand, is a product obtained by mixing whole milk, partly skimmed milk or milk powder with the wort separately from a mash of ground barley malt, any other malted cereal grain and wheat flour or any other cereal flour or malt extract with or without addition of flavouring agents and spices, emulsifying agents, eggs, protein isolates, edible common salt, sodium or potassium bicarbonate, minerals and vitamins and without added sugar in such a manner as to secure complete hydrolysis of starchy material and prepared in a powder or granule or flake form by roller drying, spray drying, vacuum drying or by any other process. It may contain cocoa powder. It shall be free from dirt and other extraneous matter. It shall not contain any added starch (except starch natural to cocoa powder) and added non-milk fat. It shall not contain any preservative or added colour. Malted milk food containing cocoa powder may contain added sugar.
Malt extract is also alongside a famous ingredient in the human medicine as it improves the palatability of human medicines
Brewing vs. Food-Grade Extracts
Now if we ever have to do the difference in the usage of malt extract then it will definitely be in the brewing and food grade malt extracts. It is so because malt extract is most commonly known to be used in the brewing process as it adds quality, additional colours and flavours from using specialty malts. This gives them a flavour suitable for beer or other products where they are the main flavour component.
Food-grade malt extracts on the other side are often made with non-brewing grade food or distilling malt, and are usually used as a minor ingredient. But just like in brewing, in the food world, they provide the nutty flavour and a sweet essence to your recipes.
Nonetheless, the manufacture of brewing-grade and food-grade malt extracts both involve variants of the brewing process in which malted grains are crushed and mashed to make it one step better.