Hops Market

Hops Market Size:

The global hops market size reached US$ 8.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 15.3 Billion by 2032, exhibiting a growth rate (CAGR) of 6.2% during 2024-2032. The global market is primarily driven by the rising global demand for craft beer, the recognition of hop's health benefits, continual technological advancements in hop cultivation and processing, and the globalization of the beer industry expanding market reach.

Hops Market Analysis:   

• Market Growth and Size: The market is experiencing substantial growth, driven by the global expansion of the craft beer industry and diverse applications in other sectors. The market's size is bolstered by the rising demand for unique varieties and the growth in beer consumption in emerging markets.
• Major Market Drivers: Key drivers include the increasing popularity of craft beers, which use a higher quantity and variety, and the recognition of its health benefits in pharmaceuticals and dietary supplements. Climate change also plays a critical role, affecting hop cultivation and yields.
• Technological Advancements: Advances in agricultural technology, such as precision farming and sustainable cultivation practices, are enhancing hop yield and quality. Improved processing and storage technologies are ensuring the longevity and consistent quality, crucial for global trade.
• Industry Applications: Besides the dominant application in brewing, particularly for craft beers, they are increasingly used in medicinal drugs due to their potential health benefits, and in cosmetics, supported by the trend towards natural ingredients.
• Key Market Trends: There's a growing trend towards the use of specialty variants for craft and experimental beers. The health and wellness trend are influencing the pharmaceutical and dietary supplement applications, and the cosmetics industry is increasingly incorporating the variants for their natural benefits.
• Geographical Trends: North America, particularly the U.S., is the largest market due to its strong craft beer sector. The Asia Pacific region is experiencing rapid growth with expanding beer industries, while Europe remains a significant player due to its long-standing brewing traditions.
• Competitive Landscape: The market is characterized by active strategic initiatives from key players, including research and development for new hop varieties, collaborations with breweries, and adoption of sustainable practices. The market is competitive, with a mix of large multinational corporations and smaller specialized producers.
• Challenges and Opportunities: Challenges include the impact of climate change on hop cultivation and the need for sustainable farming practices. However, these challenges present opportunities for innovation in agricultural practices and the development of resilient hop varieties. The diversifying applications in health and cosmetics also offer new market opportunities.
   

Hops Market Trends:

Climate change and environmental factors    

Various factors such as temperature fluctuations, unpredictable weather patterns, and water availability directly impact yield and quality. Regions traditionally known for hop cultivation, such as the Pacific Northwest in the United States and parts of Europe, are experiencing changing climate conditions, which can lead to variability in hop production. This variability can affect both the supply and the price, making it a critical factor for the market. In response, there is an increasing focus on developing more resilient hop varieties and sustainable farming practices. These efforts are aimed at ensuring a stable supply despite environmental challenges. Moreover, the emphasis on sustainability is also a response to the growing consumer demand for environmentally friendly products.      

Globalization and market expansion      

As beer consumption grows in emerging markets, there is a corresponding increase in the demand. Countries which traditionally had lower beer consumption, are witnessing a rise in beer popularity, partly due to the influence of western drinking culture and the increasing disposable income of the middle class. This expansion of the beer market into new regions creates opportunities for hop producers to tap into new markets. Additionally, the global nature of the supply chain allows for the import and export of various hop varieties, catering to the diverse tastes and preferences of different regions. This global trade helps in balancing supply and demand across different markets and facilitates the spread of new hop varieties and brewing techniques worldwide, further stimulating the market.     

Technological advancements in cultivation and processing  

The integration of advanced technologies in agriculture has significantly influenced the global market. Emerging innovations in cultivation techniques, such as controlled-environment agriculture (CEA), precision farming, and hydroponics, are enabling more efficient and sustainable hop production. These technologies help in optimizing resource use, improving yield, and ensuring consistent quality, which is crucial for brewers. Moreover, continual advancements in processing and storage technologies, including improved drying and pelletizing methods, are enhancing the longevity and quality, making them more appealing for global trade. This technological development is helping to meet the growing demand and enabling producers to overcome some of the challenges posed by environmental factors.

Hops Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product and application.  

Breakup by Product:

• Chinook Hops
• Cascade Hops
• Amarillo Hops
• Centennial Hops
• Others
   

Chinook hops account for the majority of the market share    

The report has provided a detailed breakup and analysis of the market based on the product. This includes chinook hops, cascade hops, Amarillo hops, centennial hops, and others. According to the report, chinook hops represented the largest segment.      

As the largest segment in the market, chinook variants are renowned for their versatility and distinct flavor profile, characterized by a pine-like, spicy bouquet with robust notes of grapefruit. This variety is particularly favored in the production of American-style pale ales and India pale ales (IPAs), where its bold flavor contributes significantly to the beer's character. The popularity of chinook variants is largely attributed to the growing trend of craft brewing, where brewers seek distinctive flavors to differentiate their products. The high alpha acid content in chinook type makes them an excellent choice for bittering, while their aromatic properties are prized for late additions in the brewing process.

On the other hand, cascade represent a significant segment in the market. This variety is a staple in American craft brewing and is pivotal in the development of American pale ales. The appeal of cascade type lies in their moderate alpha acid content and their versatile flavor profile, which makes them suitable for both bittering and as an aroma hop.  

Furthermore, Amarillo variants are a newer variety in the market and have quickly gained popularity for their unique flavor and aromatic qualities. Characterized by their floral, citrusy, and especially orange-like notes, Amarillo variants are frequently used in a variety of beer styles, including IPAs, where they contribute a distinct, fresh flavor. Their relatively high alpha acid content and essential oil profile make them suitable for both bittering and aroma purposes in brewing.  

Additionally, centennial type is a well-established segment in the global market, admired for their balanced bittering capabilities and a floral and citrus aroma profile, with a hint of lemon. This dual-purpose hop is popular in crafting ales, especially IPAs and pale ales, where it imparts a complex yet harmonious blend of flavors.  

Breakup by Application:

• Alcoholic Beverage
• Medicinal Drugs
• Cosmetics
• Others
   

Alcoholic beverage holds the largest share in the industry  

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes alcoholic beverage, medicinal drugs, cosmetics, and others. According to the report, alcoholic beverage accounted for the largest market share.   

The alcoholic beverage segment, particularly beer production, is the largest and most dominant in the market. They are a key ingredient in beer brewing, imparting essential bitterness, flavor, and aroma characteristics. The variety used can significantly influence the taste and quality of the beer, making them a critical component in brewing. This segment's growth is fueled by the global beer industry, especially the rise of craft brewing, which often utilizes a larger quantity and a wider variety than traditional large-scale brewing.   

On the other hand, medicinal drugs hold a significant amount in the market. Compounds, such as xanthohumol and lupulones, have been studied for their antioxidant, anti-inflammatory, and potential anticancer properties. This has led to an increased interest in the use in pharmaceuticals, particularly in the development of natural and herbal remedies. As the trend towards natural and alternative medicine continues to gain traction.  

Furthermore, in the cosmetics industry, they are gaining attention as a segment due to their various beneficial properties, such as anti-inflammatory and antimicrobial effects, which are valuable in skincare products. They are being incorporated into a range of cosmetic products, including creams, lotions, and serums, aimed at soothing skin and improving its appearance.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest hops market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.  

North America is the largest segment in the global market, primarily driven by the robust craft beer industry. The region has a long-standing tradition of beer brewing, with a strong focus on innovation and quality. The growth in this market is fueled by the increasing popularity of craft breweries, which often experiment with a variety to create unique flavors. Additionally, the presence of major beer companies and the growing trend of home brewing contribute to the high demand in North America.

On the other hand, the Asia Pacific region’s growth is attributed to the rising middle-class population, increasing disposable incomes, and the growing influence of western drinking habits. The region is witnessing a rise in both the consumption and production of beer, with a growing interest in craft and premium beers.  

Furthermore, Europe is known for its diverse beer culture and strict brewing traditions, such as the Reinheitsgebot in Germany. European breweries often use traditional varieties and are also embracing new ones for crafting innovative beers. The presence of numerous established breweries, along with the growing craft beer movement, sustains the demand in Europe.

Additionally, the market in Latin America is emerging, with countries, including Brazil, Mexico, and Argentina showing potential for growth. The beer market in this region is changing, with an increasing number of local craft breweries and a growing interest in diverse beer styles. This trend is gradually leading to a higher demand for various hop varieties.  

Moreover, the Middle East and Africa region represents a smaller but growing segment in the market. While the consumption of alcoholic beverages is limited in some parts of the Middle East due to cultural and religious factors, there is a growing interest in non-alcoholic beers, which still requires for flavoring. In Africa, countries, such as South Africa have an established beer culture, and the market is gradually opening up to craft and specialty beers.

Leading Key Players in the Hops Industry:

The key players in the market are actively engaged in a variety of strategic initiatives to strengthen their market position and respond to the escalating demands. These efforts include investing in research and development to cultivate new hop varieties with enhanced flavors and aromas, as well as greater resistance to environmental stressors, such as pests and climate change. Many are also expanding their production capacities and improving their processing technologies to ensure higher quality and efficiency. Additionally, collaborations and partnerships with breweries and research institutions are common, aimed at exploring innovative applications.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• BarthHaas GmbH & Co. KG
• Bintani Australia PTY Ltd.
• Charles Faram & Co. Ltd.
• Clayton Hops NZ
• Crosby Hop Farm LLC
• Hollingberry and Son Inc.
• Hops Direct LLC.
• Hopsteiner Group
• Kalsec Inc.
• Loughran Brewers Select Limited
• New Zealand Hops Limited
• Yakima Chief Hops Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• 06 October 2023: The BarthHaas  GmbH & Co. KG announced its innovative Greenhouse Initiative is ranked among InnoLead’s Top 20 Impact Awards Finalists for 2023. This finalist ranking represents the fourth innovation recognition the group has received in the past four years.  
• 04 December 2023: Yakima Chief Hops Inc, announced FWD, A New Hop Innovation Program in Partnership with Yakima Chief Ranches. In this, Participating brewers will be granted access to the newest, not-yet-commercialized HBC varieties and products in Yakima Chief Hop's innovation pipeline.   
• 10 August 2023: Univar Solutions and Kalsec Inc. strengthen partnership in Europe with expanded agreement for a wide range of food ingredient Solutions.  The new agreement authorizes Univar Solutions to exclusively distribute Kalsec's natural taste & sensory, colors, and food protection ingredient solutions for savory applications in France, Belgium, and the Netherlands.

Hops Market Report Scope:

Key Questions Answered in This Report:  

• How has the global hops market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global hops market?
• What is the impact of each driver, restraint, and opportunity on the global hops market?
• What are the key regional markets?
• Which countries represent the most attractive hops market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the hops market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the hops market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global hops market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the hops market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global hops market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the hops industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.