Hops Market

Market Overview:

The global hops market size reached US$ 8.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 12.3 Billion by 2028, exhibiting a growth rate (CAGR) of 6.90% during 2023-2028. The rapid advances in hop processing, pelletizing, and storage technologies due to the limited harvest window and seasonal availability of hops, and the increasing focus of certain regions on hop cultivation for export purposes are some of the factors propelling the market.

Hops, scientifically known as Humulus lupulus, are an essential ingredient in brewing beer and significantly impact its flavor, aroma, and stability. These cone-like flowers of the hop plant are rich in essential oils and resins that impart bitterness, aroma, and antimicrobial properties to beer. One of the key roles of these ingredient in beer production is balancing the sweetness of malted barley with bitterness. The alpha acids present provides bitterness, contributing to the flavor profile and serving as a natural preservative. The specific hop varieties chosen by brewers can greatly influence the taste and aroma characteristics of the final product. Apart from bitterness, they also lend beer its distinctive aroma. The volatile compounds in hops contribute floral, citrus, herbal, or spicy notes, depending on the variety used. This aromatic complexity enhances the overall sensory experience of the beer. They also possess natural antimicrobial properties, helping to inhibit the growth of spoilage microorganisms during brewing. They are known for their potential health benefits. They contain compounds with antioxidant and anti-inflammatory properties, which may positively affect human health when consumed in moderation.

The global market is primarily driven by the expansion of the brewing industry, including craft breweries and microbreweries. In line with this, the increasing beer consumption is significantly contributing to the market. Furthermore, since hop contributes to the unique flavor profiles of different beer styles, and the demand for diverse and distinctive beer flavors positively influences the market. Apart from this, its aromatic properties, with various floral, citrus, and herbal notes, are sought after by brewers and consumers, catalyzing the market. Moreover, the growth of the craft beer movement, with its focus on quality, innovation, and unique flavor profiles, increases the demand for hops as craft brewers experiment with different product varieties and combinations. Besides, the export market for beers from different countries is propelling the market demand as breweries seek to produce beers that meet the preferences of global consumers. Additionally, the popularity of homebrewing as a hobby and the desire for homemade craft beer stimulates the product demand among homebrewers.

Hops Market Trends/Drivers:

Rise of beer tourism

The rise of beer tourism is offering numerous opportunities for the market. Beer tourism refers to the travel and exploration of breweries, beer festivals, and beer-related destinations, driven by enthusiasts seeking unique beer experiences. It has gained popularity due to several factors. The craft beer movement has led to the growth of small, independent breweries producing a wide range of unique and innovative beer styles. This has created a desire among beer enthusiasts to visit these breweries, taste their beers, and learn about the brewing process firsthand. Additionally, beer festivals have become prominent attractions for local and international visitors. These festivals provide opportunities to sample a diverse selection of beers, interact with brewers, and immerse oneself in the beer culture of different regions. Beer tourism stimulates local economies and promotes cultural exchange as visitors explore different beer traditions and brewing techniques from around the world. It contributes to the growth of local breweries and fosters a sense of community among beer enthusiasts. Moreover, the rise of beer tourism has influenced destination marketing strategies, with cities and regions leveraging their beer culture to attract visitors. Breweries are often incorporated into tourism itineraries, creating beer-centric experiences that enhance the overall tourism offerings of a region. As beer tourism grows, it drives the demand for unique beer styles, fosters innovation in the brewing industry, and creates a market for beer-related merchandise and souvenirs. The rise of beer tourism has become an important factor in shaping the beer market, influencing consumer preferences, and promoting beer culture globally.

Increasing emphasis on sustainable farming and environmentally friendly practices in agriculture

The increasing emphasis on sustainable farming and environmentally friendly agriculture practices is creating a positive outlook for the market. The beer industry relies on agricultural inputs, such as barley, hops, and other ingredients, making sustainable farming practices essential for its long-term growth and sustainability. As consumer awareness and concerns about environmental impact and sustainability have risen, breweries have become more conscious of sourcing ingredients produced through eco-friendly practices. Sustainable farming practices aim to minimize chemical inputs, reduce water consumption, preserve biodiversity, and promote soil health. These practices align with the principles of organic farming, regenerative agriculture, and other sustainable farming systems. Sustainable farming practices in hop cultivation and barley production are particularly important for the beer market. Hop farmers employing eco-friendly methods reduce chemical pesticide usage, conserve water resources, and support biodiversity conservation. Similarly, barley growers adopting sustainable practices contribute to soil health, reduce chemical fertilizer applications, and minimize the environmental impact of their farming operations. Breweries, in turn, are increasingly sourcing hops and barley from sustainable farms, seeking certifications like organic or sustainable agriculture labels. This commitment to sustainable sourcing resonates with consumers who prioritize environmental responsibility and ethical consumption. The increasing emphasis on sustainable farming and environmentally friendly practices in agriculture drives changes in the beer market, promoting the adoption of eco-friendly practices throughout the supply chain. It encourages collaboration between breweries and farmers, fosters innovation in sustainable agriculture, and supports the development of a more environmentally conscious beer industry.

Rapid technological advancements

Rapid technological advancements have significantly impacted various industries, including the beer market. These advancements drive innovation, improve production processes, enhance product quality, and shape consumer experiences. In the beer industry, technological advancements have transformed brewing practices. Automated systems and advanced machinery enable precise control over brewing parameters, resulting in consistent product quality and improved efficiency. Brewing software and data analytics allow brewers to monitor and optimize brewing processes, leading to better recipe development and cost management. Furthermore, technological advancements have influenced packaging and distribution. Advanced bottling and canning lines, labeling systems, and automated warehouse management systems streamline operations and increase productivity. Additionally, smart logistics and supply chain management technologies facilitate real-time tracking, efficient inventory management, and just-in-time deliveries. Regarding product innovation, technological advancements have given rise to new brewing techniques such as nano-brewing, automated homebrewing systems, and experimentation with novel ingredients. This fosters the development of unique beer styles, flavors, and experiences. Technological advancements also play a significant role in marketing and consumer engagement. Social media platforms, mobile applications, and online marketplaces allow breweries to connect with consumers, promote their products, and gather feedback. Virtual reality, augmented reality, and interactive experiences further enhance consumer engagement and brand loyalty.

Hops Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the hops market report, along with forecasts at the regional and country levels from 2023-2028. 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 dominates the market

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

Chinook hops are known for their high alpha acid content, providing intense bitterness and a resinous aroma. They are commonly used in American-style IPAs and impart piney, citrus, and herbal characteristics to beers. The growing popularity of hop-forward beer styles, such as IPAs, catalyzes the market demand.

On the other hand, cascade hops are widely preferred for their versatile flavor profile, featuring floral, citrusy, and grapefruit-like notes. They are used in various beer styles, including pale ales and American-style lagers. The market is further driven by their adaptability and ability to add aroma and bitterness to beers.

Moreover, Amarillo hops are sought after for their unique tropical, citrusy, and floral aroma. They are often used in hop-forward beers and contribute to the complexity and aroma of pale ales, IPAs, and other craft beer styles. The increasing consumer preference for vibrant and fruity hop characteristics fuels the market in this segment.

Additionally, centennial hops are known for their balanced bitterness, floral, citrus, and spicy aroma. They are used in various beer styles, including pale ales, IPAs, and porters. Their versatility and ability to impart a well-rounded hop character contribute to the growth of the segment.

Breakup by Application:

• Alcoholic Beverage
• Medicinal Drugs
• Cosmetics
• Others
   

Alcoholic Beverage dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes alcoholic beverage, medicinal drugs, cosmetics, and others. According to the report, alcoholic beverage represented the largest segment.

In the alcoholic beverage industry, hops play a crucial role in beer production. They contribute to beer flavor, aroma, and stability, making them a key ingredient. The demand for craft beers, specialty brews, and unique flavor profiles fuels the market in the alcoholic beverage segment.

On the contrary, they also find application in the production of medicinal drugs. They contain bioactive compounds such as alpha acids, essential oils, and polyphenols that have potential health benefits. They are used in herbal remedies, dietary supplements, and natural medicine formulations. The growing interest in natural and plant-based alternatives drives the product demand in the medicinal drugs segment. Furthermore, they possess antioxidant and anti-inflammatory properties, making them suitable for skincare and haircare products. They are incorporated into formulations such as lotions, creams, serums, and shampoos, providing potential benefits for skin health and hair care.

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 exhibits a clear dominance, accounting for the largest hops market share

The 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.

North America has a robust craft beer culture and a growing brewing industry. The popularity of hop-forward beer styles such as IPAs and the growth of craft breweries drive the market growth. The consumer preference for diverse flavors, experimental brewing, and unique flavor profiles fuels the market in North America. Additionally, the presence of leading hop-producing states contributes to the region's market dominance.

On the other hand, Europe has a rich brewing heritage and a strong beer culture. The popularity of traditional beer styles such as lagers, pilsners, and wheat beers creates a positive market outlook. The European craft beer movement is also gaining momentum, adding to the demand for a wider variety of hop profiles. The presence of renowned hop-growing regions propels the market expansion.

Competitive Landscape:

Top companies are fostering the market through their strategic approaches, innovation, and commitment to quality. These companies invest in research and development to breed new hop varieties with unique flavor profiles and improved agronomic traits. They work closely with farmers to ensure sustainable farming practices, enhance crop yields, and maintain consistent quality standards. Additionally, they focus on building strong relationships with brewers and breweries. They provide technical support, market insights, and educational resources to help brewers optimize hops and create exceptional beer products. These companies also actively engage with consumers, promoting the attributes and benefits of their hop varieties. They participate in industry events, sponsor beer competitions, and collaborate with brewers to showcase the diverse flavors and aromas that their hops can impart to beer. Furthermore, these key companies prioritize quality control and traceability throughout the supply chain. They implement stringent testing procedures, certifications, and quality assurance programs to ensure that their product variants meet the highest industry standards.

The report has provided a comprehensive analysis of the competitive landscape in the hops market. Detailed profiles of all major companies have also been provided.

• 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.

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 global hops market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the global hops market?
• What is the competitive structure of the global hops market?
• Who are the key players/companies in the global hops market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the hops market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the 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 global hops industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.