Hops

Hops

Global Hops Market to Reach US$1.7 Billion by 2030

The global market for Hops estimated at US$1.3 Billion in the year 2023, is expected to reach US$1.7 Billion by 2030, growing at a CAGR of 3.4% over the analysis period 2023-2030. Cascade Hops, one of the segments analyzed in the report, is expected to record a 4.1% CAGR and reach US$703.4 Million by the end of the analysis period. Growth in the Chinook Hops segment is estimated at 3.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$353.0 Million While China is Forecast to Grow at 3.3% CAGR

The Hops market in the U.S. is estimated at US$353.0 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$273.5 Million by the year 2030 trailing a CAGR of 3.3% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.3% and 2.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Hops Market - Key Trends & Drivers Summarized

Why Are Hops Gaining Prominence In The Global Beverage Industry?

Hops, the flowers of the hop plant, have become an essential component in the global beverage industry, especially within the booming craft beer market. Their prominence is largely due to their role in imparting bitterness, aroma, and flavor to beer, making them indispensable for brewers. Over the past decade, the craft beer revolution has significantly increased the demand for hops, as smaller breweries experiment with various hop varieties to create unique and distinctive brews. This trend has shifted consumer preferences toward more complex beer profiles, with a focus on local and specialized ingredients, including hops. The rising interest in hop-forward beers, such as India Pale Ales (IPAs), has intensified the need for premium hop varieties, leading to the expansion of hop cultivation in key regions like the U.S., Germany, and New Zealand. In addition to their flavoring properties, hops also possess natural preservative qualities, making them even more valuable to the brewing process.

Beyond brewing, hops are gaining attention for their potential health benefits, which is opening new avenues for their use in beverages and supplements. The antioxidant and anti-inflammatory properties of hops are being studied for applications in non-alcoholic beverages, teas, and herbal supplements. As consumers increasingly seek functional beverages that promote health and wellness, hops are being explored for their ability to reduce anxiety, improve sleep quality, and act as a natural sedative. This has led to the development of hop-infused drinks in the wellness sector, including non-alcoholic beers and hop-based sparkling waters, further broadening the market. The versatility of hops, combined with growing interest in craft and health-conscious beverages, is a key factor driving their rising prominence in the global market.

How Are Innovations In Hop Cultivation And Processing Impacting The Market?

Innovations in hop cultivation and processing are reshaping the global hops market, making it more dynamic and responsive to the needs of brewers and consumers alike. One of the most significant developments is the introduction of new hop varieties, bred specifically for their unique flavor profiles and higher alpha acid content, which is crucial for bitterness in beer. These new hop strains, such as Citra, Mosaic, and Galaxy, have gained widespread popularity for their ability to deliver intense aromas of citrus, pine, tropical fruit, and even floral notes, which are highly sought after in craft beers. Moreover, advancements in hop breeding techniques are enabling the development of disease-resistant varieties, reducing the need for chemical inputs and making hop farming more sustainable. This is particularly important as climate change poses challenges to traditional hop-growing regions, leading to unpredictable growing seasons and increased risk of crop failures.

In addition to breeding innovations, processing techniques for hops are also evolving to meet the needs of modern breweries. Cryo-hops, for instance, are a relatively new product that concentrates the lupulin glands of the hop flower, providing brewers with a more potent hop extract that enhances flavor and aroma while reducing the plant matter that can lead to waste and off-flavors in beer. Similarly, hop pellets and hop oils are becoming increasingly popular as they offer longer shelf life, easier storage, and more consistent dosing, making them ideal for breweries looking to scale up production without sacrificing quality. These processing innovations are not only enhancing the efficiency of hop usage but also giving brewers greater control over the flavor profile of their beers. As the demand for more innovative and diverse beer styles grows, so too does the need for advanced hop products, making innovation a key driver in the hops market.

How Does Consumer Demand Drive The Growth Of The Hops Market?

Consumer demand for craft beer and other hop-based products is one of the primary drivers behind the growth of the global hops market. The craft beer movement, which emphasizes quality, creativity, and local sourcing, has reshaped the beer industry, leading to an increased focus on ingredients like hops that contribute to the distinctive taste and character of these beverages. Craft breweries often highlight the specific hop varieties used in their beers, attracting consumers who are keen to explore new and unique flavors. This demand for hop-centric beers, such as IPAs and hop-forward lagers, has led to a surge in hop consumption, particularly for varieties that offer bold, fruity, and aromatic notes. As more consumers become educated about beer styles and ingredients, they are actively seeking out brews with novel hop profiles, driving further experimentation among brewers and increasing the overall demand for hops.

Moreover, changing consumer preferences for healthier, more natural products are influencing the growth of the hops market. As health-conscious consumers look for beverages that offer functional benefits, non-alcoholic beers and hop-infused drinks have gained popularity. The calming properties of hops, particularly in relation to stress relief and sleep improvement, are making them an attractive ingredient in wellness beverages, herbal teas, and supplements. This trend is expanding the consumer base for hops beyond traditional beer drinkers to include those interested in functional foods and beverages. Additionally, the global rise of sustainable and organic farming practices is affecting consumer preferences, with more individuals seeking out beers and beverages made from sustainably sourced, organic hops. This shift toward sustainability is influencing not only the way hops are grown but also how they are marketed, with breweries and beverage companies touting their commitment to eco-friendly practices as a selling point to environmentally conscious consumers.

What Is Driving The Growth Of The Global Hops Market?

The growth in the global hops market is driven by several factors, including the craft beer revolution, technological advancements in hop cultivation and processing, and the expanding application of hops beyond brewing. The craft beer movement, which continues to gain momentum worldwide, has significantly boosted the demand for premium hops with unique flavor profiles. The rise of hop-forward beer styles, such as IPAs, has created a constant need for a wide variety of hops that offer distinctive aromas and bitterness, particularly among small and independent breweries that rely on innovation to stand out in a crowded marketplace. This demand for high-quality, specialty hops has led to increased investments in hop production, particularly in traditional hop-growing regions like the Pacific Northwest in the U.S. and emerging markets such as Australia and New Zealand, where innovative hop varieties are being developed.

Technological advancements in both hop farming and processing are also driving market growth. Innovations in hop breeding have resulted in new varieties that are more resistant to diseases and pests, reducing the environmental impact of hop farming and improving yield stability. At the same time, advanced processing techniques such as cryo-hops and hop oils are making it easier for brewers to extract the desired flavors and aromas from hops while minimizing waste. Additionally, the expanding application of hops in non-alcoholic beverages, wellness products, and even cosmetics is opening up new revenue streams for hop producers. As consumers continue to seek out products that are both flavorful and functional, hops are finding their way into a broader range of industries. These factors, combined with the growing trend toward sustainability in agriculture and consumer products, are expected to fuel the growth of the global hops market for years to come.

Select Competitors (Total 49 Featured) -

• BarthHaas GmbH & Co. KG
• Carlsberg Breweries A/S
• Clayton Hops
• Coleman Agriculture
• Crosby Hop Farm, LLC
• Heineken UK Ltd.
• Hop Breeding Company, L.L.C.
• Hops Direct, LLC
• Hopsteiner
• John I. Haas, Inc.

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