Hops Market Size - By Product Type (Cascade, Chinook, Amarillo, Centennial), Application (Alcoholic Beverages, Pharmaceuticals, Cosmetics), Distribution Channel (Direct Sales, Distributors/Wholesalers, Online Retail), Regional Outlook & Forecast, 2023 - 2

Hops Market Size - By Product Type (Cascade, Chinook, Amarillo, Centennial), Application (Alcoholic Beverages, Pharmaceuticals, Cosmetics), Distribution Channel (Direct Sales, Distributors/Wholesalers, Online Retail), Regional Outlook & Forecast, 2023 - 2032

Hops market size is projected to expand at 6.3% CAGR from 2023 to 2032, on account of the surging popularity of craft beer and the rising global demand for diverse and innovative beer flavors. The growing popularity of home brewing coupled with increasing consumer awareness of craft and specialty beers will increase the product consumption.

Hops offer several health benefits, such as anti-inflammatory properties and potential stress-relief effects. The rising shift towards natural and organic ingredients in brewing along with the increasing adoption of hops in non-alcoholic beverages and the pharmaceutical industry will enhance the market application outlook. For instance, in February 2023, New Zealand Hops unveiled Superdelic, its new hop variety designed to provide craft brewers with a unique and distinct option for their brewing endeavors.

The hops market is segregated into product type, application, distribution channel, and region.

Based on product type, the industry value from the Amarillo segment is projected to increase at 5% CAGR through 2032, due to increasing demand in craft brewing. Amarillo hops are favored for their distinct citrus and floral aroma for contributing unique flavors to craft beers. Moreover, the rising popularity of hop-forward beer styles and the rising quest for diverse and innovative flavor profiles will fuel the product adoption.

The pharmaceuticals application segment is estimated to withhold sizeable share of the hops market and register 6.2% CAGR from 2023 to 2032. Hops contain compounds like flavonoids as well as xanthohumol and exhibit anti-inflammatory and antioxidant properties. The rising emphasis of the pharmaceutical industry on utilizing hops for various health-related formulations will contribute to the segment growth.

Regionally, the Europe hops market size is slated to expand at 6.3% growth rate through 2032, owing to the thriving craft beer culture, the increasing consumer preference for diverse beer flavors, and the robust expansion of the brewing industry. European breweries, particularly in craft and artisanal sectors are seeking unique hop varieties to create distinct beer profiles, further fueling the demand for hops in the region.