Hops Market Size
Global Hops Market reached USD 7.8 billion in 2022 and is expected to reach USD 13.3 billion by 2031, growing with a CAGR of 6.8% during the forecast period 2024-2031 .
Hops are the flowers of the flowering plant Humulus lupulus, which belongs to the Cannabaceae family.
They are primarily used in beer as a bittering, flavoring and stability agent. They can also be used to add floral, fruity or citrus flavors and aromas. Female and male hops plants exist separately and only female plants are used for commercial production.
Hops are primarily grown in the United States and Canada. Hops cultivation for commercial production necessitates a specific environment. Demand for fresh hops and starter plants is enticing both active and aspiring growers to enter the beer industry. Craft beer has created a new demand for Canadian hops. According to The Brewers Association, Inc. The number of breweries in the United States increased by 6.7% in 2022 to 9,709, up from 9092 in 2020.
Market Summary
| Metrics | Details |
| CAGR | 6.8% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Variety, Product, Distribution Channel Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Europe |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Wide Application Area
Hops are known for their diverse range of applications. Hops have been used to flavor and preserve beer for centuries. The bitter, aromatic flavor of the beer is primarily due to the hops' content. Hops extracts are also used in the food industry for flavoring. Sedation has been reported by hops pickers during harvest and hop flowers have been added to pillows to relieve nervous conditions.
In addition, hops are also commonly used orally for anxiety, sleep disorders such as inability to sleep (insomnia) or disturbed sleep due to rotating or nighttime work hours (shift work disorder), restlessness, tension, excitability, attention deficit-hyperactivity disorder (ADHD), nervousness, irritability and menopausal symptoms, among other things. According to preliminary research, applying a deodorant containing hops and a specific zinc salt to the underarm can reduce body odor. According to some studies, applying 1-2 grams of a vaginal gel containing hops, hyaluronic acid, liposomes and vitamin E can help postmenopausal women reduce vaginal dryness, burning, itching and rash.
Craft Beer is Driving Demand for Bittering Hops
The demand for bittering hops has shifted significantly away from aromatic varietals as the number of craft breweries worldwide grows, with fresh or dried hops dominating the market. According to the Brewers Association, the number of operating craft breweries reached an all-time high of 9,552 in 2022, including 2,035 microbreweries, 3,418 brewpubs, 3,838 taproom breweries and 261 regional craft breweries. The total number of operating breweries in the United States was 9,709, up from 9,384 in 2021.
In addition, the craft beer movement has recently influenced the beer market, bringing taste and flavor into the spotlight for brewers worldwide. This global trend has also profoundly altered the hops market. According to the Brewers Association, retail dollar sales of craft beer will increase by 5% in 2022, to $28.4 billion, accounting for 24.6% of the $115 billion US beer market (previously $100 billion).
Regulatory and Trade Constraints
Some countries have import restrictions on hops, which can limit the availability of hops to brewers in those countries. For example, In 2020, former US President Donald Trump imposed punitive tariffs not only on Chinese imports but also on certain imports from the EU. The EU responded with counter-tariffs worth billions of dollars.
In addition, exchange rate fluctuations can make hops more or less expensive, depending on the currency in which they are traded. According to the International Trade Centre, the United Kingdom's imports of hops extracts from the United States fell by 33.1% to 11.41 million USD in 2022.
Market Segment Analysis
The global hops market is segmented based on type, variety, product, distribution channel, application and region.
The Use of Hops in Alcoholic Beverages is Expected to Increase Rapidly
Hops are a naturally occurring ingredient. They are small, aromatic flowers that grow in the shape of a pine cone on large climbing plants. Hops' flavor comes from tiny glands in the flowers that are filled with a sticky substance called lupulin. Hops are a multi-purpose ingredient in beer. Hoppier beers have more flavor, are more valuable and last longer than less hoppy varieties. Hops' primary function in beer is to impart flavor. Hops are the most flavorful ingredient in most modern beers, adding flavor, aroma and bitterness to balance each brew's sweetness.
Hops are becoming more scarce as consumer demand grows, increasing demand for hoppier beers. Beer tasters, craft beer drinkers and other beer connoisseurs adore beers with a strong hoppy flavor, particularly those that incorporate unique, rare varieties of hops. According to Kirin Holdings, global beer consumption will be approximately 185.60 million kiloliters in 2021, representing a 4.0% increase year on year. This is roughly the equivalent of filling the Tokyo Dome 150 times.
Market Geographical Share
North America’s Growing Art And Craft Industry
According to USAHOPS, the United States supplied 44% of the world's hop supply in 2022. The Pacific Northwest states of Washington, Idaho and Oregon produced 98% of all hops in the United States. According to the International Trade Centre, the United States exported approximately 180.78 million hops extracts in 2022.
In addition, hops are a critical ingredient in brewing beer and as the craft beer movement gained momentum worldwide, the demand for unique and diverse hop varieties increased. The U.S. craft beer industry played a significant role in driving this demand and American hops became highly sought after by brewers globally. Other countries in North America, such as Canada and Mexico, are also involved in hops cultivation, but their production levels were not as extensive as that of the United States.
Market Key Players
The major global players include Roy Farms Inc., Barth-Haas Group, Hops Direct, LLC., HOP HEAD FARMS, Clayton Hops NZ, Charles Faram, NZ Hops Ltd, Crosby Hop Farm, LLC, Yakima Valley Hops and Hopsteiner
COVID-19 Impact Analysis
Hop industry risks collapse as pub shutdowns hit demand. The hop-growing industry is at risk of collapse after the months-long closure of pubs during the lockdown left brewers unwilling to buy next year’s crop because of Covid-19. According to the Trade Groups, only 40 percent of the 2021 crop is under contract to brewers, who have been left with a surplus this year after a steep drop in consumption because of the pandemic.
In addition to that, the craft beverage industry across the U.S. has seen unprecedented times due to the covid-19 pandemic. According to a national poll, more than 22% of craft brewers will not make it through the end of the pandemic leading to the permanent shutdown of their plants. Most breweries polled about their production scheduling response to the coronavirus outbreak in the United States had not stopped brewery operations as of March 25, 2020. Over 65 percent of breweries had slowed production and over 30 percent had stopped production entirely.
Russia- Ukraine War Impact
Russian foamy drink producers are concerned about trade sanctions imposed by the EU and the United States. Given the volume of hops purchased annually by domestic beer producers in the United States (approximately 7.5 thousand tonnes), Germany and the Czech Republic for the production of alcoholic beverages, experts predict the closure of many large breweries in the country in the summer of 2022.
According to Kommersant, citing a letter from the Union of Russian Brewers (URB) representative Daniil Briman to the head of the Ministry of Agriculture, domestic farmers require an urgent program of state support to establish hop production. According to the media outlet, only 2% of the hops used in the production of beer are produced in Russia; the rest is imported. The war has disrupted the production and export of hops from these countries, resulting in global shortages and higher prices.
Key Developments
- On October 4, 2021, A $300,000 investment from New York State paved the way for a new hops breeding program at Cornell AgriTech, which will grow and develop signature New York hops varieties - selected for high yield, preferred flavors and disease resistance - to support the state's $3.4 billion craft brewing industry.
- On July 12, 2021, Yakima Chief Hops (YCH), a grower-owned hop supplier, introduced the world's craft beer industry to fresh hop ales with the launch of their cutting-edge Frozen Fresh Hops program.
- On September 30, 2021, Goose Island, owned by Anheuser-Busch InBev, announced the release of Hail Hydro, a session IPA in the United Kingdom. The beer, made with hydroponically grown hops, is only available in limited quantities on the Goose Island U.K. website.
Why Purchase the Report?
- To visualize the global hops market segmentation based on type, variety, product, distribution channel, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of hops market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global hops market report would provide approximately 77 tables, 83 figures and 189 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
