According to the report by Expert Market Research (EMR), the global hops market is projected to grow at a CAGR of 4.60% between 2024 and 2032. Aided by the increasing demand for craft beer and the diversified applications of hops across multiple sectors, the market is expected to grow significantly by 2032.
Hops, the flowers of the hop plant Humulus lupulus, are primarily used in brewing beer, imparting bitterness, flavor, and aroma. Apart from brewing, hops find applications in pharmaceuticals, cosmetics, and food industries due to their antimicrobial and preservative properties. The rise of craft breweries and the growing consumer inclination towards unique and flavorful beers have significantly contributed to the hops market growth.
The global shift towards healthier and natural ingredients in food and beverages has bolstered the demand for hops, known for their natural preservative qualities and health benefits such as antioxidant properties. Additionally, the increasing popularity of non-alcoholic beers and beverages that utilize hops for flavoring further fuels market expansion.
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The expansion of the craft beer segment is a substantial driver for the hops market. Craft breweries, known for their innovative and diverse beer offerings, often use a higher volume of hops compared to traditional beer production. This trend has led to increased hop cultivation and the development of new hop varieties with unique flavor profiles to meet the growing demand.
Furthermore, the burgeoning trend of homebrewing has opened new avenues for the hops market. As more consumers engage in homebrewing, the demand for high-quality hops varieties has surged, supported by the availability of homebrewing kits and online platforms that supply brewing ingredients.
As per the hops market analysis, the growing awareness about the health benefits of hops has led to their incorporation in various health supplements and functional foods. Hops extracts are used in natural sleep aids, anti-inflammatory products, and skincare items, further expanding their market reach.
Going forward, sustainability practices in hop cultivation and processing are expected to gain prominence. With consumers becoming increasingly environmentally conscious, hop producers are adopting organic farming methods and sustainable processing techniques to cater to this segment. Additionally, the use of advanced breeding techniques to develop disease-resistant and high-yielding hop varieties will support market growth.
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Market Segmentation
The market can be divided based on type, application, and region.
Market Breakup by Type
- Bittering Hops
• Aroma Hops
• Dual-purpose Hops
Market Breakup by Application
- Brewing
• Pharmaceuticals
• Cosmetics
• Food and Beverages
• Others
Market Breakup by Region
- North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global hops market. Some of the major players explored in the report by Expert Market Research are as follows:
- Yakima Chief Hops
• John I. Haas, Inc.
• Sapporo Breweries Limited
• Kalsec Inc.
• Charles Faram & Co Ltd
• Hopsteiner
• BarthHaas GmbH & Co. KG
• Indie Hops, LLC
• New Zealand Hops Limited
• Others
Market Drivers and Trends
Increasing Demand for Craft Beer:
The craft beer movement has been a pivotal force in driving the demand for hops. Craft breweries often use a higher quantity and a variety of hops to create unique and complex flavor profiles. The rise in craft breweries across the globe, particularly in North America and Europe, has significantly boosted hop consumption. In addition, the trend of hyper-local and regional craft beers has led to an increased demand for locally sourced hops, further diversifying the market.
Health Benefits of Hops:
Hops are increasingly recognized for their health benefits, including anti-inflammatory and antioxidant properties. Hops extracts are used in dietary supplements, natural sleep aids, and skincare products. The growing consumer preference for natural and organic products has amplified the use of hops in various health and wellness products, thereby driving market growth.
Expansion of Non-Alcoholic Beverages:
The non-alcoholic beverage market, including non-alcoholic beers, is expanding rapidly. Hops play a crucial role in providing flavor and aroma to these beverages, making them appealing to consumers who prefer non-alcoholic options. This trend is expected to continue, contributing to the steady growth of the hops market.
Technological Advancements in Hop Cultivation:
Advancements in agricultural practices and breeding techniques have led to the development of high-yielding and disease-resistant hop varieties. These innovations not only increase hop production but also enhance the quality of hops, meeting the stringent demands of the brewing industry. Additionally, sustainable farming practices are being adopted to cater to the environmentally conscious consumer base.
Homebrewing Popularity:
The homebrewing trend has gained momentum, with more individuals taking up brewing as a hobby. This has increased the demand for homebrewing kits and high-quality hops. Online platforms and specialty stores that provide brewing supplies have made it easier for homebrewers to access a wide range of hop varieties, further fueling market growth.
Challenges and Opportunities
Climate Change and Hop Cultivation:
Climate change poses a significant challenge to hop cultivation, affecting yield and quality. Unpredictable weather patterns, extreme temperatures, and water scarcity can impact hop production. However, this challenge also presents an opportunity for innovation in the development of climate-resilient hop varieties and sustainable farming practices.
Supply Chain Disruptions:
The hops market is susceptible to supply chain disruptions caused by factors such as geopolitical tensions, trade restrictions, and transportation challenges. Ensuring a stable supply chain is crucial for the consistent availability of hops. Investing in robust logistics and diversifying sourcing regions can mitigate these risks.
Sustainable Practices:
With growing environmental concerns, the adoption of sustainable farming practices is gaining importance. Organic hop farming, water-efficient irrigation methods, and eco-friendly pest control measures are being implemented to reduce the environmental footprint of hop cultivation. Brands that prioritize sustainability are likely to gain a competitive edge in the market.
Innovation in Product Development:
The development of new hop varieties with unique flavor profiles presents an opportunity for product innovation. Breweries are constantly seeking novel hops to create distinctive beers that stand out in a crowded market. Collaborations between hop growers and brewers can lead to the discovery of innovative hop varieties and brewing techniques.
The global hops market is poised for significant growth, driven by the increasing demand for craft beer, the health benefits of hops, and their diverse applications across various industries. As the market evolves, sustainability practices, technological advancements, and product innovation will play crucial roles in shaping its future. Key players in the market are focused on research and development, quality improvement, and collaborations to stay competitive and meet the growing demands of consumers worldwide.
