Hops Market Size Soars as Craft Brewers Multiply
The global hops market is experiencing an unprecedented surge in demand, driven by the ever-expanding craft beer and homebrewing culture. According to data from The Brewers Association, over 550 new breweries opened their doors in the United States in 2015 alone. With craft brewers continuing to grow at a double-digit rate, the demand for hops, a crucial ingredient in brewing, is poised for remarkable growth in the coming years.
Hops play a vital role in brewing by balancing the sweetness of malted grains, imparting flavor, and infusing aroma into beer. These essential oils within hops are responsible for delivering the desired bouquet of scents. Additionally, hops contain beta acids that naturally preserve beer by inhibiting bacterial spoilage. These characteristics make hops indispensable in brewing and are expected to fuel the global hops market in the foreseeable future.
However, the production of hops is no simple endeavor. It requires substantial investments and a time commitment, with hops typically taking one to two years to reach maturity. This extended harvesting cycle makes hops a precious and somewhat costly ingredient that must be safeguarded against natural calamities and potential disasters.
Chinook Segment Capitalizes on Hops Market as it Proves to Be a Valuable Ingredient in Beer
The global hops market is segmented based on raw material, nature, application, and region. Among the raw materials, chinook hops are gaining prominence due to their higher acid concentration, ranging from 12% to 14%. This makes chinook hops ideal for alcoholic beverage production, particularly beer, giving this segment a competitive edge.
In terms of nature, the market distinguishes between organic and conventional hops. The demand for organic beer is on the rise, driving the organic hops segment, as indicated by a 3.4% increase in sales of organic beer in the U.S. between 2017 and 2018, according to the Organic Trade Association.
Regarding application, hops are a cherished ingredient in alcoholic beverages, particularly in brewing, where they serve as both flavoring and stability agents, propelling the growth of this segment. Furthermore, hops’ inherent medicinal properties, such as high antioxidant content and excellent anti-inflammatory characteristics, are expanding their role in the pharmaceutical industry, used in the production of drugs for various applications.
Organized Supply Chain Management Supports Market Growth in the U.S.
A significant portion of hops is cultivated in the U.S., with Europe, collectively accounting for nearly 90% of global production volume. The key U.S. producing regions include Washington, Oregon, and Idaho. The U.S. craft brewing industry continues to flourish, with more than 8,000 craft breweries operating in 2019, according to the Brewer Association. Consumers are increasingly gravitating towards fresh and gluten-free alcoholic beverages, further propelling the U.S. hops market.
The supply chain for hops in the U.S. is highly organized, with over 90% of craft breweries having contractual relationships with hop farmers. This strategic collaboration ensures a reliable supply of preferred hop varieties, enabling growers to plan and maintain a steady production cycle, fostering sustainable supply chain management.
Hops Demand Blooming in Non-alcoholic Beverage Alternatives
In addition to the beer industry, hops are finding their way into non-alcoholic beverage alternatives, adding unique flavors and fragrances. Manufacturers are incorporating hops into sparkling water, tea, and soda to create refreshing non-alcoholic drinks. For example, Hoplark introduced craft-brewed sparkling waters infused with hops in 2021, offering flavors such as citra hops, mosaic hops, and sabro hops.
Global Industry Analysis (2018 – 2021) – Growth Trends and Market Forecast (2022 – 2029) https://www.fairfieldmarketresearch.com/report/hops-market
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