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

Hops Market size was valued at USD 7.75 billion in 2022 and is estimated to expand at over 6.3% CAGR from 2023 to 2032. The rising popularity of distinct beer styles, particularly those that use hops for taste and fragrance, are key drivers of the market. Craft brewers are looking for unique hop types to make distinctive and tasty beers, which has increased demand for different hop options and fuelled expansion in the market.
 

Research and development activities are critical in fuelling revenue growth of the market because they generate innovation in hop breeding, growing, and processing processes. R&D activities draw the interest of both craft brewers and large-scale breweries, with an emphasis on producing novel hop varieties with distinct taste profiles and better disease resistance.
 

Furthermore, the exploration of sustainable and efficient cultivation practices, as well as the discovery of novel hop applications, such as in the pharmaceutical and cosmetics industries, broaden market opportunities, while constantly improving hop quality and yield ensures a consistent supply for the thriving craft beer sector. This emphasis on research and innovation drives the market's growth. and sustainability, adapting to changing consumer preferences and industrial demands.
 

The expansion of the hops market's revenue is significantly constrained by competition from substitutes. Although hops are a key component in brewing, alternatives including malt replacements, herbs, and spices are being investigated more and more in the craft brewing sector. These substitutes provide brewers the chance to experiment with unique tastes while saving money. The market for conventional hop-intensive beers is also being challenged by a growing interest in beer alternatives such hard seltzers and non-alcoholic beverages as customer preferences change.
 

COVID-19 Impact

The COVID-19 pandemic initially posed substantial challenges to the hops market, causing supply chains to be disrupted, harvesting to be delayed, and uncertainty in the brewery industry. The closure of bars and restaurants, combined with decreased consumer demand, resulted in a decrease in beer production and, as a result, a decrease in hops demand. Furthermore, manpower shortages and restrictions on agricultural activity during lockdowns made hop cultivation difficult. The economic consequences of the pandemic also struck craft breweries, which represent a substantial client base for hop growers.
 

Hops Market Trends

The hops industry is experiencing numerous notable trends and analyses, mostly driven by the craft beer expand, increasing customer preference for unique and diverse flavors, and rising demand for organic and natural ingredients in brewing. Craft breweries are looking for new hop categories to differentiate their products, which has resulted in an increase in aroma and experimental hop varietals. Furthermore, worldwide health and wellness trends have increased interest in low-alcohol and non-alcoholic beer, driving up demand for hops in these products.
 

Hops Market Analysis

Based on product type, the cascade segment held over USD 2.71 billion revenue in 2022, due to their distinctive citrusy and floral aroma, which makes them popular among craft brewers, particularly in the manufacture of American Pale Ales and other hop-forward beer varieties. Cascade's versatility in aroma and bittering applications, combined with its distinct grapefruit and floral overtones, have made it a sought-after hop variety, leading to its ongoing success in the craft beer sector. Its unique flavor profile provides depth and character to brews, attracting to consumers seeking unique and robust flavor sensations, fuelling market demand for Cascade hops.
 

Based on application, the alcoholic beverage segment accounted for 56.6% of the hops market share in 2022. Hops are essential in the creation of alcoholic beverages, particularly beer. They contribute flavor, bitterness, and aroma to the beer, balancing the sweetness of the malt and offering distinct flavor and aroma qualities. Hops are used in a range of alcoholic beverages, including ales, craft beers, stouts, lagers, and porter's, in addition to traditional beer. Furthermore, they play an important role in the production of flavored and speciality beers, like as India Pale Ales (IPAs), by contributing distinct and diverse flavor profiles.
 

Based on distribution channel, the hops market from direct sales segment is anticipated to grow at 7% CAGR through 2032. Direct sales of hops, in which hop producers sell their products directly to breweries, have gained traction in recent years, driven by a desire for fresher and more personalized hop types. Furthermore, direct sales frequently eliminate intermediaries, lowering expenses for both farmers and brewers. The direct sales strategy not only strengthens the relationship between hop growers and breweries, but it also corresponds with the craft brewing ethos of supporting local and independent producers, boosting the market's growth potential.
 

North America hops market size dominated around USD 3.36 billion in 2022. Hop demand in North America continues to rise, fueled mostly by the thriving craft beer industry. Craft breweries, noted for their ingenuity and different beer offerings, are increasingly looking for a diverse range of hop strains to create distinct flavor profiles and beers. Furthermore, changing consumer tastes and a growing thirst for artisanal and specialty beers are driving up demand for hops in the region.
 

Hops Market Share

Major companies operating in the hops industry include:

• Yakima Chief Hops LLC
• Hops Direct, LLC
• Steiner Hops Ltd
• Ausmauco Biotech Co., Limited
• Barth-Haas Group
• The Hop Planter Association Tettnang E.V.
• DVKSP Impex Pvt
• Sapporo Holdings Ltd.
• New Zealand Hops
• Hop Head Farms LLC
• Styrian Hops
• Brewers Select Limited
• Carlsberg Breweries A/S
• John I. Haas
• Heineken UK Limited

Yakima Chief Hops LLC supplies hops to brewers in more than 50 different nations. Whole hops, pellets, extracts, and oils are just a few of the numerous hop items that the company offers. To meet the demands of its clients, Yakima Chief Hops, a leader in hop innovation, regularly creates new hop products and types.
 

Hops Industry News

• In August 2022, NZ Hops launched the Bract Brewing Programme to learn about the brewing performance of their newest varieties as they progress from testing to commercialization. The program takes trial hops grown in New Zealand's Tasman region and sends them to around 60 brewers worldwide for use in a single hopped beer.
   

The hops market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Kilo Tons from 2018 to 2032, for the following segments:

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Market, By Product Type

• Cascade
• Chinook
• Amarillo
• Centennial
• Others (e.g., Citra, Galaxy, Simcoe)

Market, By Application

• Alcoholic Beverages
• Pharmaceuticals
• Cosmetics
• Others

Market, By Distribution Channel

• Direct Sales
• Distributors/Wholesalers
• Online Retail
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • UAE
  • South Africa
  • Saudi Arabia