Hops Market Size

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.

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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.