Hops Market Expected to Experience Robust Growth with a Projected CAGR of 4.20% during the Forecast Period
Market.Us
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Market.Us
According to Market.us, With the growing use of medicinal drugs and the high demand for beer, the hops market is poised for significant expansion, driven by the need for innovative solutions to meet evolving consumer needs.
New York, March 30, 2023 (GLOBE NEWSWIRE) -- The Global hops market size accounted for USD 33.1 billion in 2022, and growth is estimated to accelerate at a CAGR of 4.20%, registering an incremental revenue of USD 49.9 billion by 2032. Hops are the green cone-shaped flowers of the Humulus lupulus plants. Hops are used as a bittering, additive, and solidity agent in beer. Hops are mainly produced in moist and temperate climates. The cultivation of commercial hops requires a particular environment. Hops provide bitter, floral, and fruity aroma to beer.
By Type, the cascade hops segment generated the largest revenue share in 2022.
By Application, the alcoholic beverages segment has dominated the market, accounting for the largest global revenue in 2022.
In 2022, North America dominated the market with the highest revenue share of 39.7%.
Europe region is expected to grow at a significant CAGR from 2023-2032.
Hops contain essential acids such as alpha acids, beta acids, essential oils, and flavonoids. They are also used for various purposes like beverages and medicines.
Factors affecting the growth of the hops market
Several factors can affect the growth of the hops market. Some of these factors include:
Increasing use in medicinal drugs: Hops are significantly used in medicinal drugs and have uses in digestive aid, mild sedation, diuresis, and treatments of menstrual problems. Also, hops are used considerably for anxiety, insomnia, tension, Attention Deficit-Hyperactivity Disorder (ADHD), and nervousness.
Increasing use in skin care products: Hops are sometimes used for skin and leg ulcers due to their antibacterial properties. Their extract is used in the manufacturing of skin creams and lotions as it has anti-inflammatory properties that help smooth the skin, reduce inflammation, and help recover dry skin and remove wrinkles, so it is used to make moisturizers.
High demand in beer manufacturing: Hops keep beer fresh for a long time. It also hops provide aroma, flavor, and bitterness to beer. Due to this, hops have a high demand for beers.
High processing costs: Hops are used in many industries, such as alcoholic beverages and medicines. Processing raw hops take more time and have high processing costs, which negatively impacts the market.
Demand for dried hops is increasing as a bittering hop in craft breweries in the United States. Cascade hops are widely used in craft breweries across the world. Extracts of the hops are used in manufacturing skin care products and body lotions. They are also used to cure ulcers. Big companies in the hops market are steadily moving toward consolidation through joint ventures, collaborative partnerships, and mergers & acquisitions. Such trends are currently observed in the global hops market.
Market Growth
Increasing applications of hops in medicines and drugs propel the market growth. Hops extract can efficiently be used in medicines that cure and fight against ulcers, skin issues, headaches, and insomnia, which are expected to grow in the market during the forecast period.
Moreover, hops extracts are used in oil-free skin care products and body lotions. As hops are natural and don't show any side effects, the popularity of hops in medicines is increasing, which is the main factor for market growth.
Regional Analysis
The hops market was dominated by North America, which acquired the most significant revenue share of 39.7% in 2022. The growth of the hops market in North America is attributed to an increase in both hop and beer lovers, which is creating opportunities for hops production. A good climate, fertile soil, and plentiful water irrigation in North American countries help manufacture hops. The United States of America is the largest producer of commercial hops.
Europe region is expected to hold a significant market during the forecast period owing to increasing water irrigation facilities and beverages. APAC is estimated to show significant growth due to the large production of all species of hops in countries like China.
Competitive Landscape
Emerging key players are focused on various strategic policies to develop their respective businesses in foreign markets. Several key players are now focusing on marketing strategies, such as spreading awareness about natural ingredients and boosting the target products' growth.
Some of the major players include Yakima Chief Hops Inc., Brewers Select Limited, Heineken UK Limited, Hollingberry & Son Inc., Hopsteiner Group, Kalsec Inc., Steiner Hops Ltd., Brewers, Kalsec Inc., and Other Key Players.
Rapid growth is experienced by increasing use in the brewing procedure, besides other products, such as grains and yeast. They provide bitterness, balance the sweetness of the malt sugar, and give a stimulating flavor to the drink. The capacity of hops malt abstracts to improve the required flavor and the bitter aroma of the alcoholic beverage is expected to drive demand.
Increasing demand for exotic beer flavors and the drastic rise in craft beer among consumers are the responsible factors for the growth of the hops market. The growing adoption of bread, breakfast cornflakes, sweet, and additional food uses is expected to drive market growth. In addition, the growing use of non-alcoholic products is expected to grab the demand for hops in the market.
Market Restraints
Fluctuating raw material prices and a shortage of hops worldwide are restraining the market growth. Regulations on beverage additives worldwide, increasing competition, and lack of research and development facilities hinder this target market growth. Also, the production of hops requires a standard moist temperature. Changing climatic issues also harm hop production.
Market Opportunities
Hops are significantly used in medicinal drugs. Hops have use in digestive aid, mild sedation, diuresis, and treatments of menstrual problems. Cascade hops are good for flavor and pleasing aroma.
Hops show strong antibacterial properties, and increased medicine use will drive the hops market. Increasing demand for different flavors in a beer, such as a pilsner or a lager, will increase demand for hops. Increasing consumer popularity for hop-based beer is a significant factor in creating lucrative opportunities in the hops market.
Based on type, the cascade hops segment dominates with the largest market share and is expected to continue its dominance during the forecast period. Growth of the segment is propelled by increasing use in craft breweries worldwide. Cascade hops are commonly used as a dry hop in quite sour beers and are expected to grab the global hops market.
Application Insight
On the basis of application, the alcoholic beverages segment is dominant, with the largest market share. It will remain dominant during the forecast period owing to the high demand for beer and alcohol due to the luxury lifestyle and increasing disposable income. Hops also show enormous uses in alcoholic beverages due to their aroma and flavor. Dried flowers of the hops are used to flavor beer which provides a floral and bitter taste.
Allagash Brewing Company has teamed up with Black-owned Crown and Hops Brewing Co. to create a new beer that combines both breweries.
Heineken became the new sponsor of the UEFA Europa League and UEFA Europa Conference League beginning with the 2020-24 period.
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