Home Markets Market.Biz: Hops Market in North America Leads With ~39% Revenue

Market.Biz: Hops Market in North America Leads With ~39% Revenue

by admin
Hops Market …

Hops market set to grow, driven by beer demand and medicinal use

Hops market expected to experience robust growth with a projected CAGR of 4.20% during the forecast period. (Courtesy photo)

WASHINGTON — The worldwide hops market was valued at USD 34 billion in 2023. It is anticipated to witness an accelerated growth rate, with a CAGR of 4.20% expected. This growth trajectory suggests an increase in market size, reaching approximately USD 49.9 billion by 2032.

Hops, recognized scientifically as Humulus lupulus, are characterized by their green, cone-shaped flowers. These are predominantly utilized in the beer industry as a bittering agent, contributing to the beer’s overall taste and stability. Additionally, hops impart a distinct combination of bitter, floral, and fruity aromas to the beer, enhancing its sensory appeal.

The cultivation of hops is highly specific, requiring moist and temperate climatic conditions, making it a specialized agricultural endeavor. This specificity in cultivation conditions is a critical factor in the production and supply of hops globally.

Key Takeaways

  • Cascade Hops Dominance: In 2022, the cascade hops type secured the highest revenue in the market, leading in terms of sales.
  • Alcoholic Beverages Lead in Application: The largest portion of global revenue in 2022 came from the alcoholic beverages segment, showcasing its market dominance.
  • North America’s Market Leadership: With a 39.7% revenue share, North America was the top regional market in 2022.
  • Europe’s Projected Growth: The European region is anticipated to experience significant growth, with an expected notable Compound Annual Growth Rate (CAGR) from 2023 to 2032.

Additional Insights

  • Diverse Components of Hops: Hops are rich in essential acids (alpha and beta acids), essential oils, and flavonoids.
  • Versatile Uses: Beyond brewing, hops are utilized in various other industries, including the medicinal sector.

Growth Factors in the Hops Market

  • Medicinal Drug Usage: The use of hops in medicinal drugs is growing, particularly for digestive aid, mild sedation, diuresis, menstrual problem treatments, and managing anxiety, insomnia, tension, ADHD, and nervousness.
  • Skincare Application: Hops are increasingly used in skincare due to their antibacterial and anti-inflammatory properties. They are key ingredients in creams and lotions, aiding in skin smoothing, inflammation reduction, dry skin recovery, and wrinkle removal.
  • Beer Manufacturing Demand: Hops are crucial in beer production for their preservation qualities and for adding aroma, flavor, and bitterness, leading to high demand in the beer industry.
  • Processing Cost Challenges: Despite the wide usage in various industries, high processing costs for raw hops present a challenge, impacting the market negatively.

Regional Analysis

  • North America’s Dominance: In 2022, North America led the hops market with a substantial revenue share of 39.7%. This dominance is credited to the growing number of hop and beer enthusiasts in the region, fostering opportunities in hops production. Factors like favorable climate, fertile soil, and ample water irrigation aid hops manufacturing, with the United States being the leading producer.
  • Europe’s Market Potential: Europe is projected to hold a significant market share during the forecast period. This expectation is based on the region’s improving water irrigation facilities and a robust beverages sector.
  • APAC’s Growth Trajectory: The Asia-Pacific region is anticipated to exhibit notable growth, driven by extensive production of various hops species, particularly in countries like China.

To get additional highlights on major revenue-generating segments, Request a Global hops market sample report at https://market.us/report/hops-market/request-sample/

Competitive Landscape

  • Strategic Focus of Emerging Players: Key market players are adopting strategic approaches to expand their businesses in international markets. These strategies include marketing initiatives emphasizing the benefits of natural ingredients to promote product growth.
  • Major Industry Participants: Prominent companies in the hops market include Yakima Chief Hops Inc., Brewers Select Limited, Heineken UK Limited, Hollingberry & Son Inc., Hopsteiner Group, Kalsec Inc., Steiner Hops Ltd., and others. These players focus on various business development tactics to strengthen their market positions.

Market Dynamics

Key Trends

  • Dried Hops in Craft Breweries: There’s a rising demand for dried hops, particularly as a bittering agent in U.S. craft breweries. Cascade hops are notably prevalent globally in craft beer production.
  • Hops in Skincare: Extracts from hops are increasingly being incorporated into skincare products and body lotions. They are also recognized for their effectiveness in treating ulcers.
  • Market Consolidation: Major players in the hops industry are engaging in consolidation strategies such as joint ventures, partnerships, and mergers & acquisitions.

Market Growth Dynamics

  • Hops in Medicines: The application of hops in medicinal drugs is boosting market growth. Hops extracts are effective in treating ulcers, skin conditions, headaches, and insomnia, with expectations of increased demand in the forecast period.
  • Hops in Skincare Products: The use of hops extracts in oil-free skin care products and body lotions, coupled with their natural composition and lack of side effects, is augmenting their popularity in the medicinal sector.

Key Market Drivers

  • Brewing Applications: The use of hops in brewing, contributing to the bitterness and balancing malt sweetness, is driving market growth. The unique flavor and aroma hops add to alcoholic beverages are significant demand drivers.
  • Exotic Beer Flavors Demand: The rising demand for unique beer flavors and the growing popularity of craft beer are propelling the hops market.
  • Diverse Food Applications: The increasing use of hops in various food products like bread, breakfast cereals, and sweets is further driving market growth.

Market Restraints

  • Raw Material Challenges: Fluctuating prices and global shortages of hops are major market restraints.
  • Regulatory and Competitive Challenges: Worldwide regulations on beverage additives, competitive pressures, and a lack of research facilities are hindering market growth.
  • Climatic Dependence: Hops production, being climate-dependent, faces challenges due to changing weather patterns.

Emerging Market Opportunities

  • Medicinal Applications of Hops: The significant role of hops in medicinal applications, especially for digestive aid, mild sedation, and menstrual problem treatments, opens new market opportunities.
  • Beer Flavor Diversity: The increasing consumer demand for varied beer flavors is anticipated to boost the demand for hops.
  • Popularity in Non-Alcoholic Products: The growing trend of non-alcoholic products is also expected to create new market opportunities for hops.

Application Insight: Alcoholic Beverages Segment

  • Dominant Market Position: In terms of application, the alcoholic beverages category leads the market with the highest share and is expected to maintain this dominance.
  • Key Influencers: This segment’s strong position is driven by growing beer and alcohol consumption, often linked to luxury lifestyles and rising disposable incomes.
  • Role of Hops in Alcoholic Beverages: Hops are crucial in this sector due to their contribution to aroma and flavor. The dried flowers of hops, when added to beer, impart a distinct floral and bitter taste, enhancing the beverage’s appeal.

–Market.Biz

You may also like

Leave a Comment