What is the market for hops?

Answered by Willian Lymon

The market for hops is experiencing significant growth globally, with a projected CAGR of 4.5% during the forecast period of 2020-2025. This growth can be attributed to various factors, including a shift in demand from bittering hops to aroma varieties and the increasing number of craft breweries worldwide.

One of the key drivers for the hops market is the changing preferences of consumers. In recent years, there has been a growing demand for hop-forward beers with strong aroma and flavor profiles. This has led to a transition in the demand for hops, with a greater emphasis on aroma varieties rather than bittering hops. Aroma hops are known for their distinctive fragrances and are used to enhance the aroma and flavor of beers, making them more appealing to consumers.

The rise of craft breweries is another significant factor contributing to the growth of the hops market. Craft breweries have gained popularity in recent years, with consumers increasingly seeking unique and flavorful beers. Craft brewers often experiment with different hop varieties to create innovative and distinctive brews, driving the demand for hops. This trend is particularly evident in developed regions like North America and Europe, where the craft beer industry has experienced significant growth.

Moreover, the increasing consumer interest in natural and organic products has also been a driving force in the hops market. Many consumers are looking for beers made with natural ingredients, including organic hops. This has led to a surge in the demand for organic hops, as craft brewers strive to meet the preferences of their customers.

Furthermore, the growing popularity of home brewing has also contributed to the demand for hops. Home brewers are increasingly experimenting with different hop varieties to create their own unique brews, driving the sales of hops in the retail sector.

On a global scale, the hops market is witnessing growth across various regions. North America and Europe are the key markets for hop production and consumption, driven by the strong presence of craft breweries and the growing demand for hop-forward beers. However, the Asia-Pacific region is also emerging as a lucrative market for hops, with the rising popularity of craft beer and changing consumer preferences.

The global hops market is experiencing significant growth, driven by factors such as the shift in demand from bittering hops to aroma varieties, the growth of craft breweries, the demand for natural and organic products, and the increasing popularity of home brewing. As consumer preferences continue to evolve, the hops market is expected to witness further growth in the coming years.