Global Hops Market By Type (Cascade Hops, Chinook Hops, Amarillo Hops, Centennial Hops, and Others), By Application (Medicinal Drugs, Alcoholic Beverages, Cosmetics, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Hops Market size is expected to be worth around USD 49.9 Billion by 2032 from USD 33.1 Billion in 2022, growing at a CAGR of 4.20% during the forecast period from 2023 to 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 provide bitter, floral, and fruity aroma to beer. Hops are mainly produced in moist and temperate climates. The cultivation of commercial hops requires a particular environment.

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. Hops have distinct male and female plants and only female hops plants are used for commercial production. North America is the largest producer of commercial hops. Hops are significantly used in the brewing industry worldwide due to their antibacterial properties.

Key Takeaways

• Market Growth: In 2022, the global hops market reached USD 33.1 billion and is projected to surpass USD 49.9 billion by 2032 at an impressive compound annual compound growth rate of 4.20 % from 2023-2032.
• Hops Varieties: With multiple hops varieties contributing to its vibrant market, each providing distinct flavor and aromatic characteristics – Cascade, Centennial, and Simcoe being among them – the market remains robust.
• Type Analysis: Due to their many applications in brewing, Cascade hops dominated their respective market in 2022. Cascades can often be seen used as dry hops in very sour beers; and are projected to become dominant players worldwide when it comes to hop sales.
• Application Analysis: Hops have long been utilized as an aid for treating various medical ailments and can assist in digestion support, mild sedation diuresis treatment plans, and treating menstrual issues.
• Market Drivers: Global beer consumption growth, the popularity of craft breweries, and consumer demand for unique beer flavors are driving forces propelling the hops market forward.
• Restrictions: Inconsistent weather patterns that impact hop yields and price fluctuation pose serious obstacles for the hop industry.
• Prospects: Advancements in hop breeding and cultivation techniques, increased collaboration between growers and breweries, and the emergence of new hop-growing regions present market players with exciting prospects for expansion.
• Trends: Craft beer culture has led to an explosion of unique hop-forward beers and experiments with hop combinations.
• Regional Dominance: North America is estimated to be the global hops market leader, accounting for 39.7% market share during this timeframe forecast and being home to America, which produces commercially grown hops at its greatest scale.
• Key Players in the Hops Market: Notable companies operating within this space include Yakima Chief Hops Inc, Brewers Select Limited, and Heineken UK Limited – each plays an instrumental role in providing high-grade hop varieties to brewers across various brewing sectors.

Driving Factors

Growing Adoption of Hops in Brewing Procedures

Hops are the main components used 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 bitter aroma of the alcoholic beverage is expected to drive demand.

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. 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.

Increasing Use of Hops in Medical Applications

Hops show significant antibacterial and antimicrobial properties. 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.

Also, 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 are hops market driving factor.

Restraining Factors

Climatic Issues and Fluctuating Prices of Raw Materials Restraining Market Growth

Regulations on additives in beverages worldwide, increasing competition, and lack of research and development facilities restrain the market growth.

Also, the production of hops requires a standard moist temperature. Changing climatic issues also harm hop production. Fluctuating raw material prices and shortage of hops worldwide restraining the market growth.

Growth Opportunities

Increasing Uses of Hops in Beers and Medicines creates significant 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. Cascade hops are widely used in craft breweries across the world. Also, extracts of the hops are used in manufacturing skin care products and body lotions.

They are also used to cure ulcers. As hops show strong antibacterial properties, increased use in medicines 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.

Type Analysis

Cascade Hops Segment Dominates the Market

Based on type, the market for hops is segmented into chinook hops, cascade hops, centennial hops, Amarillo hops, and others. Cascade hops are good for flavor and pleasing aroma. These are widely used in craft breweries across the world.

Due to the product’s numerous uses of cascade hops in the brewing sector, these held the most dominant market share in 2022. Cascade hops are commonly used as a dry hop in quite sour beers and are expected to grab the global hops market.

Chinook hops are dual-purpose hops used in all hop addition throughout the brewing processes. These taste spicy and piney and have mild sedative properties, raising the neurotransmitters gamma-aminobutyric acid (GABA) and serotonin, which help regulate the body’s nervous system.

Chinook hops are primarily used as a bittering hop by mainstream brewers like Coors. American barley wine, American lagers, winter ales, and American amber ales are among the popular beer styles produced with chinook hops. It is commonly used for its high alpha acid content and bittering taste.

Amarillo hops have solid bittering properties and contain high amounts of myrcene oil. This hop offers a sweet citrus taste, flavor, and aroma. Centennial hops are well-rounded and are helpful for their bittering flavor and fragrance.

Application Analysis

Applications in Alcoholic Beverages Dominating the Market

By application of hops, the market is segmented into medicinal drugs, alcoholic beverages, cosmetics, and other applications. 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. 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 and reduce inflammation, and also help recover dry skin and remove wrinkles, so it is used to make moisturizers.

Their extract also contains therapeutic compounds that are used in drugs; for example, iso-alpha-acids in hops extract have strong antibacterial properties against gram-positive bacteria. Hops show major effectiveness in improving appetite, increasing urine flow, ovarian cancers, bladder infections, and intestinal cramps due to their medicinal properties.

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. Hops help to keep beer fresh for a long time as they possess inherent preservative qualities. Acids in the hops show antimicrobial properties and aid in spoiling bacteria during fermentation.

Key Market Segments

Based on Type

• Cascade Hops
• Chinook Hops
• Amarillo Hops
• Centennial Hops
• Others

Based on Applications

• Medicinal Drugs
• Alcoholic Beverages
• Cosmetics
• Other

Regional Analysis

North America Holds Major Market Share in Global Hops Market

North America is estimated to be the most dominant global hops market, with the largest market share of 39.7% during the forecast period, as the United States Of America is the largest producer of commercial hops.

The growth of the hops market in North America is due to an increase in the number of hop and beer lovers, which creates opportunities for hop production. Also, In North American countries, there is the availability of a good climate, fertile soil, and plentiful water irrigation helps in the good manufacturing of hops.

However, Europe’s hops market is projected to increase due 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.

Good climatic conditions help to increase production in the Asia Pacific region. Also, the increasing popularity of hops-beer will create a market for hops in Latin America and MEA.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Emerging key market players are focused on various strategic policies to develop their respective businesses in foreign markets. Several hops market companies are concentrating on expanding their existing operations and R&D facilities.

Furthermore, firms in the hops market are developing new products and portfolio expansion strategies through investments, mergers, and acquisitions. In addition, several key players are now focusing on marketing strategies, such as spreading awareness about natural ingredients and boosting the target products’ growth.

Market Key Players

• Yakima Chief Hops Inc.
• Brewers Select Limited
• Heineken UK Limited
• Hollingberry & Son Inc.
• Hopsteiner Group
• Kalsec Inc.
• Steiner Hops Ltd.
• Brewers
• Other Key Players

Recent Developments

• Allagash Brewing Company has teamed up with Black-owned Crown and Hops Brewing Co. to create a new beer that combines both breweries.
• Heineken entered a multi-year partnership with W Series in August 2021 as the global partner for their all-women single-seater race series.
• Heineken became the new sponsor of the UEFA Europa League and UEFA Europa Conference League beginning with the 2020-24 period.

Report Scope