1. Executive Summary
1.1. Category Updates
1.2. Summary of Key Highlights
2. Market & Pricing Analysis
2.1. Global Market Outlook
2.1.1. Market Snapshot
2.1.2. Demand–Supply Analysis
2.1.3. Alpha Production Analysis
2.1.4. Trade Analysis
2.1.5. Cost Analysis
2.1.6. Forward Contract Rates
2.2. Regional Market Outlook (Germany, Czech Republic, Poland, Slovenia, England, and the US)
2.2.1. Market Snapshot
2.2.2. Demand–Supply Analysis
2.2.3. Alpha Production Analysis
2.2.4. Trade Analysis
3. Industry Analysis
3.1. Craft Brewing Industry Growth and Challenges to Large Breweries
3.2. Porter’s Five Forces Analysis
4. Adjuncts Market Outlook
4.1. Market Outlook of Adjuncts
4.2. Porter’s Five Forces Analysis
4.3. Supplier Analysis
5. Purchasing Process
5.1. RFP/RFI Questionnaire
5.2. Sustainability Initiatives and Best Practices
What is the present status of global cultivation areas for hops and adjuncts?
The global cultivation pattern highlights a promising landscape, with a massive rise in cultivation areas of around 62 thousand hectares, pointing to a stable growth of 0.88% from 2021 to 2022.
Which segment is leading with significant growth for the hops and adjuncts market?
The craft breweries segment has the highest market share in the global market. The segment will likely maintain its dominance from 2023 to 2026 with increasing innovative product offerings from the industry players.
Which are the most prominent players in the hops and adjuncts market, and how is the competition level influencing global market dynamics?
Several prominent global market players, such as Yakima Valley, Roy Farms, HAAs, Hopsteiner, and Mill 95, are active participants. Competition is on the rise, with the entry of numerous promising startups creating healthy competition in the market.
DESCRIPTION
Global Hops and Adjuncts Market Size, Trends, Growth
The latest statistics covered in the ELINT Market Research research report indicate notable factors driving a positive trajectory for the industry. The comparison of global cultivation statistics from 2021 to 2022 presents an upward trend, with an addition of approximately 62 thousand hectares, indicating growth of 0.88%. The rise in cultivation areas shows a significant scope and efforts to fulfill the industry’s burgeoning demand for hops and adjuncts. The research findings shed light on the industry landscape with ample opportunities, denoting bright prospects for the hops and adjuncts market.
Equally noteworthy is the tremendous rise in the global supply, a vital component showcasing the industry’s uptrend. ELINT Market Research reports a strong supply growth of 7.2% from 2021 to 2022, achieving approximately 130 thousand metric tons. Several lucrative forces drive this favorable landscape, including rising consumer demand for craft and specialty beers, growing usage of hops and adjuncts to boost flavor profiles, and continuously expanding brewery domain. All these factors indicate the hops and adjuncts market’s high resilience capacity and adaptability characteristics, making it reliable to manage the growing demands of the global industry.
Market Definition
Hops and additives are essential ingredients, providing different flavors, scents, and mouthfeel to beer. Humulus lupulus flowers or ‘hops’ are used for bitterning, flavoring, and aroma. On the other hand, adjuncts consist of a broad collection of ingredients, including grains, fruits, and spices, added to improve the brewing process or increase the beer’s particular characteristics.
Hops and Adjuncts Market Drivers
A global surge in craft brewing over the last decade is a crucial industry for the hops and adjuncts industry. Hop profiles and adjuncts are in demand, and the craft brewers who stress quality, uniqueness, and fine handwork most make them attractive to drinkers. Today’s discerning craft beer tastes for unique flavors, leading to a thriving market in novel ingredients.
The driving power and moving force of this movement is the brewers themselves. Experimenting with new flavor profiles is also the soul of the hops and adjunct industry. With breweries constantly finding new ways to push boundaries, various hops, and adjuncts are in hot demand.
Hops and Adjuncts Market Challenges
- Supply Chain Vulnerability:
Climate change and natural disasters are significant hop production hazards, affecting quantity and quality. Market challenges, such as the predictability of supply from Hops and Adjuncts Market suppliers in hop-growing areas worldwide due to changing weather patterns. Uncertainties of this kind present brewers with difficulty maintaining steady access to good ingredients.
Naturally, the hops and adjuncts industry is susceptible to market price changes in hops themselves and shortages of certain adjunct products. For brewers, especially small-scale operators, controlling costs and keeping down production prices is tricky with these sudden rises. Given the market volatility, setting out a long-term structure and direction is required to reduce financial risk and help sustain brewing operations.
Hops and Adjuncts Market Trends
- Hop Varietal Exploration:
Brewers emphasize research and innovations of different hop varieties, aiming to develop their unique flavor and stay distinguished in the competitive industry. It reflects in the more appealing product offerings for consumers.
The global market is experiencing a shift toward sustainable force for sourcing hops and adjuncts. Breweries are implementing environmental processes in sourcing raw materials. It perfectly fits with consumer values and contributes to the long-term impressions on the market.
Hops and Adjuncts Market Segmentation:
- Type of Hops: The research classifies the market into Aroma hops, bittering hops, and dual-purpose hops.
- Adjunct Categories: The research report divides the market into Grains, fruits, spices, and others.
- End-Use: As per end-use, the research segments the market into Craft breweries, microbreweries, and large-scale breweries.
Key Producing Countries
The European Union (EU) holds a higher industry share, accounting for 55% of production. The US follows it at 36%, while Asia Pacific and Australia contribute 6% and 2%, respectively. These dynamics indicate the nature of the global landscape, with the EU and the US leading the production part.
Key Importing Countries
Regarding import force, Germany emerges as the fundamental entity, contributing 12%, with the US, Italy, the UK, and Japan following, accounting for 9%, 8%, 8%, and 8%, respectively. The complete network of importing countries indicates the many sourcing plans stakeholders implement to manage the demand for hops and adjuncts.
Key Exporting Countries
As per the export dynamics, Germany leads the pack with 47% and is second-ranked by the US at 19%. The Czech Republic and Slovenia also mark their presence with 8% and 4%, respectively. Notably, Belgium emerged as the fastest-growing supply country, with a 69.18% export surge in 2021.
Regional Supply Dynamics
The United States showcases a distinctive split in hops supply, with aroma hops constituting 61 percent and bitter hops making up the remaining 39 percent. In Germany, this split is more evenly balanced, with aroma hops at 51 percent and bitter hops at 49 percent. This divergence underscores these key producing nations’ regional preferences and brewing styles. Stakeholders must keep track of all these dynamics to devise future strategies for competitive advantage.
Global Adjuncts Consumption
Adjunct consumption, vital for impacting beer characteristics, offers a notable pattern. Corn leads the trend with 34%, followed by sugar at 26%, wheat at 25%, and rise securing 7%. Such a diverse consumption pattern reflects the innovation and advancements prevailing in brewing.
Forward Contracts and Engagement Models
The industry is experiencing well-planned strategies, and the Czech Republic gains 100% forward contract booking for 2022. The US, France, and Australia follow the truimp with 95% booking, while Germany stands at 90%. This landscape of forward contracts indicates the proactive approach of leading players in timely security supplies.
Hops and Adjuncts Market Players
The hops and adjuncts market is witnessing tight competition from the presence of all scales of players. Some prominent players are HAAs, Hopsteiner, Yakima Valley, Roy Farms, Mill 95, etc. These stakeholders play a noteworthy role in shaping global market dynamics. With the effective planning and utilization of resources, these players differentiate themselves from their competitors.
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