Press release
Hops Extract Market: Rising Global Consumption of Beer to Drive Demand Through 2026
Global Hops Extract Market: Global Industry Analysis and Forecast, 2018–2026According to the American Association of Wine Economist, amongst all other types of alcoholic beverages, beer is consumed in larger quantities in major parts of the world. The U.S. is considered as the largest beer market, consuming around 25 billion liters per year, for most of the past 3 decades. However, there has been a growth in the demand for beer in emerging countries such as China over the past couple of years. China now consumes 20 percent of all beer in the world. Hops extract, being one of the key ingredients used in the production of beer, paves immense scope of significant growth of the global hops extract market in terms of value sales. Hops Extracts are the extract derived from Hops which are flowers of hop plant belonging to Humulus lupulus. Hops Extract are usually used as bittering, flavoring and stability agent in beer.
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Higher manufacturing cost of hops extracts is molding the current scenario of the hops extract market
Hops extraction involves various steps such as milling, pelleting, and re-milling of hops to spread lupulin, passing a solvent through a packed column to collect the resin component, and finally the removal of the solvent to provide a whole resin extract product. However, during the hops extract production, the manufacturer incurs comparatively higher manufacturing costs. A notable disadvantage of hops extract perceived by manufacturers is the heating of the hops and its effect on several other ingredients, such as essential oils. Another disadvantage of the hops extract is the slightly higher cost per bitterness unit as compared to whole hops or pellets. The cost varies from 8 to 10% higher with organic solvent extracts, and perhaps as much as 15 - 20% for CO2 forms. In order to cater to this problem, long-term contracts for selling hops extracts are treated as an important instrument to stabilize the market. Forward contracts are a useful means of hedging against price volatility. Unlike spot pricing hops whose price is often unreliable, it is customary nowadays for fixed supply contracts - valid for several years - to be agreed between hops growers and hops traders. These contracts bind the two parties to supply or purchase an agreed quantity of hops of a particular variety at a fixed price. This way, price fluctuation in the hops extracts market as well as production risks are reduced. However, many growers still avoid producing hops on a contract basis.
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Rise in preference for flavored alcoholic beverages enduring new trends for the hops extract market
With a rise in the consumption of beer among its target customer, consumers now crave for beer of their most preferred flavors added on it. Since the past couple of years, there has been a rise in the demand for flavored alcoholic beverages. Owing to the need and demands of target customers for flavored beverages, some of the leading spirit manufacturers are investing significantly to create flavored drinks in order to cater to the changing tastes and preferences of consumers. Also, the trend for low alcohol content is growing rapidly. Manufacturers are strategizing on coming up with various hops extract flavors namely Perle hops extract, Hersbruck Spaet hops extract, Opa hops extract, Cascade hops extract, Centennial hops extract, Cluster hops extract etc. However these flavors differ from region to region.
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Global hops extract market regional analysis
The global hops extract market is majorly dominated by Asia Pacific, due to the rise in production of beer in the region. Countries like China and India are the major consumers of beer, which is directly proportional to the consumption of hops extract for the production of beer. The U.S. and Germany are major producers of hops, which plays another pivotal role in driving the growth of the hops extract market in North America and Europe.
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