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Hops Extract Market Soaring Demand Assures Motivated Revenue Share during 2018-2026
Global Hops Extract Market Analysis:MMR delivers key insights on the global Hops extracts market in its upcoming outlook titled, 'Global Market Study on the Hops Extract Market'. In terms of value, the global hops extract market is projected to register a healthy CAGR of 3.3% during the forecast period 2026, due to various factors, regarding which, MMR offers vital insights in detail.
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Over the past couple of decades, there has been a rise in the consumption of alcoholic beverages around the world. Among the alcoholic beverages, beer is the most preferred alcoholic drink, which is attributable to several key factors such as low caloric content, higher content of antioxidant ingredients, and some key health benefits associated with its consumption. Beer accounts for more than 50% share of the global alcoholic beverages market in terms of value sales. China, India, the United States, Brazil, and some major parts of Europe are considered as key markets for beer consumption.
Beer is being processed with several ingredients such as malted barley, water, yeast, and hops extract. Hops extract is responsible for providing bitterness and the aroma factor in beer. There are many varieties of flavors of hops extract, which differ from region to region. For instance, Perle, Hallertau Tradition, Hersbruck Spaet, and Magnum are some of the preferred hops extract flavors in the European region, whereas, in North America, Cascade, Centennial, Citra, and Simcoe are the most consumed hops extract flavors. The U.S. and Germany are main producers of hops in the global market. Hops extract contains alpha acid, which provides bitterness as well as flavor to beer. Hence, with a rise in the rate of beer production around the world, there is immense opportunity for the hops extract market to gain traction in its target segment (brewery industry) in the global market.
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In terms of revenue, the global hops extract market is expected to represent an incremental opportunity of US$ 436 Mn by 2026 end over 2017. By product type, the CO2 hops extract andisomerized hopsextract segmentsare expected to register relatively higher CAGR growth in the global hops extract market. The MEA region is expected to register a CAGR growth of 4.4% over the forecast period, due to a rise in the production rate of beer in the region.
Growing Consumption of Beer Creating a Positive Impact on Demand of Hops Extracts
The rise in consumption of beer around the world is one of the prime reasons which is driving the hops extract market.The United States, U.K., and Germany accounts for more than half of worldwide beer consumption by volume. However, over the past one decade, some major Asian countries have witnessed the highest rates of beer consumption. In 2010, China surpassed the United States as the single largest beer market.
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Besides the brewery industry, over the past couple of years, the hops extract market has been gradually gaining traction in the cosmetics industry. Hops is considered as a valuable ingredient in natural skin care products for treating dry and stressed skin. Their sedative properties are also beneficial. In fact, poultices made of hops have been shown to help with skin discoloration. Moreover, in facial products, hops extract is considered as a calming agent. They are high in tannins, which can help reduce inflammation. Also, they promote detoxification, and are beneficial as a natural remedy to flush out toxins.
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 this process, the manufacturer incurs comparatively higher manufacturing costs. A notable disadvantage of this product perceived by manufacturers is the heating of the hops and its effect on several other ingredients, such as essential oils.
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Asia-Pacific a key Economy for Hops Extracts Market:-
On the basis of region, APAC accounts for a higher value share in the global hops extract market in terms of value sales, which is attributable to a rise in the consumption as well as production of beer in countries like China, India, and Australia. The U.S. and Germany are major producers of hops and other various formats such as hops extract. As a result, the rise in production share of hops in these countries contributes to the overall growth of the global hops extract market in terms of volume sales.
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