Hops & Adjuncts
Hops are flavour compounds measured in alpha acid content and they are used to flavour beer. Adjuncts are food ingredients such as rice, wheat, cassava which are used to replace malt barley in certain countries for flavour or manage cost.
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R&D to create Hops variety that thrives in MidwestSeptember 12, 2022
Yakima Valley harvest in full swingSeptember 08, 2022
Beer formulated from fully indoor grown hopsOctober 03, 2022
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Hops & Adjuncts Industry Benchmarks
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The industry average payment terms in Hops & Adjuncts category for the current quarter is 75.6 days
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Hops & Adjuncts market frequently asked questions
According to Beroe's hops and adjuncts market report, the EU region has the highest production rate of hops and adjuncts accounting for about 48 percent of the total market production followed by America (43 percent), Asia (7 percent), and Australia/Oceania (2 percent).
The major exporting countries of hops and adjuncts are Germany, the US, Czech Republic, and Slovenia accounting for 47 percent, 19 percent, 8 percent, and 4 percent respectively.
From Beroe's analysis of hops and adjuncts market trends and developments, the production of hops varies across regions due to factors like differences in prevailing climatic conditions, demand changes, preference of a variety of hops, etc.
Barth Haas, Hopsteiner, Yakima Valley Hops, Water Town Hops, and Kalsec are some of the top names among the hop suppliers globally
The craft beer segment, accounting for approximately 1.2 percent of the global beer market volume, consumes almost ten times more aroma hops per bottle as brewing raw materials when compared to traditional volume beer manufacturing. Due to this emerging trend, aroma hops are more in demand than bitter hops across the U.S. and the EU.
Hops & Adjuncts market report transcript
Hops & Adjuncts Global Market Outlook
The global Hops market is expected to reach a value of at $231.9 million by the end of 2024, growing at a CAGR of 3.34 percent during 2020-2024
Global hops market driving factors are increasing demand for hops in medicinal drugs, cosmetic formulations and alcoholic beverages. Increasing demand for various flavors in beer such as pilsner or lager, the hops market is expected to increase significantly
GLOBAL CULTIVATION (2021 vs. 2022)
~62 Thousand Ha, 0.88 percent Ý
GLOBAL SUPPLY (2021 vs. 2022)
~130 Thousand MT, 7.2 percent Ý
The growth of hops varies across regions, due to the difference in prevailing climatic conditions, change in demand, preference of variety of hops, etc.
Demand Market Outlook
Beer is the primary end-use for hops during the start of the pandemic panic-buying helped increase sales of beer at a retail level. Many breweries since then have found it challenging to forecast demand for hops and beer consumption in 2022.
Global Hops and Adjuncts Supply–Demand Analysis
The global Hops market is expected to reach a value of at $231.9 million by the end of 2024, growing at a CAGR of 3.34 percent.
The global hops market driving factors are increasing demand for hops in medicinal drugs, cosmetic formulations and alcoholic beverages. Increasing demand for various flavors in beer such as pilsner or lager, the hops market is expected to increase significantly
Hops and Adjuncts - Global Trade Dynamics
The top exporters of hops were Germany, the US, the UK in 2021
Import volumes, though have decreased in the European countries, had increased in APAC regions, such as China
Cost Structure Analysis - Hops
Hop orchards start yielding after 4–6 years. The first phase mainly has cost focused on the facilitation of growing the crop, while the harvest and post-harvest, which is considered the second phase, have processing costs, such as drying and pelleting, which occupies over 61 percent of the cost
Cost Parameters in Production and Harvest
Hop yields are cultivar dependent with full production for a variety, Cascade, for example, has at least 1,500 pounds of dried hops per acre
Conservative annual yield estimates for year one are negligible, for year two, 50 percent production, for year three, 75 percent, and for years four and five, it is 100 percent
It is assumed that wet hops contain 75 percent moisture and dried hops contain 10 percent moisture
Craft Brewing Industry Growth and Challenges to Large Breweries
The craft beer segment accounts for ~1.2 percent of the global beer market volume. However, it consumes almost 10 times more aroma hops per bottle compared to large (traditional) volume beer manufacturing
This emerging trend has, in turn, led to a shift in the demand from bitter to aroma hops across the US and EU
As craft breweries mostly use an aroma variety of hops in beer formation, they require almost 10 times more hops in processing. This compels hop growers in the US to shift from bitter to aroma variety hops production to cater to the demand of the growing craft beer segment
The global production ratio of aroma to bitter varieties is 52/48 in 2021 compared to a ratio of 47/53 in 2018. This will result in a supply deficit of bitter varieties for the large brewery, and it will lead to a high price realization in the future, which will affect their cost. Furthermore, the excessive load for bitter hops will be partly shared by Germany, with an increase in acreage for bitter varieties
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