USA Hops Market Outlook to 2028
Description
USA Hops Market Overview
USA Hops market has been witnessing a notable growth which is reflected in the global hops market reaching a valuation of USD 8 billion in 2023. This growth is primarily driven by the rising demand for craft beers, which utilize a higher quantity and variety of hops.
Key players in the USA hops market include Hopsteiner, John I. Haas, Inc., Yakima Chief Hops, Roy Farms, and S.S. Steiner, Inc. These companies dominate the market through extensive production capabilities, innovative breeding programs, and strategic partnerships with breweries. Their roles in ensuring a steady supply and developing new hop varieties are critical to the market's growth.
In 2023, Yakima Chief Hops announced the launch of a new hop variety, Sabro, which has been highly praised for its unique tropical fruit and citrus flavors. This new variety has gained rapid adoption among craft brewers, leading to increased sales and enhancing Yakima Chief Hops' market position.
USA Hops Current Market Analysis
The craft beer movement has been a significant driver, with the number of craft breweries increasing from 7618 craft breweries in 2018 to 9552 craft breweries in 2023. Craft breweries demand a wide variety of hops for unique flavors & consumer preference for unique and locally-produced beers are boosting hop sales.
The imposition of tariffs has also affected the import of specific hop varieties that are not widely grown in the USA but are essential for particular brewing recipes. This has led to increased costs for breweries relying on these imported varieties, thereby impacting their production costs and profit margins.
The Pacific Northwest region, especially Washington State, dominates the hops market. Yakima Valley in Washington alone produces a significant amount of the USA's hops, supported by advanced irrigation systems and hop breeding research.
USA Hops Market Segmentation
By Product Type: In 2023, the USA Hops Market segmentation by Product Type into Aroma Hops, Bitter Hops & Dual-Purpose Hops. Aroma hops is holding a substantial market share due to their extensive use in craft beers, which require unique and aromatic flavors to stand out in the competitive market.
By End User: In 2023, the USA Hops Market segmentation by End User into Brewing, Pharmaceuticals & Food. Brewing is holding majority of the market share since hops are essential in beer production, providing bitterness, aroma, and flavor, which are critical to the beer's quality and consumer appeal.
By Form: In 2023, USA Hops Market is segmented by form into Pellet Hops, Whole Leaf Hops & Extracts. Pellet hops are holding half of the share in this segment due to their ease of storage and handling, consistency in quality, and longer shelf life compared to whole leaf hops.
USA Hops Market Competitive Landscape
Company
Establishment Year
Headquarters
Hopsteiner
1845
New York, USA
John I. Haas, Inc.
1914
Washington, USA
Yakima Chief Hops
1869
Washington, USA
Roy Farms
1907
Washington, USA
S.S. Steiner, Inc.
1845
New York, USA
Hopsteiner, John I. Haas, Yakima Chief Hops, Roy Farms, and S.S. Steiner, Inc. are key players in the USA hops market, collectively producing millions of pounds of hops annually.akima Chief Hops alone produced 38 million pounds of hops in 2023, a substantial portion of the total USA production.
In 2023, new experimental hop varieties HBC 638, HBC 522, and HBC 1134 developed by HBC, a joint venture between John I. Haas and Yakima Chief Ranches, have seen significant sustainability and yield advantages compared to classic hop varieties like Centennial, Cascade, and Saaz
In 2023, Roy Farms made a significant advancement by achieving certification for their organic hop production practices. Additionally, Roy Farms has expanded its organic hop acreage to 500 acres, supporting the growing craft beer segment that prioritizes eco-friendly and organic ingredients.
USA Hops Industry Analysis
USA Hops Market Growth Drivers
Rising Popularity of Craft Beers: The craft beer industry in the USA has seen an exponential increase in popularity, leading to a surge in demand for hops. The number of operating craft breweries grew from 6,300 in 2018 to over 9,300 in 2023. This growth has driven the need for diverse hop varieties, as craft brewers experiment with unique flavors and aromas.
Expansion of Microbreweries: The microbrewery segment has been expanding rapidly, contributing to the increased demand for hops. In 2022, there were 2,132 microbreweries in the country. Microbreweries typically use a higher volume of hops per barrel compared to large commercial breweries, driving up the overall demand for hops.
Growing Export Opportunities: The expansion of export opportunities has become a substantial growth driver for the USA hops market. As global demand for high-quality hops increases, particularly in emerging craft beer markets in Asia and South America. In 2022, US exported hops worth $298 Mn, making them the largest exporters of hops in the world.
USA Hops Market Challenges
Climate Change Impact: Climate change poses a significant challenge to hop production. According to a 2021 report by the USDA, extreme weather events, such as droughts and heatwaves, have adversely affected hop yields, highlighting the vulnerability of hop cultivation to climate variations. This unpredictability in weather patterns increases the risk and costs for hop growers.
Pest and Disease Management: Pests and diseases remain a persistent challenge for hop growers. Hop plants are susceptible to pests like spider mites and diseases such as powdery mildew. Managing these threats requires significant investment in pest control measures and resistant plant varieties, increasing production costs and affecting market stability.
High Production Costs: The production of hops involves high costs related to labor, equipment, and land. Additionally, the need for specialized harvesting equipment and the maintenance of trellis systems further escalate expenses. These high production costs can limit the entry of new growers into the market and constrain the expansion of existing operations.
USA Hops Market Government Initiatives
USDA Specialty Crop Block Grant Program (2018): The USDA Specialty Crop Block Grant Program has been instrumental in supporting the hops industry. This program provided funding to enhance hop breeding programs, focusing on developing disease-resistant and high-yield varieties. The initiative has improved the overall quality and sustainability of hop production, benefiting growers and the broader market.
2018 Farm Bill: The 2018 Farm Bill included provisions specifically for the hop industry, such as crop insurance for hop growers. This insurance mitigates financial risks associated with adverse weather conditions and crop failures. The Farm Bill's support has been crucial in stabilizing the hop market and encouraging investment in hop production.
Sustainable Agriculture Research and Education (SARE) Program (2020): The SARE Program promotes sustainable farming practices in hop production. By funding research and educational initiatives, the program encourages hop growers to adopt environmentally friendly practices. In 2020, the program allocated USD 2 million to support sustainable hop farming projects, significantly impacting the market's shift towards sustainability.
USA Hops Future Market Outlook
The USA hops market is projected to grow steadily. This growth will be driven by the continuous expansion of the craft beer industry, increasing consumer preference for diverse beer flavors, and ongoing innovations in hop breeding and processing.
Future Market Trends:
Sustainable Farming Practices: There is a growing trend towards sustainable and organic hop production. Consumers increasingly prefer eco-friendly products, driving hop growers to adopt sustainable farming practices. Sustainable practices like reduced pesticide use and water conservation techniques will become more prevalent, aligning with consumer demand for sustainable products.
Diversification of Hop Varieties: The diversification of hop varieties will meet the evolving preferences of brewers is a notable trend. In 2023, the USDA reported an increase in the number of new hop varieties being cultivated, focusing on unique flavors and disease resistance. Varieties like Sabro and Talus have gained popularity for their distinct aromas and flavors, which will encourage brewers to experiment with new recipes and products.
Increased Use of Technology in Brewing: Technological advancements will influence the hops market. Brewers are increasingly using technology like cryo-hops and advanced extraction methods to optimize hop usage and enhance beer quality, which will demand for high-quality, technologically advanced hop products.
Please Note: It will take 5-7 business days to complete the report upon order confirmation
USA Hops market has been witnessing a notable growth which is reflected in the global hops market reaching a valuation of USD 8 billion in 2023. This growth is primarily driven by the rising demand for craft beers, which utilize a higher quantity and variety of hops.
Key players in the USA hops market include Hopsteiner, John I. Haas, Inc., Yakima Chief Hops, Roy Farms, and S.S. Steiner, Inc. These companies dominate the market through extensive production capabilities, innovative breeding programs, and strategic partnerships with breweries. Their roles in ensuring a steady supply and developing new hop varieties are critical to the market's growth.
In 2023, Yakima Chief Hops announced the launch of a new hop variety, Sabro, which has been highly praised for its unique tropical fruit and citrus flavors. This new variety has gained rapid adoption among craft brewers, leading to increased sales and enhancing Yakima Chief Hops' market position.
USA Hops Current Market Analysis
The craft beer movement has been a significant driver, with the number of craft breweries increasing from 7618 craft breweries in 2018 to 9552 craft breweries in 2023. Craft breweries demand a wide variety of hops for unique flavors & consumer preference for unique and locally-produced beers are boosting hop sales.
The imposition of tariffs has also affected the import of specific hop varieties that are not widely grown in the USA but are essential for particular brewing recipes. This has led to increased costs for breweries relying on these imported varieties, thereby impacting their production costs and profit margins.
The Pacific Northwest region, especially Washington State, dominates the hops market. Yakima Valley in Washington alone produces a significant amount of the USA's hops, supported by advanced irrigation systems and hop breeding research.
USA Hops Market Segmentation
By Product Type: In 2023, the USA Hops Market segmentation by Product Type into Aroma Hops, Bitter Hops & Dual-Purpose Hops. Aroma hops is holding a substantial market share due to their extensive use in craft beers, which require unique and aromatic flavors to stand out in the competitive market.
By End User: In 2023, the USA Hops Market segmentation by End User into Brewing, Pharmaceuticals & Food. Brewing is holding majority of the market share since hops are essential in beer production, providing bitterness, aroma, and flavor, which are critical to the beer's quality and consumer appeal.
By Form: In 2023, USA Hops Market is segmented by form into Pellet Hops, Whole Leaf Hops & Extracts. Pellet hops are holding half of the share in this segment due to their ease of storage and handling, consistency in quality, and longer shelf life compared to whole leaf hops.
USA Hops Market Competitive Landscape
Company
Establishment Year
Headquarters
Hopsteiner
1845
New York, USA
John I. Haas, Inc.
1914
Washington, USA
Yakima Chief Hops
1869
Washington, USA
Roy Farms
1907
Washington, USA
S.S. Steiner, Inc.
1845
New York, USA
Hopsteiner, John I. Haas, Yakima Chief Hops, Roy Farms, and S.S. Steiner, Inc. are key players in the USA hops market, collectively producing millions of pounds of hops annually.akima Chief Hops alone produced 38 million pounds of hops in 2023, a substantial portion of the total USA production.
In 2023, new experimental hop varieties HBC 638, HBC 522, and HBC 1134 developed by HBC, a joint venture between John I. Haas and Yakima Chief Ranches, have seen significant sustainability and yield advantages compared to classic hop varieties like Centennial, Cascade, and Saaz
In 2023, Roy Farms made a significant advancement by achieving certification for their organic hop production practices. Additionally, Roy Farms has expanded its organic hop acreage to 500 acres, supporting the growing craft beer segment that prioritizes eco-friendly and organic ingredients.
USA Hops Industry Analysis
USA Hops Market Growth Drivers
Rising Popularity of Craft Beers: The craft beer industry in the USA has seen an exponential increase in popularity, leading to a surge in demand for hops. The number of operating craft breweries grew from 6,300 in 2018 to over 9,300 in 2023. This growth has driven the need for diverse hop varieties, as craft brewers experiment with unique flavors and aromas.
Expansion of Microbreweries: The microbrewery segment has been expanding rapidly, contributing to the increased demand for hops. In 2022, there were 2,132 microbreweries in the country. Microbreweries typically use a higher volume of hops per barrel compared to large commercial breweries, driving up the overall demand for hops.
Growing Export Opportunities: The expansion of export opportunities has become a substantial growth driver for the USA hops market. As global demand for high-quality hops increases, particularly in emerging craft beer markets in Asia and South America. In 2022, US exported hops worth $298 Mn, making them the largest exporters of hops in the world.
USA Hops Market Challenges
Climate Change Impact: Climate change poses a significant challenge to hop production. According to a 2021 report by the USDA, extreme weather events, such as droughts and heatwaves, have adversely affected hop yields, highlighting the vulnerability of hop cultivation to climate variations. This unpredictability in weather patterns increases the risk and costs for hop growers.
Pest and Disease Management: Pests and diseases remain a persistent challenge for hop growers. Hop plants are susceptible to pests like spider mites and diseases such as powdery mildew. Managing these threats requires significant investment in pest control measures and resistant plant varieties, increasing production costs and affecting market stability.
High Production Costs: The production of hops involves high costs related to labor, equipment, and land. Additionally, the need for specialized harvesting equipment and the maintenance of trellis systems further escalate expenses. These high production costs can limit the entry of new growers into the market and constrain the expansion of existing operations.
USA Hops Market Government Initiatives
USDA Specialty Crop Block Grant Program (2018): The USDA Specialty Crop Block Grant Program has been instrumental in supporting the hops industry. This program provided funding to enhance hop breeding programs, focusing on developing disease-resistant and high-yield varieties. The initiative has improved the overall quality and sustainability of hop production, benefiting growers and the broader market.
2018 Farm Bill: The 2018 Farm Bill included provisions specifically for the hop industry, such as crop insurance for hop growers. This insurance mitigates financial risks associated with adverse weather conditions and crop failures. The Farm Bill's support has been crucial in stabilizing the hop market and encouraging investment in hop production.
Sustainable Agriculture Research and Education (SARE) Program (2020): The SARE Program promotes sustainable farming practices in hop production. By funding research and educational initiatives, the program encourages hop growers to adopt environmentally friendly practices. In 2020, the program allocated USD 2 million to support sustainable hop farming projects, significantly impacting the market's shift towards sustainability.
USA Hops Future Market Outlook
The USA hops market is projected to grow steadily. This growth will be driven by the continuous expansion of the craft beer industry, increasing consumer preference for diverse beer flavors, and ongoing innovations in hop breeding and processing.
Future Market Trends:
Sustainable Farming Practices: There is a growing trend towards sustainable and organic hop production. Consumers increasingly prefer eco-friendly products, driving hop growers to adopt sustainable farming practices. Sustainable practices like reduced pesticide use and water conservation techniques will become more prevalent, aligning with consumer demand for sustainable products.
Diversification of Hop Varieties: The diversification of hop varieties will meet the evolving preferences of brewers is a notable trend. In 2023, the USDA reported an increase in the number of new hop varieties being cultivated, focusing on unique flavors and disease resistance. Varieties like Sabro and Talus have gained popularity for their distinct aromas and flavors, which will encourage brewers to experiment with new recipes and products.
Increased Use of Technology in Brewing: Technological advancements will influence the hops market. Brewers are increasingly using technology like cryo-hops and advanced extraction methods to optimize hop usage and enhance beer quality, which will demand for high-quality, technologically advanced hop products.
Please Note: It will take 5-7 business days to complete the report upon order confirmation
Table of Contents
100 Pages
- 1. USA Hops Market Overview
- 1.1 USA Hops Market Taxonomy
- 2. USA Hops Market Size (in USD Bn), 2018-2023
- 3. USA Hops Market Analysis
- 3.1 USA Hops Market Growth Drivers3.2 USA Hops Market Challenges and Issues3.3 USA Hops Market Trends and Development3.4 USA Hops Market Government Regulation3.5 USA Hops Market SWOT Analysis3.6 USA Hops Market Stake Ecosystem3.7 USA Hops Market Competition Ecosystem
- 4. USA Hops Market Segmentation, 2023
- 4.1 USA Hops Market Segmentation by Product (in value %), 20234.2 USA Hops Market Segmentation by End User (in value %), 20234.3 USA Hops Market Segmentation by Form (in value %), 2023
- 5. USA Hops Market Competition Benchmarking
- 5.1 USA Hops Market Cross-Comparison (no. of employees, company overview, business strategy, USP, recent development, operational parameters, financial parameters and advanced analytics)
- 6. USA Hops Future Market Size (in USD Bn), 2023-2028
- 7. USA Hops Future Market Segmentation, 2028
- 7.1 USA Hops Market Segmentation by Product Type (in value %), 20287.2 USA Hops Market Segmentation by End User (in value %), 20287.3 USA Hops Market Segmentation by Form (in value %), 2028
- 8. USA Hops Market Analysts’ Recommendations
- 8.1 USA Hops Market TAM/SAM/SOM Analysis8.2 USA Hops Market Customer Cohort Analysis8.3 USA Hops Market Marketing Initiatives8.4 USA Hops Market White Space Opportunity Analysis
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