Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer Business (Pivnoe Delo) #3-2010
The brewing industry development and the dynamics of the Russian beer market in 2010 have been considerably different from other regions of Eastern Europe. While the markets of Ukraine, Kazakhstan, and Belarus started going out of the recession, Russia saw one more curve down and Russian brewing companies have reduced their sales both by volume and by value. There was a detention of recession as negative consequences of the economic crisis were aggravated by a sudden fall of beer affordability. This was caused by excise rate growth which has risen by 200% to 9 rubles per 1 liter since January 2010.
- The branch economy: dramatic excise change
- Raw materials markets
- Market segmentation
- Beer sorts
- Companies' positions
- AB InBev
In 2010 the Ukrainian beer market has stabilized but the recession changed the sale structure of the leading producers notably. The market has become more polarized and dynamic, we saw new economy and premium brands. The leaders’ reaction to the trends were different which yielded different results, and in general small breweries showed a good sale increase.
- The market analysis
- Leading brands
- Companies’ positions
- AB InBev
- Carlsberg Group
- Obolon ltd
- Independent manufacturers
Miass Machine-Building Plant was known as a defense industry enterprise before 90th. But the development of mini brewery market gave a start for applying high-end technologies and high-precision equipment in producing reliable breweries of high quality. Recently the company has celebrated 20-year anniversary of successful work on the Russian brewery equipment market.
Not a very long time ago the USA had a beer market completely dominated by large companies. Small brewers’ efforts were not even considered as commercial projects and existed only thanks to their enthusiasm. Their development was organic – the microbreweries saw a period of boom, the awkward age crisis and now it is experiencing a new curve of growth. The economic recession has only slowed down the dynamics of the craft beer sales, but it did not stop the craft breweries from taking a small share away from the large companies.
Matthew Brynildson, of Firestone Walker Brewing Company, – one of the well-known “enthusiastic brewers” of the first wave is sharing his analysis of the development of the microbreweries and craft beer market in the USA. We got the impression that the processes the USA apply for our area as well.
9 Oct. 2010