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.
ROMANIA: Beer market drops 16% in last two years
Beer consumption per capita in 2010 recorded a value of 78 liters, continuing the descending trend started in 2009 and proving the fact that the economic situation has affected consumers and their consumption habits.
The Members of “Brewers of Romania” Association – Bergenbier, Heineken Romania, Romaqua Group, United Romanian Breweries and Ursus Breweries – despite the difficult situation, have invested 51 million euros last year and the contribution to the state budget through various taxes (excise, VAT, personal taxes and social insurance contributions) has reached 270 million euros, up by 7 million euros compared with 2009.
“Beer is a national industry, the most recent statistics showing that 99% of beer consumption in Romania is covered by domestic production”, said Jan Derck van Karnebeek, president of the “Brewers of Romania” Association.
At this point the five companies members of the “Brewers of Romania” Association reached a total volume of 15.3 million hectoliters, with 4.4% less compared to 2009, and offer a total of over 4100 jobs in the 10 beer factories located in several cities all over the country. The beer industry generates a total number of 96 400 employees, in its factories and also in related sectors such as hospitality, retail, suppliers, and distributors.
Consumer’s preferences in terms of packaging were kept constant: PET holds a percentage of 49.3%, 31.7% the glass bottle, the can is 16% and 3% the beer on draught.
“Although the beer industry in 2010 faced a series of changes due to the economic recession, strongly affecting the level of investment and labor, and also the closure of some breweries, we want that through our sustained efforts to maintain stability and also the recovery of this sector with a mainly local production.”, said Constantin Bratu, General Manager of the ” Brewers of Romania ” Association.
New Members of “Brewers of Romania” Association
Starting this year, two new members have joined the “Brewers of Romania” Association, which opens the representativeness activities to manufacturers of malt and hops.
Thus, Soufflet Malt Romania and Association of Hops Producers from Romania will support our efforts to promote the beer culture in Romania, to educate consumers about responsible consumption of beer and to inform about the benefits of this beverage made from natural ingredients.
These two raw material producers operate their activities in Romania in nine factories and farms and mobilize a total number of 134 employees, contributing annually to the state budget with over two million euros.
„Brewers of Romania” Association was established in 2004 and represents the beer producers from Romania, both locally and internationally. The current members are five of the largest beer producers in Romania, and starting from 2011 the producers of hops and malt, the raw material required for all beer, have joined the Association.
Since January 2008, the organization is a member of the “Brewers of Europe” Association, considered the voice of the European beer industry in front of various international institutions and organizations. Founded in 1958, in Brussels, the organization has today 27 members and represents the interests of approximately 4,000 producers of the beer industry in Europe. Moreover, the Brewers of Europe Association represents and defends the interests of over 2.5 million people who owe their jobs to production and beer selling.
27 Mar. 2011