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4-2017

Global hop market

A 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 Russia

Germany 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.

Vietnam: Annual beer consumption expected to reach 4 billion litres by 2015

Annual beer consumption in Vietnam, that is taking the second position in beer consumption in the Southeast Asian Region, after Cambodia, is expected to increase to 4 billion litres by 2015, according to the nation’s industry and trade ministry (MoIT). The country’s beer consumption has risen by an average of 20% per year since 2003. Last year around 2.7 billion litres of beer were sold in the domestic market, according to figures released by MoIT .

Leading Vietnam brewers like Saigon Beer Alcohol and Beverage Corporation (Sabeco) and Habeco which account for about 35% and 20% respectively of the country’s beer market saw a great expansion in demand for beer. “We expect to see the growth rate further with 20% in 2011,” Nguyen Quang Minh, general director of Sabeco said earlier this year. To meet the rising demand, beer producers in Vietnam have proposed to increase production capacity. The Vietnam Brewery Limited (VBL), brewer of several beer brands such as Heineken, Fosters, Tiger and Larue and member of Singapore-based APB Group Vietnam, in February proposed to boost its production. However last year total production capacity of APB Group Vietnam’s breweries reportedly reached 470 million litres and its breweries all ran at full capacity. Last week APB announced that it is to increase production capacity in its brewery in Ho Chi Minh City from 2.8 million hl to 4.2 million hl.

Last year beer imports were also increasing, with imports via official channels of popular brands like Heineken, Lucky, Corona, Budweiser and Bavaria reaching 40 million litters, according to reports. Cross-border import figures were said to amount to approximately 100 million litres. Some international beer companies such as Sapporo, San Miguel and Foster’s have already found their ways in Vietnam.

30 May. 2011

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