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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. Habeco opens new $23 million brewery

State-owned Ha Noi Beer and Beverage Corp (Habeco), the largest brewery group in northern Vietnam with a market share of 80%, last weekend reportedly opened a new brewery in the northern port city of Hai Phong. The new $23 million plant is said to have a production capacity of 50,000,000l of beer per year.

In January 2011 Ha Noi-Vung Tau Brewery Co, a joint venture between Habeco and Carlsberg AS opened a brewery in Ba Ria-Vung Tau. The $42 million plant in Ba Ria-Vung Taucan produces 50 million litres of Ha Noi and Carlsberg beers annually, and was said to double its capacity later.

Vietnam is one of the largest beer markets in the Asia-Pacific region and is said to have one of the highest growth potentials in the region. According to figures from the Vietnam Ministry of Industry and Trade, 2.38 billion litres of beer was consumed in the country in 2010, 19.8% up from 2009. It is expected to reach 2.8 billion litres this year. Vietnam posted total beer output of 349 million liters in the first four months of this year, up 8.1% compared to the same period in previous year. Of the total output, State-owned breweries accounted for 59.3%, foreign-invested breweries for 29.3% and local private breweries for the remaining 11.4%.

According to Vietnams Deputy Minister of Industry and Trade Ho Thi Kim Thoa, the Vietnamese beer market is set to “become more and more competitive as more companies enter the fray”.

25 Jun. 2011

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