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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.

US beer consumption on decline for fourth year in row

The Beverage Information Group has reported in its ‘2011 Beer Handbook’ that the US beer industry is showing continuous decline, losing 1.9% to total 2.8 billion cases, for the fourth consecutive year.

The group attributed the overall losses in the industry to the continued decline in the light segment which has seen drop amongst its core brands with only pockets of growth from newly introduced line extensions.

On the other hand, the craft segment continued to report high profits due to consumers' attraction to the various flavors that craft brewers offer. In addition, imports gained 0.9% to 362.8 million cases last year.

Beverage Information Group information services manager Eric Schmidt said the super premium, craft/specialty, and flavored malt beverage category has benefited from the craft sector's growth.

According to the handbook, rising fuel costs and high unemployment rates among the beer industry's core consumers are two factors in its downfall, and the gains from super premium, craft/specialty and flavored malt beverage segment can't offset the losses in the remaining domestic segments.

15 Sep. 2011

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