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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. Brewers urged to react to changing population – study

Brewers must target the US' fast-growing Hispanic population and young drinkers through marketing and product innovation to maintain its status as the country's most-popular category, according to a survey.

Hispanics in the country have a “less strong preference for beer”, according to David Decker, president of Consumer Edge Insight, who conducted the survey. The online study, conducted among around 2,500 drinkers in June, found that Latino Americans like beer and spirits about equally, 34% and 33% respectively, while 27% named wine as their drink of choice and 5% said flavoured malt beverages.

Based on the survey figures, African-American respondents also like beer and spirits equally, 35% for each, with 20% naming wine and 7% naming flavored malt beverages (FMB) as their favourite.

Caucasians responding favoured beer over other categories by a wider margin, with 35% naming beer as their favourite, followed by spirits (30%), wine (26%), and FMBs (4%).

Among 21-27 year-olds, the study showed, spirits (36%) were favoured over beer (34%). A fifth (19%) favoured wine, while 9% preferred FMBs and 3% cider.

“While beer is still the most-consumed and is the favourite alcoholic beverage of most people, there are reasons for brewers to worry.” said Decker. “Targeting these groups with relevant marketing and product innovation will be critical for the beer category to maintain its consumption advantage.”

Overall, 39% of drinkers named beer as their favourite category, followed by spirits at 31%, wine at 25%, flavored malt beverages at 4%, and alcoholic cider at 1%.

21 Nov. 2012



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