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.
Craft Beer Growth Pushes Number Of Breweries In U.S. Higher Than Ever Before
In many other industries, it wouldn't be unusual to set a record of this sort. There are probably more companies that make video games, ice cream and air conditioners than ever before, too.
But the rapid growth in the number of breweries open within U.S. borders has been the most striking proof of the country's craft beer revolution for at least two decades. Breweries have been sprouting like kudzu across the country, attracting plenty of media attention.
Yet every plaudit about the growth of craft beer up until now has called for an asterisk. There were more craft breweries open than at any time -- since Prohibition.
That's because at the turn of the 20th century, there were thousands of breweries operating in the U.S., but the 1919 passage of the Eighteenth Amendment sent that number plummeting to near zero. There was a healthy bump in the total after Prohibition, only to be followed by a gradual winnowing of contenders thanks to the efforts of a few gigantic beer corporations to yoke the entire beer market into a few brands: Bud, Coors, Miller et al.
By the industry's post-Prohibition nadir in 1979, there were just 44 breweries operating in the United States, according to Beer Institute data. Growth was subdued but significant in the '80s, as the pioneers of craft beer, such as Sierra Nevada in California, started to inspire imitators. By 1993, there were nearly 500 breweries making beer in America, the most since World War II. The explosion has continued since then, with an average of about 115 breweries opening every year since 1990 -- eventually reaching the all-time record set in 2012. Here's a chart from the Beer Institute illustrating that growth:
Most of the 2300 breweries that have opened in the past two decades still produce a tiny fraction of amount the beer that their corporate rivals brew. And because sales of major brands have long been on the decline, the American beer market actually shrank consistently in dollar value for years -- though it's grown a bit so far in 2012.
The recent history of the American beer industry, in other words, is one of increasing competition and diversity, but not increasing size -- which, to judge by the beer selection in almost any respectable grocery or liquor store in the country, is terrific for drinkers of American beer.
14 Dec. 2012