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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.

Thailand beer market attracts neighbors

Thailand is one of the largest alcochol markets in Southeast Asia, which amounts to 497 million litres. Beer occupies 62.93% of the total alcohol market. According to the Center for Alcohol Studies, Thais drinks 64.31 litres of alchohol drinks per capita over the year.

The beer from Laos, Myanmar and Cambodia is exported to Thailand. Each of these countries has a policy of promoting national production and sale of beer abroad, where a high demand for it remains.

The Japanese company Kirin and the Philippine San Miguel Brewery which have breweries worldwide, moved its production to Thailand. The multinational brewing company Carlsberg has breweries in Laos, Myanmar and Cambodia. It is very convenient to deliver beer to Thailand from these frontier territories.

The authorities believe that the income from beer sales should benefit the state: to contribute to the construction of roads, support the army and finance the work of civil servants.

The promotions and sponsorship of sports events increases the interest in alcohol in Thailand and other countries. Moreover, the consumer interest in imported beer in the country is growing.

11 Mar. 2016

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