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 DRINKS INDIA: the newest member of the Beviale Family
The global network of the Beviale Family is constantly growing. The latest addition to the beverage production segment is CRAFT DRINKS INDIA, which will take place for the first time on 4 and 5 July 2018 at the White Orchid Convention Center in Bangalore. The event is primarily designed for brewers, microbrewers, craft brewers and distributors, but also for newcomers seeking advice and inspiration. International manufacturers and suppliers will present their solutions at the trade fair, the focus of which will be the production of craft beer, craft spirits and wine. VLB, the Berlin-based Research and Teaching Institute for Brewing, has partnered with us to develop the conference programme. CRAFT DRINKS INDIA will be organised by NürnbergMesse India in conjunction with Indian exhibition company PDA Trade Fairs, and is tailored to the needs and interests of the fast-growing beverage market in India.
The Indian market for alcoholic drinks is developing rapidly and is one of the fastest growing beverage markets worldwide. In particular, the number of microbreweries and craft breweries is increasing steadily by around 7.5 percent a year. Whereas according to BMI Research, which is cited by the All India Brewing Association, there were just two micro-breweries registered in 2008, by 2016 there were more than 80. “Compared with Germany or the rest of Europe the numbers are still relatively low,” explains Andrea Kalrait, Director Exhibition BrauBeviale and international product manager for the Beviale Family. “But we are really noticing the momentum in the market and our new Beviale Family member is designed to take account of this. We are really looking forward to the premiere in July.” Bangalore, the cosmopolitan metropolis in the south of India, is regarded as the heart of the country's craft beer and craft drinks scene. “This makes it the ideal venue for this new member of the Beviale Family,” Kalrait says confidently.
PDA Trade Fairs is also looking forward to the premiere in July. “The synergies between NürnbergMesse India and PDA Trade Fairs are a strong driver making CRAFT DRINKS INDIA a complex event that covers numerous aspects of the sector and therefore promises to be highly relevant to all participants.”
Beviale Family offers international expertise in the beverage industry
The NürnbergMesse Group demonstrates its expertise in the beverage industry on an international stage. The “parent” event is BrauBeviale, the international capital goods exhibition for the beverage industry in Nuremberg. This is where, for over 40 years, the sector has been showcasing all aspects of the production process chain for beverages, such as raw materials, technologies, logistics and marketing. Other members of the product family are operating in important growth markets worldwide: Beviale Moscow, for example, is the first and only trade fair for the entire beverage industry in Eastern Europe. CRAFT BEER CHINA in Shanghai is becoming established as the gathering place for the Chinese craft beer community, while CRAFT BEER ITALY in Milan is the B2B platform for the Italian sector. The Beviale Family is also represented in Brazil, as the Feira Brasileira da Cerveja in Blumenau is “supported by BrauBeviale”. The latest addition to the family is CRAFT DRINKS INDIA in Bangalore. Other projects are in the planning phase. www.beviale-family.com
Beviale Family events:
CRAFT BEER CHINA: 16 - 18 May 2018
CRAFT DRINKS INDIA: 4 - 5 July 2018
BrauBeviale: 13 - 15 November 2018
Beviale Moscow: Spring 2019
CRAFT BEER ITALY: 27 - 28 March 2019
Feira Brasileira da Cerveja: 1st half of 2019
7 Mar. 2018