Hopped Malt Extract Market Analysis Report By Type, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global hopped malt extract market size was valued at USD 6.79 billion, in 2018 and is anticipated to grow at a CAGR of 8.1% over the forecasted period, from 2019 to 2025. Increasing application of hopped malt extract in the brewing industry has led to market growth. In addition, rising consumer awareness about a wide range of flavors and styles in craft beer along with less alcohol volume is propelling the growth of this market.

In the beer brewing process, hop is a key ingredient used with other products like water, yeast, and grains. Hops give bitterness, balance the sugar and add a refreshing aroma to finished beverages. The increasing consumption of breakfast cereal and confectionery is expected to drive market growth. Further, growing application in non-alcoholic beverages is expected to contribute to positive market growth.

Small breweries majorly depend on hopped malt extract in order to innovate new types of beers to attract customers. Moreover, increasing demand for crafted beers is expected to provide further traction to the market. The hoped malt extract is heavily used in Indian pale and, stouts beers, demand for such a variety of beer is expected to augment market growth.

Lack of raw material may hinder the growth of the hopped malt extracts market. However, increasing the production of several malts such as wheat, oats, and barley is projected to open new avenues for market growth over the forecast period.

Type Insights

By type, the market is fragmented into the cascade, Amarillo, centennial and, chinook. The cascade segment held the largest market share of more than 34.0%, in 2018 owing to a wide range of applications in the brewing industry. This product is majorly used in American pale ales due to having a superior aroma and acidic nature, which is expected to witness positive growth for this segment.

Centennial and Chinook category is expected to grow with a CAGR of 8.3% and 8.9% respectively. The increasing preference for blends of different hop styles along with strong aroma and flavor is projected to drive the demand for centennials. Chinook hop is used in both craft brewers and mainstreams. Some of the common beers brew used Chinook hops which include American lagers, American barley wine, winter ale, American amber ale, and others

Application Insights

By application, the market is fragmented into beverage and food. The beverage segment led the market, in 2018 and accounted for the largest market share of more than 70.0%.  In this segment, alcoholic drinks majorly contributed to high demand. According to a trade organization, in Europe, the number of microbreweries reached more than 9500, in 2017. Hence, these factors are expected to drive the growth of this market in the next few years.

The North American and European countries such as the U.S., Germany, and U.K. are expected to have potential market growth. In addition, the government supports new breweries to increase employment generation in countries such as China, India, Mexico, Belgium, New Zealand which is expected to further drive the market growth in the near future.

Regional Insights

Europe accounted for the largest market share of around 34.0%, in 2018. This growth is attributed to increasing demand for craft beer in several European countries such as France, Italy, Germany, and the U.K. The beer drinkers from different countries like France, Italy Germany are interested to taste different types of crafted beers such as pale ales and others, this is expected to drive the regional market growth.

Asia Pacific is projected to grow at the highest CAGR of more than 8.8% during the forecast period. Increasing demand for flavored and low-volume alcohol drinks in China and India is expected to spur the growth of the hopped malt extract market in the next few years. In 2017, Kirin Beer University has reported that China is the major country in terms of consumption and market share. Further, this country is one of the top beer consumers across the globe.

Impact of COVID-19

The global market has been impacted negatively due to the spread of the COVID-19 virus. In the beverage sector, the brewing industry is the second-largest source for revenue generation. Due to this outbreak, the production of beer and the supply chain has been disrupted, as governments across the globe have restricted foreign trade and halted businesses operations. In addition, the pandemic has halted the production of beers due to declined demand for breweries, shut down pubs, bars, and restaurants. These factors have adversely affected the demand for hopped malt extract, thereby the market growth has declined to some extent.

Hopped Malt Extracts Market Share Insights

The major companies included in the market are Muntons, Coopers, Cerex, BrewDemon, Brewferm, Mangrove Jacks, and Hambleton Bard. Manufacturers are implementing several strategies such as product innovation, mergers &acquisitions to expand their geographical presence. For instance, Australia-based hopped malt extract supplier Coopers acquired Mr. Beer to boost brewing supply manufacturing in Australia.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global hopped malt extract market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Cascade
    • Amarillo
    • Centennial
    • Chinook

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Food
    • Beverage

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa