by The global Hopped Malt Extract Market is estimated to be valued at US$ 1.28 Billion In 2022 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hopped malt extract is produced from the malted barley and contains alpha acids derived from hops. It is used in the brewing of craft beers and adds bitterness, color, and flavor to the final beer product. The hopped malt extract market has been growing rapidly over the years due to increasing consumption and demand for craft beers across the globe. These extracts allow smaller craft breweries to produce beer with consistent quality and taste at a lower cost compared to traditional brewing methods.
Market key trends:
One of the major trends driving the growth of the hopped malt extract market is the rising popularity of craft beers. According to the Brewers Association, the total number of operating breweries in the United States surpassed 8,000 in 2020, with craft breweries accounting for over 85% of the share. The growing preference for unique flavors and smaller batch brews among millennials and Gen Z consumers has boosted demand for craft beers. This has encouraged the production and launch of innovative beers using hopped malt extracts. Moreover, manufacturers are launching new formulations of hopped malt extracts with different flavor profiles to assist craft brewers in developing unique craft beer varieties.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the hopped malt extract market is low as it requires high capital investment to set up a manufacturing facility and obtain necessary certifications.
Bargaining power of buyers: The bargaining power of buyers is high. The Hopped Malt Extract Market has large number of regional and local players providing buyers with variety of options at competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there are numerous suppliers of raw materials, established players have long-term contracts with suppliers reducing supplier power.
Threat of new substitutes: The threat of substitutes is low as hopped malt extract provides unique functional benefits over alternatives like regular malt extracts and hops.
Competitive rivalry: The competitive rivalry in the market is high due to presence of large number of regional players competing on pricing and product quality.
Key Takeaways
The global hopped malt extract market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing demand from craft breweries. The craft brewery industry has witnessed tremendous growth over the past few years with growing popularity of specialty beers worldwide.
On the regional front, North America leads the global hopped malt extract market and is expected to continue its dominance over the forecast period. This is attributed to growing number of craft breweries and increasing sales of craft beer in the region. Meanwhile, Asia Pacific region is anticipated to be the fastest growing market owing to changing taste preferences and rising disposable income in developing countries such as China and India.
Key players operating in the hopped malt extract market are Koninklijke DSM N.V., Muntons plc, Associated British Foods plc, The Malt Company, IREKS GmbH, Doehler, Briess Malt & Ingredients Co., Malteries Soufflet, PureMalt, Huajia Food Technology. Major players are focusing on new product development and capacity expansion strategies to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
