Hopped Malt Extract Market Size and Forecast

Hopped Malt Extract Market

The 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 by mixing hops into malt extract during the production process. It is a thick, dark brown liquid that adds flavor, color, and bitterness to beer. Hopped malt extract is primarily used by homebrewers and microbreweries to produce craft beers. It provides convenience as all the essential ingredients like malt, hops, and yeast are combined in single product. This eliminates the need for separate addition of hops and makes the brewing process simpler.

Market key trends:

The global craft beer market has been witnessing significant growth over the past few years owing to rising consumer preference for premium and unique beers. According to the Brewers Association, more than 7,500 craft breweries were reported in the United States at the end of 2021, up from around 8,000 in 2020. The increasing number of microbreweries and craft breweries around the world has boosted the demand for hopped malt extracts as these products provide simplicity and consistency in beer brewing. Major players are focusing on developing new hopped malt extract varieties with unique flavors to assist craft brewers in creating diversified beer portfolios. This trend is expected to continue and drive the hopped malt extract market during the forecast period.

Porter’s Analysis

Threat of new entrants: New entrants face high capital requirements to build plants and gain brand acceptance.

Bargaining power of buyers: Large buyers such as brewers have significant bargaining power due to their volume buys.

Bargaining power of suppliers: Few suppliers exist for raw materials like barley, thus giving them pricing power.

Threat of new substitutes: Potential threat comes from syrups, flavors, and concentrates that provide hop and malt characteristics.

Competitive rivalry: Intense competition exists among existing players to maintain market share.

SWOT Analysis

Strengths: Strong brand recognition and loyal customer base for some key players. Higher aroma and flavor profile versus hop extracts.

Weaknesses: Processing is capital intensive. Prone to price fluctuations of agricultural inputs.

Opportunities: Growth in craft beer industry driving demand. Innovation in specialty extracts and ingredients.

Threats: Rising environmental awareness favoring substitutes. Intense competition affecting pricing.

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 consumption of craft beers globally. The US craft beer market grew at 7% CAGR between 2015 to 2021, contributing to higher demand.

Regional analysis North America currently dominates the market and is expected to continue its lead, growing at 5% CAGR during the forecast period. This is attributed to large craft breweries driving volumes in the US. Europe is the second largest market growing at 7% CAGR on account of large number of microbreweries in countries like UK, Germany and Belgium. Asia Pacific is expected to be the fastest growing region due to rising incomes and Westernization of tastes in countries like China, India and Australia.

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. Koninklijke DSM and Muntons plc lead the market with wide product portfolios and geographic presence.