June 18, 2024
Hopped Malt Extract Market

The Global Hopped Malt Extract Market Growth Is Driven By Increasing Demand For Craft Beer

The hopped malt extract market has witnessed significant growth in recent years owing to the increasing consumption of craft beer globally. Hopped malt extract provides taste and aroma to craft beers along with color and bitterness. It enhances the taste of craft beers and helps achieve the desired alcoholic content. Hopped malt extract allows small craft brewers to produce consistent quality beers using simple brewing systems.

The global hopped malt extract market is estimated to be valued at US$ 10.85 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving the growth of the hopped malt extract market is the growing craft breweries globally. Small craft brewers are increasingly adopting hopped malt extracts as they provide consistency in taste and quality of craft beers using simple brewing systems. According to the Brewers Association, in 2020, over 8,400 craft breweries were operational in the United States, up from around 8,000 in 2019. The growth of independent craft breweries is expected to continue over the forecast period, thus augmenting the demand for hopped malt extracts. Another factor fueling the market growth is the increasing popularity of hazy or New England style India Pale Ales (IPAs) which require generous additions of hopped malt extracts to achieve the signature hue and flavors. Consumption of hazy or New England style IPAs has grown exponentially in the past few years. This rising demand is subsequently propelling the hopped malt extract market forward.

Porter’s Analysis

Threat of new entrants: Low – Hopped malt extract brewing requires high capital investment in brewing equipment and distribution network making it difficult for new players to enter.
Bargaining power of buyers: Moderate – Presence of several manufacturers providing buyers with variety of options but brand loyalty keeps bargaining power in check.
Bargaining power of suppliers: Moderate – Key raw materials like malts and hops have few global suppliers but rising demand increases their bargaining power.
Threat of new substitutes: Low – Hopped malt extract offers distinct bitter taste profile making direct substitutes rare in the brewing industry.
Competitive rivalry: High – Market populated with numerous private label and branded products leading to pressure on pricing and competitive marketing campaigns.

Key Takeaways

The Global Hopped Malt Extract Market Size is expected to witness high growth over the forecast period. The global hopped malt extract market is estimated to be valued at US$ 10.85 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.

Regional analysis: North America dominates global hopped malt extract market currently due to high consumption of craft beers in the US. However, Asia Pacific is expected to witness fastest growth till 2031 led by increasing disposable incomes, growing middle class and rising young adult population in China and India showing affinity for new flavors.

Key players: 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, and Huajia Food Technology. Koninklijke DSM N.V. and Muntons plc collectively account for over 30% of global production capacity.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it