by The hopped malt extract market has been gaining significant traction in recent years. Hopped malt extracts are known to provide a smooth and full-bodied taste to beers, along with imparting greater depth of flavor and aroma. They help craft brewers achieve consistent beer quality in a cost-effective manner. Hopped malt extracts save substantial time and effort for craft brewers as compared to producing beer from malted barley. The convenience of using hopped malt extracts has been a key driver for their increasing adoption among small and mid-sized craft breweries.
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 2030.
Key Takeaways
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.
The craft beer industry has witnessed steady growth over the past few years and offers lucrative opportunities for hopped malt extracts. Consumer demand for unique flavors, convenience, and ready-to-drink beers is driving craft breweries to rely on hopped malt extracts. The growing popularity of private label and contract brewing is also expected to boost demand.
Globally, North America dominated the hopped malt extract market in 2019. However, Asia Pacific is likely to emerge as the fastest growing regional market between 2024 and 2030 due to the increasing number of microbreweries and brewpubs in China, India, and Southeast Asian countries.
Market Drivers
The rising demand from craft breweries is a major factor driving the growth of the hopped malt extract market. As the number of microbreweries and craft breweries increases globally, the demand for convenience products like hopped malt extracts is also witnessing a parallel rise. Their advantages of consistency, reduced production time and costs make them attractive options for small brewers.
PEST Analysis
Political: The hopped malt extract market is governed by various regulations related to food safety, labeling, and ingredients. Changes in such regulations may impact the overall demand.
Economic: Changes in the overall economic conditions like GDP growth, consumer spending, beer industry trends affect the demand for hopped malt extract from breweries and beverage manufacturers.
Social: Changing consumer preferences towards gluten-free, organic, and craft beer varieties influence the product demand. Increasing health consciousness is encouraging low-calorie beverage consumption.
Technological: Advanced extraction techniques help manufacturers improve yield and consistency. Automation in production facilitates higher output. Adoption of quality testing methods ensures the product meets purity and taste standards.
Geographical Concentration
In terms of value, Europe dominates the global hopped malt extract market with over 40% share due to high beer consumption and presence of major brewers in countries like Germany, UK, Belgium, and Italy. North America is another prominent regional market supported by the growing craft beer movement in the US and Canada.
Fastest Growing Region
The Asia Pacific region is expected to be the fastest growing market for hopped malt extract during the forecast period. Factors such as increasing disposable income, rising young population, and growing social acceptability of alcohol are fueling beer consumption in developing countries of China, India, and Southeast Asia. This is likely to drive additional demand.
