by 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 adding hops to dried malt extract during the brewing process, which enhances the bittering and flavoring properties. It is widely used in the production of craft beer, ale, lager, and other fermented beverages as it provides a strong malt backbone along with hoppy aromatic qualities. The growing craft brewery industry has significantly driven the demand for specialty ingredients like hopped malt extracts. It offers brewers flexibility and cost-effectiveness over using whole hops. The clean, robust flavors of hopped malt extracts also appeal to health-conscious consumers seeking low-calorie alcoholic beverages.
Market Dynamics:
The global hopped malt extract market is expected to witness substantial growth over the forecast period, driven by growing demand from craft breweries and rising health consciousness among consumers.
Increasing number of craft breweries: There has been a steady rise in the number of craft breweries across major markets such as North America, Europe, and Asia Pacific in recent years. According to the Brewers Association, there were over 8,000 craft breweries in the U.S. alone in 2021. The demand for specialized ingredients from these smaller breweries is fueling the growth of the hopped malt extract market.
Segment Analysis
The Hopped Malt Extract Market is dominated by liquid malt extract segment which accounts for over 60% share. Liquid malt extract is easy to use and incorporate in a wide variety of food and beverage applications such as alcoholic beverages, baked goods, confectionery products etc. It provides good fermentability to beers and possesses properties like color stabilization, foam enhancement etc. This wide range of functionalities and ease of use have made liquid malt extract the preferred form in the hopped malt extract market.
PEST Analysis
Political: Regulations pertaining to alcohol content and import/export of beers across countries impacts the hopped malt extract market.
Economic: Rising disposable incomes and growing craft beer industry are driving growth of the market. However, fluctuations in raw material prices pose challenges.
Social: Changing consumer preferences towards specialty, premium and craft beers are fueling demand for hopped malt extracts.
Technological: Advances in processing and extraction methods have led to development of standardized hopped malt extracts with customizability in terms of bitterness. This is helping players to cater to niche requirements of end users.
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 consumer inclination towards specialty beers with unique tastes imparted by hopping.
North America dominates the hopped malt extract market with over 40% share owing to well-established craft brewing industry in the US and Canada. Presence of major players and consumers’ affinity for innovative beers drive the market in the region.
Asia Pacific is projected to be the fastest growing market for hopped malt extracts, expanding at a CAGR 8% during 2023-2030. Rapid urbanization, rise in disposable incomes and growing social acceptability of alcohol are boosting the regional market.
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. These players are focusing on development of customized solutions, expansion into untapped markets and acquisition 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
