In recent years, there has been a notable increase in the market for hopped malt extract. Hopped malt extracts are well renowned for giving beers a more complex flavor and fragrance while also giving them a smooth, full-bodied taste. They make it easier and more affordable for craft brewers to produce consistently high-quality beer. Craft brewers can save a significant amount of time and work by using hopped malt extracts instead of malted barley when making beer. Hopped malt extracts are becoming more and more popular among small and mid-sized craft breweries, largely due to their convenience.
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 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 key opportunities in the market include expanding product offerings to cater to the growing demand from home brewers and specialty beer manufacturers. There is also opportunity to develop new hopped malt extracts with different hop varieties and flavor profiles.
Advancements in malt processing technologies have enabled manufacturers to offer hopped malt extracts with consistent quality. New technologies allow for improved hopping procedures that better retain hop aromatic compounds during concentration and drying.
Market Drivers
A key driver for the Hopped Malt Extract Market is the growing popularity of home brewing globally. Young consumers in particular are showing keen interest in craft beer brewing as a hobby. Hopped malt extract has emerged as a convenient ingredient for home brewers seeking consistency and simplicity in the brewing process. The efficient product allows amateur brewers to produce beer comparable to commercially brewed craft beer with minimum effort. This is expected to significantly propel the demand for hopped malt extract over the forecast period.
Challenges in the Hopped Malt Extract Market
The hopped malt extract market faces challenges related to changing consumer tastes and preferences. With customers becoming more health conscious, they are moving away from processed foods and focusing more on natural ingredients. This has made product innovation essential to cater to evolving needs. Extract producers must also comply with stringent regulations regarding food safety, labeling and marketing claims. Rising raw material costs also put pressure on margins. Sustaining quality standards across global supply chains presents an operational challenge.
SWOT Analysis
Strength: Hopped malt extracts offer brewers convenient and standardized formulations for consistent flavors. Their long shelf life and stability eases logistics and supply chain management for beer producers.
Weakness: Further processing increases costs compared to using whole hops and malted barley directly. Extracts also cannot fully replicate the complexity attained from multi-step brewing processes.
Opportunity: Growth of craft brewing and premiumization trends opens up new markets. Innovations such as varied hop varieties and flavor profiles expand applications.
Threats: Intense competition from individual hop products and all-natural positioning of some brewers. Environmental regulations for hop farming can impact raw material supply.
Geographical Regions
In terms of value, the hopped malt extract market is currently concentrated in Europe and North America. These regions account for around 65% of global revenues fueled by strong demand from their beer industries. Growth in specialty beer styles and the culture of beer consumption continues to support high volumes in these developed markets.
The Asia Pacific region provides the fastest growth prospects for the hopped malt extract market over the forecast period. Rapid urbanization, westernization of tastes and increasing disposable incomes in developing economies are driving beer consumption in the region. Several global brewers have expanded or set up new production bases in countries such as China, India and Vietnam, benefiting extract suppliers. Rising young populations and socialization around beer drinking present lucrative opportunities.
Get more insights on Hopped Malt Extract Market
