May 28, 2024
Hopped Malt Extract Market

Hopped Malt Extract Market Is Expected To Be Flourished By Increasing Demand From Craft Beer Brewers

Hopped malt extract is a type of malt extract that contains hops in addition to malted barley. It is commonly used by craft brewers in the production of beers, especially pale ales and IPAs. Hopped malt extract provides flavors of hops without the hassle of adding hops separately during the brewing process. It saves time for craft brewers and ensures consistency in flavor with each batch. The global craft beer market has seen tremendous growth over the past decade, driven by rising popularity of unique flavors and experimentation among consumers. Many microbreweries and pub brewers rely on hopped malt extracts as they offer convenience without compromising on taste.

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 Dynamics:

One of the key drivers for the growth of the hopped malt extract market is the increasing demand from craft brewers. In recent years, number of microbreweries and craft breweries have grown significantly across major markets such as Europe and North America. These smaller brewers prefer hopped malt extracts as they eliminate the need for separate hop additions and mash filtering processes, reducing complexity of operations. Hopped extracts allow craft brewers to focus on recipe development and scaling up production efficiently. The rising popularity of IPAs, pale ales and session ales among beer drinkers has further prompted craft brewers to rely on hopped extracts to infuse bold hop aromas and flavors in their beers.

Another factor fueling the market growth is the convenience and consistency offered by hopped malt extracts. By utilizing pre-hopped liquid and dry extracts, craft brewers can ensure batch-to-batch consistency without much effort. This guarantees similar taste with each brewing cycle and helps smaller brewers focus on sales, marketing and expanding operations. The all-in-one solution provides ease of use and storage. With increasing demand for unique craft beers, hopped extracts provide a reliable solution for craft and home brewers alike to simplify operations and scaling up production.

Segment Analysis

The global hopped malt extract market can be segmented into two types- liquid malt extract and dried malt extract. The dried malt extract segment holds the major share in the market currently. Dried malt extracts are gaining popularity owing to their longer shelf-life and lower production costs compared to liquid extracts. They are preferred by home brewers and small scale commercial breweries.

PEST Analysis

Political: There are no significant political influences affecting the hopped malt extract market currently. Most countries allow production and trade of hopped malt extracts freely.
Economic: The overall economic growth is positively impacting the beer industry which is a major end-use sector of hopped malt extracts. Developing economies with rising disposable incomes present new opportunities.
Social: Rising social acceptance of beer consumption, especially craft beers, is fueling the demand for hopped malt extracts from small breweries. Customers prefer flavored beers made using natural ingredients like hopped malt extracts.
Technological: Advanced processing technologies help hopped malt extract manufacturers enhance qualities like flavor, color stability and shelf-life. New extraction methods aid higher yields. Automation reduces production costs.

Key Takeaways

The Global Hopped Malt Extract Market Growth 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.

North America currently leads in terms of consumption owing to high craft brewing activities in the USA and Canada. Hopped malt extract producers are eyeing growth opportunities in Asia Pacific with rising beer demand from China, India and other developing nations.

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. These players are focusing on new product launches, collaborations and expanding manufacturing facilities to consolidate their presence and cater to the increasing demand.

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