June 16, 2024

Hopped Malt Extract Market Primed for Growth Due to Advancements in Malt Processing Technologies

Hopped malt extract is a syrup produced from malt of barley or wheat that has been concentrated and then hopped during processing. It is used to provide both fermentable sugars and hopped qualities to beer. The major advantages of using hopped malt extract in beer making include consistency, convenience and cost-effectiveness compared to traditional mashing methods. With the growing popularity of home brewing, hopped malt extract has become a popular choice among amateur brewers.

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 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.

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