HOPPED MALT EXTRACT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Hopped Malt Extract Market Drivers

• Surging demand for craft beer and spirits: The rising popularity of craft beer and artisanal spirits across the world is a major factor driving the growth of the hopped malt extract market. Craft brewers are using innovative hopped malt extracts to create unique flavors and enhance the aroma profile of their beers. The demand for premium craft spirits such as whiskey is also surging, creating lucrative opportunities for hopped malt extract suppliers. Market reports suggest the craft beer industry expanded at over 15% annually between 2015 and 2020. The thriving craft segment is expected to boost the application of specialty hopped malt extracts in the coming years. For instance, the Japanese Food Agency report of 2022 published that imports of craft beer shot up over 35% from 2020 to 2021 as foreign varieties gained popularity.
• Growing adoption in F&B applications: Hopped malt extracts are increasingly being used as natural flavoring and coloring agents in various food products such as bakery items, confectionery, plant-based protein products, nutritional bars, non-alcoholic beverages, and dairy items. Consumers are demanding clean-label products with natural ingredients, which is driving the use of hopped malt extracts in the F&B industry. Food manufacturers are using hopped malt extracts to add distinctive malty flavors and increase the nutritional value of products. The expanding F&B industry worldwide presents lucrative avenues for hopped malt extract manufacturers. For instance, as per the International Trade Centre, global exports of hop cones grew 11% annually between 2018 and 2021 as brewers worldwide experimented with new hop varieties and production of hop extracts rose for diverse culinary uses.
• Advancements in extraction technologies: Technological advancements in malt extraction methods are enhancing the efficiency, quality and functionality of hopped malt extracts. Manufacturers are adopting technologies such as cryogenic extraction to preserve delicate hop aromas and develop specialty flavor extracts tailored to specific beer styles. Enzyme-assisted extraction and molecular distillation techniques help obtain purer extracts with more concentrated hop flavors. Such advances have led to statistics from the European Union Laboratory for Alternatives to Animal Testing (EURL-ECVAM) showing that more than 40% of new hop varieties in development exhibit aroma-focused qualities and future market needs for hop extracts are indicated. High quality hop malt extract driving market growth.
• Rise of e-commerce platforms: The flourishing e-commerce sector worldwide has opened new sales channels for players in the hopped malt extract market. Online stores offer convenience and greater accessibility to customers across geographies. Manufacturers are leveraging e-commerce platforms to expand their consumer base and geographic reach. Small craft brewers and homebrewers are among the key consumer segments purchasing hopped malt extracts through online retail channels to experiment with flavors. The proliferation of e-commerce is thus driving the hopped malt extract demand.

Hopped Malt Extract Market Opportunities

• Growing demand from emerging economies: Developing economies such as China, India, Brazil, and Mexico represent lucrative markets for hopped malt extract manufacturers. Rising disposable incomes, increasing adoption of western lifestyles, and expanding urban populations are leading to surging demand for premium alcoholic beverages in these regions. Local craft breweries are also mushrooming in emerging markets. To capitalize on this demand, manufacturers are setting up production facilities in developing countries. With the young demographic adopting craft beers in emerging economies, significant growth opportunities exist for the hopped malt extract market. For instance, according to the Federation of Indian Beer Industry (FIBI), India's beer consumption grew by 13% in 2021 boosted by rising experimentation, social media exposure, and easing regulations on alcohol trade.
• Rising application in animal feed: Hopped malt extracts offer anti-oxidant, anti-inflammatory, and antimicrobial properties, making them suitable as natural additives for animal feed. The extracts can potentially enhance the shelf-life, digestibility and nutritional profile of feed. Leading manufacturers are conducting R&D to explore the applications of hopped malt extracts in pet food, aquafeed, and livestock feed. Positive research outcomes could significantly expand the customer base for hopped malt extract suppliers by tapping into the large animal feed industry. For instance, data from the US Department of Agriculture suggests a significant price premium, around 15%, can be earned for products labeled as containing no antibiotics or artificial additives.
• Growing demand for gluten-free offerings: Rising incidence of gluten intolerance and celiac disease worldwide has led to surging demand for gluten-free food and beverages. Certain hopped malt extract varieties made from gluten-free grains like sorghum, millet and rice cater to this consumer segment. Leading players are expanding their gluten-free product portfolio to meet the burgeoning market demand. The introduction of specialty gluten-free hopped malt extracts presents an attractive opportunity for manufacturers to attract new consumers and increase sales. For instance, the International Food Information Council Foundation's 2022 Food & Health Survey, 46% of U.S. consumers tried to avoid or reduce gluten in their diets, showing that interest remains high.
• Cannabis-infused edibles: The legalization of cannabis products in multiple countries has opened up opportunities for hopped malt extracts in cannabis-infused edibles like chocolates, baked goods, sweets, non-alcoholic beverages, etc. Hopped malt extracts can mask the bitter taste and odor of cannabis ingredients in these products. Leading suppliers have commercialized cannabis-friendly malt extracts to gain a first-mover advantage in this nascent market. As cannabis edibles gain popularity, the application scope for hopped malt extracts is expected to widen.