Hops Extract Market Outlook

The global hops extract market is projected to reach approximately USD 1.5 billion by 2035, growing at a CAGR of about 6.0% during the forecast period from 2025 to 2035. This growth is attributed to the increasing demand for craft beers and innovative brewing processes, which have significantly heightened the need for high-quality hops. Moreover, the rising consumer awareness regarding the health benefits associated with hops extracts, such as anti-inflammatory and antioxidant properties, is further fueling market expansion. The versatility of hops extracts in various applications, including dietary supplements and pharmaceuticals, is broadening their market reach. Additionally, the growing trend towards natural ingredients in the food and beverage industry is also contributing to the market's robust growth trajectory.

Growth Factor of the Market

Several growth factors contribute to the expanding hops extract market, making it a focal area for businesses and investors alike. Firstly, the craft beer industry has witnessed exponential growth in recent years, driving the demand for unique hops varieties and extracts that enhance flavors and aromas. This trend is complemented by the rising number of microbreweries and craft breweries globally, all of which are keen on differentiating their products through quality hops extracts. Secondly, the increasing consumer inclination towards health and wellness is fostering a shift from synthetic to natural products, including dietary supplements that utilize hops extracts for their therapeutic benefits. Thirdly, the expanding applications of hops extracts in the cosmetics and pharmaceutical sectors are also pivotal, as these industries seek natural alternatives for enhancing product efficacy. Furthermore, technological advancements in extraction methods are improving the quality and yield of hops extracts, further enhancing their market appeal. Finally, the changing lifestyle trends towards organic and natural foods are encouraging manufacturers to incorporate hops extracts into a range of consumables.

Key Highlights of the Market

• The global hops extract market is projected to reach USD 1.5 billion by 2035.
• The market is expected to grow at a CAGR of 6.0% from 2025 to 2035.
• Craft beer production is a significant driver for the demand for hops extracts.
• Increasing consumer focus on health and wellness is shifting preferences towards natural ingredients.
• Hops extracts are finding innovative applications in pharmaceuticals and cosmetics.

By Product Type

Liquid Hops Extract:

Liquid hops extract is increasingly gaining popularity due to its ease of use and ability to blend seamlessly into various brewing processes. This form of hops extract offers brewers a concentrated source of flavor and aroma, allowing for precise control over the final product's taste profile. Furthermore, liquid extracts are favored in larger brewing operations for their efficiency, as they can be mixed easily into large batches without the need for extensive preparation. The convenience associated with liquid hops extracts, combined with the demand from craft brewers seeking unique flavor profiles, continues to drive growth in this segment.

Powdered Hops Extract:

Powdered hops extract has carved out a niche in the market, primarily because of its versatility and ease of storage. This form of hops extract is ideal for manufacturers who require a concentrated product that can be easily transported and stored without degradation. The powdered format is particularly beneficial for applications outside traditional brewing, such as in dietary supplements where precision in dosage is essential. Additionally, the ability to easily integrate powdered hops into various formulations, such as health bars or beverages, is a significant advantage that propels its demand in the market.

Pellet Hops Extract:

Pellet hops extract remains a staple in the brewing industry, valued for its consistency and reliability. This form undergoes a pelleting process that compresses the hops, making it easier for brewers to measure and apply the desired amount without losing potency. The popularity of pellet hops is also due to their stability and longer shelf life compared to whole hops, allowing brewers to maintain flavor profiles over extended periods. As a result, the pellet hops extract segment is expected to witness sustained growth, especially among traditional and larger-scale brewing operations.

Capsule Hops Extract:

Capsule hops extract is emerging as a significant segment, primarily driven by the health and wellness trend among consumers. This form provides a convenient way for individuals to incorporate the benefits of hops into their daily routine, particularly for those looking for natural remedies for anxiety and sleep issues. The growth in the dietary supplements market is boosting the demand for capsule hops extract, as more consumers turn to natural products. Furthermore, advancements in nutraceutical formulations are enhancing the appeal of capsule hops extracts, making them a preferred choice among health-conscious consumers.

Oil Hops Extract:

Oil hops extract is gaining traction primarily due to its unique aromatic properties and versatility. Used in both brewing and aromatherapy applications, oil extracts are recognized for their ability to enhance flavor and scent. The rise in the popularity of craft beers has increased the demand for oil hops extracts, as brewers explore various combinations to create distinctive flavor profiles. Additionally, the cosmetic industry is also beginning to utilize oil hops extracts for their potential skin benefits, thereby broadening the scope of applications and further driving growth in this segment.

By Application

Brewing:

The brewing industry remains the largest application segment for hops extracts, accounting for a significant share of the global market. Hops extracts are essential in imparting flavor, aroma, and bitterness to beer, making them a critical ingredient for brewers. The increasing number of craft breweries and the growth of the craft beer movement are major factors contributing to the rising demand for hops extracts. As brewers experiment with different hop varieties and formulations, the need for high-quality hops extracts has surged, positioning this segment for continued expansion in the coming years.

Dietary Supplements:

Dietary supplements are becoming a prominent application area for hops extracts, driven by growing consumer awareness regarding health and wellness. The health benefits of hops, such as their potential calming effects and ability to promote better sleep, are increasingly appealing to health-conscious consumers. The pharmaceutical and nutraceutical industries are also exploring the incorporation of hops extracts in various products, enhancing their therapeutic appeal. As the dietary supplement market continues to thrive, so too will the demand for hops extracts in this segment, with a wide range of formulations being developed to cater to diverse consumer needs.

Cosmetics:

Hops extracts are finding innovative applications within the cosmetics industry, where their antioxidant and anti-inflammatory properties are highly valued. As consumers increasingly seek natural and organic ingredients in their skincare routines, hops extracts are gaining attention for their potential benefits in formulations. Skincare products that incorporate hops extracts are marketed for their ability to soothe and nourish the skin, making them attractive to consumers looking for effective, natural solutions. The cosmetics segment is poised for growth as the trend towards natural beauty products continues to accelerate.

Pharmaceuticals:

In the pharmaceuticals sector, hops extracts are being researched for their potential medicinal properties, particularly pertaining to anxiety relief and sleep disorders. The increasing focus on natural remedies and holistic health solutions is propelling interest in hops extracts as viable alternatives to synthetic medications. With ongoing research and development efforts aimed at exploring the full therapeutic potential of hops, this application segment is likely to witness significant growth over the forecast period.

Food & Beverages:

Hops extracts are increasingly being utilized in various food and beverage products beyond traditional brewing. Their unique flavor profiles are being incorporated into a range of applications, including non-alcoholic beverages and specialty foods. The trend towards health-conscious and functional foods is also driving the demand for hops extracts, as they can offer additional health benefits. As food and beverage manufacturers continue to innovate and seek to differentiate their products, the versatility of hops extracts positions this segment favorably for future growth.

By Distribution Channel

Online Stores:

Online stores have emerged as a significant distribution channel for hops extracts, providing consumers with easy access to a wide range of products. The convenience of shopping online, combined with the vast selection and competitive pricing, has made this channel increasingly popular among consumers. Additionally, online platforms often provide valuable information regarding product sourcing and quality, which is particularly important in the health and wellness sector. As e-commerce continues to grow, the online sales of hops extracts are expected to expand, driven by the increasing trend of buying health products online.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets play a crucial role in the distribution of hops extracts, particularly in the food and beverage sector. These retail outlets offer consumers the ability to purchase hops extracts alongside other baking or brewing supplies, creating convenience for both amateur and professional brewers. The presence of established brands in these stores also fosters consumer trust and supports the purchasing decisions of individuals looking for quality hops extracts. As the popularity of craft brewing and home brewing continues to rise, this distribution channel is well-positioned for growth.

Specialty Stores:

Specialty stores, particularly those focused on brewing supplies or natural products, serve as vital distribution channels for hops extracts. These stores often provide a curated selection of high-quality hops extracts and can offer expert advice to consumers on their uses and applications. The personalized shopping experience and the ability to source unique varieties cater to a niche market that values quality and expertise. As consumer interest in crafting unique beverages and health products grows, specialty stores are likely to see increased demand for hops extracts.

Brewery Tasting Rooms:

Brewery tasting rooms are becoming an essential distribution channel, particularly for local craft breweries. They provide a unique opportunity for breweries to showcase their hops extracts while engaging directly with consumers. Customers can sample different brews and learn about the hops used, enhancing their appreciation for the product. As the craft beer movement continues to thrive, tasting rooms will increasingly contribute to the sales and promotion of hops extracts, allowing consumers to discover and purchase unique products directly from the source.

Others:

Other distribution channels, including direct sales through manufacturers or wholesalers, also play a role in the hops extract market. This channel often caters to larger breweries or businesses that require bulk purchases of hops extracts. Direct sales can provide consumers with better pricing and access to exclusive products not available through traditional retail outlets. As the market matures and diversifies, these alternative distribution channels will continue to play a part in the overall growth and accessibility of hops extracts.

By Ingredient Type

Alpha Acid Hops Extract:

Alpha acid hops extract is a crucial ingredient in brewing, primarily known for imparting bitterness to beer. It plays a vital role in balancing the sweetness of malt, making it a fundamental aspect of the brewing process. The demand for alpha acid extracts is closely linked to the growth of the craft beer industry, where brewers seek to create distinctive flavor profiles. As craft breweries continue to proliferate, the demand for high-quality alpha acid hops extracts is expected to rise, driving growth in this ingredient segment.

Beta Acid Hops Extract:

Beta acid hops extracts are gaining attention for their unique flavor and aroma characteristics, which can enhance the complexity of various brews. While not as dominant as alpha acids in terms of bitterness, beta acids offer aromatic benefits that brewers are increasingly exploring. The rise of innovative brewing techniques and the quest for unique flavor combinations are creating opportunities for beta acid extracts, positioning them as a valuable ingredient in the evolving landscape of craft brewing.

Polyphenols Hops Extract:

Polyphenols hops extracts are recognized for their antioxidant properties, contributing to the health benefits associated with hops. This ingredient type is gaining traction in the dietary supplements and cosmetics sectors, where natural antioxidants are highly sought after. The growing awareness of the health benefits of polyphenols is driving demand in both functional foods and wellness products, making this segment one of the more promising areas for growth as consumer preferences shift towards health-focused ingredients.

Essential Oils Hops Extract:

Essential oils hops extracts are garnering interest for their aromatic properties and versatility in various applications. These extracts are exploring opportunities in the cosmetics and aroma therapy industries, where their soothing and calming effects can enhance product offerings. As consumers increasingly prioritize natural and organic products, essential oils hops extracts are well-positioned to capture market share in both personal care and wellness sectors, driving further expansion.

Flavonoids Hops Extract:

Flavonoids hops extracts are emerging as a niche ingredient type, recognized for their potential health benefits, including anti-inflammatory and antioxidant effects. This ingredient type aligns with the growing trend towards functional foods and natural supplements. As research continues to uncover the benefits of flavonoids, their incorporation into dietary supplements and health products is expected to rise, propelling demand for flavonoids hops extracts in the market.

By Region

The North American hops extract market is one of the largest globally, owing to the region's strong brewing culture, particularly in the United States. Craft brewing has seen exponential growth in recent years, leading to an increased demand for a diverse range of hops extracts. It is estimated that North America will account for approximately 40% of the global market share by 2035, with a CAGR of around 6.5% during the forecast period. The region's focus on innovation and quality in brewing is expected to keep driving the demand for hops extracts, making it a key player in the global market landscape.

Europe also plays a significant role in the hops extract market, with a rich heritage in brewing traditions and a plethora of craft breweries. The European market is expected to account for around 30% of the global market share by 2035, with a steady growth rate of approximately 5.0% CAGR. The increasing trend towards organic and natural ingredients in both food and beverage products is further fuelling the demand for hops extracts in this region. Additionally, the growing interest in health and wellness has led to an exploration of hops extracts in dietary supplements and cosmetics, bolstering the market's growth potential. The region's emphasis on quality, innovation, and sustainability will continue to shape the market dynamics for hops extracts.

Opportunities

One of the most significant opportunities in the hops extract market lies in the growing trend of craft brewing, which has rejuvenated interest in diverse hop varieties and their extracts. The craft beer movement has transformed the brewing landscape, prompting both established and new breweries to explore new flavor profiles and innovative brewing techniques. This movement not only drives demand for traditional hops extracts but also encourages the integration of specialty and unique hops varieties into products, presenting an opportunity for suppliers to introduce new offerings. Additionally, as consumers become more adventurous in their tastes, the potential for hops extracts to be used in unconventional applications, such as in non-alcoholic beverages and specialty foods, expands the market landscape even further.

Moreover, the rising consumer focus on health and wellness opens up additional avenues for growth in the hops extract market. Hops are increasingly recognized for their potential health benefits, including their effects on anxiety and sleep quality. This recognition has led to a surge in interest from the dietary supplement and nutraceutical sectors, where hops extracts can be incorporated into various formulations. As the market for natural remedies continues to expand, there is substantial potential for companies to innovate and develop new products that leverage the health benefits of hops extracts. The cosmetics industry also presents growth opportunities, with increasing consumer demand for natural ingredients that promote skin health and well-being. Together, these factors create a dynamic environment ripe for new product development and market expansion.

Threats

Despite the opportunities available in the hops extract market, several threats could impact growth trajectories. One of the major threats is the volatility of hop prices, which are influenced by supply chain disruptions, climatic changes, and fluctuations in demand. As the brewing industry continues to rely heavily on specific hops varieties, any shortage or drastic price increase can create challenges for manufacturers. Additionally, the growing popularity of alternative ingredients in brewing, such as adjuncts and other flavoring agents, may divert some attention away from traditional hops, leading to potential reductions in demand. Also, if craft breweries encounter financial difficulties or market saturation, the overall demand for hops extracts could taper off, creating uncertainty in the marketplace.

Another pressing concern for the hops extract market is the regulatory landscape surrounding natural ingredients and health claims. Different regions may have varying regulations governing the use of hops extracts in food, beverages, and supplements, which can complicate market entry for manufacturers. Compliance with stringent regulations can result in increased operational costs and could deter smaller companies from entering the market. Increased scrutiny over product safety and efficacy may also lead to challenges in consumer trust if brands fail to meet expectations. Consequently, the evolving regulatory environment may present hurdles that the industry must navigate to achieve sustainable growth.

Competitor Outlook

• Hollingsworth & Vose
• Barth-Haas Group
• Yakima Chief Hops
• Hopsteiner
• Meridian Hops
• Brewers Supply Group
• Bines & Brews
• American Hops Company
• Hops Direct
• Northeast Hops Alliance
• Hops Extracts, LLC
• Green Gold Hops
• Hop Union
• YCH Hops
• Osborne Hops

The competitive landscape of the hops extract market is characterized by a mix of established players and emerging companies, all vying for market share in an increasingly dynamic environment. Key market players are continuously striving to innovate their product offerings and enhance the quality of hops extracts to meet the growing demands of craft brewers and health-conscious consumers alike. The competition is intensified by the rising number of craft breweries, which have become significant consumers of hops extracts, placing pressure on suppliers to deliver unique and differentiated products. In this landscape, companies that focus on sustainability, quality sourcing, and innovation are likely to gain a competitive edge, as consumers are increasingly inclined to support brands that align with their values and preferences.

Among the notable players, Yakima Chief Hops stands out due to its strong heritage and extensive experience in the hops industry. The company has a robust portfolio of hops extracts and offers various varieties to cater to the diverse needs of brewers. Yakima Chief Hops also emphasizes sustainability in its operations, aiming to minimize its environmental footprint while ensuring the quality of its hops. Another prominent player, Barth-Haas Group, is known for its global reach and innovation in hops extracts, providing a wide array of products that cater to both traditional and craft breweries. The company invests heavily in R&D to develop new hops varieties and extraction techniques, ensuring its offerings remain competitive in an ever-evolving marketplace.

Additionally, companies like Hopsteiner and YCH Hops are recognized for their commitment to quality and innovation, contributing to the overall growth of the hops extract market. Hopsteiner has established itself as a leader in the extraction and distribution of hops, focusing on high-quality products that meet the needs of brewers. YCH Hops emphasizes the importance of collaboration with brewers to understand their unique requirements, helping them develop tailored solutions. These companies, along with several others, are expected to play a crucial role in shaping the future of the hops extract market as they navigate challenges and capitalize on emerging opportunities.