Hopped malt extract is a concentrated liquid or powder form of malt produced by further processing malt to increase the concentration of soluble carbohydrates and flavours. It provides fermentable extract and hop character to beers. Hopped malt extract is used as a base ingredient in many craft beer styles to maintain consistency between batches while allowing for adjustment of bitterness, colour, and flavours. The craft beer industry has seen exponential growth in recent years fuelled by rising popularity of specialty beers among millennials and generation Z. As smaller craft breweries look to replicate signature beer styles efficiently at large volumes, demand for hopped malt extract from these businesses has increased significantly.

The global hopped malt extract market is estimated to be valued at US$ 9.41 billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising application of hopped malt extract in craft brewing is a major driver of market growth. The thriving craft beer industry has increased uptake of hopped malt extracts as they help craft brewers standardise beer recipes and ensure consistency of flavours between batches. They also simplify the brewing process for smaller craft producers and enable replication of complex beer styles at larger scales. Additionally, growing health-conscious consumer preference for low-alcohol and low-carb beverages is augmenting demand for hopped malt extracts from light beer and alcoholic seltzer producers. Hopped malt extracts allow manufacturers to achieve signature hop aromas and flavours without adding extra calories and alcohol to products. These factors are expected to propel the hopped malt extract market expansion over the forecast period.

Segment Analysis

There are two key segments in the Hopped Malt Extract market – liquid hopped malt extract and powder/dried hopped malt extract. The liquid hopped malt extract segment currently dominates the market and accounts for around 60% share. Liquid hopped malt extract is preferred by many brewers as it provides superior consistency and bittering ability during the brewing process compared to powder/dried variants.

PEST Analysis

Political: There are no significant political risks impacting the Hopped Malt Extract market currently. However, any changes in regulations surrounding alcoholic beverage production could indirectly influence demand.
Economic: The market is expected to grow at a steady pace in line with the projected economic growth rates across major beer producing nations. Rising disposable incomes typically drive higher beer consumption.
Social: Shifting social trends toward craft beers and experimentation with flavors have boosted demand for novel hopped malt extracts with unique taste profiles. The market has also benefited from rising health consciousness as malt extracts add body and nutrients to beers.
Technological: Major players are investing in advanced drying technologies to minimize losses during powder production. New extraction methods are also helping players customize bitterness levels as per customer requirements.

Key Takeaways

The global Hopped Malt Extract Market Growth  t is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising beer consumption worldwide and innovations raising product differentiation. The global hopped malt extract market is estimated to be valued at US$ 9.41 billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.

Regional analysis:

North America accounted for the largest share of over 35% in the global market in 2024 led by the extensive craft brewing industry in the U.S. and Canada. Europe was the second largest region driven by the large beer markets in Germany, UK, Italy and Russia. However, Asia Pacific is touted to be the fastest growing regional market with China, India and Southeast Asia emerging as high potential markets.

Key players:

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. Muntons plc and Briess Malt & Ingredients Co. have the largest market shares currently led by their wide hopped malt extract product ranges customized for lagers as well as specialty beers like ales and IPAs.

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