Each year BarthHaas publish timely statistics on global hop and brewing industries, as well as insights into the latest agronomic and economic trends. It is one constant in a market that is always changing.
If you want to get straight to the details, you can…
…or you can read our summary below.
In 2021, both global hop acreage and global hop production increased. This is the eighth consecutive year of acreage growth, which is led by the US and Germany who account for 73 percent of global hop acreage. While Australia is responsible for a relatively small portion of global hop production, HPA’s Victorian farm expansion is adding to this statistic. This year marked a significant milestone, with the completion of an AUD$35million capital expansion project that involved planting 300 new hectares of in-demand Aussie hops like Eclipse®, Galaxy® and Vic Secret™.
The global pivot towards flavour and aroma varieties has resulted in record high alpha acid levels for the third year in a row. Accordingly, our Aussie hops impact in beer is expected to remain strong, with oil content equal or above the 5-year average for all varieties. Read our full crop report here.
Above-average production volumes have led to oversupply of the market. This has become apparent through the decrease in longer-term hop contracts, and the increase in restructuring hop contracts and delaying call-offs. This surplus, coupled with an unprecedented increase in production costs, is a dangerous combination that will have to be addressed through immediate acreage adjustments.
It is likely the beer industry will shift towards equilibrium once the hospitality industry eases back into normal operating hours around the world, but the lasting effects of coronavirus are still creating production delays, supply shortages and cost increases. These challenges have only been intensified by the conflict in Ukraine, imposed by Russia.
Global beer consumption did not collapse as much as initially predicted, with many countries experiencing a significant recovery in 2021. Consequently, global beer production increased by 4 percent, but is yet to return to pre-pandemic levels.
While some hops are in surplus, Aussie hops continue to enjoy strong demand from brewers everywhere. This means crop 2023 is heavily contracted, and brewers are encouraged to communicate their Aussie hop requirements to our sales team and enter into rolling hop contracts for supply security.
A bit about BarthHaas:
HPA are regional representatives of the global BarthHaas group, which is the world’s largest supplier of hop products and services.
BarthHaas operates across all continents, providing support to its members along the whole value supply chain: from breeding and growing through to processing and the marketing of hops and hop products.
Their innovation centres, Barth Innovations in the UK and Haas Innovations in the US, are dedicated to research and development. We have access to their results, which means our customers can take advantage of the full potential of hops. Because your beer is our passion.