U.S. Hop Export Increases Slightly to 1K Tons in November 2022

U.S. Hop Exports

In November 2022, shipments abroad of hops increased by 29% to 1K tons, rising for the third month in a row after three months of decline. In general, exports, however, saw a pronounced decline. The pace of growth was the most pronounced in March 2022 with an increase of 77% against the previous month. As a result, the exports attained the peak of 2.5K tons. From April 2022 to November 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, hop exports skyrocketed to $19M (IndexBox estimates) in November 2022. Over the period under review, exports, however, saw a pronounced downturn. The most prominent rate of growth was recorded in March 2022 with an increase of 96% against the previous month. As a result, the exports attained the peak of $56M. From April 2022 to November 2022, the growth of the exports remained at a lower figure.

Exports by Country

Belgium (248 tons), the UK (183 tons) and Canada (168 tons) were the main destinations of hop exports from the United States, with a combined 59% share of total exports. These countries were followed by Germany, Chile, China, Brazil, South Africa, New Zealand, Japan, India and Argentina, which together accounted for a further 36%.

From January 2022 to November 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by New Zealand (with a CAGR of +65.4%), while the other leaders experienced more modest paces of growth.

In value terms, Belgium ($5.9M), Canada ($3.1M) and Germany ($2.9M) constituted the largest markets for hop exported from the United States worldwide, with a combined 61% share of total exports. the UK, China, Brazil, Chile, New Zealand, Japan, South Africa, India and Argentina lagged somewhat behind, together comprising a further 33%.

New Zealand, with a CAGR of +64.8%, saw the highest growth rate of the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Exports by Type

Hop cones; ground, powdered or in the form of pellets; lupulin (971 tons) was the largest type of hop exported from the United States, accounting for a 96% share of total exports. Moreover, hop cones; ground, powdered or in the form of pellets; lupulin exceeded the volume of the second product type, hop cones; neither ground nor powdered nor in the form of pellets (36 tons), more than tenfold.

From January 2022 to November 2022, the average monthly rate of growth in terms of the volume of export of hop cones; ground, powdered or in the form of pellets; lupulin amounted to -2.9%.

In value terms, hop cones; ground, powdered or in the form of pellets; lupulin ($19M) remains the largest type of hop exported from the United States, comprising 96% of total exports. The second position in the ranking was taken by hop cones; neither ground nor powdered nor in the form of pellets ($726K), with a 3.7% share of total exports.

From January 2022 to November 2022, the average monthly growth rate of the export volume of hop cones; ground, powdered or in the form of pellets; lupulin stood at -3.2%.

Export Prices by Country

In November 2022, the hop price stood at $19.3 per kg (FOB, US), surging by 8.8% against the previous month. Over the period under review, the export price recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in July 2022 when the average export price increased by 26% m-o-m. Over the period under review, the average export prices reached the maximum at $22.3 per kg in March 2022; however, from April 2022 to November 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of destination: the country with the highest price was Belgium ($23.9 per kg), while the average price for exports to South Africa ($12.9 per kg) was amongst the lowest.

From January 2022 to November 2022, the most notable rate of growth in terms of prices was recorded for supplies to China (+7.4%), while the prices for the other major destinations experienced more modest paces of growth.

Factors Affecting Hop Prices

The average price of hops in the United States has been steadily rising over the past few years. This is due to a number of factors, including an increase in demand from craft breweries and a decrease in supply due to poor weather conditions in key hop-growing regions.

While the average price of hops is still relatively low compared to other brewing ingredients, it has been increasing at a faster rate than the prices of other commodities. This is largely due to the fact that demand for hops has been growing much faster than the overall supply. In particular, the craft brewing industry has been driving up demand for hops, as they use more hops per barrel than large commercial breweries.

Another factor that has contributed to the increase in hop prices is the limited supply of certain varieties of hops. Some hop varieties are in short supply due to bad weather or other problems with cultivation. The vast majority of hops are grown in just a few countries, with the United States being one of the largest producers. However, even with increased production, there are still not enough hops to meet demand.

Source: IndexBox Market Intelligence Platform