During the extended period of the COVID-19 pandemic, changes in the consumption of alcoholic beverages in the United States have diversified compared to previous trends. There has been a decrease in beer consumption at pubs and restaurants, while consumption in personal spaces such as homes has increased. This shift has allowed for the simultaneous purchase and consumption of a variety of beverages. Additionally, heightened health consciousness has led to a trend of shifting from higher to lower alcohol content beverages, as well as an increase in the consumption of beverages with relatively lower calorie counts.
Beer Market Status
As of late 2023, total beer sales in the United States decreased by 5.1% compared to the 2022 figures. Craft beer and imported beer saw declines of 1.0% each, indicating a larger decrease in commercial beer production. In contrast, the overall beer market sales amounted to $116.9 billion, marking an increase of $1.5 billion or approximately 1.3% compared to 2022. The craft beer market reached $28.9 billion, showing a 1.7% increase from the previous year and driving overall market sales growth. Despite reduced production levels due to inflation post-pandemic, the increase in sales figures has had the most significant impact.
As of late 2023, the number of craft breweries in the United States rose by 0.9% to 9,761 from 9,675 in 2022. Meanwhile, commercial breweries decreased by 12 to 145, indicating a declining trend and reflecting increased diversity in beer consumption within the market. Consequently, the craft beer market, despite experiencing a slowdown in growth and intensifying competition, is gradually transitioning into a stage of market maturity.
As of the end of 2023, there are 196 beer breweries in Korea, with 182 of them holding small-scale brewing licenses. This marks an increase of 5 breweries from the 177 recorded at the end of 2022, despite a slowdown in growth influenced by economic downturns and reduced consumption following the pandemic.
Enhanced Community Engagement
While the overall beer market size in the United States is gradually shrinking, local breweries continue to thrive. Consumers increasingly seek unique flavors and fresh ingredients, intensifying competition in the market and prompting breweries to develop distinctive characteristics. In response, local breweries are strengthening their regional identities by using diverse local ingredients to create beers that reflect their locality. These efforts not only enhance individuality but also foster closer ties with the local economy by consuming agricultural products and creating employment opportunities. Such endeavors significantly contribute to the sustainability of local breweries, evident in the proliferation of taprooms and brewpubs (defined as establishments selling over 25% of beer brewed on-site).
In Korea as well, craft breweries are actively showcasing their regional flavors and striving to connect with local communities, with an increasing trend in launching beers using local ingredients.
The Spread of Lagers and Low-Alcohol Beers
In the past, the leading style in the craft beer market was hop-forward beers, particularly IPAs, cherished for their hop flavors. Craft beer consumers were enthusiastic about the diverse hop profiles, making these beers highly popular and central to the craft beer market. IPAs continue to thrive with various styles and hop varieties appealing to consumers.
However, lagers, which did not initially garner significant attention in the early craft beer market, are now gaining momentum. Craft breweries are increasingly producing lager-style beers, even those that previously did not brew lagers. This shift is driven by consumer preferences shifting towards lighter beers compared to the past. Alongside this trend, the low-alcohol and non-alcoholic beer markets are growing. This growth aligns with trends emphasizing health, reducing alcohol intake to mitigate negative effects, and lowering calorie consumption. Furthermore, stricter perceptions regarding activities post-drinking, such as driving, contribute to the expansion of the low-alcohol and non-alcoholic beer market. Breweries are maintaining taste and aroma while reducing or eliminating alcohol content, establishing these beverages as enjoyable options in their own right.
2024 Hop Trend
Decrease in Cultivation Area, Increase in Production
The Pacific Northwest region of the United States, encompassing states like Idaho, Oregon, and Washington, accounts for nearly all of the hops cultivated in the country, making it the largest hop-producing region globally. In 2023, the hop cultivation area in the United States decreased to 54,318 acres from 59,785 acres in 2022, a decline of approximately 9.1%. This follows a similar decrease from 60,872 acres in 2021, down by about 10.8%. This reduction in cultivation area correlates with the overall decline in beer production in the U.S., a slowdown in the craft beer market growth rate, and changes in beer trends.
Despite the 9.1% decrease in cultivation area, hop production in the United States increased to 149.2 million pounds in 2023 from 127.6 million pounds in 2022, marking a rise of approximately 2.13%. This increase was supported by high yields compared to the previous year. In the Pacific Northwest region alone, the yield per acre reached 1,915 pounds in 2023, up by about 13% from 1,694 pounds in 2022. This substantial increase in yield contributed to achieving high production levels despite the reduced cultivation area.
Increasing Alpha Production, Decreasing Aroma/Dual Purpose
The most decisive factor enabling an increase in hop yield per unit area in the Northwestern United States has been the increased cultivation of alpha hops. Depending on their purpose, hops can be categorized into aroma hops, which are primarily used to impart aroma and flavor to beer, bittering hops (alpha hops), which are mainly used to impart bitterness, and dual-purpose hops, which serve both functions. Among these, alpha hops have a higher yield per unit area, while aroma hops have a relatively lower yield. Examining the top 10 hop varieties by type in 2023, it is clear that varieties with high alpha acid levels dominate the list. These include traditionally bittering hops such as CTZ, HBC 682 (Pahto), and Chinook, along with new varieties like Helios, which also have high alpha acid levels and are expected to have high yields.
The continued popularity of Mosaic hops, along with Citra, which has been the top variety since 2018, indicates that the craft beer market still values beers with rich hop flavors. However, the sustained popularity of hops primarily used for bittering, the increasing diversity of the market, and the rising popularity of craft lagers suggest that a variety of beer styles are being brewed beyond just hop-forward beers.
The trends in the craft beer market, which symbolize diversity, are changing. Up until now, the craft beer market has been characterized by explosive growth, with brewers' identity and creativity being highly valued. Even with the continuous increase in the number of breweries, the market has consistently shown high growth rates, with relatively low competition intensity. However, with external factors such as the pandemic and inflation, coupled with the craft beer market entering a mature stage, growth rates are slowing down. Naturally, as competition in the market intensifies, the market leadership is shifting from suppliers to consumers. For craft brewers, responding to and interacting with consumer demands is becoming increasingly important. This results in changes in the cultivation area by hop variety, shifts in leading beer styles, and the emergence of new styles.
During the extended period of the COVID-19 pandemic, changes in the consumption of alcoholic beverages in the United States have diversified compared to previous trends. There has been a decrease in beer consumption at pubs and restaurants, while consumption in personal spaces such as homes has increased. This shift has allowed for the simultaneous purchase and consumption of a variety of beverages. Additionally, heightened health consciousness has led to a trend of shifting from higher to lower alcohol content beverages, as well as an increase in the consumption of beverages with relatively lower calorie counts.
Beer Market Status
As of late 2023, total beer sales in the United States decreased by 5.1% compared to the 2022 figures. Craft beer and imported beer saw declines of 1.0% each, indicating a larger decrease in commercial beer production. In contrast, the overall beer market sales amounted to $116.9 billion, marking an increase of $1.5 billion or approximately 1.3% compared to 2022. The craft beer market reached $28.9 billion, showing a 1.7% increase from the previous year and driving overall market sales growth. Despite reduced production levels due to inflation post-pandemic, the increase in sales figures has had the most significant impact.
As of late 2023, the number of craft breweries in the United States rose by 0.9% to 9,761 from 9,675 in 2022. Meanwhile, commercial breweries decreased by 12 to 145, indicating a declining trend and reflecting increased diversity in beer consumption within the market. Consequently, the craft beer market, despite experiencing a slowdown in growth and intensifying competition, is gradually transitioning into a stage of market maturity.
As of the end of 2023, there are 196 beer breweries in Korea, with 182 of them holding small-scale brewing licenses. This marks an increase of 5 breweries from the 177 recorded at the end of 2022, despite a slowdown in growth influenced by economic downturns and reduced consumption following the pandemic.
Enhanced Community Engagement
While the overall beer market size in the United States is gradually shrinking, local breweries continue to thrive. Consumers increasingly seek unique flavors and fresh ingredients, intensifying competition in the market and prompting breweries to develop distinctive characteristics. In response, local breweries are strengthening their regional identities by using diverse local ingredients to create beers that reflect their locality. These efforts not only enhance individuality but also foster closer ties with the local economy by consuming agricultural products and creating employment opportunities. Such endeavors significantly contribute to the sustainability of local breweries, evident in the proliferation of taprooms and brewpubs (defined as establishments selling over 25% of beer brewed on-site).
In Korea as well, craft breweries are actively showcasing their regional flavors and striving to connect with local communities, with an increasing trend in launching beers using local ingredients.
The Spread of Lagers and Low-Alcohol Beers
In the past, the leading style in the craft beer market was hop-forward beers, particularly IPAs, cherished for their hop flavors. Craft beer consumers were enthusiastic about the diverse hop profiles, making these beers highly popular and central to the craft beer market. IPAs continue to thrive with various styles and hop varieties appealing to consumers.
However, lagers, which did not initially garner significant attention in the early craft beer market, are now gaining momentum. Craft breweries are increasingly producing lager-style beers, even those that previously did not brew lagers. This shift is driven by consumer preferences shifting towards lighter beers compared to the past. Alongside this trend, the low-alcohol and non-alcoholic beer markets are growing. This growth aligns with trends emphasizing health, reducing alcohol intake to mitigate negative effects, and lowering calorie consumption. Furthermore, stricter perceptions regarding activities post-drinking, such as driving, contribute to the expansion of the low-alcohol and non-alcoholic beer market. Breweries are maintaining taste and aroma while reducing or eliminating alcohol content, establishing these beverages as enjoyable options in their own right.
2024 Hop Trend
Decrease in Cultivation Area, Increase in Production
The Pacific Northwest region of the United States, encompassing states like Idaho, Oregon, and Washington, accounts for nearly all of the hops cultivated in the country, making it the largest hop-producing region globally. In 2023, the hop cultivation area in the United States decreased to 54,318 acres from 59,785 acres in 2022, a decline of approximately 9.1%. This follows a similar decrease from 60,872 acres in 2021, down by about 10.8%. This reduction in cultivation area correlates with the overall decline in beer production in the U.S., a slowdown in the craft beer market growth rate, and changes in beer trends.
Despite the 9.1% decrease in cultivation area, hop production in the United States increased to 149.2 million pounds in 2023 from 127.6 million pounds in 2022, marking a rise of approximately 2.13%. This increase was supported by high yields compared to the previous year. In the Pacific Northwest region alone, the yield per acre reached 1,915 pounds in 2023, up by about 13% from 1,694 pounds in 2022. This substantial increase in yield contributed to achieving high production levels despite the reduced cultivation area.
Increasing Alpha Production, Decreasing Aroma/Dual Purpose
The most decisive factor enabling an increase in hop yield per unit area in the Northwestern United States has been the increased cultivation of alpha hops. Depending on their purpose, hops can be categorized into aroma hops, which are primarily used to impart aroma and flavor to beer, bittering hops (alpha hops), which are mainly used to impart bitterness, and dual-purpose hops, which serve both functions. Among these, alpha hops have a higher yield per unit area, while aroma hops have a relatively lower yield. Examining the top 10 hop varieties by type in 2023, it is clear that varieties with high alpha acid levels dominate the list. These include traditionally bittering hops such as CTZ, HBC 682 (Pahto), and Chinook, along with new varieties like Helios, which also have high alpha acid levels and are expected to have high yields.
The continued popularity of Mosaic hops, along with Citra, which has been the top variety since 2018, indicates that the craft beer market still values beers with rich hop flavors. However, the sustained popularity of hops primarily used for bittering, the increasing diversity of the market, and the rising popularity of craft lagers suggest that a variety of beer styles are being brewed beyond just hop-forward beers.
The trends in the craft beer market, which symbolize diversity, are changing. Up until now, the craft beer market has been characterized by explosive growth, with brewers' identity and creativity being highly valued. Even with the continuous increase in the number of breweries, the market has consistently shown high growth rates, with relatively low competition intensity. However, with external factors such as the pandemic and inflation, coupled with the craft beer market entering a mature stage, growth rates are slowing down. Naturally, as competition in the market intensifies, the market leadership is shifting from suppliers to consumers. For craft brewers, responding to and interacting with consumer demands is becoming increasingly important. This results in changes in the cultivation area by hop variety, shifts in leading beer styles, and the emergence of new styles.