Global hop acreage declined -3.3% in 2023 versus 2022, the second consecutive year of decline and a “significantly sharper” reduction versus the -0.3% year-over-year (YoY) decline recorded in 2022, global hop supplier BarthHaas reported this week.
There were approximately 60,641 hectare (ha), or 149,847 acres, of hop cultivation area across the globe in 2023, a decline of -2,048 ha (-5,061 acres) compared to 2022.
Despite the decline, hop production increased double-digits (+11.5%) in 2023, to 118,415 metric tons (mt), an increase of +12,216 mt YoY. The increase followed a -18.8% decline in 2022.
Alpha production increased +9.4%, to 11.839 mt (+1,021 mt YoY), after declining -23.7% in 2022.
Meanwhile, global beer production declined -0.9% YoY, to 1.88 billion hectoliters (approximately 1.58 billion barrels), suggesting that hop inventory levels are still significantly above demand.
“Further indications that the breweries still hold more than enough inventory are the significant delays in call-offs of contracted hop products still being reported, as well as the increasing number of requests from breweries for contract restructuring,” BarthHaas wrote. “The effects are making themselves felt throughout the entire hop industry supply chain, from production to processing to marketing.”
The U.S. remained the No. 1 country by hop yield (47,601 mt), increasing its yield by more than 1,500 mt YoY, despite hop acreage declining by nearly 2,000 ha (-4,942 acres), to 22,545 ha (55,710 acres), a -9% decrease YoY and the second consecutive year of acreage reduction.
Alpha production remained relatively consistent, accounting for 11.8% of total yields, or 5,623 mt, up from 5,421 mt in 2022 (11.7% of yields).
“Towards the end of the 2022 harvest, the industry turned its attention to the contract market,” BarthHaas wrote. “Almost all the ensuing market activity over the winter months was focused on renegotiating existing contracts and reducing aroma variety acreage for the coming season. This led to cutbacks in acreage of almost all the leading aroma varieties, including the frontrunners Citra and Mosaic, as well as several mid-ranking varieties such as Azacca, Strata, Sabro, and Cashmere.”
Citra remained the No. 1 hop variety grown in the U.S. for the sixth consecutive year, “despite a substantial reduction” in acreage (-26.5%), reducing the variety’s share of total U.S. acreage from 20% in 2022, to 16.3% in 2023.
CTZ (Columbus, Tomahawk, Zeus) moved up to No. 2 due to a +40.7% increase in acreage, the only top five hop variety to increase acreage YoY, and the largest increase of all monitored varieties in the U.S. It was a significant change for the variety, which recorded the largest acreage reduction of all hop varieties in 2022. The gain of +743 ha (+1,836 acres) increased CTZ’s share of total U.S. acreage to 11.7%.
Mosaic was the third largest variety, with 9.7% share of total U.S. acreage, an -18.9% decline YoY (-496 ha, or -1,225 acres), to 2,135 ha (5,276 acres).
Cascade, which recorded the largest acreage increase in 2022, “forfeited nearly all its gains,” with acreage declining -12.2% (-252 ha, or -623 acres), to 1,815 ha (4,485 acres), accounting for 8.3% of total U.S. acreage.
Simcoe remained at No. 5, with 7.7% share of total acreage, recording a -5.8% decline (-104 ha, or -257 acres), to 1,702 ha (4,206 acres).
CTZ was the No. 1 hop variety in the U.S. by share of total yield (15%), followed by Citra (13%), Mosaic (11%), Cascade (8%) and Simcoe (6%).
Germany, the second largest hop supplier, housed 20,629 ha (50,975 acres) of hops in 2023, increasing slightly from 20,605 ha (50,916) in 2022, marking the third consecutive year of relatively unchanged hop acreage for the country. Hop yield increased significantly (+20%), from 34,406 mt in 2022, to 41,234 mt in 2023. Despite the yield increase, the average yield percentage – approximately two mt per ha – was “6% lower than that of the last five crop years.”
The top five hop varieties by acreage were also the top five varieties by share of yield volume:
- Herkules (36% share of acreage, 46% share of yield);
- Perle (16% of acreage, 14% of yield);
- Hallertau Tradition (13% of acreage, 12% of yield);
- Hallertau Magnum (9% of acreage, 7% of yield);
- Hersbruck Spaet (4% of acreage, 3% of yield).
Hop acreage across all of Europe was relatively flat: 32,168 ha (79,489 acres), down from 32,305 ha (79,827 acres) in 2022. Production increased significantly, from 48,612 mt, to 58,843 mt.
All other regions recorded the following changes:
- Total Americas acreage -2,200 ha (5,436 acres), to 22,956 ha (56,726 acres); yield +1,227 mt, to 48,064 mt;
- Asia acreage +175 ha (432 acres), to 2,679 ha (6,620 acres); yield +523 mt, to 6,703 mt;
- Africa acreage +3 ha (7.4 acres), to 408 ha (1,008 acres); yield +25 mt, to 740 mt;
- Australia/Oceania acreage +112 ha (277 acres), to 2,431 ha (2,431 acres); yield +211 mt, to 4,065 mt.
2024 Acreage Reduction Will ‘Not Eliminate’ Global Hop Surplus
Global hop acreage is expected to decrease for the third consecutive year in 2024, declining -7%, to 56,100 ha (138,626 acres).
“Although this decline in acreage will reduce the structural hop surplus, it will not eliminate it,” BarthHaas wrote.
U.S. hop acreage is expected to decrease -18% in 2024, to 18,026 ha (44,543 acres), according to BarthHaas, citing figures from the U.S. Department of Agriculture.
Aroma varieties, which declined -19% in 2023, are expected to decline -22% in 2024, “bringing its decline in total since 2022 to nearly 40%.” Bitter variety acreage is expected to decline -8%, with the ratio of aroma to bitter varieties changing from 72:28 in 2023, to 68:32 in 2024.
“The entire U.S. market is still significantly oversupplied with flavor and aroma varieties despite the massive reductions in the previous year,” BarthHaas wrote. “Hop marketers and growers are doing all they can to rebalance the market.
“The coming harvest will show whether this further reduction in acreage proves to be sufficient to reduce inventories noticeably and adjust supply to changing demand patterns.”