In 2023, global hop production increased despite a decrease in global hop acreage for the second year in succession. The decline in acreage was more significant than the previous year, particularly in the US. HPA idled 21% of acreage, resulting in a 26% decrease in production volume.

The global crop share of bittering hops increased to 43%, while aroma hops decreased to 57%. Our Aussie flavour hops impact in beer is expected to remain strong, with oil content equal or above the 5-year average for all proprietary hops. Read our full crop report here.

Despite the substantially below-average harvest in 2022 followed by an average harvest in 2023, inventory levels from previous years are such that the brewing industry is still well stocked and even oversupplied on some varieties. This is becoming increasingly apparent through the decrease in longer-term hop contracts, and the increase in restructuring hop contracts and delaying call-offs.

The US market remains substantially oversupplied with aroma hops despite the significant acreage reductions of the previous year. In 2024, hop producers reduced acreage by 18% in an attempt to balance supply and demand. On the contrary, Germany’s hop producers are replacing aroma hops that are surplus to demand with reliably yielding and more climate resistant bittering hops. With forward contracts covering much of the crop up to 2025, there is little likelihood of a significant reduction in acreage.

This surplus is coupled with energy, raw materials, packaging, logistics and labour costs remaining at a high level, putting pressure on the brewers’ profit margins. Global beer production decreased 1%, with significant declines in the US and Vietnam buoyed by significant increases in India, Cambodia and Australasia.

Availability of Aussie hops is currently better than ever. As global supply and demand returns to balance, we encourage our brewing customers to consider their hop requirements, and communicate them early and often.