Updated Jan 21, 2023 08:50

Hop Market in China

Market Overview
The Chinese hop market expanded to $ in , with an increase of % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, continues to indicate a relatively flat trend pattern. As a result, consumption reached the peak level of $. From 2009 to , the growth of the market remained at a somewhat lower figure.

In value terms, hop production fell to $ in estimated in export price. Overall, production recorded a pronounced contraction. The growth pace was the most rapid in 2008 with an increase of % against the previous year. As a result, production reached the peak level of $. From 2009 to , production growth remained at a lower figure.

The average yield of hops in China shrank slightly to tons per ha in , approximately equating figures. In general, the yield, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 with an increase of %. As a result, the yield attained the peak level of tons per ha. From 2016 to , the growth of the average hop yield remained at a somewhat lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In , the hop harvested area in China reduced modestly to ha, remaining relatively unchanged against . Over the period under review, the harvested area saw a slight curtailment. The most prominent rate of growth was recorded in 2016 when the harvested area increased by %. Over the period under review, the harvested area dedicated to hop production attained the peak figure at ha in 2009; however, from 2010 to , the harvested area remained at a lower figure.


Consumption
In , the amount of hops consumed in China stood at tons, growing by % against the year before. In general, consumption saw a relatively flat trend pattern. Over the period under review, consumption hit record highs in and is likely to continue growth in the immediate term.

The size of the hop market in China expanded to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, showed a relatively flat trend pattern. As a result, consumption attained the peak level of $. From 2009 to , the growth of the market failed to regain momentum.


Market Forecast
Driven by increasing demand for hops in China, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in China increased significantly over the last fifteen-year period (from % to %). In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
China remains a net importer of hop; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.