Australia Hops Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report (2026-2035)

Key Market Trends and Insights

• The hops market in Australian Capital Territory is expected to grow at a CAGR of 11.1% over the forecast period.
• The Victoria hops market accounted for 45.3% of the total market share in 2025.
• By type, Chinook hops are projected to record a CAGR of 11.2% over the forecast period.
• By application, the pharmaceuticals sector is expected to grow at a CAGR of 10.8% during the forecast period.

Market Size and Forecast

• Market Size in 2025: AUD 144.41 million
• Projected Market Size in 2035: AUD 371.17 million
• CAGR from 2026 to 2035: 9.90%
• Dominant Regional Market: Western Australia

Australian breweries are raising the quality control standards as they are getting more exposed to exports. Therefore, hop consistency has become a priority for them during procurement discussions. On the other hand, growers are gradually discontinuing spot sales and focusing more on structured supply agreements. Such agreements provide a rationale for investments in pellet uniformity, high-quality storage, and the control of harvest time, propelling the Australia hops market growth.

Hop Products Australia revealed in May 2025 that it is carrying out a commercial-scale expansion for its Eclipse and Vic Secret hop varieties in Tasmania and Victoria. The two varieties yield high oil concentration and strong, stable aroma expression for dry-hopping uses. Hop growers are also prioritizing varietal reliability more than experimenting with yield expansion, accelerating the Australia hops market value. Product development is now being shaped by brewer repeatability rather than farm-side volume.

Australian hop growers are also adjusting processing investments. Kilning optimization, pellet uniformity, and vacuum-stable packaging are becoming primary strategies. In September 2025, Kirin Holdings Company, Limited (Kirin) developed a seedling cultivation technology that enhances heat and drought tolerance in hops. Producers are releasing smaller batch pellet formats for independent breweries that need flexibility. This Australia hops market trend is a result of hop growers and brewers working more closely during recipe development stages. Hop suppliers are positioning themselves to be flavor partners, and not just raw material vendors. This change is affecting contract structures and long-term supply discussions.

Recent Developments

December 2025 – DNA Brewing Partnership Preserved Hop Federation Supply Stability

DNA Brewing announced the acquisition of Hop Federation, that not only allowed the latter to continue providing the contracted volume of hops, but also helped to bring a level of stability to the craft beer supply relationships across Australasia. Other brewers can thus lock in long-term hop contracts by partnering directly with growers, thereby ensuring supply continuity and pricing.

October 2025 – Hop Lun Expanded Global Manufacturing Through Strategic Acquisitions

Hop Lun through strategic acquisitions notably Morocco, expanded its manufacturing capacity thus, strengthening its global supply chains for hop extracts and other advanced brewing ingredients. Such developments in the Australia hops market encourage processors to look at such overseas processing partnerships. This would enable them to diversify extract formats and also become more competitive in exports.

July 2025 – Powder Monkey Group Acquired Akasha Wayward Brewing Co

Powder Monkey Group took over Akasha Wayward Brewing thus, not only adding to its branded craft portfolio but also making its vertically integrated brewing operations more robust against the competition. Hop suppliers can therefore, join forces with multi-brand brewing groups in order to create exclusive hop blends aimed at beer portfolio differentiation.

May 2024 – Black Hops Brewing Acquired by New Ownership Group

New investors acquired Black Hops Brewing to scale up production, broaden distribution, and stabilize the company's operation. Hop growers can use this Australia hops market opportunity to partner with breweries in varietal development, securing consistent offtake agreements.

Key Drivers and Trends

Proprietary Hop Varietals Replacing Commodity Supply

Australia's hop growers are shifting their production from standard bittering hops to unique aroma-centric strains. Farmers are channeling their funds into breeding schemes that emphasize oil stability and performance. For example, Abstrax offers highly specific hop varietal extracts without synthetic carriers or any of the undesirable flavor notes, that are sometimes found in dry-hop aroma oils, since August 2022. Brewer contracts increasingly specify varietal performance metrics rather than alpha acid ranges. This Australia hops market trend favors growers with in-house breeding capability. It also raises barriers for new entrants lacking genetic portfolios.

Processing Technology Upgrades at Farm Level

Australian growers are modernizing their kilning systems to minimize heat damage to volatile oils. Pelletizing lines are being adjusted to provide an even density and less oxidation. Departments of state agriculture have identified post-harvest efficiency as a main focus area. Producers who supply vacuum, sealed, nitrogen, flushed packaging are becoming more successful in exports. In October 2023, Clayton Hops launched a suite of advanced hop products designed to cater to the brewing industry’s evolving interest beyond standard hop pellets, accelerating the Australia hops market penetration. This trend shifts value creation from field yield to post-harvest control.

Export-Oriented Contract Farming Structures

Australian growers are entering multi-year supply agreements with overseas craft brewers and regional distributors. These contracts prioritize consistency and delivery timing over spot pricing flexibility. Trade facilitation programs supporting agri-exports are helping small-scale growers access new markets. Contract farming reduces revenue volatility and justifies investment in varietal scale-up. This model strengthens grower-brewer collaboration and reduces dependence on domestic beer consumption cycles. According to the Australia hops market analysis, the country now exports hops to over 25 countries.

Climate-Resilient Hop Cultivation Practices

Climate variability is compelling operational changes across hop farms. Growers are testing water-efficient irrigation and soil health programs to stabilize yields. Agricultural agencies are supporting trials focused on drought resilience. These practices are influencing varietal selection, making climate-tolerant hops commercially relevant. This trend in the Australia hops market encourages long-term demand rather than seasonal optimization. Producers integrating resilience into cultivation are gaining buyer confidence. In November 2025, the state of Victoria invested AUD 12 million to set up a new research hub and glasshouse to develop climate-resilient crops.

Premiumization Driven by Craft and Specialty Beers

Craft brewers continue to influence hop demand patterns. Specialty beers require distinct aroma signatures. Australian hop producers are responding with limited-release harvest lots and traceable origin batches. This approach mirrors wine industry practices. Government export branding initiatives supporting premium agricultural goods indirectly support this trend. Suppliers focusing on terroir and consistency are strengthening brand equity, boosting the Australia hops market expansion. In October 2025, Bondi Beer expanded into the United States with a new Australian lager brewed with Galaxy hops, capturing bright tropical notes and coastal flavor for global draft markets.

Australia Hops Market Share

By type, cascade accounts for the largest share of the market due to balanced aroma profile preferred by contract brewers

Cascade continues to dominate the Australia hops market revenue mainly because it can be used in many ways and it gives consistent results in brewing. Breweries count on Cascade for its well-balanced citrus scent and understated bitterness, which pair with pale ales, lagers, and seasonal releases. Farmers prefer this category as it gives them a good return on their investment with less risk compared to newer varieties. The processing plants are geared towards cascade pelletization and storage, thereby minimizing post-harvest changes. In April 2024, Cascade Brewery launched the limited-edition First Harvest pale ale brewed with fresh Tasmanian Enigma plus dry Cascade and Galaxy hops, showcasing tropical fruit and red-fruit aromatics.

Amarillo represents the fastest-growing variety within the Australia hops market scope as brewers seek stronger aroma intensity without complex blending. Its distinct orange and floral notes support single-hop beer styles, popular in premium craft segments. Australian growers are scaling Amarillo acreage selectively due to tighter cultivation requirements. Brewers are willing to commit long-term contracts to secure supply, supporting grower investment. Amarillo’s growth is driven by branding and differentiation rather than volume demand.

By application, alcoholic beverages register a substantial share of the market share of the market due to sustained craft and export beer demand

Alcoholic beverages dominate hop consumption in Australia, led by craft and premium beer production. Brewers require consistent aroma and bitterness to maintain brand identity. Hop suppliers align cultivation and processing schedules directly with brewing calendars. Pellet uniformity and storage stability matter more than alpha variability. This segment drives most varietal development and contract farming structures. In January 2026, Reckless Brewing released a limited-edition BX Mid Lager with subtle citrus hop note, boosting brand exposure locally and internationally.

As per the Australia hops market report, cosmetics represent a fast-growing application as these extracts gain traction for antioxidant and skin-calming properties. Australian processors are supplying hops for controlled extraction rather than brewing. This requires different drying and handling standards. Cosmetic buyers demand traceability and consistency, while hop suppliers entering the cosmetics sector are diversifying revenue streams without expanding acreage.

Australia Hops Market Regional Analysis

By region, Western Australia secures the leading market position due to large-scale commercial hop cultivation capacity

The Western Australia hops market dominates production due to its capacity for large-scale, export-oriented cultivation. Growers in the region operate centralized processing facilities designed for high-volume drying, pelletizing, and cold storage. This structure supports long contract runs and consistent batch quality. Brewer-aligned planting decisions are common, with acreage committed years in advance. Infrastructure investment favors efficiency over experimentation; meanwhile logistics access also simplifies outbound export handling. As a result, Western Australia provides baseline supply stability for national and international buyers. In June 2025, Mountain Culture announced that it will rebrand the two Fox Friday venues in Melbourne and Hobart and take over brewing operations for both sites.

The Australian Capital Territory (ACT) emerges to be a fast-growing regional market with cultivation focused on specialty and research aspects. The production size is limited, but the quality levels are relatively high. Farmers are cooperating with experimental brewers, universities, and pilot breweries to explore new aroma profiles. A major emphasis is laid on controlled crop yields, selective picking, and accurate handling after harvesting. These initiatives are geared towards obtaining a premium price rather than increasing the quantity.

Competitive Landscape

Prominent Australia hops market players are rebranding themselves around exclusive varietals, more rigorous post-harvest handling, and greater technical collaboration with brewers. They are adjusting their breeding programs to be in line with specific beer styles, thus they would be able to provide growers with a predictable aroma expression over years. Another differentiator has been processing precision. Cutting down on flavor divergence, which is a concern among export-focused breweries, suppliers are being aided through investments in low-oxygen pelletizing, cold-chain storage, and batch-level traceability.

Most of the Australia hop companies are giving priority to the signing long-term supply contracts which secure volumes and specifications, thus the dependence on volatile spot transactions is lessened. At the same time, sustainability credentials are impacting the composition of buyer shortlists.

Key Players

Ausmauco Biotech

Established in 2013 and headquartered in China, Ausmauco Biotech focuses on agricultural biotechnology solutions. In the hops market, the company supports breeding, plant health, and yield stabilization programs. It works closely with growers to improve disease resistance and crop consistency.

Barth-Haas Group

Established in 1794, Barth-Haas Group is headquartered in Nuremberg, Germany. In Australia, the company provides processed hops and brewing solutions while focusing on consistency, traceability, and advanced processing. Barth-Haas Group caters to large-scale breweries as well as microbreweries. Its strength lies in aroma and supply chain management.

Brewers Select Limited

Established in 2013 and headquartered in United Kingdom, Brewers Select Limited specializes in Australian hop varieties. The company focuses on proprietary breeding and grower partnerships and it serves domestic and export brewers. Brewers Select emphasizes varietal performance and processing quality. Its strategy centers on brewer-aligned innovation, accelerating the Australia hops market penetration.

Carlsberg Breweries

Carlsberg Breweries, founded in 1847 and based in Denmark, is involved in the hops industry through sourcing and brewing activities. In Australia, the company exerts its influence indirectly through procurement standards. Carlsberg focuses on sustainability and consistency. The company's demands influence the expectations of suppliers in the hop industry.

Other key players in the market include DVKSP Impex, Heineken, Hop Head Farms, Hops Direct, John I. Haas, and New Zealand Hops, among others.

Key Highlights of the Australia Hops Market Report

• Detailed varietal-level segmentation with brewing relevance.
• Insight into processing-led value creation.
• Competitive analysis focused on supplier-brewer alignment.
• Regional production dynamics shaping national supply.
• Strategic outlook emphasizing consistency and premium positioning.

Why Rely on Expert Market Research?

• Deep expertise in agricultural and beverage ingredient markets.
• Tailored intelligence aligned with brewer and grower needs.
• Balanced primary and secondary research approach.
• Actionable insights supporting sourcing, investment, and expansion decisions.

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