Are Hops To Blame For Price Hike In Craft Beer?

There’s an undeniable growing demand/popularity for craft beer in the U.S. In the past few years, hundreds of new craft breweries have popped up across the country, offering beer-thirsty consumers a variety of delicious new brews. But at the same time, the price of craft beer has also increased, leaving some people to believe that hops are to blame for the pricey craft beer.

The average consumer is typically unaware of the market price of hops. They simply choose beer based on flavor and characteristics, paying little-to-no attention to the market cost of its ingredients.

Around the turn of the 21st century, however, hops were about $2-$3 bucks per pound. Fast forward to 2014 and the price of hops are now ten times more expensive at $20 per pound. Due to this trend, craft breweries are forced to raise their beer prices in order to turn a profit and remain in business.

But it’s not just the increased price of hops that’s to blame. Craft breweries, which are defined as breweries with an annual production of 2 million barrels are less, rely heavily on the use of hops as a flavoring agent. Hops are the backbone of any good beer, as it provides distinct, bold flavors that most people enjoy; therefore, craft breweries must use a heavy amount to improve their product quality and attract new customers.

Big-name breweries often use low doses of hops mixed with other ingredients to achieve their desired flavors. However, any serious beer fanatic can distinguish between a brew made with real hops and one made with non-hop ingredients. It’s the hops that bring out the bold, delicious flavors of a beer, and that’s why so many craft breweries heavily use them in their products.

“We either have to eat the cost or pass it on to the consumer, and that’s usually why beer prices go up, because hop prices go up,” said Will McCameron, owner of Brewery 85. “We try to stick to easier-to-find hops or hops that not everybody’s paying attention to,” he added.

Will craft beer continue to rise in price or will it eventually reach a plateau? Unfortunately, there’s no way to predict the future of this multi-billion dollar industry, but we can only hope that hop prices eventually taper off and make room for more sustainable craft beer prices.

What do you think is causing the price increase in craft beer? Let us know in the comments section below!