This year’s edition of the American Hop Convention, held in January in Coronado, CA, brought together hop growers, brewers, merchants, and industry leaders to learn more about the state of hops. While we can all agree that the hop industry is currently facing headwinds, the discussions also centered on opportunities and one reassuring truth: beer is going nowhere anytime soon, and craft beer is here to stay.

The legacy of craft beer

For the last few decades, the craft beer movement has amassed incredible momentum and reshaped the way consumers think about and appreciate beer. But despite more than a decade of explosive growth, speakers agreed that craft beer appears to have reached its peak. The good news is, even with a plateau or even further decline in sight, craft beer has made its mark on our culture and now stands firmly as an essential part of the beverage industry.

Brewers have the opportunity to not only fine-tune their lineups with a focus on quality and efficiency, but also to expand product offerings by taking advantage of the wide range of hop varieties and products on the market today. Speakers at the conference pointed to the growth of NA beer and hop water as a starting point for building out portfolios and driving the next wave of the industry. Taprooms and bars remain a pivotal point of contact for breweries to engage with their customers, and leaning into a hop-forward, non-beer option is a way for them to reach new audiences.

Despite acreage cuts, hop stocks remain high

The hop industry has faced a supply imbalance and over the past few years has made significant adjustments in response to decreasing demand linked to shifting consumer trends. Despite deep acreage cuts across major growing regions, hop stocks remain high. This surplus reflects both past overproduction and shifts in brewing trends, particularly an overall downturn in beer production and sales.

For growers, this means continued pressure to carefully balance production with market demand. The conversation at the convention highlighted the importance of sustainable hop farming and breeding for efficiency to help defray the costs of running an operation at a reduced acreage. The overall message: we have an oversupply, but if we continue to improve our practices and work through this together, we may see a return to expanded acreage in the next 2-3 years.

Unifying through shared challenges

One of the most common themes of this year’s convention was facing headwinds, together. It isn’t just the Yakima Valley that is feeling the pain—growers across North America, Europe, and Australia and New Zealand are facing economic challenges as well. Rising costs, inflation, and a sluggish beer market have created difficulties for farmers, merchants, and brewers, with no clear end in sight.

But in the face of these headwinds, we can work together and treat change as the norm. By continuing to develop more efficient and sustainable farming practices, breeding stronger and more resistant hop varieties, and creating innovative, consistent hop products, everyone involved in the hop trade from growers to brewers can help each other weather the storm.

This year’s American Hop Convention reinforced that while the landscape may be shifting, our industry’s passion for hops and brewing remains as strong as ever. By embracing change and working together, we can ensure that the hop industry continues to thrive for years to come.