The hop industry, like the craft beer market it supports, is in constant evolution. Each year brings new challenges, trends, and opportunities for farmers, brewers, and everyone adjacent. The USDA’s 2024 National Hop Report offers a snapshot of where the industry stands today and, perhaps more importantly, where it’s headed. With production down and acreage reduced, this year’s report signals it will take additional time for supply to meet demand, as lower consumption levels likely prevented significant reductions in the current industry surplus.
Additionally, beneath the numbers lie structural shifts that could have implications for brewers. The data shows that the Yakima Valley now amasses 75% of all U.S. hop acreage, the domestic hop crop is increasingly controlled by private breeding programs, and there are endangered varieties from the dramatic acreage reductions.
Market Recalibration
Total U.S. hop production fell 16%, from 104 million pounds in 2023 to 87.1 million pounds in 2024. Further significant production cuts are expected in 2025, as the U.S hop industry works toward achieving a supply-demand balance resulting from multiple years of inventory carry over.
State Snapshots
Washington: 33,361 acres (74.5% of total acreage)As the nation’s largest hop producer, Washington harvested 33,361 acres, producing 64.1 million pounds of hops. Varieties like Citra® HBC 394 and Mosaic® HBC 369 remain dominant and drive much of the U.S hop surplus. Washington's total acreage is nearly three times that of the combined acreage of Oregon and Idaho, underscoring the acreage concentration in the Yakima Valley.
Idaho: 5,797 acres (12.9% of total acreage)
Idaho experienced the steepest percentage decline, with acreage dropping 34% to 5,797 in 2024. Despite these reductions, Idaho remains an important contributor to the U.S. hop market, particularly for alpha varieties, which account for an estimated 65% of its acreage.
Oregon: 5,635 acres (12.6% of total acreage)
Oregon harvested 5,635 acres in 2024, yielding 9.8 million pounds of hops. Known for its focus on aroma hops, an estimated 85% of Oregon’s hop acreage is dedicated to these varieties, underscoring its role in providing the nuanced flavors and aromas sought by craft brewers.
Varietal Trends
The rise and fall of hop varieties reflect shifting brewing trends, as brewers adjust to consumer preferences for beer styles and flavors. The 2024 report highlights several key varietal trends worth noting:
Pricing and Margin Pressure
The report reveals a downward trend in the average price per pound of hops across the United States.
Combined, the average price per pound across the United States has decreased 16.1% since 2022.
The average price per pound of hops across all major production states in 2024 often falls below breakeven costs, indicating an average performing farm would be operating at a loss. This misalignment between production costs and market returns underscores significant economic challenges for the industry.
Yield Analysis
From 2022 to 2024, yield per acre across the top hop-producing states varied significantly, reflecting diverse growing conditions and operational efficiencies.
Endangered Varieties List
Based on the report, several hop varieties have experienced significant acreage declines over recent years, indicating they may be at risk.
Structural Changes
Acreage Reductions Lead to Increased Industry Concentrations
The U.S. harvested 44,793 acres of hops in 2024, an 18% decline from the previous year. With 75% of U.S. hop acreage now located in the Yakima Valley, up 3% since 2022, the industry is increasingly reliant on this single region. Disruptions in climate, natural disasters, water availability, or workforce could pose a major industry threat.
Proprietary Domination
Privately controlled varieties now account for 65% of total U.S. hop acreage, with public varieties shrinking to 35%. In the aroma hop market, the disparity is even greater, with 70% of acreage privately controlled.
Creating a Sustainable Path Forward
The declines in production and acreage may seem alarming, but they reflect an industry seeking balance after years of rapid growth followed by contraction. However, these corrections must not give rise to new challenges of market concentration.
To ensure a resilient and diverse industry, brewers and farmers must champion diversity—across varieties, regions, and suppliers—to safeguard the competitive dynamics that foster innovation and sustainability. The road ahead is about more than just meeting demand—it’s about protecting the health of an industry that fuels the creativity of brewers and the enjoyment of beer lovers worldwide.
As brewers plan for their forecasting needs in 2025 and beyond, it’s vital to make purchasing decisions with a broad perspective on diverse sourcing and supporting a range of hop varieties. Now is the time to take proactive steps to secure a resilient hop supply that supports long-term success.