U.S. hop stocks were down 6% from a year ago as the industry looks to shed inventory and correct an oversupply.

“We are certainly trending in the right direction,” said Michelle Palacios, Oregon Hops Commission administrator.

“We’ve been producing more hops than the market needs and that has put a large amount of hops in storage,” she added.

Hops is primarily used in beer, but plateauing demand for the beverage and changes in consumer preferences have helped lead to a glut of product.

Palacios said growers across the Pacific Northwest, which produces nearly all of the nation’s hops, have made significant reductions in acreage in recent seasons as a response.

There might be another slight decrease in 2025.

Palacios hopes that the market is stabilizing, which will help growers plan, bring better prices and ensure a stable supply for brewers.

Tariff worries

Tariffs are a concern for the industry, however, as Canada is the No. 3 importer of U.S. hops, Palacios said.

About half of the Pacific Northwest’s hop crop is exported.

British Columbia had a successful hop industry for a number of years, but the Canadian brewing industry is currently dependent on imported hops from the U.S. and Germany, Palacios said.

Hops data

The inventory of hops held by growers, dealers and brewers on March 1 was 173 million pounds, according to a recent USDA report.

Nearly 87% of hops were at dealer and grower locations, while brewers held 13%.

In March 2023, the nation’s hop inventory was 185 million pounds, followed by 184 million pounds in 2024.

The USDA figures include equivalent pounds of dry hops held in extract or pellet form.