Why is hop water so expensive? As hop water acquires traction for health-conscious consumers and beer enthusiasts alike, one often questions: Why is hop water relatively more expensive than some other beverages?
The answer depends on being able to understand the process of production, the ingredients used, and also the market dynamics of this greatly popular drink. Let us take a look at some of the factors
Hops: The main flavor ingredient in hop water is, of course, the hops itself. Hops can also be expensive, depending on the variety, especially if they are sourced from a certain region or are of a particularly sought-after variety.
Water: As it might seem counterintuitive, not all water has been created alike. Most hop water brands utilize filtered or spring water, which can be more expensive than tap water.
2. The Production Process
Cold Brewing: To extract flavors from hops without introducing alcohol into the mix, one needs certain brewing processes. The process of cold brewing, which is usually common in hop water production, is longer than traditional brewing.
Carbonation: To be able to Carbonate the water, which in turn offers it the fizzy texture that most consumers love, offers an extra step and cost for the production process.
3. Niche Market Positioning
The Brand Value: As hop water is usually marketed as a premium, healthy, and nonalcoholic beverage, most brands might position it at a higher price point to align with this perception.
The Target Audience: At least initially, the primary audience for hop water has always been health-conscious consumers and beer enthusiasts. Hence, brands might price tag the product with this demographic in mind
4. Packaging
High-quality, sustainable, or unique packaging is often used to differentiate brands in a competitive market. This can also contribute to the overall cost price of the product.
5. Supply and Demand Dynamics
The Growing Demand: As more and more people have discovered hop water and its advantages, the demand grows. Until the production scales to meet this demand, prices might remain on the much higher side.
Limited Supply: The availability of a specific hop variety can be quite limited, especially if there is a bad yield in a certain year or if specific hops are in high demand in the beer industry.
Research and Development
Most Brands usually invest in research and development to perfect their hop water formula. Thus, experimenting with different hop varieties and brewing techniques is important to develop unique flavor profiles. This investment can be a major factor in the process of the product.
Distribution and Marketing
Launching a new product like hop water onto shelves and into the consciousness of the public needs significant marketing efforts, sampling campaigns, and distribution logistics. These operational costs can affect the retail price.
Why Hops are So Expensive?
Now let us get back to the price point of hop water and how some breweries in Texas are trying to make the dry hopped beverage. Whitestone Brewery’s owner was able to offer some light on their process of hop water-making and the price per serving breakdown.
In the case of Whitestone Brewery, Anglen declared that they first started selling six-packs of Whitestone HopWater for about $6.
“Can costs were probably our biggest cost,” Anglen stated, also adding that it was the raw materials used, “which were just hops?” To start with, the breakdown per serving of Whitestone HopWater was about a buck a can. Nevertheless, that price has increased quite a lot.
“We have our percentage margin we try to hit,” Anglen has said concerning the sales, adding that since Whitestone first started producing HopWater at its breweries back in 2020, the price of most things has increased.
As of Jan. 2, the price tag of a six-pack of Whitestone HopWater at Austin area H-E-B locations is $6.47. Nevertheless, other brands, such as HOP WTR, add adaptogens to their version of the hoppy sparkling beverage, and perhaps that is probably why they usually get away with selling a six-pack of NA hop water for around $12.
How is Hop Water Made?
If you wonder how hop water is prepared, you are not alone. When asked, most experts stated quite a lot about this process. They have shared that the breweries have been playing with their hop water-making methods for quite a few years, and they feel they have nearly perfected it.
“Hops react in the water much differently than they do in beer,” Anglen, the wine expert, has stated about the method of making hop water, unlike nonalcoholic beer, which can be made by allowing the beer to ferment as a regular alcoholic beer and stopping the fermentation process before it reaches the normal end or by extracting the alcohol through a process called dealcoholization. Most breweries prepare the Hops by carbonating the water and adding hops; this is a process known by brewers as dry hopping and then canning it.
“Our process is really to extract the most flavor out of the specific hop variety we’re using,” Anglen stated, later noting they typically use two hop varieties for Whitestone’s HopWater.
Sometimes, the breweries will also add natural essences, such as the essences from fruit rinds, to keep the preservatives out of the mix and retain the flavor at an all-time high.
As for the time it takes to prepare the hop water, most experts have shared that no fermentation occurs. However, reverse osmosis is the slowest part of the process, which includes filters and reclaiming the water. They have almost 60 barrel tanks that can hold roughly 1,860 gallons. It takes a complete day to fill one of the tanks using this process.
However, this might not be true for all brands that make hop water. Also, you are finally left with a light and refreshing carbonated beverage comprising calories, sugar, and carbs that is guilt-free.
Considering that every company brewing up hop water usually uses a slightly different process and certain varying ingredients. Hence, one should expect each type of hop water you try to taste slightly different, especially if it is flavored hop water. If you finally acquire unflavoured hop water, be prepared for a sparkling and piney surprise.
Why is Hop Water So Expensive?: Conclusion
So, as you can see, the hop water might appear to be expensive as compared to other beverages. Hence, a better understanding of the intricacies of the production, the quality of ingredients used, and the market dynamics helps justify the price point. As the market matures and scales, there could be potential for more competitive pricing. Meanwhile, people who like the unique Flavors and potential health benefits often view it as a worthwhile investment along with their well-being and taste experience.