Hops increase, so does the industry

ProBrewer reports that hop production is up this year.

Hop production for Idaho, Oregon, and Washington in 2007 totaled 60.3 million
pounds, up 4 percent from the 2006 crop of 57.7 million pounds and 14 percent
above the 2005 production of 52.9 million pounds.

While not an enormous jump, the increase is a good sign that there is light at the end of the tunnel when it comes to the hop shortage.

The increase comes on the heels of continued growth in the craft beer industry. Also from ProBrewer:

Information Resources said craft beer sales rose 16.7 percent from $493 million in 2006 to $575 million in 2007, marking the second straight year of double-digit increases. IRI tracks sales only in the off-premise trade.

The report also notes that price increases made necessary by the jump in malt and hop prices is only now beginning to reach customers.

Increased prices hitting customers just as the economy dallies around the edges of recession may put a damper on growth as consumers look for bargains. That said, a slightly more expensive craft beer may still be perceived as an affordable luxury to those who have become craft beer drinkers.