Hops can be put into a Keg to make Pale Ale. Pale Ale has one of the highest returns on investment in the game, surpassed only by Starfruit wine. They can be purchased at Pierre's General Store, at JojaMart, from the Magic Shop Boat at the Night Market on Winter 16, and occasionally from the Traveling Cart.
Hops is used in the spool of the Sewing Machine with Cloth in the feed to create a dyeable Shirt and Belt. It is a green dye when used in the spool of the Sewing Machine with a dyeable clothing item in the feed. It can be placed in the green dye pot at Emily's and Haley's house for use in dyeing.
Tip
Hops give the 2nd best experience for leveling up your Farming skill in a single season (102 to 126 depending on how fast you grow it to maturity). It is only beaten out by a mature Ancient Fruit crop. A large amount of Hops Starters can be a great way to quickly level up your Farming skill your first summer.
Selling Hops Starter made from the Seed Maker can be more profitable than selling the Hops directly, and also potentially generates Ancient Seeds. Pale Ale and Pickled Hops are more profitable, but the Seed Maker only takes 20 in-game minutes.