Plunging German beer sales reach historic depths
In Germany, the sales of alcoholic beer have taken a significant hit, with a 6.3% decline in the first half of 2021 compared to the previous year. This drop, amounting to 3.9 billion litres, is the lowest figure since records began in 1993 [2][3].
The decline can primarily be attributed to the COVID-19 pandemic and related government restrictions. These measures have significantly impacted consumption patterns, particularly in the hospitality sector. In fact, beer sales in bars and restaurants across Europe dropped by about 42% in 2020 due to these restrictions, weakening the overall beer market performance [1].
Holger Eichele, head of the German Brewers' Federation, predicts 2025 to be "an extremely demanding year for us" [5]. He also mentions the economy as a factor affecting beer sales, with Germany struggling to pull itself out of a long downturn. Consumers in Germany are not wanting to spend, according to Eichele.
Additional factors possibly influencing the decline include shifts in consumer preferences toward alternative alcoholic beverages or non-alcoholic options and evolving drinking habits post-pandemic. While the number of breweries in Germany experienced some decline after peaking in 2019, this change occurred over several years and is less directly linked to the 2020-2021 sales drop [4].
The decrease in beer sales both domestically and abroad is also attributed to tariffs imposed by President Donald Trump on the major US market [6]. However, Holger Eichele does not mention this factor in his statement.
Uncertainty is increasing for exporters, as per Eichele, due to geopolitical risks [5]. It's worth noting that Germany is no longer the largest beer maker in Europe [7].
Non-alcoholic beers are not included in the sales figures mentioned in the article. However, changing tastes, with non-alcoholic beers becoming more popular, could potentially be another reason for the decline [8].
In conclusion, the key factors contributing to the decline in alcoholic beer sales in Germany between 2020 and 2021 were:
- COVID-19 pandemic restrictions limiting on-premise consumption (bars, restaurants)
- Reduced socialization and public events affecting beer drinking occasions
- Shift in buying patterns favoring retail/e-commerce, which did not fully offset losses
- Possible long-term changes in consumer preferences influenced by the pandemic environment
- The struggling German economy and consumers' reluctance to spend
[1] Beer Market Insights [2] Statista [3] Deutsche Bierwirtschaft [4] Brewbound [5] Reuters [6] Bloomberg [7] Read Also [8] The Guardian
The decline in alcoholic beer sales in Germany might also be attributed to shifts in consumer preferences toward alternative alcoholic beverages or non-alcoholic options due to changing tastes. Additionally, the energy sector, including renewable sources, could potentially see an increase in investment as consumers seek ways to reduce their carbon footprint during economically challenging times.
