Reduced Beer Sales Reported in Breweries
Germany's beer production is on a downward trend, primarily due to decreasing domestic demand, rising production costs, and increased competition, both domestically and internationally. In the first five months of 2025, beer sales in Germany dropped by nearly 7 percent, hitting a historic low in demand unseen since reunification[1].
The decline in beer consumption in Germany reflects changing consumer preferences away from traditional beer[3]. The brewing industry, which has traditionally focused on alcoholic varieties, is now primarily concerned with alcohol-free varieties due to the decline in alcoholic beer sales[4]. Despite the growth of alcohol-free beers, this shift has not been sufficient to counterbalance the overall slump in beer consumption[3].
The brewing industry is also facing increased production costs and economic challenges, which put pressure on output and profitability[1][3]. These challenges are compounded by increased international competition, particularly from Russia, which expanded its beer production by approximately 9 percent, overtaking Germany as Europe's largest beer producer[2][3][4].
Changing consumer behavior and global market volatility, including geopolitical crises and trade conflicts, also affect the brewing sector as a whole[2][4]. The decline in alcoholic beer production is an additional challenge for the industry, which is already facing major challenges and increased demands and costs.
The brewing industry is demanding higher prices to counteract these challenges, but the ongoing decline in alcoholic beer sales may impact this demand[5]. The industry is also bracing for further bankruptcies due to rising costs[6].
The reasons for the decreasing consumption of beer include an aging population, a trend towards a health-conscious lifestyle, and changed consumption habits among younger people[7].
According to BarthHaas, the world's largest hop trader, the decline in alcoholic beer production in the first half of this year is similar to the declines seen at the beginning of the Corona pandemic in 2020 and in the second half of 2023[8].
Sources:
- ntv.de
- dpa
- ntv.de
- dpa
- ntv.de
- dpa
- ntv.de
- BarthHaas (compiled list)
Other, including bars and rods of glass, have become alternative options for German consumers, with sports bars seeing a surge in popularity as more individuals opt for a healthier lifestyle and non-alcoholic beverage options. Sports enthusiasts are embracing this shift, as they find these establishments offer a wider range of beverage choices that cater to their increasingly health-conscious preferences.
