"Worsening beer predicament: Amid general struggles, one brewery thrives"
The German beer industry is grappling with a significant decline in sales, with the first half of 2025 seeing a drop of 6.3% compared to the previous year, bringing the total sales volume of alcoholic beer to 3.9 billion litres - the lowest level since records began in 1993 [1][2][3][4]. This downturn marks a prolonged period of decreasing sales, a trend that has been evident since at least 2020 [2][4].
The decline in sales is attributed to a combination of factors, including changing consumer preferences, demographic shifts, economic uncertainties, and rising costs impacting spending. The hospitality sector, a significant driver of beer consumption, is struggling with falling profits, rising costs, and insolvencies, further dampening demand [2][4].
In contrast, the alcohol-free beer segment has been growing and gaining market ground, albeit these sales are not included in the official alcoholic beer sales figures. This growth suggests a consumer trend towards lower or non-alcoholic options despite the overall drop in alcoholic beer consumption [1].
The trade agreement with the USA is putting additional pressure on German breweries, with US tariffs potentially becoming a serious problem [5]. The first half of 2020 and the second half of 2023 also saw significant declines in beer sales in Germany [1][2].
Some German breweries have announced price increases due to the tense market situation, while others, like a Bavarian cult brewery, have had to close a site due to the challenging conditions [2][4].
The German Brewers' Association attributes the decline in beer sales to these factors, while CEO Holger Eichele points out that the brewing industry is being affected by the poor consumer climate, particularly the struggling hospitality industry [2][4]. The Federal Statistical Office reported the declining beer sales figures for the first half of 2025 [4].
This decline in beer sales is not just a domestic slump but could be influenced by US tariffs and other geopolitical risks. The domestic market saw a 6.1% drop while exports decreased by 7.1% [1][2]. Germany's historic position as Europe’s largest beer producer is also being challenged, with Russia overtaking Germany due to Germany’s brewing volume declining while Russian production surged, illustrating broader structural changes impacting German beer’s global market standing [5].
[1] Federal Statistical Office: Beer Production and Sales in Germany, 2025 (first half) [2] Brewers of Europe: German Beer Market Faces Steep Sales Decline [3] German Brewers' Association: German Breweries Report Lowest Sales since 1993 [4] Reuters: German Breweries Struggle with Declining Sales and Price Wars [5] Bloomberg: Russia Overtakes Germany as Europe's Largest Beer Producer
- Despite the challenging circumstances in the German beer industry, there seems to be a growing trend in the alcohol-free beer segment, indicating a shift in consumer preferences towards lower or non-alcoholic options.
- The decline in alcoholic beer sales in Germany has not only been impacted by domestic unfavorable conditions but also by geopolitical risks, such as the trade agreement with the USA and US tariffs.
