German beer has been an important part of the country’s culture and history for centuries. When tourists think about travelling to Germany, many consider visiting one of the beer gardens in Bavaria or elsewhere. The Oktoberfest is not just the world’s largest Volksfest, but also represents Germany’s fun side. But how much appetite is there for German beer still? Beer exports were down six per cent in 2024 compared to ten years ago, according to figures released by the country’s Federal Statistical Office. Meanwhile, beer consumption in Germany has dropped by 15.1 per cent in the same period.
Beer consumption per capita in Germany reached its peak in 1980
That many Germans appear to be snubbing beer spells trouble for the country’s brewers. Last year, Germany hosted the European football championships. You might have thought that this would be a godsend to beer-makers, but this wasn’t the case: 2024 was anything but a success. Unsteady weather in the spring and a rather cold summer hurt sales in the typical beer garden months. Rainy June was the worst month of the year in comparison to the previous year, with a decline in domestic consumption of 13.5 per cent.
‘Many beer garden visits were literally rained off,’ the German Brewers’ Federation warned.
Apart from the impact of the weather, brewers are conscious that, while beer is still the number one alcoholic beverage of choice, Germans tend to value healthy lifestyles much more highly than they did ten or 20 years ago. Ageing populations also naturally tend to consume less alcohol.
Beer consumption per capita in Germany reached its peak in 1980, with each German drinking 146 litres on average that year. Since then, that number has been going down, with a few exceptions – notably years in which football World Cups took place. But for a while, brewers were able to keep their revenue on a steady level, with the exception of the Covid pandemic years. The price for an individual beer in Germany was rising on average and made up for the decline in consumption.
Along with brewers from other countries, however, the past few years have hurt Germany’s brewers in a different way. Russia’s government has increased tariffs on beer from ‘unfriendly countries’ like Germany. The tariff on one litre of beer rose from €0.04 (3p) to €0.1 (9p) in 2023 and to €1 (85p) in early 2024. Brewers with high exports to Russia such as Oetting, TCB and Darguner were badly affected. At the same time, exports to China have been on the decline. Given that tariffs in general are on the rise, the outlook for these companies is not promising.
But it’s not all doom and gloom for one of Germany’s prestigious industries – at least domestically. Paulaner, the country’s fifth largest producer and famous for its presence in Bavarian beer gardens, has benefitted from the introduction of new products such as Paulaner Spezi, an alcohol-free soft drink with cola and orange soda, and the Mönchshof beer bottles with swing tops. Meanwhile, Bitburger has increased its market share thanks to its partnership with UEFA, and Veltins is benefitting from the increasing popularity of Helles, the traditional German pale lager beer.
The struggles of some brewers are unlikely to have a huge impact on the German economy. But given the industry’s symbolic value to the country, it’s a pity to see the German beer market going flat.
Comments