Spain: Beer sales record negative growth for the first time since the end of the pandemic

Despite appearances, Spaniards are consuming less beer than before the pandemic. Beer sales in Spain recorded a negative figure for the first time since the return to normality after the pandemic. They fell by 0.7% in 2023 compared to 2022, to 38.7 million hectolitres sold, according to the data from the Socioeconomic Report of the beer sector in Spain 2023 presented at the Ministry of Agriculture in Madrid, La Vanguardia reported on June 12.

The consumption of this beverage, so deeply rooted in the Mediterranean diet, grew by 2.8% in Spain in 2023, but solely driven by the rise in tourism. Without foreigners, domestic consumption decreased by 3.53%.

“This decline is not so much motivated by a change in habits as by the increase in family savings due to uncertainty and inflation,” said Jacobo Olalla, director of Brewers of Spain at the presentation.

The report is prepared by the association and the Ministry of Agriculture, Fisheries, and Food in collaboration with the Spanish Hospitality Industry, Maltsters of Spain, and Competur.

On the part of the hospitality industry, however, “the closure of establishments and the reduced number of rounds ordered per visit to the premises reduce this consumption,” stated María Duran, communication director of Hostelería de España. In bars and restaurants, beer consumption has increased by 6.8% due to the increase in tourism. Foreigners increased their consumption by 22.5%, while residents reduced it by 4.3% in 2023. The hospitality channel is the main sales location, accounting for 52.5% compared to the retail channel, which represents 47.5% of beer sales in Spain. “61% of beers are consumed in bars and restaurants, but we are seven points below the 2019 level,” explained the director.

Given the good forecasts for tourism this year, both Olalla and Duran remain “optimistic” about the closing of 2024 in terms of consumption and sales. “In the first months of the year, consumption in the hospitality sector has grown by 11%, and we believe that this trend will continue,” Duran pointed out.

Despite everything, beer production grew by 0.78% in 2023, reaching 41.3 million litres. This represents a 5% increase compared to 2019 and consolidates Spain as the second largest producer in the European Union, behind Germany and ahead of the United Kingdom. It is the ninth largest producer globally, with China and the USA leading the list. Three of the 40 most important beer companies in terms of production worldwide have predominantly Spanish capital (Mahou-San Miguel, Grupo Damm, and Heineken España).

Beer exports remained above the four million hectoliters mark in 2023, a record figure achieved last year. However, the total data is lower: 4.16 million hectoliters were exported in 2023 compared to 4.28 million hectoliters in 2022. “In 10 years, Spanish beer exports have increased by 200%. We are in quasi-record numbers,” Olalla stated. The main markets are Portugal, Cuba, the United Kingdom, and France.

The beer sector is configured, according to the report, as a driving force of the Spanish economy, with 540,000 jobs and a contribution to the State's coffers through taxes of 6.5 billion euros. It represents 1.3% of the GDP and 2.6% of the fiscal revenue.

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