Germany: First half sees further decline in beer sales

For German brewers, the hoped-for summer fairytale has not materialized. Despite the UEFA European Football Championship being held in their own country, the first half of 2024 saw a further decline in beer sales, as reported by the Federal Statistical Office. From January to the end of June, 3.4 billion liters of the traditional beverage were sold to the trade and catering industry in Germany - 0.9 percent less than the previous year.

The German Brewers' Association attributes the sluggish beer business to the unpredictable weather. "Even during the European Football Championship, the rollercoaster ride of temperatures and frequent storms ruined many innkeepers' businesses, and some garden parties were rained out," says CEO Holger Eichele. Nevertheless, a number of breweries were able to benefit from this sporting event.

Including exports and tax-free beer for their own employees, sales by the approximately 1,500 businesses fell by 0.6 percent to 4.2 billion liters. This was almost 30 percent less than in June 2006, when football-mad Germany celebrated its summer fairytale. Everything points to 2024 being even weaker than the already lackluster previous year, which had just under 8.4 billion liters, even less than the COVID-19 year of 2021.

The month of June, during which the European Championship matches took place, was a major disappointment for the industry, with total sales falling by more than 11 percent compared to the previous year. According to the official statistics, this was the worst June since the revision of the beer tax in 1993. In Germany, sales fell by a further 13.5 percent to just under 626 million liters. The trade simply did not reorder. "It's not going to be possible to catch up with that," says a spokesperson for the Sauerland brewery Veltins.

Non-alcoholic beer is a beacon of hope for brewers, as it is not included in official statistics due to the lack of alcohol tax. Eichele says that non-alcoholic beers are becoming increasingly important for breweries and have been increasing in quantity for years. According to official statistics, the amount has more than doubled since 2013. Germany is at the top of the world with more than 800 non-alcoholic brands brewed according to the German Beer Purity Law and a market share of 8 percent. "Soon, every tenth beer brewed in Germany will be non-alcoholic," says the brewery official. Important export targets for these new products are the USA and the countries of the European Union.

The popularity of non-alcoholic beer is evident in the hype surrounding the "Alkoholfrei Hell" from the Munich traditional brewery Augustiner. Since March, it has been difficult to find even in Munich, as it is primarily supplied to contract catering establishments and only a few crates are available to beverage markets. Recently, an alcohol-free beer garden even opened in Munich.

Otherwise, the world's fifth-largest brewing industry has been suffering from a declining thirst for beer for years, despite a growing population. Societal trends towards a healthier and more active lifestyle are meeting an increasingly older consumer base. Customers are also struggling with high inflation in many countries, according to the latest industry report from BarthHaas, the world's largest hop trading company.

Since 1993, beer sales in Germany have decreased by more than a quarter, with the shrinking market characterized by overcapacity. Last year alone, breweries accounting for over 200 million liters of production were taken out of the market. Many other breweries face significant investments to transition their energy-intensive production to sustainable sources.

Veltins CEO Michael Huber also sees the glow of football fading on beer consumption. He says, "The spark of hope from the European Championship didn't ignite, as Germany's early tournament exit dampened the initial demand." Only around the EM stadiums were there brief, but contradictory effects in hospitality and catering. "The local hospitality industry was often drained by the UEFA fan miles," says Huber. The significance of major football tournaments as a sales boost has been declining since the last football World Cup.

BarthHaas Report 2023/2024 Notice Destatis Alcohol-Free Beer 2023 Notice Destatis on Beer Sales 1st Half 2024 Data and Facts German Brewers' Association

Despite the hoped-for increase in beer sales due to the UEFA European Football Championship, the brewing industry in Germany faced another decline in the first half of 2024. The unpredictable weather during the tournament negatively impacted many businesses, leading to a significant drop in sales for the traditional beverage.

With the decline in alcoholic beer sales, non-alcoholic beer has become a beacon of hope for many breweries. The popularity of non-alcoholic beer has significantly increased over the years, as evidenced by the growth in the number of non-alcoholic brands brewed according to the German Beer Purity Law.

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