World: Global beer production down 1.9% in 2018

Compared with output volume in 2017, world beer production in 2018 fell by 37.8 mln hl, or 1.9% – a decline of unprecedented magnitude. This was due to a fall in output totalling 59 mln hl in China. Growth was reported by 85 of the 171 beer-brewing countries and only 34 reported a decline, the Barth-Haas Group said in its annual report.

In Europe, both the countries in the European Union and those in the rest of the continent saw output rise. The most significant growth here was seen in Russia (3.1 mln hl), Romania (1.5 mln hl) and the UK (1.1 mln hl).

The growth markets in America were Mexico (+9.7 mln hl) and Brazil (+1.4 mln hl). However, total output volume was brought down by the USA (-3.7 mln hl) and Venezuela (-2.9 mln hl).

In Asia, growth was reported in the Philippines (+2.2 mln hl), India (+1.1 mln hl) and Japan (+1 mln hl). On the other hand, not only China (-59 mln hl) but also Thailand (-1.5 mln hl) and Iran (-1.3 mln hl) registered falling output.

The growth engine in Africa was Ethiopia (+2.6 mln hl), as it has been for the last few years.

The ranking of beer producing nations is led once again by China, the USA, Brazil, Mexico and Germany. These five countries account for half of world beer output volume, estimated in 2018 at 1.905 bln hl.

Only some of the major brewers were able to report growth in beer output in 2018. Among those who could were Heineken and Grupo Petrópolis, with growth of just under 16 mln hl and 5 mln hl respectively. Efes reported growth of around 11 mln hl, possibly due to their acquisition of the AB InBev breweries in Russia and Ukraine. With world beer output declining by 1.9% in 2018, the top 40 brewing groups only slightly increased market share year on year to 89.8%.

Transaction activities were seen predominantly in the craft brewery segment. Here, for example, Heineken bought into Beavertown, London, and Lion Brewery, Australia, which belongs to Kirin, took control of Fourpure and Magic Rock, both also based in the UK. Grupo Mahou-San Miguel acquired a majority stake in America’s Avery Brewing based in Colorado and Asahi took over Fullers, the old-established British brewer. Heineken entered into a strategic participation in
China, acquiring 40% of the shares in China’s largest brewing group China Resources Snow Breweries.

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