Germany: Sudden and accelerating drop in beer consumption catches brewers by surprise

Germans are increasingly breaking with stereotypes that have surrounded a dear pastime activity and reducing their beer consumption, leading to bankruptcies and closures of breweries across the country.

Though the decrease in alcohol consumption has been observed for decades, the sudden and accelerating drop caught brewers and bar owners by surprise, according to an article by The New York Times on this development.

Of roughly 1,500 breweries in Germany, over 50 closed in 2025 alone, with other factors such as inflation, including rising fuel costs, only compounding the problem for brewers, who operate on razor-thin margins.

“Einbecker Brewery, founded over 600 years ago in central Germany, survived fires, famine, two plague epidemics, and four devastating wars, maintaining its existence thanks to the steady demand for its strong Bock-style lagers. Now, the brewery faces perhaps its greatest threat: Germans are drinking far less beer,” the article states.

Echoing a global trend, Germans are increasingly embracing health-conscious lifestyles, which entail reducing alcohol intake. Holger Eichele, President of the German Brewers Association, told the publication: “Young people use alcohol much more consciously and sensibly than our generation. That is good news for health.”

Germany’s drinking culture is also shifting. It was once common to drink a few beers at work, gather with friends at a bar after work, or enjoy a case of pilsner after a soccer game. Today, such social drinking is rarer. Germans go out less because of the higher costs of living and the convenience of online life at home. Sobriety has become the norm, and ordering soda, juice, or tea at a bar, once a faux pas, is now widely accepted.

Non-alcoholic alternatives are gaining popularity as well. For the first time, every tent at Munich’s Oktoberfest even offered non-alcoholic beer this year, reflecting changing consumer habits.

The combination of evolving social norms, health consciousness, and economic pressures is reshaping Germany’s brewing industry, creating a challenging environment even for centuries-old breweries.

Analysts note that this shift is part of a broader international trend, with younger generations in the United States and other countries also drinking less and prioritizing wellness. As Eichele explained: “Youth consume alcohol in a much more conscious and deliberate way, reflecting a global movement toward moderation and health awareness.”

For the German brewing sector, the implications are significant. Traditional business models based on high-volume beer sales are under strain, and breweries are being forced to innovate. Nonalcoholic options, premium craft beers with lower alcohol content, and experiences beyond simple consumption are emerging as key strategies to attract the next generation of drinkers.