Europe’s beer industry is facing its fifth consecutive year of contraction, with production, consumption and exports all declining since 2019, according to the newly released 2025 European Beer Trends Report by The Brewers of Europe. The data underline that the downturn is no longer cyclical but structural, driven by fragile consumer confidence, inflationary pressure and rising costs across the value chain.
One of the most significant shifts continues to be the erosion of the on-trade. Beer consumed in pubs, cafés and restaurants has fallen from roughly one-third of total consumption to around one-quarter. While smaller in volume than retail, the hospitality channel generates a disproportionate share of value and employment, meaning its weakness ripples through agriculture, logistics, events and tourism.
The slowdown is also visible in brewery dynamics. After years of expansion, the number of active breweries in the EU has plateaued at around 9,700, signalling a loss of momentum in what was once Europe’s fastest-growing brewing landscape. At the same time, exports, which previously offset domestic weakness, have slowed for a second consecutive year.
Christian Weber, President of The Brewers of Europe, pointed to a broader confidence crisis. Consumers are spending less, while brewers face higher input costs, regulatory pressure and climate-related risks affecting raw materials. He stressed that resilience alone is no longer enough without greater policy stability.
EU beer production has declined from 367 million hectolitres in 2019 to 345 million hectolitres in 2024, with early 2025 figures indicating further tightening. Inflation, energy and transport costs, alongside climate impacts on barley and hops, continue to weigh heavily on margins.
Against this backdrop, innovation remains a bright spot. Non-alcohol beer is the only growing segment, expanding by 25% over the past five years and now accounting for around 7.5% of EU beer consumption, highlighting a structural shift in consumer preferences rather than a short-term trend.
Julia Leferman, Secretary General of The Brewers of Europe, underlined that brewers remain committed to sustainability, moderation and cultural contribution. However, she warned that disproportionate regulation could undermine the sector’s ability to invest and innovate at a time when stability is critical.
The findings were presented at the 12th annual Beer Serves Europe event in Brussels on Wednesday, 3 December 2025, bringing together brewers, supply-chain partners and policymakers from across the EU, as the industry calls for balanced regulation to safeguard jobs, investment and Europe’s brewing heritage.
