Germany: Beer Market Hits Record Low as Alcohol-Free Gains Ground

Germany’s brewing industry closed 2025 with another severe setback, failing to achieve a long-awaited turnaround. According to data from Statistisches Bundesamt, beer sales excluding alcohol-free products fell by 6.0% year on year to around 78.0 million hl, marking the lowest level since records began in 1993. December 2025 alone saw a 0.9% decline compared with the same month a year earlier, with domestic sales down 0.8% and exports to EU markets slipping by 0.9%. Exports to non-EU countries were hit particularly hard, plunging by 11.5% in December, with China and Russia among the weakest destinations.

Full-year figures underline the scale of the downturn. Domestic sales dropped by 5.8%, equivalent to around 3.94 million hl, while exports to EU countries proved comparatively resilient at –1.3%, or roughly 104,000 hl. Shipments to third countries collapsed by 14.2%, representing a loss of around 916,000 hl. In total, the German brewing sector lost approximately 4.97 million hl in 2025 alone. Compared with the last pre-pandemic year of 2019, cumulative losses now exceed 14.55 million hl.

Industry observers see structural factors behind the decline. Rising health awareness is leading many consumers to reduce alcohol intake. Demographic change is also playing a role, as older age groups dominate beer consumption while younger generations move away from traditional drinking occasions such as pub regulars’ tables. The image of beer among younger consumers has weakened further following the cooling of the craft beer trend.

Regional factors added further pressure in 2025. In northern Germany, beer sales fell by more than 10%, partly attributed to an unremarkable summer that dampened tourism-driven demand. At the same time, weak consumer sentiment continued to weigh on spending. Deutscher Brauer-Bund chief executive Holger Eichele warned that breweries are feeling the same purchasing restraint as retailers and the hospitality sector, many of which have yet to recover from the pandemic.

Amid the downturn, alcohol-free beer remains the key growth segment. Based on data from NielsenIQ, the share of alcohol-free beer and mixed beer drinks in retail turnover exceeded 10% for the first time in 2025. While the threshold has not yet been reached in volume terms, the trend highlights a profound shift in the German beer market, forcing breweries to adapt portfolios and strategies to changing consumer preferences.

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