The German beer market faced another challenging year in 2024, as domestic beer sales dropped by 2% compared to the previous year, reaching a historic low of 68 million hectoliters. The overall beer production of German breweries, which also includes exports and tax-free consumption by employees, amounted to 83 million hectoliters (-1.4%). This decline continues the downward trend observed in recent years, despite Germany hosting the UEFA Euro 2024 tournament, which brought millions of football fans to the country.
According to the Federal Statistical Office (Destatis), the beer production shrank by 1.6% in December alone, with domestic consumption falling by 2.0%. However, it must be noted that these figures do not include sales of non-alcoholic beers. The largest losses, however, came from exports, particularly to third countries, which saw an 11% drop. The collapse of exports to Russia and growing difficulties in the Chinese market further contributed to the downturn. Throughout 2024, German beer exports to non-EU countries remained relatively stable but ended the year slightly negative at -0.3%.
Among the federal states, Saxony-Anhalt recorded a surprising 7.1% increase in beer sales, while Bavaria saw a slight rise of 1.6%. In contrast, Berlin and Brandenburg were hit hardest, suffering a combined 12.2% decline. Meanwhile, the brewery in Wernigerode, formerly producing Hasseröder, has now started brewing Corona beer under the ownership of AB InBev.
Non-alcoholic beer, however, continued its steady rise in popularity. The German Brewers’ Association predicts that soon, every tenth beer sold in Germany will be alcohol-free. "Non-alcoholic beer has become a lifestyle product," said a spokesperson for the association.
Despite the overall market decline, some brewers managed to defy the trend. Veltins reported a 3.1% growth in production (inside.beer, 16.1.2025), marking a new record for the company. However, smaller breweries struggled with rising costs and increasing market pressure. The industry, comprising around 1,500 small breweries, faces mounting challenges due to high energy costs and the need to invest in renewable energy sources. Some breweries, like Flensburger Brauerei, have started generating their own electricity through photovoltaic systems, but not all businesses can afford such investments.
With demand shrinking and production costs rising, some smaller breweries were forced to shut down in 2024. Even Germany’s largest beer brand, Krombacher, saw a 2.1% drop in sales last year. Industry experts warn that unless significant changes occur, more closures may follow in the coming years.
