Sales of beer drop to all-time low record
In the first half of 2025, German breweries experienced a significant decrease in beer sales, with approximately 3.9 billion liters sold – a 6.3% drop compared to the previous year. This decline can primarily be attributed to the financial stress in the hospitality sector, rising prices, higher taxes, and changing consumer behavior.
The significant downturn in Germany’s hospitality sector, which has experienced dramatic drops in revenue, rising operating costs, and numerous insolvencies, has led to reduced consumer spending on beer. Inflation-adjusted data for May 2025 show a notable decline, with food and drink prices in the hospitality industry having increased by about one-third over five years, far outpacing the general inflation rate of around 20%. The reinstatement of the full 19% VAT on food and beverages in restaurants since early 2024 has further strained the sector.
These combined economic pressures have led to reduced guest numbers and falling profits in many foodservice and accommodation businesses, heavily impacting beer sales across Germany.
Interestingly, Germans seem to be reaching for alternatives, as sales of shandy have increased. Beer mixed drinks like shandy or cola beer increased by 8%, accounting for 5.6% of total beer sales with 220.8 million liters.
The decline in beer sales has resulted in a drop of 262 million liters compared to the previous year. This is the first time since records began in 1993 that half-year sales have fallen below the four billion liter mark. Exports also took a hit, with tax-free exports decreasing by 7.1% to 711.2 million liters, and exports to countries outside the EU decreasing by 9.9% to 299.6 million liters.
The steep decrease in beer sales in early 2025 in Germany is not just an isolated event. In the first half of 2020, beer sales fell by 6.6%, and a comparable drop was also recorded in the second half of 2023 with a decrease of 6.2%.
Amidst this challenging landscape, traditional brand Oettinger has announced it will be abandoning operations at its site in Braunschweig, resulting in around 150 job losses. Production at the site will cease in spring 2026.
The shift away from traditional beer consumption, observed in international markets like the United States, where no-alcohol beer segments are growing while overall beer volume declines, may also reflect changing consumer preferences that could influence German consumption patterns. However, the primary cause remains the economic hardship within hospitality venues.
As the beer industry navigates these challenges, it remains to be seen how it will adapt and recover in the coming months and years.
The economic hardship within the hospitality sector, due to factors such as rising costs, inflation, and increased taxes, has led to a decrease in consumer spending on traditional alcoholic beverages like beer, impacting the business and finance of the German breweries. Furthermore, the beer industry in Germany is experiencing strain due to changes in consumer behavior, as sales of alternatives like shandy have increased, suggesting a shift towards non-alcoholic or mixed drinks.
