Alcoholic beverages, specifically beer, are reportedly ineffective.
Germany's Beer Sales Decline Amidst Pandemic, Demographic, and Economic Challenges
The consumption of alcoholic beer in Germany has been on a downward trend since around 2020, primarily due to several key factors.
- COVID-19 Pandemic Impact
The pandemic heavily disrupted traditional beer consumption patterns in Germany. Lockdowns and restrictions on on-premise sales (bars, pubs, restaurants) led to a decline in overall beer volume sales starting in 2020. Even as restrictions lifted, changed consumer habits and cautious spending persisted. Additionally, disrupted retail negotiations temporarily affected beer volumes in Europe, including Germany.
- Demographic Factors
Germany faces an aging population and shifting demographics, which contribute to reduced beer consumption. Younger generations tend to drink less beer or prefer alternatives like non-alcoholic beverages or craft beers. The demographic shift reduces the core traditional beer-drinking population, leading to lower overall consumption rates.
- Economic Factors
Macro-economic challenges such as inflation, cost-of-living increases, and uncertain consumer sentiment have affected consumer expenditures on discretionary items like alcoholic beer. Economic pressures lead consumers to reduce spending on beer or switch to cheaper options or smaller quantities.
- Other Related Trends
- While overall beer volumes have declined by about 1.2% organically in recent years, premium and craft beer segments (including brands like Heineken®) have shown some growth, indicating a consumer shift towards higher-quality or differentiated products rather than volume growth.
- Increasing regulations, such as stricter drunk-driving laws and public health campaigns, also contribute to lower alcohol consumption over time, which aligns with trends seen in other countries.
In addition to the decline in alcoholic beer sales, the production of non-alcoholic beer has significantly increased since 2014. In 2024, 579 million liters of non-alcoholic beer were produced, almost double the amount from ten years ago. The growth in the production of non-alcoholic beer was at 9.3 percent to 364 million liters since 2014.
The first half of 2025 marked a significant decrease in the sales of alcoholic beer in Germany, with a total of 3.9 billion liters sold, representing a 6.3% decrease from the previous year. This was the largest decline since records began in 1993. Beer sales in the first half of 2025 saw a significant drop both domestically and internationally, with the decrease in beer sales in the export market being more significant than in the domestic market.
The German Brewers' Association attributes the decline in alcoholic beer sales to demographic and economic issues. CEO Holger Eichele expresses concern about the impact of poor consumer sentiment on the brewing industry, particularly in the hospitality sector. Many businesses in the sector are struggling to survive and have not recovered since the pandemic, according to Eichele.
In contrast, the growth in alcohol-reduced mixed drinks like radler has been modest but consistent since 2014. The growth was at 9.3 percent since 2014.
In summary, the decline in alcoholic beer consumption in Germany since 2020 results mainly from pandemic-related disruptions in drinking venues, combined with demographic shifts away from traditional beer drinkers and economic strains limiting consumer spending. However, growth in premium beer segments and alcohol-reduced mixed drinks suggests the market is evolving rather than simply shrinking overall.
[1] Federal Statistical Office Germany (2021). Beer production and consumption in Germany. Retrieved from https://www.destatis.de/EN/Themes/EconomyAndTransport/Industry/Production/ProductionOfGoods/BeerProductionAndConsumption.html
[2] German Brewers' Association (2021). German beer market in decline. Retrieved from https://www.bier-verband.de/en/news/german-beer-market-in-decline
The science of health-and-wellness could be applied to understand the reasons behind the declining consumption of alcoholic beer in Germany, as the pandemic, demographic shifts, and economic pressures have contributed to this trend. Additionally, an increase in the production of non-alcoholic beer and the growth of alcohol-reduced mixed drinks like radler suggest changing consumer preferences in the health-and-wellness sector, which warrant further investigation.
