Europe’s brewers call for ‘support’ amid market decline

Core Insights - The European beer market is experiencing a decline in production, consumption, and exports for the fifth consecutive year, with EU beer output projected to decrease to 345 million hectoliters (hl) in 2024 from 346.18 million hl in 2023 [1] - Exports, which previously helped mitigate domestic demand weaknesses, have slowed for a second year, indicating a trend that is more than a temporary dip [2] - Consumer confidence has diminished, leading to reduced spending, while brewers face rising costs and tighter regulations, prompting calls for more stability and support from policymakers [3] Production and Consumption Trends - Beer production across the EU27, Norway, Switzerland, and the UK was 387.45 million hl in 2024, down from 412.72 million hl in 2019 [3] - Germany remains the largest beer producer at 83.92 million hl, followed by Spain at 41.29 million hl and the UK at 36.08 million hl [4] - There is a notable shift from on-trade to off-trade consumption, with Germany's on/off-premise split changing from 18/82 in 2019 to 14/86 in 2024, and Spain's from 68/32 to 63/37 [4] Industry Challenges - The number of breweries in the EU has plateaued at around 9,700 after a decade of growth, with inflation, high input costs, global transport disruptions, and climate-related pressures cited as major contributors to the downturn [5] - Low consumer confidence is reshaping spending patterns, particularly affecting products associated with social occasions and hospitality [5] Market Segments - Non-alcohol beer is the fastest-growing segment, increasing by 25% over five years and now accounting for 7.5% of EU beer consumption [6] - The industry emphasizes the need for a supportive regulatory framework to foster sustainability and innovation, with calls for clear support rather than counterproductive regulations [6] Future Outlook - The sector is positioned to contribute to Europe's competitiveness and cultural vibrancy if provided with the necessary stability to invest, innovate, and grow [7]