Core Insights - The 190th Munich Beer Festival attracted approximately 6.7 million visitors, generating an economic value of around €1.57 billion, showcasing its cultural significance and economic impact [1][7] Pricing Trends - The average price of beer at this year's festival increased by approximately 3.52% compared to 2024, ranging from €14.50 to €15.80 per liter, more than doubling from €6.80 per liter in 2005 [3] - Food prices also saw significant increases, with a half chicken priced around €20 and traditional Bavarian meals exceeding €30 per person, while some items like the giant pork knuckle reached €229, marking the highest food price in the festival's history [3] - Transportation and accommodation costs surged, with hotel prices in central Munich doubling during the festival, and train fares from Frankfurt to Munich rising from about €50 to €80 [3] Cost Pressures on Breweries - The German beer industry is facing substantial cost pressures, with production costs rising at an average annual rate of about 6% since 2020, driven by raw materials, packaging, and labor costs [5] - The profit margins for breweries are being squeezed, with a 12% gap between production costs and selling prices, significantly impacting profitability [5] - Energy costs remain high, with Germany having some of the highest electricity and gas prices in Europe, further increasing operational expenses for breweries [5] Market Dynamics - Beer consumption in Germany has declined by 35% over the past 31 years, while the non-alcoholic beer market has experienced significant growth, with non-alcoholic Pilsner sales increasing by about 9% in the first half of 2025 [6] - The festival's economic benefits extend beyond direct beer sales, with approximately 60% of the revenue generated from spending outside the festival grounds, benefiting hotels, restaurants, and retail sectors in Munich [7]