The beer market has seen a noticeable downturn in 2024, as recent data reveals a decline in both sales volume and value. According to a service tracking real-time sales across all On Premise channels and categories, beer volumes so far this year are down 11.1% compared to the same period in 2023, with sales by value falling 7.0%. This decline has been attributed to weak consumer confidence and adverse weather conditions, including significant flooding in southern regions, which outweighed the anticipated sales boost from the Euro 2024 football tournament.
Winners and Losers Across Categories and Channels
A breakdown of beer sales by category reveals that Pils continues to dominate the market, with its share slightly increasing to 39.5% over the past year. Weizen, despite losing some of its share, remains the second most popular beer style. Hell and Alkoholfrei segments have seen growth, ranking third and fourth, respectively.
Beer sales have also been affected by a contraction in distribution. CGA’s Outlet Index shows a 2.6% drop in the number of licensed premises over the past year. Restaurants continue to hold the largest share of beer sales at 32.6%, ahead of hotels. However, both channels have experienced a slight dip in their shares, while pubs and bars have gained some ground.
Shifting Consumer Attitudes
Despite these challenges, beer remains a staple in German social life. CGA’s On Premise User Survey (OPUS) reports that 48% of consumers continue to enjoy beer in bars and restaurants, though this marks a slight 2% decrease from the previous year. Additionally, nearly three-quarters (72%) of respondents expressed that they would feel disappointed if they could no longer dine or drink out.
Rising beer prices, which have increased by an average of 4.7% over the past 12 months, may be contributing to a decline in foot traffic. The number of beer drinkers visiting On Premise locations weekly has dropped by 2 percentage points year-on-year. Many consumers are also narrowing their brand preferences, with nearly half (47%) stating that value for money is a key consideration when choosing a venue—second only to the quality of food, which was cited by 48% of respondents.
As consumer spending power remains under pressure, the beer market faces ongoing challenges in maintaining its foothold, despite its cultural significance.
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