Beer in Belgium
Euromonitor International's Beer in Belgium market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 62 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Dark beer; Lager by origin; Lager by price platform; Low/non- alcohol beer; Stout
Executive summary
Beer remains the most popular alcoholic drink in Belgium but consumption has been falling over the years in volume terms. In particular, on-trade consumption has been declining over the years, while off-trade sales increased, even though not sufficiently to fully offset the effect of falling on-trade sales. There are several partly interlinked trends behind this development: as in other Western European countries, the Belgian population is ageing, and thus less likely to go out drinking. In addition, GDP growth in real terms has been mediocre, with a negative effect on beer consumption. Finally, there is an overall trend towards more at-home consumption, which is also underlined by the various beer keg systems launched by nearly all the major players over the review period.
The 2008 overall volume growth rate was slightly less negative but roughly in line with the review period. This can be explained by the progressively more challenging economic conditions throughout the year. Increased food price inflation during the first part of the year meant more pressure on consumers’ budgets. Belgium is a challenging market for the beer industry with a trend towards declining volumes and stabilised population growth. However, there is evidence that consumers are receptive to high-quality innovative products, addressing a broader range of consumption occasions.
Abbey-style beer, for example, registered the best progression for 2008 with growth of 4% in volume terms and 5% in current value terms. The innovations and the introduction of new fruity flavours of beer helped increase the popularity of the speciality beers. This reflects an emerging demand among customers for sweeter beers as well as a shift back to traditional beers. The success of those beers is linked to a growing preference for sweeter tastes in drinks in general. Brewers have responded to this trend with the introduction of new flavours such as the Grimbergen Dorée 8, launched in April 2008.
There is a strong trend towards the top-end premium segment as the beer manufacturers are realising that only a strong brand identity with premium qualities will hold them in good stead against the ongoing success of private label and economy beers. All manufacturers of premium beers are currently moving their products to the top end of the market. Alken-Maes, for example, has relaunched its Grimbergen beer in a new bottle, with an emphasis on the artisanal side of the beer. Increasingly, packaging is used to stress the high quality of the product.
The prices have been rising mainly because of the rising cost of raw materials as well as the new legislation introduced in 2007 that increased the taxes on packaging. A first increase of 1% occurred in April 2007 on reusable bottles, with another increase of 2.5% following during summer 2007 to compensate for the increase in raw materials. These increases were first introduced by InBev, and then followed by the other main manufacturers. These price rises have hit more strongly pubs and cafés, seeing customers further favouring buying beers in the off-trade.
The market for economy beer struggled in 2008 as consumers are increasingly putting quality ahead of price. In fact, the emphasis on quality has been used as a tool by manufacturers in Belgium. Economy beer saw sales decrease by more than 4% in volume terms in 2008. Lager is the most important type of beer consumed, the majority of which is domestically produced. Standard lager is by far the most popular beer, accounting for nearly 81% of the value of all lager sold, and continued to record positive current value growth in 2008. Premium lager also showed positive growth in current value terms. However, the volume of sales fell across all types of lager, with the exception of imported standard lager.
Lager is more popular in mid-strength types, with no clear movement visible in this category. Dark beer, on the other hand, is increasingly more popular in stronger versions, while stout comes mainly in standard strength. Far more expensive than lager, dark beers accounted for 20% of the volume of beer drunk in Belgium in 2008, but 30% of the total value of beer sales. These are seen as traditional Belgian beers and include the fastest-growing beers – abbey and trappiste beers. Abbey beers are the most popular of the dark beers.
Off-trade sales of beer have been expanding faster than on-trade sales for many years, and the trend is accelerating as on-trade sales, despite promotional activity, continued to fall, while off-trade sales continued to record positive volume growth. Off-trade sales have been helped by the introduction of the Perfect Draft machine by InBev for home-tapped beer, which has been a success. Brewers such as Alken-Maes have been trying to stimulate home consumption by promoting its beers as the perfect accompaniment for meals, such as with the introduction of Grimbergen Dorée 8.
On-trade sales have suffered from an increase in horeca establishments closing down. However, the café and bar culture in Belgium remains strong, and on-trade consumption still exceeds sales in the off-trade in Belgium.
Canned beer is growing in popularity in Belgium, although not all beers are suitable for canning. Alken-Maes, InBev and John Martin all offer canned products. Fruity beers in cans are particularly popular among Belgians, especially among young and female consumers.
Production, Imports and Exports
The actual volume of beer produced in Belgium increased by 2% in 2007. The number of breweries in Belgium has remained stable.
In 2007, 57% of the beer produced in Belgium was exported. Exports of beer have been exceeding domestic consumption since 2005. EU countries account for 90% of exports and the US for 5%. Sales of imported beer have also been growing, especially those from the Czech Republic. According to industry estimates, domestically-produced lager is by far the most important lager consumed in Belgium.
Table of contents
ALCOHOLIC DRINKS IN BELGIUM : MARKET INSIGHT
EXECUTIVE SUMMARY
Value of alcoholic drinks sales grew as volumes stagnated
Belgium is experiencing stagnation in alcoholic drinks consumption
International players dominate sales shares
Stabilisation of retail environment in the off-trade channel
Further stagnation expected in volume sales of alcoholic drinks in Belgium
KEY TRENDS AND DEVELOPMENTS
Belgian consumers desert cafés and pubs to the detriment of beer sales
Consumption of alcoholic drinks in Belgium
Growing health awareness impacts alcoholic drinks
Increased demand for variety and premium products
Specialist Retailers
Market Merger and Acquisition Activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Beer Brand 2008
Table 4 Selling Margin of a Typical Wine Brand 2008
Table 5 Selling Margin of a Typical Spirits Brand 2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 7 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 8 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 9 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 17 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 18 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 20 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - BELGIUM
ALKEN MAES NV SA, BROUWEIJEN - ALCOHOLIC DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Alken Maes NV SA, Brouwerijen: Key Facts
Summary 3 Alken Maes NV SA, Brouwerijen: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Alken Maes NV SA, Brouwerijen: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 5 Alken Maes NV SA, Brouwerijen: Competitive Position 2007
DELHAIZE 'LE LION' SA - ALCOHOLIC DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Delhaize ‘Le Lion’ SA: Key Facts
Summary 7 Delhaize ‘Le Lion’ SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 8 Delhaize ‘Le Lion’ SA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Delhaize ‘Le Lion’ SA: Competitive Position 2007
DUVEL MOORTGAT NV - ALCOHOLIC DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Duvel Moortgat NV: Key Facts
Summary 11 Duvel Moortgat NV: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Duvel Moortgat NV: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 13 Duvel Moortgat NV: Competitive Position 2007
HAACHT NV SA, BROUWERIJ - ALCOHOLIC DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Haacht NV SA, Brouwerij: Key Facts
Summary 15 Haacht NV SA, Brouwerij: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 16 Haacht NV SA, Brouwerij: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 17 Haacht NV SA, Brouwerij: Competitive Position 2007
MCS NV SA - ALCOHOLIC DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 18 MCS NV SA: Key Facts
Summary 19 MCS NV SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 20 MCS NV SA: Competitive Position 2007
BEER IN BELGIUM
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 21 Lager by Price Band 2008
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2003-2008
Table 23 Sales of Beer by Subsector: Total Value 2003-2008
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 25 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 26 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 27 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 30 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 31 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 32 Beer Exports by Country of Destination: Total Value 2002-2007
Table 33 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 34 Beer Imports by Country of Origin: Total Value 2002-2007
Table 35 Company Shares of Beer by National Brand Owner 2003-2007
Table 36 Company Shares of Beer by Global Brand Owner 2003-2007
Table 37 Brand Shares of Beer 2004-2007
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 39 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013