Beer in Germany
Euromonitor International's Beer in Germany 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: 74 | Publication date: Jun 2009
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- 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
During most years of the review period, beer prices in Germany increased only marginally if at all and then still below the inflation rate. However, in 2008 most breweries were no longer able to absorb increasing costs and were forced to increase the price of beer in Germany, both in the off-trade and on-trade. Several factors contributed to cost increases for manufacturers. The most important factors were considerably higher costs for raw materials such as hops and malt, due to high global demand and a limited supply, as well as sharply rising costs for energy. From mid-2006 to mid-2007, the price of both hops and malt doubled. In addition, players faced rising labour costs and an increase in the price of glass.
Many consumers reduced their beer consumption during the review period even when prices were stable or slightly declining, due to health considerations. However, with rising prices they began to drink even less beer. Consequently, 2008 saw a sharp decline in overall consumption. Due to higher prices, however, current value sales saw a slight growth in the year.
Total beer consumption in Germany saw an overall decline during the review period. However, in 2008 total volume decline was much faster than the review period CAGR due to rising prices. Review period decline was due to an ageing population, the health and wellness trend and also due to younger consumers moving away from beer, in addition to a general maturity in beer. Older people tend to drink less alcohol and the middle-aged group of traditional beer drinkers is diminishing. Consumers are meanwhile increasingly aware of the health dangers of too much drinking and are increasingly opting for lower-alcohol beverages such as malt-based RTDs or soft drinks.
Younger consumers are meanwhile turning away from the traditionally tart beer consumed by their parents and grandparents, Pilsener. This still accounted for over 60% of beer total volume sold in Germany at the end of the review period. Instead, younger consumers are looking for different tastes, for example being drawn to beer mixes with lemonade, orange, lemon or exotic flavour. These saw strong growth during the review period within malt-based RTDs.
The fastest growth area within beer in 2008 was non-alcoholic beer. In Germany, the label Alkoholfreies Bier (“alcohol-free beer”) is applied to beer of less than 0.5% abv. At the start of the review period, most Alkoholfrei beer was included under Euromonitor International’s definition of low alcohol beer. This situation changed during the review period, however, when several leading manufacturers launched products with no alcohol content and stressed the wellness aspects of beer, focusing on its natural B vitamins, magnesium and essential amino acids. Non-alcoholic beer is popular as it allows consumers to enjoy the taste of beer, for example at lunch, and afterward to still be able to drive, work or take part in other activities that require sobriety. Also, according to industry sources, older consumers are an important target group for non-alcoholic beer, with this product area thus benefiting from the ageing population.
In 2008, off-trade prices saw a sharp increase of around 6% in current value terms. For many years, breweries had absorbed increasing costs in order to survive in this competitive product area. With the recent surge in prices for raw materials, energy and other production elements, this was no longer possible, as margins and profits became too eroded for players to survive. Almost all manufacturers thus increased prices, from large nationwide players to small local players. Consequently, the effect on shares was limited.
Apart from non-alcoholic beer, weissbier/weizen/wheat beer was the most successful product area in beer in 2008, with 1% total volume growth despite considerably higher prices in the year. Weissbier/weizen/wheat beer is the most popular type of dark beer among Germans and accounted for a total volume share of 10% in overall beer in 2008. Weissbier/weizen/wheat beer sales are strongest in its traditional region of origin, Bavaria, but continued to grow in other German regions towards the end of the review period. A growing number of northern Germans are being attracted by the milder flavour and slightly higher alcohol content of weissbier/weizen/wheat beer compared to Pilsener. Consequently, a growing number of breweries outside of Bavaria launched weissbier/weizen/wheat beer towards the end of the review period, often with considerable success. Krombacher Brauerei Bernhard Schadeberg GmbH & Co for example launched Krombacher Weizen in 2007. Weissbier/weizen/wheat beer is particularly popular with active young men and women, an appealing target group for breweries.
There was a strong trend towards super premium beer in Germany towards the end of the review period. Breweries are realising that only a strong brand identity with premium qualities can enable them to differentiate their range from dynamic private label and economy beers such as Oettinger. All manufacturers of premium beer thus shifted to focus on super-premium beer towards the end of the review period. Increasingly, packaging was used to emphasise high quality, either through the use of premium crates or through innovative bottle forms, embossed names and, increasingly, the use of swing caps to suggest tradition and speciality. Manufacturers also began to use emotional advertising campaigns. For example, Warsteiner aired TV spots such as “die pure Freude” (“the pure joy”), “das pure Erlebnis” (“the pure experience”) and “der pure Mix” (“the pure mix”).
German consumers are increasingly enjoying draught beer at home, as sales for five- and six-litre kegs and keg systems boomed towards the end of the review period. Strong growth was driven by the removal of a deposit fee for this packaging type towards the end of the review period. Growth was also due to the presence of this packaging format in unusual distribution channels, such as DIY and hardware stores.
Overall, off-trade sales accounted for 61% of total volume sales in 2008. However, this share is significantly higher in eastern Germany. In this region, higher unemployment rates and lower average household incomes result in greater beer consumption at home than in bars and pubs. However, off-trade sales declined more dramatically than on-trade sales in volume terms in 2008, dropping by 5%. This occurred due to consumers being increasingly attracted by malt-based RTDs for at-home consumption and was also due to sharper price increases in the off-trade than in the on-trade. However, on-trade sales notably suffered from the introduction of smoking bans in 2008, with volume sales declining by 3% in 2008.
The typical alcohol content of lager, dark beer and stout in Germany is 4.5-5.5% abv. Brewing beer has a very long tradition in Germany, however, and beer is available in a range of different strengths. Overall, however, there were not major changes in average alcohol content of beer in Germany. For most consumers, the distinction between alcoholic and non-alcoholic beer and the taste of the beer are much more important than slightly differing levels of alcohol in beer.
Glass is the most popular packaging format for beer in Germany, although much smaller sales of PET bottles and metal beverage cans increased in share towards the end of the review period. This was due to the rising cost of glass. The typical beer packaging in Germany however remains a crate of glass bottles sold with a deposit. Special packaging is frequently used for seasonal beer such as Oktoberfest beer or Christmas beer, however. At these times, limited edition packaging is used by all the main players and smaller local breweries. These seasonal beer products offer manufacturers and retailers higher margins and are also used to boost brands’ profiles among consumers.
PRODUCTION, IMPORTS AND EXPORTS
Germany’s beer production decreased considerably between 2001 and 2007, with this mainly due to a decline in domestic beer consumption. Consequently, industry experts anticipate a continued fall in production in 2008, especially due to the impact that recent price increases are having on sales. However, Germany remains Europe’s leading beer producer, being behind only China and the US on a global level. Overcapacity in beer production is significant in Germany.
Exports to both EU countries and non-EU countries increased significantly in 2006 and 2007, growing overall by 9% in 2006 and 4% in 2007. The main export destinations are Italy, the US and France, where the distinct taste and guaranteed quality of German beer is particularly popular. There was a high growth for German imports in the Netherlands in 2006, as Dutch consumers demanded German beer during the World Cup. Meanwhile, 2007 saw a striking leap in exports to Central and Eastern European countries, such as Czech Republic and Poland, with these being focus areas for leading players such as Radeberger Gruppe KG.
Import volume significantly fell in 2007 over the previous year, dropping by 13%. In 2006, sales of imported beer were boosted by the World Cup, with the additional sales being unsustainable in 2007. Danish beer continued to account for the largest share of imports in 2007, thanks to the popularity of leading brands such as Tuborg Pilsener and Faxe Pils. However, the strongest growth in 2007 was seen for Dutch beer, with growing exports for Heineken and Grolsch.
Imported lager showed a better performance than domestic lager towards the end of the review period, with total volume sales declining by 2% and 5% respectively in 2008 over the previous year. Imported beer is especially popular among young people, with brands such as Tuborg Pilsener seeing good growth due to their mild taste.
Euromonitor International data differs slightly from apparent consumption levels as a different research methodology is used. Furthermore, apparent consumption does not take issues such as stock build up and spoilage into account.
Table of contents
ALCOHOLIC DRINKS IN GERMANY : MARKET INSIGHT
EXECUTIVE SUMMARY
Sales decline due to demographic changes and health and wellness trend
Economic uncertainty hinders sales
National breweries lead fragmented shares
Discounters gain appeal among price-sensitive consumers
Further decline ahead as players struggle to target changing consumer base
KEY TRENDS AND DEVELOPMENTS
Economic downturn shapes growth
Increasing polarisation due to income disparity
Health and wellness spurred by ageing population
Continuing rise of discounters
Specialist Retailers
Summary 1 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2007-2008
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 Domestically Produced Beer Brand 2008
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 5 Selling Margin of a Typical Imported Wine Brand 2008
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
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 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - GERMANY
BITBURGER BRAUEREI TH SIMON GMBH - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bitburger Brauerei Th Simon GmbH: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Bitburger Brauerei Th Simon GmbH: Competitive Position 2007
BRAUEREI C & A VELTINS GMBH & CO KG - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Brauerei C & A Veltins GmbH & Co KG: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Brauerei C & A Veltins GmbH & Co KG: Competitive Position 2007
HOLSTEN-BRAUEREI AG - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Holsten-Brauerei AG: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Holsten-Brauerei AG: Competitive Position 2007
KöSTRITZER SCHWARZBIERBRAUEREI GMBH & CO - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Köstritzer Schwarzbierbrauerei GmbH & Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Köstritzer Schwarzbierbrauerei GmbH & Co: Competitive Position 2007
KROMBACHER BRAUEREI BERNHARD SCHADEBERG GMBH & CO - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Krombacher Brauerei Bernhard Schadeberg GmbH & Co: Key Facts
Summary 13 Krombacher Brauerei Bernhard Schadeberg GmbH & Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Krombacher Brauerei Bernhard Schadeberg GmbH & Co: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Krombacher Brauerei Bernhard Schadeberg GmbH & Co: Competitive Position 2007
OETTINGER BRAUEREI GMBH - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Oettinger Brauerei GmbH: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 17 Oettinger Brauerei GmbH: Competitive Position 2007
PAULANER BRAUEREI GMBH & CO KG - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Paulaner Brauerei GmbH & Co KG: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Paulaner Brauerei GmbH & Co KG: Competitive Position 2007
RACKE GMBH & CO, A - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Racke GmbH & Co, A: Key Facts
Summary 21 Racke GmbH & Co, A: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Racke GmbH & Co, A: Competitive Position 2007
RADEBERGER GRUPPE KG - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 23 Radeberger Gruppe KG: Key Facts
Summary 24 Radeberger Gruppe KG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 25 Radeberger Gruppe KG: Competitive Position 2007
WARSTEINER BRAUEREI HAUS CRAMER GMBH & CO KG - ALCOHOLIC DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 26 Warsteiner Brauerei Haus Cramer GmbH & Co KG: Key Facts
Summary 27 Warsteiner Brauerei Haus Cramer GmbH & Co KG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 28 Warsteiner Brauerei Haus Cramer GmbH & Co KG: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 29 Warsteiner Brauerei Haus Cramer GmbH & Co KG: Competitive Position 2007
BEER IN GERMANY
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 30 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2003-2008
Table 25 Sales of Beer by Subsector: Total Value 2003-2008
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Value 2002-2007
Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 36 Beer Imports by Country of Origin: Total Value 2002-2007
Table 37 Company Shares of Beer by National Brand Owner 2003-2007
Table 38 Company Shares of Beer by Global Brand Owner 2003-2007
Table 39 Brand Shares of Beer 2004-2007
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
Table 44 Number of Breweries 2002-2007