Tradition on the Decline – Consumers Turning Away from Beer in Germany

Author: Lauren Beth

Date published: 24 Sep 2008

In this edition of Globalcast, analyst Florian Heyden analyzes the changing alcoholic drinks market in Germany, addressing why consumers are turning away from beer and opting for new alternatives…

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The ageing population in Germany has had a strong impact on the beer sector as older people drink less alcohol and the middle-aged segment of traditional beer drinkers diminishes. Growth rates in beer can only come from younger and increasingly female consumers. These consumer groups are turning away from the traditional tart beer consumed by their parents and grandparents such as Pilsener, which accounts for over 60% of all beer volume sold in Germany, and look for different tastes elsewhere. It is therefore not surprising that a generation that grew up with fizzy drinks and Nutella turns towards sweeter and milder tastes. Malt-based beer mixes with orange, lemon and other exotic flavours saw a staggering growth rate of 24%. Other beer varieties with a milder taste, such as wheat beer and Kölsch, a dark beer variety from the Rhine region, increasingly appeal to younger generations and female consumers. These groups helped the sector with growth rates between 6% and 9%.

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