Beer in Germany

PRE-COVID-19 PERFORMANCE

Changing consumer habits and the weak summer of 2019 contributes to the decline of beer consumption in Germany

The long-term trend of declining beer per capita consumption in Germany continued to unfold in 2019. During the review period and 2019, beer in Germany was characterised by a high level of maturity and by changing consumption habits, as many Germans became increasingly conscious of their beer intake.

Trends including non/low alcohol beer, domestic ingredients and regional heritage support sales in 2019

Non/low alcohol beer was the fastest-growing area in 2019, demonstrating consumers changing drinking habits, as many German consumers continued to become more conscious of their alcohol consumption. Supporting this trend was the increasing quality of non/low alcohol beers.

Radeberger Gruppe retains its lead as Krombacher remains the best selling beer in Germany during 2019

Radeberger Gruppe reminded the top performer in 2019, benefiting from owning regional, as well as international beer brands. The player's volume sales are driven by its brands Schöfferhofer, Clausthaler, Jever Fun and the regional beer brand Ur-Krostitzer.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of beer is expected to decline by 31% in 2020 in light of the impact of COVID-19. This compares to an expected decline of 1% forecast for 2020 during research conducted in May 2019, before the spread of COVID-19.

Affected products within beer

All on-trade sales of products within beer will be impacted by COVID-19 in 2020, as each product area is expected to record a double-digit decline in on-trade volume growth. In contrast, all areas in off-trade are predicted to record growth for 2020, with consumers increasing their purchases of beer for home use, compared to the pre-COVID-19 predictions.

Recovery and opportunities

On-trade consumption of beer is unlikely to recover during 2020, as occasions and events continued to be cancelled in the country, and consumers remain cautious about spending time in public. However, retail sales in 2020 have increased compared to pre-COVID-19, with consumers forced to stay at home, contributing to the shift to at home consumption.

Lager price band methodology

In Germany, lager is divided into three general price segments – economy (entry level), mid-priced and premium. Even though there are regional and channel-related differences to the pricing of specific brands, overall the average price for off-trade premium lager was EUR1.

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