Dire outlook for German beer market as consumption plummets

The decline in German beer sales has reached historic dimensions, according to local brewery Veltins, with sales down 6.8% in the first five months of the year.

"The beer market is currently struggling to an extent that we have not seen since reunification [in 1990]," said Rainer Emig, managing director of sales at Veltins.

Nationwide sales were down by some 230 million litres between January and May compared to the same period last year - more than double the decline seen over the past few years, Veltins said.

Even during the same period in 2021 - the second year of the coronavirus pandemic - breweries sold more beer, according to Veltins.

While the sunny weather in the first five months of 2025 had been expected to boost sales, consumers often failed to order a second or third beer, Veltins chief Volker Kuhl said, as rising costs continue to weigh on people's willingness to splurge.

The beermaker expects further headwinds before the sector is likely to profit from an improved consumer climate again in 2026.

Regardless, Veltins achieved an increase in sales of 2.3% to 178 million litres in the first half of 2025.

However, draught beer sales fell by around 5%, with many breweries trying to make up ground with non-alcoholic products, said Kuhl.

"In our view, non-alcoholic beers are at best a band-aid to ease the pain," he said, adding that non-alcoholic beers can only compensate for around a third of the decline in alcoholic beers in supermarkets and beverage markets.

Kuhl believes that a point has now been reached "where we will see breweries giving up or selling," predicting that not every brewery will be able to continue as before.