European Beer Trends 2024: Challenges and Opportunities for the Year Just Begun

Market trends: numbers and challenges

In recent years, the beer market has gone through significant ups and downs:

• 2019: 320 million hectoliters of beer sold in Europe.
• 2020: The pandemic reduced volumes to 298 million hectoliters.
• 2022: Recovered about half of the lost volumes, totaling 309 million hectoliters.
• 2023: 301 million hectoliters sold, marking a new decline.

The main difficulties in 2023 were caused by:

• Inflation and rising production costs.
• Higher prices for raw materials, energy and logistics.
• Reduction in consumer purchasing power.
• Supply chain bottlenecks exacerbated by geopolitical instability, such as the war in Ukraine.

Despite this, breweries continue to proliferate: 40 new openings were recorded in 2023. However, the pace of growth has decreased from the past decade, when there were thousands of new openings each year.

Opportunities for breweries: key trends of 2024

To meet today's challenges, breweries must focus on innovation and sustainability. Here are the key trends driving consumer choices:

• Alcohol-free beverages: The non-alcoholic beer market already accounts for 6-7% of the total and continues to grow.
• Regionality and typical products: Consumers seek authentic experiences linked to the local area.

To respond to these trends, breweries need to invest in:

• Product development: Creating innovative and sustainable beers.
• Strategic marketing: Enhancing the narrative related to territory and quality.
• Operational efficiency: Strengthening the supply chain to mitigate the impact of inflation and geopolitical instability.

Who is the largest brewer in Europe?

Germany remains the leader in 2023, with nearly 85 million hectoliters produced. It is followed by Spain (41.5 million) and Poland (35.2 million). Italy ranks ninth with 17.5 million hectoliters.

Which countries have experienced the most significant growth in production?

Slovenia leads the ranking with +29% from 2017, although volumes remain modest (1.8 million hectoliters). Italy and Spain follow, both with +11 percent.

And which ones have declined?

Estonia suffered a 30% drop, followed by Finland and Hungary. Among the large producers, the United Kingdom recorded a -15 percent from 2017, falling to 34 million hectoliters.

Which countries consume the most beer per capita?

The Czech Republic leads the way with 128 liters per capita, followed by Austria (99 liters) and Germany (88 liters). France and Italy, on the other hand, are at the bottom of the ranking, with 33 and 36 liters per capita, respectively.

Beer consumed on premises or sold in supermarkets?

On-trade dominates in Ireland, Spain, and Greece, where more than 50 percent of beer is consumed in bars and restaurants. In contrast,off-trade is prevalent in Estonia, Poland and Romania, with more than 90 percent of sales in supermarkets and stores. Among the large producers, Germany records 85 percent off-trade consumption.

Number of breweries

In 2023, France led the European ranking with 2,500 breweries, followed by the United Kingdom (1,760), Germany (1,492) and Switzerland (1,230). Italy ranked fifth with just over 1,000 breweries.

Among these countries, most of the entities are microbreweries, with an annual production of less than 1,000 hectoliters. For example, in the United Kingdom, out of 1,760 breweries, as many as 1,710 are microbrewers. Germany is an exception: out of 1,492 breweries, 856 are microbreweries, leaving 43% of the market to medium to large producers.

As for "brewing companies"-companies that produce or sell beer and related products such as soft drinks and mineral water-the distribution mirrors that of breweries, except for the Netherlands, which ranks fifth with 914 companies.

Who are the major importers of beer?

The United Kingdom (8.2 million hectoliters), Italy (7.3 million) and Spain (5.7 million) lead imports, with 90 percent coming from other EU countries.

What about the major exporters?

Belgium dominates with 15 million hectoliters, followed by Germany (13 million) and the Netherlands (12.6 million). A significant share of exports is directed outside the EU (35 percent).

The future of craft beer in Europe

Despite the difficulties, the craft beer sector shows extraordinary resilience. A focus on sustainability,innovation, and regionality is the key to continued growth. With proper supportive policies and targeted strategies, craft beer in Europe has all the cards to meet the challenges of 2025 and beyond.

Source: European Beer Trends 2024