German brewing industry in crisis: Beer sales continue to decline despite the World Cup

Consumers turn to non-alcoholic alternatives

Niklas Other, publisher of the beverage market magazine "Inside", also confirms the development: "Less beer is being drunk in Germany". Consumers are increasingly turning to non-alcoholic alternatives. In retail, non-alcoholic beverages have now reached a revenue share of more than 50 percent, while the share of beer has fallen to below 22 percent.

The large brewery Veltins, based in Grevenstein near Meschede, was only able to continue its growth course by acquiring the Karamalz brand from the Eichbaum brewery in Mannheim. Without this takeover, the company's sales would have fallen by 2.5 percent, according to the company itself. The core Veltins Pils brand lost 4.3 percent in sales in the first half of 2026.

Veltins grows only through acquisition

Veltins sales manager Rainer Emig describes the price war in retail: "In order to break through the deep-seated consumer uncertainty and defend their own market position, retailers increasingly reactivated the psychologically critical battle line of below 10 euros per crate of beer". Price reductions amounted to almost 40 percent during the football World Cup.

The average beer price nevertheless rose from 1.59 euros per liter in the first half of 2025 to 1.64 euros per liter in the first half of 2026. Industry insiders criticize that shelves were "flooded" with pale lagers for a long time. Overall, beverage sales in the first half of 2026 did rise by 1.3 percent to 180 million hectoliters, but non-alcoholic beverages benefited most.

World Cup discount wave fizzles out

Marcus Strobl, beverage expert at the market research company NIQ, puts the decline in beer sales in the first six months of 2026 in retail at four percent – a level matching the previous year's figure. "We expected nothing from the football World Cup and were not disappointed," Eichele summarizes the effect of the sporting event.

Given high production costs and the ongoing decline in consumption, Eichele expects further consolidation: "Not all locations in the brewing industry can be saved." The industry itself also assumes that the number of breweries in Germany will continue to fall.

Outlook: Further consolidation expected

The football World Cup has provided the industry with hardly any stimulus. While retailers and the catering industry courted customers with special promotions and big-screen broadcasts, the hoped-for sales boost failed to materialize. Instead, the structural shift toward non-alcoholic beverages, which is permanently weakening classic beer demand, has solidified.

Overall, the data show that Germany's brewing industry is at a turning point. Declining sales, rising costs, and changing consumer behavior are putting the medium-sized industry under pressure. The coming months will show whether companies can respond to the changed market conditions through innovation, acquisitions, or plant closures.