On Beer Day: Number of Breweries Declines in Nearly All Federal States

The Brauer-Bund has long spoken of a "beer crisis" and is calling for political support for the tradition-rich industry. Internationally active corporations such as AB InBev are also under pressure: the company most recently reported declining sales figures in several European markets and, under the impact of falling demand, has already adjusted production capacities.

Causes of the Structural Change

Federal states with a particularly dense brewing landscape, such as North Rhine-Westphalia and Bavaria, are also recording declines. In Bavaria, known for its beer tradition, a disproportionately high number of small breweries are closing, according to the Federal Statistical Office. Baden-Württemberg is also losing establishments, albeit to a lesser extent.

Economic experts see several causes for the structural change. In addition to higher costs for malt, hops, and energy, demographic change also plays a role: older consumers drink less beer on average, while younger generations more often switch to non-alcoholic beverages. In addition, there is growing competition from craft beer imports and international brands.

The closures are predominantly due to permanent business closures, as the statistics show. Transitions to other ownership structures or mergers are only partially captured. This makes the current decline different from earlier phases of consolidation, in which breweries were mainly taken over.

Outlook for the Industry

For employees in the sector, the trend has immediate consequences. In regions with a high density of breweries, beverage production is an important employer; every closed site often means the loss of jobs in production, logistics, and administration. Municipalities also lose trade tax revenue and tourist attractions.

International Beer Day, first observed in 2007, is intended to draw attention to the cultural and economic significance of the beverage. This year, the day of action falls in a phase in which the industry itself is increasingly pointing to its difficult situation. Breweries, associations, and gastronomy businesses are using the day to draw attention to the diversity of brewing tradition and the economic challenges.

Observers expect consolidation pressure to continue in the coming years. Should the trend continue, the number of breweries in Germany could decline further, while supply increasingly concentrates on large supra-regional brands. Industry representatives are therefore advocating for tax relief and a strengthening of regional value creation in order to safeguard the diversity of Germany's brewing landscape.