Trouble brewing as German beer exports hit 10-year low

Germany's beer exports are down 6 percent from levels registered 10 years ago, according to the Federal Statistical Office, or Destatis, highlighting broader challenges in the country's brewing sector.

The decline in exports parallels an even more pronounced shift in domestic consumption, with people in Germany drinking 15.1 percent less beer than they did a decade ago, a trend that suggests significant changes in the nation's traditional beer market.

The statistics, published ahead of German Beer Day on Wednesday, paint a picture of an industry confronting changing consumer preferences and market dynamics.

According to Destatis, German breweries exported 1.45 billion liters of beer last year, down from 1.54 billion liters in 2014. The majority of these exports, or 55.7 percent, were destined for European Union member states, while the remaining 44.3 percent reached markets beyond the bloc.

The domestic market shows an even steeper decline, with local sales dropping to 6.8 billion liters last year from 8 billion liters a decade earlier. Despite the overall downturn, exports now constitute a larger share of total sales at 17.6 percent, marking a 1.5 percentage point increase from 2014.

The figures do not include nonalcoholic beer and beer imported from outside the EU. The combined total of domestic sales and exports fell to less than 8.3 billion liters last year, marking a decrease from 8.4 billion liters the previous year.

While Destatis did not specify causes for the declining demand, the trend aligns with broader shifts in consumer behavior across many countries, where health consciousness appears to be reshaping drinking habits, Deutsche Welle News reported.

Notably, as traditional beer sales fall, Germany has witnessed a significant surge in nonalcoholic beer consumption, indicating evolving consumer preferences rather than a wholesale rejection of beer culture, Deutsche Welle said.

An aging population increasingly favors healthier, nonalcoholic alternatives, while rising energy costs has forced some breweries to close doors, The Munich Eye newspaper reported.