Less Beer Drunk, Less Sold... What Is Happening in the Land of 'Maekbusim'?

Economic Recession and Trend of Reducing Alcohol Consumption
Instead, Non-Alcoholic Beer Market Shows Growth Trend

One of the images representing Germany alongside the "Panzer Army" is beer. However, the amount of beer consumed in Germany, which prides itself as the birthplace of beer, has been decreasing every year.

Germany's Federal Statistical Office announced on the 1st that last year's beer sales amounted to 8.38 billion liters, down 390 million liters (4.5%) from 8.77 billion liters in 2022.

This is the lowest figure since statistics began being compiled in 1993. The Statistical Office explained that although beer sales slightly increased by 2.7% in 2022, the long-term downward trend continues. Beer sales in Germany have been declining not only last year but for decades. Compared to 11.21 billion liters in 1993, last year's sales decreased by 25.2% over 30 years.

Germany, proud to be the birthplace of beer, has seen its beer consumption decrease year by year.
[Photo by AP·Yonhap News]

Both domestic sales (-4.2%) and exports (-5.9%) declined, indicating that the entire industry is in a slump. Sales of mixed drinks combining beer with lemonade, cola, or fruit juice also dropped nearly 10% in one year, from 440 million liters to 400 million liters. However, non-alcoholic beers and beers with an alcohol content below 0.5% were excluded from this survey.

Per capita beer consumption is also continuously decreasing. According to Statista Research, per capita beer consumption was 91.8 liters in 2022. Although this was an increase from 81.4 liters the previous year, it has been on a downward trend since peaking at 142.7 liters in 1990. As of 2022, 52% choose German-made beer, but 26% select both domestic and imported beers.

The local beer industry predicts that beer consumption may temporarily increase during Euro 2024 (the UEFA European Football Championship) held in Germany in June and July, but it is difficult to reverse the economic downturn and the growing trend of drinking restraint. The industry is placing its hopes on non-alcoholic beer. Holger Eichele, head of the German Brewers Association, said in an interview with local media, "Soon, one-tenth of the beer produced in Germany will be non-alcoholic beer," adding, "There has been no sector in the beer industry that has grown as much in the past 10 years."

The World-Famous Beer Festival Also Staggered by Inflation

Germany's pride and the world-renowned beer festival, Oktoberfest, was also hit hard by inflation last year. The economic impact of Oktoberfest is estimated to exceed 1.2 billion euros (approximately 1.704 trillion KRW). Each brewery operates tents at the festival grounds. Last year, the price of a 1-liter mug was roughly 12.6 to 13.8 euros (about 20,000 KRW). This is more than double the price of 6 euros about 20 years ago in 2000. Prices for lemonade and carbonated drinks rose 8% from 2022 to 11.17 euros.

Germany's pride and the world-renowned beer festival, Oktoberfest, was also directly hit by last year's inflation. The economic impact of Oktoberfest is estimated to exceed 1.2 billion euros (approximately 1.704 trillion won).
[Photo by AFP·Yonhap News]

This is due to the pressure of rising costs faced by manufacturers across Europe. In particular, in Germany, prices for beer raw materials such as malt and various packaging materials have surged since 2022. This is due to supply chain disruptions caused by the Ukraine war. Ukrainian glass factories have closed, and barley imports are still facing difficulties. Russia and Ukraine account for more than 30% of the world's barley supply. Additionally, industrial electricity prices in Germany are six times higher than in the United States and four times higher than in Japan.

As a result, beer prices sold in Germany have risen 12% over the past year. Since Oktoberfest beer is priced higher than the market, the price increase was fully reflected in costs, which directly led to a decrease in beer consumption.

This content was produced with the assistance of AI translation services.