Beer - Germany

The Beer market in Germany has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: German consumers have traditionally had a strong affinity for beer, and it continues to be a popular beverage choice. However, there has been a noticeable shift in customer preferences towards craft beer and specialty brews. This trend can be attributed to a growing interest in unique flavors, high-quality ingredients, and the desire to support local breweries. As a result, smaller, independent breweries have gained traction in the market, offering a wide range of innovative and artisanal beer options.

Trends in the market: One notable trend in the German beer market is the rise of low-alcohol and non-alcoholic beer. Health-conscious consumers are increasingly seeking alternatives to traditional beer that offer lower calorie and alcohol content. This trend is driven by a greater emphasis on wellness and moderation, as well as changing attitudes towards alcohol consumption. Brewers have responded to this demand by introducing a variety of low-alcohol and non-alcoholic options, which have gained popularity among a wider consumer base. Another trend shaping the market is the growing popularity of online beer sales. With the rise of e-commerce, consumers are increasingly turning to online platforms to purchase their favorite beers. This shift is driven by convenience, wider product selection, and the ability to compare prices and read reviews. Online retailers and beer subscription services have capitalized on this trend by offering a curated selection of beers delivered directly to consumers' doorsteps.

Local special circumstances: Germany has a rich brewing tradition and is known for its beer purity law, the Reinheitsgebot. This law, dating back to the 16th century, stipulates that beer can only be brewed using water, malt, hops, and yeast. This commitment to quality and tradition has shaped the German beer market and continues to influence consumer preferences. German breweries take pride in adhering to the Reinheitsgebot and often highlight it as a selling point for their products.

Underlying macroeconomic factors: The German beer market is also influenced by broader macroeconomic factors. For example, the country's strong economy and high disposable income levels have contributed to increased consumer spending on beer. Additionally, Germany's position as a popular tourist destination has boosted beer sales, as visitors are eager to sample the country's renowned brews. However, it is important to note that the COVID-19 pandemic has had a significant impact on the beer market, with restrictions on social gatherings and closures of bars and restaurants leading to a decline in on-premise beer consumption. As the situation improves and restrictions are lifted, the market is expected to recover and continue its growth trajectory. In conclusion, the Beer market in Germany is evolving to meet changing customer preferences and emerging trends. Craft beer, low-alcohol and non-alcoholic options, online sales, and the adherence to the Reinheitsgebot are all contributing to the market's development. With a strong economy and a commitment to quality, Germany's beer market is poised for continued growth in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.