Austria vs. Germany: The Beer Market in Transition

Austria vs. Germany: The Beer Market in Transition

A Divided Picture for Beer Lovers

The beer markets in Austria and Germany present contrasting pictures in 2024 – while Austria recorded modest growth despite global challenges, the German beer sector faces profound difficulties.

Positive Impulses in Austria
As reported today by the Association of Austrian Breweries, Austria achieved a total output of 10.09 million hectoliters in 2024 – an increase of 1.1 percent compared to the previous year. The domestic market remained stable while exports grew by an impressive 9 percent. The trend towards non-alcoholic beers also continued, with an increase of 8.4 percent and rising demand that is expected to play an even larger role in the future. Sustainability is a top priority in the Austrian brewing industry: innovative reusable packaging, such as the newly introduced 0.33-liter glass bottle, and an increase in the deposit fee from 9 to 20 cents underscore the commitment to conserve resources and optimize the recycling process.

Challenges in Germany
In contrast, the German beer market is struggling with declining figures. Domestic sales dropped by 2 percent to 68 million hectoliters, while overall production – including exports and tax-free consumption – fell by 1.4 percent to 83 million hectoliters. The export decline, which in some areas reached up to 11 percent, is particularly painful. Despite the high visitor numbers during UEFA Euro 2024, the anticipated boost was not enough to spur an upturn. Even traditional brands like Krombacher recorded a decline, while smaller breweries have been forced to close in part due to rising energy costs and investment pressures. Nevertheless, a trend is emerging in Germany: the market for non-alcoholic beers is steadily growing, with industry forecasts predicting that soon one out of every ten beers sold could be alcohol-free.

A Divided Picture for Beer Lovers
It remains to be seen whether the Austrian beer market can continue to counteract the negative developments seen not only in Germany but also in other European countries. For consumers, this results in a rather mixed picture: while the transformation process in the German industry leads to a price war and, at least in the short term, attractive promotional prices on supermarket shelves, consumers in Austria can look forward to an intact industry and the assurance that they will continue to find their beloved products in the familiar quality in the market.

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