Europe’s beer market shrinks for 5th consecutive year

Europe’s beer sector has entered its fifth straight year of decline, with production, consumption and exports all continuing to contract, according to a new report released on December 4 by The Brewers of Europe. The findings point to sustained pressure across the entire value chain and a slowdown in the dynamism that characterised the industry over the past decade.

The report highlights persistent challenges at an EU-wide level. On-trade beer consumption, traditionally accounting for one-third of all beer consumed in Europe, has dropped to about one-quarter as pubs, cafés and restaurants continuing to struggle. Although smaller in volume compared to retail sales, beer sold in hospitality venues generates the majority of the sector’s economic value and supports hundreds of thousands of SMEs, jobs and local suppliers. The weakened hospitality sector is, therefore, impacting farmers, logistics providers, festivals and tourism businesses connected to the wider beer ecosystem.

After years of steady expansion, the number of active breweries in the EU has stabilised at around 9,700, signalling a pause in the rapid growth phase that defined previous years. Brewing activity across member states has also cooled. EU beer production has fallen from 367 million hectolitres in 2019 to 345 million in 2024, with early indicators from 2025 showing further tightening. Exports, once a cushion against domestic softness, have also slowed for the second consecutive year.

The downturn is attributed to multiple pressures, including inflation, higher input and energy costs, global transport disruptions and climate-related impacts on agricultural raw materials. Low consumer confidence continues to reshape spending habits, particularly affecting categories associated with social occasions and hospitality environments.

Despite the challenging backdrop, certain pockets of growth remain. The report notes that non-alcohol beer has emerged as the fastest-expanding segment, registering a 25 percent increase over five years and now accounting for 7.5 percent of beer consumption across the EU.

The Brewers of Europe stresses that a stable and supportive regulatory environment is essential for recovery, warning that disproportionate measures could add further strain to a sector already coping with rising costs and subdued demand. Industry leaders have underscored the need for policies that enable continued investment, innovation and sustainability commitments.

The report was presented at the 12th annual Beer Serves Europe event in Brussels, bringing together brewers, supply-chain partners, policymakers and representatives from EU institutions and member states to discuss the challenges and future prospects for the continent’s beer industry.