Germany’s beer market expected to reach over $42 billion by 2019, says Technavio

Renewable energy


German beer: Key market research findings

  • Rising demand for craft beers
  • Growing popularity for non-alcoholic and flavoured beers

Technavio has added a new market research report on the beer market in Germany, to its alcoholic beverages portfolio. The beer market in Germany is expected to grow at a CAGR of more than 1% between 2015 and 2019. The consumption of beer in Germany is decreasing gradually owing to rising health conscious among consumers. However, the market witnessed positive growth during 2014 due to the victory in the football world cup.

The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.

“The consumption of craft beers is one the rise in Germany, especially among the young urban consumers. Around 20 microbreweries in Berlin produce craft beer, owing to its growing popularity. This rise in demand for craft beer in Germany is highly influenced by the US. For instance, a German brewer Lemke has adopted an American-style logo to promote its beer. However, the market penetration of craft beer is low due to the ‘German beer purity law’ that limits the local breweries in terms of raw materials in the beer production,” says Sriram Mohan, Lead Analyst, Food & Beverage, Technavio Research.

Increase in consumer awareness regarding the ill-effects of alcohol and the health risks has resulted in the increased production and demand for non-alcoholic beer. Low-alcohol/non-alcoholic beers have high long-term sales potential as these make an ideal adult soft drink option. Also, the beer makers are introducing flavored beer to attract more consumption. These beers are sweeter and have relatively low alcohol content. In 2014, beer mixes, such as beer fused with lemon-lime soft drinks, colas, and fruit juices, accounted for more than 4% of the total beer consumption in Germany.

The key vendors dominating the beer market in Germany are AB InBev, Bitburger Braugruppe, Krombacher, Oettinger and Radeberger. The market is highly fragmented with vendors competing on the basis of price, quality, innovation, service, reputation, distribution, and promotion. The German beer market is expected to witness an increased number of mergers during the forecast period. The research report also projects that the German brewers are likely to invest in the purity and quality of beer, which would increase the prices of the products.

A more detailed analysis is available in the Technavio report, Beer Market in Germany – Market Research 2015-2019.

We can customize reports by other regions and specific segments upon request.

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