4.820
0
20
40
60
80
100
Of which
exports
Production
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
96
15
Purchases
of supplies
Value added
Production
value (million €)
Million
hectolitres (hl)
2.592
27.572
0
5.000
10.000
15.000
20.000
25.000
30.000
0
1.000
2.000
3.000
4.000
5.000
6.000
Employment
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
1.000
2.525
712
660
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
2 | Market structure, trends
and developments
3 | Direct effect
of the brewing sector
Germany is still the number-one beer producing country in
Europe. However, the demographic infuence of the ageing
population is having a signifcant effect.
18
Older people
tend to drink less alcohol and the middle-aged segment
of traditional beer drinkers is diminishing. Growth rates in
beer mainly come from younger and, increasingly, female
consumers. These young consumer groups increasingly
turn away from the traditional beer styles, such as Pilsener
which, nevertheless, still accounts for over 55% of all beer
volume sold in Germany.
Following an increased beer consumption of more than
1% in volume terms in 2006 as a result of FIFA Football
World Cup euphoria and a particularly good summer,
consumption has been declining further to approximately
88 billion litres in 2010.
19
Apart from the ageing population,
there is an overall trend towards lower beer consumption
due to the health and wellness trend and different tastes
of younger consumers. The assumption is an average
decrease in consumption of 2% per year, which is also
refected in the average consumption per capita in litres.
This consumption has reached 107.4 litres compared to
111.8 litres in 2007. For the sector it is important that beer
in Germany remains a signifcant tourist attraction with large
events such as the Oktoberfest, the beer drinking festival
held in Munich, each year in September.
75% of beer is currently consumed off-trade, and 25%
on-trade in bars and restaurants.
20
Overall this means a
further decline in on-trade beer sales. In 2008 the on-
trade accounted for 29% of total volume. The economic
downturn in Germany is one of the reasons for this decline,
as people have less money to spend. Furthermore, in 2010
more than 50% of beer from the leading brands has been
sold with special offer prices in the retail sector, which
has resulted in a reduction in beer prices. By comparison,
with prices in on-trade being 7.20 euro per litre versus
approximately 0.95 Euro per litre it is not surprising that
on-trade sales are in decline.
In 2010, Germany exported over 15 million hectolitres of
beer, a similar volume to that in 2008. This was a signifcant
increase after the dip in 2009. In that year only 13,9 million
hectolitres were exported. Italy is the main export market.
In Germany there is an on-going public discussion on beer
and health, binge drinking and public drinking. It is still
uncertain what policies this may result in. Another threat for
beer production is reduced availability of barley, which has
lead to an increase in production costs.
The direct economic impact of the brewing sector covers
more than 27,572 employees who together produce beer,
representing a value of 7.4 billion euro. Compared to 2008,
the total value decreased by 7.1%. However, the direct
effect of the brewing sector for the German economy is
still signifcant.
18
Euromonitor International “Beer in Germany” , February 2008.
19
Euromonitor International “Beer in Germany” , February 2008.
20
Deutscher Brauer-Bund, 2011.
›
Graph 18.1. / Direct effect
›
Source : Ernst & Young calculation (2011)
The Contribution made by Beer to the European Economy
114