Beer in Europe: Non-Alcoholic Varieties Emerge as the Sole Growth Segment

The European beer sector is grappling with a prolonged downturn that first took root in 2019. For the fifth consecutive year, both production and consumption continue to slide. However, there is a notable exception: the non-alcoholic segment, which is bucking the trend with a 25% increase over the same period. These findings come from the newly released European Beer Trends 2025 report by The Brewers of Europe.

Between 2019 and 2024, total beer production in the EU27 dropped from 367 million hectolitres to approximately 345.4 million. Consumption followed a similar trajectory, falling from 320.3 million to around 303 million hectolitres. Amidst this decline, non-alcoholic beers have carved out a significant niche, now accounting for 7.5% of total consumption.

The report cites several “perfect storm” factors contributing to this slump:

• Persistent inflation and high raw material costs.
• Global logistics disruptions.
• Climate-related pressures on essential crops.

Low consumer confidence also continues to reshape spending habits, particularly affecting products tied to social gatherings and the hospitality sector.

The “away-from-home” (on-trade) channel has borne the brunt of this contraction, with its share of volume sales plummeting from 33% to roughly 25%. While the off-trade (retail) handles higher volumes, the on-trade is where the sector generates its greatest added value. This decline threatens an ecosystem of hundreds of thousands of SMEs that sustain local jobs. A weakened hospitality sector creates a domino effect across the entire value chain—from farmers to music festivals and tourism.

Furthermore, after years of steady expansion, the number of active breweries in the EU has plateaued at approximately 9,700.

Focus on Italy: Holding Steady in the On-Trade

While the broader European trend is one of decline, Italy is displaying a more resilient dynamic. Total production volumes have remained remarkably stable, moving from 17.288 million hectolitres in 2019 to 17.220 million in 2024 (though this marks a slight dip from the highs of 2022).

Consumption in Italy shows a similar pattern. While 2024 figures (21.483 million hl) are down from the post-pandemic peak of 2022 (22.535 million hl), the market remains robust compared to its neighbours. Crucially, Italy stands out for its strong on-trade performance. Hospitality consumption reached 39% in 2024—up from 36% in 2022—significantly outperforming the EU average and proving that the Italian “aperitivo” culture remains a vital lifeline for the industry.

Transparency Note: The featured image for this article was generated using Artificial Intelligence tools.