Non-alcoholic beer shines in Europe as beer market declines

The European beer market is facing a sustained contraction, with production, consumption, and exports all declining for the fifth consecutive year, according to the newly released 2025 European Beer Trends Report from The Brewers of Europe. Amidst this persistent downturn, non-alcoholic beer has emerged as the industry's only beacon of growth, expanding by a robust 25% over the past five years.

The report, unveiled at the annual Beer Serves Europe event, paints a challenging picture for the traditional sector, now struggling under the weight of lost consumer confidence, reduced spending, high inflation, and rising input costs. EU beer production has fallen from 367 million hectolitres in 2019 to 345 million in 2024, with early 2025 figures confirming further tightening.

The hospitality sector, a key pillar for the industry's added value, has been particularly hard hit. On-trade consumption (pubs, cafés, restaurants) has dropped from representing one-third of all beer consumed in Europe to around one-quarter, severely impacting the entire value chain and the thousands of SMEs it supports. Furthermore, the number of active breweries in the EU has plateaued at approximately 9,700, signalling a significant slowdown after years of rapid dynamism.

Despite these headwinds, the non-alcoholic segment continues to soar. Non-alcohol beers now represent 7.5% of total EU beer consumption, a testament to the industry's successful pivot towards moderation and evolving consumer preferences for mindful drinking.

Christian Weber, president of The Brewers of Europe, warned that the challenges are systemic: “Consumers have lost confidence and are spending less. Brewers are facing rising costs, tighter regulations and increasing pressure across the value chain. We remain resilient and optimistic by nature, but we need more stability and support to continue believing in a bright future.”

The Brewers of Europe is urging policymakers to provide stable, balanced regulation to enable continued investment and innovation, particularly as brewers look to build on the success of categories like non-alcoholic beer and contribute to Europe's cultural and economic vibrancy.

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