CGA by NIQ reveals opportunities as well as challenges in German beer
CGA by NIQ’s new On Premise Measurement (OPM) solution reveals. It sets out key trends in the beer category in Germany—and what suppliers and operators can to do to win in the market.
The service, which provides accurate and up-to-the-minute insights into sales patterns across all On Premise channels and categories, shows a softening of the beer market in recent times. Volumes in 2024 to date are down by 11.1% on the same period in 2023, while sales by value are 7.0% behind. Fragile consumer confidence and poor weather—including floods in the south of the country—have outweighed the boost to sales from the Euro 2024 football tournament.
Winners and losers by category and channel
OPM’s breakdowns of beers by style indicates that Pils remains dominant, with its share rising slightly to 39.5% in the last 12 months. Weizen has lost share but remains the second most popular choice, while the Hell and Alkoholfrei segments have both added share to lie in third and fourth.
Beer sales have been hit by a contraction in distribution, and CGA’s Outlet Index shows a 2.6% drop in total licensed premises in the last year. Restaurants have the greatest share of beer sales at 32.6%, ahead of hotels—though both channels have lost a little share in the last year, with pub and bars making gains.
Consumer attitudes
Despite challenges to sales, Germans remain closely attached to beer and the On Premise. CGA’s On Premise User Survey (OPUS) shows just under half (48%) of consumers drink beer in bars and restaurants—down by 2 percentage points year-on-year—while nearly three quarters (72%) say they would be lost or disappointed if they weren’t able to eat or drink out.
However, widespread increases in beer prices—by an average of 4.7% in the last 12 months—may be damaging footfall. The number of beer drinkers visiting the On Premise weekly has dropped 2 percentage points year-on-year, and many beer consumers are reducing their brand repertoires. Nearly half (47%) now say value for money is an important factor when they decide which venues to visit—the second top consideration after the quality of food on offer (48%).
Bilal KaddouriCGA by NIQ’s Client Solutions Director, Germany, said: “It’s clear that beer sales have been under severe strain. However, this remains a much-loved and dynamic category, and despite the challenges there are still substantial opportunities for suppliers, brewers and venues. To grasp them, businesses will need to identify growth hotspots like alcohol-free beer and innovate to establish compelling points of difference in more established categories. Targeting the right brands to the right venues at the right price is crucial, and our research provides the ideal foundations for success.”
CGA’s OPM service has been refreshed in Germany to provide even better insights into beer and all other major drinks categories in the On Premise. Combined with CGA’s OPUS research into consumer attitudes, it delivers an exceptional holistic view that enables manufacturers and operators to optimise sales and marketing strategies. To learn more, contact BilalKaddourihere.
Bilal Kaddouri CGA by NIQ’s Client Solutions Director, Germany, said: “It’s clear that beer sales have been under severe strain. However, this remains a much-loved and dynamic category, and despite the challenges there are still substantial opportunities for suppliers, brewers and venues. To grasp them, businesses will need to identify growth hotspots like alcohol-free beer and innovate to establish compelling points of difference in more established categories. Targeting the right brands to the right venues at the right price is crucial, and our research provides the ideal foundations for success.”
Bilal Kaddouri
