The world drinks less and less beer, and breweries in crisis struggle to reinvent themselves

Drop in China, increase in Brazil On the Asian continent, production fell 1.2%, to 59 billion liters. The increase recorded in India was more than offset by production declines in China, Vietnam, Japan, South Korea and Myanmar. The Chinese, however, remain by far the largest beer producers in the world, responsible for more than a sixth of global production. North America also saw a significant drop, 1.9%, to 34 billion liters. The fact that production in the United States alone fell by almost a billion liters, to just over 17 billion, was not enough to offset the substantial increase recorded in Mexico, which reached almost 15 billion liters. In South America, production increased by 1.7% to 25 billion liters, mainly thanks to Brazil, whose production rose to more than 15 billion liters. The increase was even greater in Africa, reaching 2.6%, to almost 17 billion liters. Less hops, but still in excessive quantities Germany is currently the world's largest hop producer both in terms of cultivated area and harvest volume, with the country remaining ahead of the United States. However, global production of the essential brewing ingredient is also declining, at an even faster pace than beer production. The global hop growing area decreased by 5.5% to 52,660 hectares. Harvest volume fell 3.8%, reaching 109,188 tons. The amount, however, is still excessive, according to experts. “Production will again exceed demand in 2025,” said Heinrich Meier, from BarthHaas. The company does not believe in growth in beer production this year. "We anticipate that production will remain largely unchanged, perhaps even slightly lower," said BarthHaas managing director Thomas Raiser. "Growth in Africa, Asia and Central and South America will likely be offset by declines in Europe and North America." German breweries in crisis Germany's breweries are under pressure amid falling sales and rising costs. According to the Federal Statistical Office (Destatis), in 2025 German breweries recorded the biggest drop in sales since records began in 1993. Sales fell by 6% compared to the previous year, to around 7.8 billion liters. Even large breweries, like Veltins, have been facing difficulties. The company was only able to increase its beverage sales in the first half of 2026 through the acquisition of the Karamalz brand – a non-alcoholic beer with a slightly caramelized flavor. Sales of its main brand, Veltins Pils, fell approximately 4.3%. Another notable example is the Warsteiner Group. In May, the company announced the closure of its brewery in Herford and the sale of another production site in Paderborn. Around 220 jobs were affected. These companies are representative of the entire sector. According to the German Brewers Association, around 100 breweries have closed their doors since the end of 2019. The organization's general director, Holger Eichele, fears that more breweries will follow the same path. Global area under cultivation of hops, a fundamental ingredient in beer making, decreased by 5.5%, Armin Weigel/dpa/picture alliance Breweries face a double crisis. On the one hand, energy, personnel, production, transportation and packaging costs have been increasing — in part due to international crises. On the other hand, consumers have been showing caution in times of economic uncertainty. Furthermore, many Germans — especially younger people — choose to abstain from alcohol completely. Biggest market for non-alcoholic beers To compensate for the drop in sales, more and more breweries are turning to non-alcoholic drinks. The range of products has multiplied in recent decades, including carbonated fruit juices, soft drinks, energy drinks and flavored water. Many companies want to sell more non-alcoholic drinks to reach consumers who don't like beer, while also aiming to preserve their traditional brands. According to the German Brewers Association, non-alcoholic beers already hold a market share of more than 10%. Germany is ahead of other countries in this regard. "We are European champions in the production of non-alcoholic beers", said Holger Eichele. Experts, however, warn that this may work for some companies, but not for all, since the market is already saturated and will have to shrink. Hundreds of beers for R$16,000: what the Consumer Protection Code says