Global beer production declines as consumers shift towards lower-alcohol options
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The global beer industry is facing a slowdown as changing consumer habits, health concerns and weaker demand in traditional markets weigh on production of one of the world’s most popular beverages.
Global beer output fell to 189.6 billion litres last year, down by 1.4 billion litres, or 0.7%, compared with the previous year, according to an analysis by BarthHaas, the world’s largest hop trader. The figures include alcohol-free beer, a segment that has expanded rapidly in recent years as consumers increasingly seek lower-alcohol alternatives.
Beer production declined across almost every continent, with Africa the only region recording growth. Thomas Raiser, CEO of BarthHaas, said consumption was “stagnant or declining” in many established markets, while alcohol-free and low-alcohol beers continued to gain importance.
Europe recorded one of the sharpest downturns, with total production across the European Union falling by 3.1% to around 33.4 billion litres. Germany, Western Europe’s largest beer market, saw production decline by 5.6% in 2025 to 7.9 billion litres, marking the first time output dropped below the 8 billion-litre threshold.
Poland also reported a significant decline, with production falling by 7.2% to around 3.2 billion litres.
Outside Europe, beer production in the Americas fell by 0.7% to 61.5 billion litres, driven largely by weaker output in the United States, the world’s second-largest beer producer. Asia recorded a decline of 1.2% to 58.7 billion litres, affected by lower production in China. Africa was the only region to record growth, with output rising by 2.6% to 1.7 billion litres.
In Italy, production decreased by 2.5% compared with the previous year, according to industry group AssoBirra. However, the alcohol-free segment continued to expand strongly, with its market share almost doubling between 2024 and 2025.
The decline in beer production has also been linked to weaker hop output, with cultivated areas falling by 5.5% and global harvest volumes decreasing by 3.8% last year.
BarthHaas expects global beer production to stabilise in 2026 but does not anticipate a significant recovery, with demand likely to remain under pressure as consumers continue to change their drinking habits.
