German beer output falls below 80 million hectolitres as brewery failures mount
German beer output fell 5.6% to 79.24 million hectolitres in 2025, dropping below 80 million for the first time. Paulaner was the only major German brewing group to grow, while rising costs and weaker consumption forced more smaller breweries out of business.
German output drops below 80 million hectolitres
Germany’s brewing industry entered a deeper contraction in 2025 as beer output fell by about 5.6% to 79.24 million hectolitres, according to the latest BarthHaas report cited by come-on.de. The total slipped below 80 million hectolitres for the first time. Heinrich Meier, the report’s author, said the industry was recording losses on a scale it had not expected.
The decline was far steeper than the global contraction. Worldwide beer production decreased by 0.7% to about 1.896 billion hectolitres in 2025. European Union output fell 3.1% to approximately 333.6 million hectolitres, with Germany’s weak performance weighing on the regional result. Germany nevertheless remained the world’s sixth-largest beer-producing country, behind China, the United States, Brazil, Mexico and Russia.
Paulaner becomes the new national number two
Paulaner was the only large German brewing group to expand during the downturn. The Munich-based company overtook TCB Beteiligungsgesellschaft to become Germany’s second-largest brewer, although Radeberger Group retained first place with output of 9.95 million hectolitres. Paulaner produced 7.59 million hectolitres, placing it 29th in the global top-40 ranking, while TCB ranked 30th with 7.20 million hectolitres.
Oettinger, Krombacher and Bitburger Braugruppe followed the three leaders in the German market. Oettinger is also facing another management change: Thilo Pomykala is leaving only months after becoming chief executive in April, with the company citing differing views on its future strategic direction. His predecessor, Stefan Blaschak, had led the shrinking brewer for about three years. Oettinger, Germany’s bestselling beer brand from 2004 through 2013, said work on appointing a successor was already under way.
Smaller breweries face insolvency pressure
The contraction is proving more severe for smaller traditional brewers. Three breweries filed for insolvency within ten days in June 2026: Aktienbrauerei Kaufbeuren, founded in 1308 and employing 84 people; Schussenrieder Brauerei Ott, with about 40 employees; and Hofbrauhaus Wolters, which has brewed beer in Braunschweig since 1627. The Wolters insolvency also pulled in the Colbitzer brewery in Lower Saxony. Mannheim-based Eichbaum, founded in 1679, ceased operations after rescue efforts failed.
According to the German Brewers’ Association, 137 breweries closed during the six years to April 2026. The industry attributes the failures to declining beer consumption and higher energy, raw-material and wage costs that brewers say are difficult to pass on to retailers. BarthHaas managing director Thomas Raiser said consumption was stagnating or falling in many traditional markets while alcohol-free and low-alcohol drinks gained importance. BarthHaas expects production to remain broadly stable but trend slightly lower, as growth in Africa, Asia, Central America and South America is offset by declines in Europe and North America.
