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German Breweries Struggle with Tariffs and Declining Domestic Beer Demand

New U.S. and Russian tariffs compound a decade-long decline in domestic beer sales, forcing German brewers to pivot export strategies and rely heavily on price promotions.

Overview

  • Since April 5, 2025, German beer exports to the U.S. face a 10% tariff, with a 25% additional tariff on aluminum cans, potentially increasing to 20% in July.
  • Domestic beer sales in Germany fell by 570,000 hectoliters in the first two months of 2025, continuing a 15% decline over the past decade.
  • Major brewers like Veltins and Krombacher are reducing exports to the U.S. and Russia, focusing instead on stable European markets.
  • Oettinger is intensifying efforts to expand exports to Asian markets to offset losses from traditional export destinations.
  • Over two-thirds of Pilsner sales in Germany rely on heavy discounting, reflecting significant overcapacity in the domestic market.