Austria’s beer industry saw steady growth in 2024, with production rising by 1.1% to 10.09 million hectolitres, according to the country’s Brewers’ Association.
However, domestic sales, excluding alcohol-free beer, fell by 0.5% to 8.2 million hectolitres as consumers tightened their belts. A hectolitre is equivalent to one hundred litres.
Karl Schwarz, chairman of the Brewers’ Association, said the decline was due to “consumer reluctance to spend” as economic uncertainty persists.
A drop in consumer confidence also affected sales in the hospitality sector, Schwarz said. “People still enjoy their beer, but by the second or third glass, they tend to hold back.”
The decline of traditional pubs in rural areas and a broader shift towards lower alcohol consumption also contributed. Hot weather further dampened sales, as drinkers shied away from heavier beers. “Heat is bad for the brewing business, except when it comes to alcohol-free beers.”
No boost from the Euros
Contrary to expectations, the European Football Championship, held in Germany over the summer, failed to boost beer sales. Instead, sales slumped in June, with the industry suffering a “significant double-digit decline in revenue.”
Fewer trading days may have played a role, but Schwarz admitted there was “no real explanation” for the weak sales during the tournament.
Even so, the overall picture remained positive. A 9% rise in exports helped push total production beyond the 10-million-hectolitre mark for the first time. Looking ahead, Schwarz said he was “cautiously optimistic” for 2025, with breweries pinning their hopes on strong city and seasonal tourism.
No Sharp Price Rises Expected
While breweries face continued cost pressures, particularly from high energy prices, Schwarz said fierce competition meant price increases were unlikely to be steep.
“Breweries will attempt to pass on rising costs, but the declining domestic market cannot simply be offset by higher prices,” he said.
Alcohol-Free Beer on the Rise
Alcohol-free beer remains the fastest-growing segment, with production for the domestic market reaching 31 million litres in 2024. That accounts for 3.7% of total beer production, up from 3.3% in 2023.
“There is still room for growth,” said Florian Berger, managing director of the brewers’ association, noting that alcohol-free beer already accounts for 6-7% of production in Germany and the Czech Republic.
Pfand Scheme Set to Boost Bottle Returns
A rise in Austria’s deposit on reusable glass bottles from 9 to 20 cents, introduced in February, is expected to increase return rates. Schwarz said the measure would reduce waste and cut costs for breweries, which have had to replace large numbers of bottles not returned for reuse.
While early data is not yet available, Schwarz said there had been little sign of stockpiling. The cost of the transition for breweries is estimated at €11-12m.
Concerns that the higher deposit could fuel “deposit tourism” at the German-Austrian border have not materialised, with Schwarz saying the issue remains “isolated and insignificant.”
