In a country renowned for its beer heritage, growing numbers of Germans are choosing to enjoy their brew but skip the hangover.
According to Germany’s statistical office, in the first half of 2025, conventional beer sales in the country declined by 6.3%, equivalent to approximately 262mn litres. This marks the first time since 1993 that sales have fallen below 4bn litres in any six-month period.
At the same time, production of alcohol‑free beer has doubled over the last decade, soaring from around 267mn litres in 2013 to 556mn litres by 2023, with a current market value of approximately €548mn.
Some observers attribute the rise of no-alcohol beer to changing habits among millennial and gen Z consumers, who are increasingly focused on health and wellness.
“We need to find a way to make beer, even if it’s non-alcoholic, attractive for young people,” said Stefan Kreisz, CEO of Erdinger brewery near Munich, speaking to the BBC. “You need to understand the ways they meet and the ways they party together.”
For companies working in and with Germany’s no- and low-alcohol (NoLo) drinks sector, the country’s shifting tastes present an opportunity to reuse or redirect the capacity they might once have dismissed.
For example, sales of mixtures such as Radler, a German beverage that combines beer with a citrus-flavoured soda or lemonade, are up 8% this year.
The number of alcohol‑free beer options has swelled, with more than 800 varieties now available across the country, and some breweries even reporting that their NoLo beers are now outselling their traditional stock.
This is not only a German anomaly. Non-alcoholic beer is thriving across both Europe and North America, even as broader food and drink sectors struggle under inflation and shifting consumer habits.
Worldwide, non-alcoholic beer volumes increased by 9% in 2024, complementing a 1% decline in overall alcohol consumption, according to industry tracker IWSR. At that pace, non‑alcoholic beer is set to become the world’s second-largest beer category this year, outpacing ales, while lagers still dominate.
Another IWSR study of 10 key countries, including Germany, shows that the number of buyers of no-alcohol beverages grew by 61 million between 2022 and 2024, compared with 38 million for low-alcohol options.
The rising demand for alcohol-free beer is driving innovation, as brands look for new flavours and other ways to stand out on the shelves.
“As the no-alcohol category matures, consumers want more than just an absence of alcohol,” Susie Goldspink, head of no- and low-alcohol insights at IWSR said in a statement. “They want products that deliver on taste, complexity and overall drinking experience.”