Technavio Identifies Three Key Trends Impacting the Beer Market in Germany Through 2019

LONDON--()--Technavio’s latest beer market in Germany report highlights three key emerging trends predicted to impact market growth through 2019. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.

“Key findings of this market study indicate, increased demand for flavored beers will significantly drive the beer market in Germany until 2019. To fulfill the market demand, different types of flavors are being introduced in beer recipes that include flavors from fruits that are citrus based. Spirits based flavors like tequila and whisky are also popular in Germany,” said Vijay Sarathi, one of Technavio’s lead industry analysts for alcoholic beverages.

“Radler, a beer that is made by combining beer with lemonade, in the ratio 40:60, has thrived in Germany in the recent years. Heineken's Desperados, a combination of tequila and beer, and Anheuser-Busch InBev NV's lime-flavored variety of the Bud Light brand are other popular flavors in Germany,” added Vijay.

Technavio’s market research study identifies the following three emerging trends expected to propel growth of the beer market in Germany:

  • Growth of craft beers
  • Shift in sales from on-trade to off-trade
  • Advances in technology

Growth of craft beers

The popularity of craft beers is rising rapidly in Germany. They are in high demand especially among young urban consumers. In Germany there are approximately 1,300 breweries involved in the production that amounts to a total of 5,000 varieties of beer. In Berlin, there are more than 20 microbreweries engaged in the production of craft beer. The rise in the demand for craft beer in Germany is highly influenced by trends in the US. Lemke, a brewing company in Berlin, is adopting an American-style logo to promote its beer. Over the forecast period, many new entrants are anticipated to popularize their craft beers with similar promotional activities. This trend is predicted to significantly buoy market growth until 2019.

Shift in sales from on-trade to off-trade

In 2014, the German market witnessed higher consumption of beer at homes than outdoors such as bars, pubs, and restaurants. This shift in consumption preference is based on the fact that the average price of beer in the hospitality sector is higher than that in the retail sector. Increase in excise duty has also increased prices for on-trade channels such as pubs and restaurants, which is resulting to a higher on-trade sales volumes thanks to promotional support provided by retail stores and vendors.

Advances in technology

Brewers are continuously innovating with technology for enhancing drinking experience of consumers and on improving the quality of beer. Heineken’s Ignite interactive beer bottle launched during Milan's design week in 2013 is one such example of technological advancement that is revolutionizing consumer experience.

These bottles contain micro sensors, a wireless network, and an accelerometer to detect various motion types of drinkers and respond accordingly. These are equipped with eight bright LEDs, an 8-bit microprocessor and an accelerometer, which trigger certain effects that light up the whole bottle when it is moved.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

Technavio’s latest beer market in Germany report highlights three key emerging trends predicted to impact market growth through 2019.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com