The last two years have posed significant challenges for all industries. The brewing industry is no exception to this statistic. The annual report of the Brewers of Europe from the end of 2021 notes a decline in beer consumption in all countries of the old continent. Statistics show that before the pandemic in 2019, 325 million hectoliters of beer were sold in EU countries, and in 2020 - 310 million hectoliters. EU beer production in 2019 is 370 million hectoliters, and in 2020 - 350 million hectoliters.
The first data of the Union of Brewers in Bulgaria (UBB) for 2021 show that compared to 2019 in our country the decline in beer sales is nearly 6%. According to the annual report of the Customs Agency in 2021 the total volume of the beer market in the country is 5,150,000 hectoliters, which is 1% less than in 2020. The amount of excise duty on beer sales - BGN 74.1 million, also is 1% less than in 2020.
According to experts, in addition to the adverse effects of the COVID pandemic, the stagnation of the beer market is due to the reduced flow of foreign tourists, restrictions on the operation of restaurants and consumer concerns about rising inflation. Despite these typical conditions for all European markets, Bulgarian brewers are doing very well in the overall picture of the sector. In terms of volume, the Bulgarian beer market ranks 11th in the EU, and in terms of beer consumption per capita we are 8th.
"In 2021, the tendency for beer to be the most frequently consumed beverage after mineral water has been preserved in Bulgaria. Even during the winter season, 53% of Bulgarians between the ages of 18 and 69 drink beer at least once a week. The most active beer drinkers are from the group of 40-49 year olds. For another year, the biggest fans of beer are in Ruse, where the frequency of beer consumption is 13 times a month, followed by Varna. The results of this omnibus study of IPSOS, as well as data from other studies show that Bulgarians are becoming more and more connoisseurs of sparkling drinks and growing fans of beer culture," said Ivana Radomirova - Executive Director of UBB.
Evidence of this is the fact that in 2021 5 new microbreweries have started operating in Bulgaria, with which the total number of registered enterprises for beer production in the country is already 41. This trend is also fully in line with the development of the sector at global and European level. In the last 10 years, a real boom in the beer market has caused the opening of more and more small and microbreweries. In the period 2014-2019, nearly 1000 new breweries opened in the EU every year, while in the last 12 months the number of new small and microbreweries was only 225. However, by the end of last year the number of breweries in Europe was already 12 600.
Despite the difficulties associated with the pandemic, breweries are among the best and most stable employers in Bulgaria. The average insurance income in the industry is BGN 1860. In 2021, the production and sales of beer provide employment for nearly 25 000 people. Of these, 9% are directly employed in the brewing industry, 32% in the supply sectors and 59% in trade, restaurants and tourism. In 2021, brewers not only managed to keep jobs, but also to increase the total number of people employed in beer production.
Despite the gradual opening of countries in Europe, consumers are still reserved for social contacts and gatherings. These attitudes continue to affect the brewing sector as well. "As we look to the future, we must ensure that brewers have solid ground for recovery. The beer industry is part of a complex chain involving many businesses. Specific long-term support through various government development measures will help brewers recover and stay afloat," said Pierre-Olivier Bergeron, Secretary General of the Brewers of Europe.
With the help of reactivating the sector, the Brewers of Europe are convinced that an economic recovery of the industry will be achieved again. In turn, it will bring much-needed government revenue and increase jobs throughout the brewing, supply and restaurant chain.
The statistical report of the Brewers of Europe has data for the 27 EU member states, Great Britain, Norway, Switzerland and Turkey. The report shows how the strong "renaissance in beer production and consumption" in European countries, which lasted for almost a decade, was literally stopped by the pandemic pressure.
More information:
The Union of Brewers in Bulgaria is the representative organization of beer producers in the country and their suppliers of raw materials and equipment. Members of the association are the brewing companies: Bolyarka - VT AD, Britos EOOD, Zagorka AD, Kamenitza AD, Carlsberg Bulgaria AD, Lomsko Pivo AD, Dorovski Invest OOD. In total, they produce 99% of the country's beer.
Since 2007, the UBB has been a member of the Brewers of Europe, Brussels, the voice of the EU's beer industry. For more information www.pivovari.com
