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Beer consumption suffered during lockdown

Across the globe, beer consumption suffered from the Covid-19 pandemic in the early stages of 2020. In some countries – such as South Africa – alcohol consumption was restricted, while others – like Mexico – classified brewing as a non-essential activity and ceased beer production.
“In most countries, consumers faced a lockdown and the on-premise channel was closed, creating varying degrees of pain for nearly all brewers,” according to Francois Sonneville, Senior Analyst – Beverages at Rabobank .
“In North America, the overall market has held up relatively well, helped by its reliance on off-trade sales and stellar e-commerce growth. Brewers large and small have proved surprisingly nimble and adaptable – which may lead to notable changes to the on-premise moving forward,” says Sonneville. Craft brewers, who are more dependent on the on-trade, have so far avoided closures, although the winter might impact those dependent on outdoor seating.
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In Europe, on-trade markets have been hit hard, especially in tourist areas, and beer
going stale in kegs has caused additional problems. As new Covid cases are on the
rise and the risk of a second lockdown increases, chain integration might help to
lower costs.
Despite a sharp recovery in China, the loss of summer sales will hang over 2020
Asian beer volumes. As China comprises 70% of total Asian beer consumption, it is
critical to recovery. Thailand and Japan have shown smart recoveries in Q3 2020. For
the rest of Asia, specifically, India, the Philippines, and Vietnam, there are mixed
fortunes.

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