Italy set a new record for beer consumption in 2018, exceeding the threshold of 20 million hectolitres (+3.2% year-on-year), according to AssoBirra's 2018 annual report.
The per capita beer consumption in the country increased by 3.4% in 2018.
However, it secured the third last position among other EU counterparts in terms of beer consumption.
Impact On Production
The increase in consumption boosted beer production in the country by 4.7% to 16.4 million hectolitres, making Italy the ninth largest in Europe in terms of production volumes and fifth for the number of breweries.
The number of micro-breweries grew to 862 in 2018, representing 3.1% of beer production in Italy.
Exports reached a new historical high, breaking the 3 million hectolitres ceiling (+6.6%).
The sales of imported beer increased by 1.2%, to 6.95 million hectolitres.
The increase in beer production also boosted the growth of Italian malt to 80,000 tonnes, up 5.5%, and the import of hops increased 20.8% to 3,320 tonnes.
Most of the domestic beer production (13.4 million hectolitres) was directed to the Italian market, with three out of four Italians drinking beer, mainly at mealtimes.
Growth Margins
AssoBirra has estimated that the growth margins of the sector are enormous, provided the reduction in excise duties continue as in the past two years.
In fact, beer is the only beverage to pay taxes in Italy, amounting to €32 per hectolitre, compared to €8 in Germany.
In addition, the report also pointed out the need to increase barley production in the country.
Italy imports 60% of its barley from abroad, a situation that exposes the sector to risks of price volatility and supply in international markets.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.