For the Belgian beer sector, 2023 was anything but a year for the history books. Both domestic beer consumption and exports fell sharply last year, the sector umbrella organization Belgian Brewers reported on Wednesday during the publication of the annual report. There is a historic decline in exports. The brewers refer to inflation, purchasing power crisis and a staff shortage.
After the disastrous year 2020 with the major impact of the corona crisis, there was a recovery in beer consumption in 2021 and 2022 to almost the level of pre-covid year 2019. But in 2023 things are back to normal again. Consumption fell by 5.8 percent to 6.5 million hectoliters of beer. For the brewers, this is not so exceptional in itself, because there has been a global decline for more than 20 years.
But while until a few years ago they could compensate for declining domestic demand with booming exports, this is no longer the case. Exports fell for the fourth year in a row in 2023 and the largest decline ever: -7.5 percent to 15 million hectoliters. In 2019 it was still 18.4 million hectoliters and in 2022 there was already a decrease of 6.5 percent.
Just like in 2022, exports outside Europe mainly fell last year (-22.2 percent to 2.2 million hectoliters). Exports to EU countries decreased considerably less (-4.4 percent to 12.8 million hectoliters).
Competition under pressure
According to Belgian Brouwers, the decline is due to competitiveness, which is under heavy pressure, for example due to rising wage and energy costs. According to them, this makes it difficult to remain competitive compared to a growing local supply in the export countries. According to the brewers, the changing consumption pattern – which has been causing declining beer consumption in our own country for years and where consumers opt for a tasting beer – also affects exports.
2023 was “one of the most challenging years” for the sector, the annual report said. “The challenges for our sector are considerable: rising energy, production and wage costs, staff shortages and a lasagna of taxes that puts pressure on our competitiveness,” says Krishan Maudgal, director of Belgian Brewers.
READ ALSO. Brewers concerned about the future of extra excise duties, taxes and regulations: “People should be proud of our Belgian beer culture instead of putting us down”
However, the brewers remain resilient, it sounds. “The glass is and remains half full.” The sector continues to demand a “well-thought-out government policy” to support the sector and Belgian beer culture.
417 breweries in Belgium
In 2023, domestic consumption in the catering industry (-5.7 percent) and retail (-5.9 percent) fell. Seventy percent of production is intended for export. Last year, 23 new breweries opened their doors, compared to 36 closures. At the end of 2023, there were 417 breweries throughout Belgium (-13), good for 6,927 direct jobs and 1,600 brands. The brewers together invested 251 million euros in 2023.
READ ALSO. For the first time in 15 years, the number of breweries in Belgium is declining