Througout Europe, the beer brewing sector was deeply affected by the restrictions imposed on hospitality by governments since March 2020. A recent report commissioned by the Brewers of Europe gives a thorough overview of the pandemic’s devastating impact.
Shutdowns of hospitality venues, bans on alcohol consumption and prohibition of large and medium-scale events were just a few of the numerous restrictions implemented by governments throughout Europe that also had a negative effect on beer sales. According to The Europe Economic’s Beer Covid Impact Report, in 2020, 42% of beer hospitality sales volumes in Europe were eliminated. Sales volumes dropped from 126 million hectolitres in 2019 to 73 million. „This drop in consumption, provoked 860,000 job losses, a 25 percent decline in beer’s overall value-added to the European economy and a 23 percent decline in government tax revenues from beer”, the report summarizes the overall pandemic impact.
The drop in on-trade beer sales was offset only slightly by an increase of 8 percent (20 million hectolitres) in off-trade beer sales. Overall, beer sales volumes in Europe dropped by 9 percent (34 million hectolitres) in 2020.
„Modelling suggests the number of jobs created by beer fell from 2.6 million people in 2019 to approximately 1.8 million in 2020, a fall of 33% or around 860,000. The hospitality sector was hit hardest, with more than 4 in 10 beer-generated jobs being wiped out, or almost 43% of employees losing their jobs (or dependent on temporary unemployment benefits).“
„The value added by the beer sector reduced by over €15 billion, or 25%, from €60 billion in 2019 to €47 billion in 2020. Again, the on-trade hospitality sector represents the highest proportion of this fall in value added, generating 45% less value in 2020 compared to 2019 – a loss of €13 billion in the value usually added by beer hospitality.“
„Total taxes paid by the beer sector in Europe amounted to €36 billion in 2020, down by €11 billion, or a 23% decline, from €47 billion in 2019. €7 billion of this was loss of VAT usually collected through the on-trade, a further €1.1 billion was lost in excise duties and €4 billion of the drop was from lower Income, Payroll and Social Security Contributions.“
The full report complete with numerous charts and in-depth analysis is publicly available here.