Global Beer Industry Update
2020 was a difficult year for the global brewing industry. While estimates vary, there is general agreement that world beer production was down between 7-10% this past year. Certain regions were particularly hard hit such as Africa, Asia and Europe with output drops in the order of 10-15%, while North and South America fared better with production down 2-5%. In China, the world’s largest brewer, production is estimated to have fallen by 8-10%, or 30-35 million hectolitres. To put that in perspective, total Canadian beer production is around 20 million hectolitres. In Japan, beer sales reportedly dropped 9% in 2020, while in Vietnam beer production is estimated to have fallen 14%. Mexico, which shuttered breweries for over 2 months during the April-June period last year, saw a production drop of about 5%.
Europe was also hard hit with production estimated to have fallen overall by 9%. In contrast, the impact on total beer output in Canada and the United states was less pronounced with production estimated to have fallen by only 2-3%. A dramatic increase in retail sales in the U.S. and Canada made up for a substantial portion of the drop in on-premise sales, sales at concerts and sporting events etc. This resulted in a major increase in sales of canned, and to a lesser extent bottled, beer (leading to a shortage in aluminum cans) although there was a corresponding dramatic drop in keg sales. In Canada, beer sales volumes dropped by less that 1% in 2020 compared with 2019 according to Beer Canada data.
Looking forward, the recovery in 2021 has already begun in many parts of the world. China’s beer production is estimated to have recovered to close to pre-pandemic levels already, and similarly in Europe things are improving. However the consensus is that in many countries, 2021 will be a year of gaining back sales lost in 2020 to return to 2019 levels as opposed to a year of growth. As one malting industry representative commented recently, while we haven’t turned the corner yet, at least we can see it.
Viral Beer Videos
Given we are all stuck at home these days, spend a few minutes enjoying some great beer videos!
Molson Canadian – Made from Canada
Molson Canadian – I am Canadian
Canadian Beer Day
Its October 7th, which means its Canadian Beer Day! Tip one back and check out the following videos posted on the Beer Canada You Tube channel. In addition to this year’s Canadian Beer Day video, see also videos that provide an overview of the malting and brewing processes, as well as a variety of beer related topics, featuring CMBTC staff members Andrew Nguyen and Aaron Onio. Cheers!!
Hazed and Confused
In the past, unless you were making a very specific style of beer that was intentionally hazy, like a wit bier, North Americans sought to make their domestic beers crystal clear, a sign of quality. However with the growth in the craft beer market, we are seeing more beer that is intentionally hazy and for a variety of reasons. So why all the fuss about hazy beer? Is my beer supposed to be hazy or is this another marketing ploy? While beer haze is not harmful to your health, in certain instances it is certainly considered undesirable. So, let’s get to the bottom of the haze craze and look at both the consumer and brewer side of the equation. Read More…