Brewers of Spain take the sector’s temperature

As every year, the Spanish Brewers Association publishes its socioeconomic report on the sector. However, 2020 was anything but a normal year. The last financial year was marked by the Covid-19 pandemic. Among the most significant figures is a 37% drop in sales in the hospitality sector, which was not offset by a 29% increase in home consumption.

This year’s data highlight even more clearly the brewing sector’s dependence on the hospitality channel. The closure of on-premise outlets has severely harmed producers. Indeed, we can see that keg use fell by one third during 2020, while cans (a format sold mainly in supermarkets) increased their sales by the same proportion. In fact, six out of ten beers were sold through the retail channel—an anomaly compared with previous years.

This has directly affected beer production, which fell by 12%, dropping to levels seen a decade ago during the economic crisis. In total, the domestic sector produced 34.7 million hectoliters. In the case of microbreweries or craft breweries, the drop in production is around 40%. In addition, one in ten breweries has closed its doors.

Nevertheless, Spanish beer exports grew by 19% in 2020, most of them destined for Portugal, the United Kingdom, China and Equatorial Guinea. On this point, Jacobo Olalla, general director of Cerveceros de España, commented during the presentation of the report that “factors such as popularity and quality make Spanish beers, even in a year as difficult as 2020, a highly sought-after product outside Spain. A clear sign of this is that beer exports have grown by more than 300% in the last ten years”.

On the tax front, the state collected 33% less in taxes compared to 2019, that is, 2 billion euros less. As for the present, the first half of 2021 has still not recovered pre-pandemic figures. In this regard, vaccination is emerging as a key element in reviving tourism in the summer.

Not all is lost, as beer remains the favorite drink of Spaniards, with 80% of adults consuming it. Given beer’s cross‑cutting nature, which ignores economic status or gender, there is reason to be optimistic about the sector’s recovery from the summer months onward.