How beer consumption has changed since the pandemic

The average price of a draft beer has risen by 7.5% in the last year, going from €2 to €2.15, according to the latest study published by Nielsen. At the same time, the double format (large glass) is 12% more expensive, increasing from an average of €2.60 to almost €3. Meanwhile, the small bottle is the format whose price has risen the least, by 6%. Nevertheless, the average increase in beer prices (all formats and varieties) reaches 14%, a figure higher than the 10.8% inflation recorded in Spain as of July 2022.

What’s behind the price hike? The rising cost of grain as a consequence of the war in Ukraine, the shortage of raw materials needed to manufacture machinery (metals), and the increase in electricity and fuel prices. According to the Beer Index from the investment platform eToro, this has increased beer production costs by 62% compared to two years ago. Not for nothing, Russia and Ukraine supply 30% of the barley and wheat consumed worldwide. As a result, the price of malt has risen by 87% since the start of the war, while the increase in aluminum stands at 20%. As for gasoline, in six months its price has gone up by 138%.

The price increase of the star product of Spanish hospitality has affected consumption. In July 2019, small draft beers (cañas) accounted for 21.6% of establishments’ beer turnover. Two years later, after the pandemic, in July 2021 the figure had fallen to 14.5%. However, in 2022 it decreased further to 14.3%. The caña format has lost a third of its popularity. In contrast, the double-size draft has grown to 77% of beer consumption in bars and restaurants. This indicates that consumption habits are changing and that customers are finding a caña less and less satisfying. Larger pours are gaining fans—but why?

The explanation lies in the restrictions that took place in 2021 as a result of the Covid‑19 pandemic, when the government banned drinking at the bar counter. Customers seated at tables and on terraces preferred larger pours. We must bear in mind that bar‑counter consumption can account for up to half of a bar’s turnover, especially in small towns. Forecasts indicate that this trend will continue.