A surge in domestic production has helped the country relegate the EU nation to sixth place

Russia has overtaken Germany in beer production for the first time, pushing the EU country out of the top five global brewers, according to an industry report released on Tuesday.

Russia's beer output rose by around 9% in 2024, reaching nearly 9.1 billion liters, while production in Germany declined by 1% to 8.4 billion liters. As a result, Germany fell to sixth place, the report by leading global hop trader BarthHaas said.

BarthHaas CEO Thomas Raiser told DPA that Russia's advance is mainly due to a sharp drop in beer imports, which has boosted domestic production. The shift follows the escalation of the Ukraine conflict more than three years ago and the trade and economic sanctions that ensued.

Since early 2022, major Western brewers such as Carlsberg, Heineken, and AB InBev have exited the Russian market. While the EU did not formally ban beer exports to the country, sanctions and corporate withdrawals disrupted supply chains and logistics. In response, Moscow introduced steep import tariffs on alcoholic beverages from "unfriendly" countries, making foreign beer significantly less competitive.

Two Russian breweries have also entered BarthHaas' Top 40 Brewers list. Baltika Breweries, ranked 12th, was part of the Carlsberg Group until mid-2023. United Breweries (OPH), formerly owned by Heineken, joins in 24th place, the report noted.

Given the surge in production, Russia has also expanded its beer exports. In the first quarter of 2025, exports rose 25% year-on-year, with key markets including Belarus, Kazakhstan, China, Abkhazia, and Tajikistan. Shipments also resumed to several African and South American countries.

Germany, once a brewing powerhouse, continues to see falling consumption, driven by an aging population, increased competition from other beverages, and reduced purchasing power, according to DPA.

Rising production costs have similarly taken a toll, with 52 breweries closing in 2024 alone, official statistics show.

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The BarthHaas report also pointed to two consecutive years of economic contraction in Germany, along with a decline in hops production.

According to the document, the world's four largest beer producers in 2024 were China, the US, Brazil, and Mexico.

(RT.com)