Beer sales in the Netherlands have seen a sharp decline, with overall sales dropping by 5.1% in the first half of 2023. Non-alcoholic beer, in particular, suffered a staggering 9.4% decrease. According to the Dutch brewers association, Nederlandse Brouwers, this decline can be attributed to a combination of factors, including a substantial increase in excise duty on alcoholic beer and a nearly 200% hike in the consumption tax on non-alcoholic beer. These tax hikes have pushed prices higher, leading to decreased consumer spending.

Reports suggest that sales of Pils and special beer were down by 4.4% and 4.6%, respectively, while the combination of higher taxes and poor weather conditions created the perfect storm for the industry. The association also noted that consumers drank less due to unfavorable weather, which resulted in fewer opportunities for outdoor activities like barbecues and pub garden visits—key occasions for beer consumption.

UEFA Euro 2024 fails to boost beer sales

Typically, major sporting events like the UEFA European Football Championship serve as a significant driver for beer sales. However, this year, despite the event's popularity, it failed to provide the usual boost to beer sales in the Netherlands. Another factor contributing to the decline is the growing trend of beer drinkers crossing borders to purchase alcohol at lower prices in neighboring countries such as Belgium and Germany. This cross-border shopping has further impacted domestic beer sales, as Dutch consumers seek more affordable options.

Nederlandse Brouwers has voiced concerns about the dramatic drop in non-alcoholic beer consumption, a category that has seen impressive growth in recent years. The association has urged the government to reconsider the steep tax increases, calling for the scrapping of the consumption tax on non-alcoholic beer to help support the struggling industry.

Non-alcoholic beer: A booming but troubled category

Between 2010 and 2023, non-alcoholic beer sales in the Netherlands increased by more than 500%, reflecting growing consumer demand for healthier alternatives. Despite this growth, the category is now facing significant challenges due to the rising taxes. A spokesperson for Nederlandse Brouwers emphasized that the dip in non-alcoholic beer sales is not due to market saturation, as one in 14 beers consumed in the Netherlands is currently non-alcoholic. The association expects this share to rise to one in 10 beers in the coming years.

The spokesperson further criticized the government’s decision to impose higher taxes on non-alcoholic beer, stating that it contradicts efforts to promote responsible beer consumption and prevent excessive alcohol consumption. The association hopes the new government will reconsider the tax increase, suggesting that measures like exempting alcohol-free beer from consumption taxes or introducing a 0% rate for alcohol-free beverages could help support the sector.

On 1 January 2024, the Dutch government raised the consumption tax on non-alcoholic beverages from €8.83 (US$9.60) per hectolitre to €26.13 (US$28.40) per hectolitre, a move that has sparked significant concern among brewers.

Looking forward to a brighter summer

Despite the challenges, Nederlandse Brouwers remains optimistic about the future. Chairman Fred Teevan expressed hope that the arrival of the holiday season would encourage more people to visit terraces and beaches to enjoy a beer, or to partake in summer barbecues with Dutch-brewed beers. "It would be nice if we finally had a longer period of sunny weather," he added. "In any case, breweries are ready to respond to a beautiful summer."

With the holiday season and warmer weather on the horizon, the Dutch beer industry is hoping for a rebound, but it remains to be seen how the tax changes and weather patterns will continue to shape the market.