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Spirit Production in Germany - Market Research Report (2014-2029)

Robert Maier Robert Maier Frankfurt, Germany Last Updated: August 2024 WZ C11.01DE

Revenue

€2.6bn

2024

€2.6bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

3,105

Businesses

42

Wages

€XXX.Xm

Spirit Production in Germany industry analysis

The spirits production industry has experienced negative growth over the past five years. Due to the decline in alcohol consumption in Germany and the far-reaching negative consequences of the coronavirus pandemic, industry sales have fallen by an average of 1.2% per year since 2019. In 2024, industry turnover is also expected to fall by 5.3% compared to the previous year to €2.6 billion.Since the historic high of 17.2 litres recorded in 1976, the annual per capita consumption of alcohol in Germany has been declining. Demographic change has also contributed to this, with the number of inhabitants aged 18 to 64 - the most important target group for spirits producers - steadily decreasing. In addition, the increase in health awareness and the rise in net monthly household income in recent years have led to a shift in consumer drinking behaviour from the rather excessive consumption of low-priced alcohol to the consumption of high-quality, high-priced spirits. Only established brands that have managed to successfully differentiate themselves from comparable products through marketing measures have been able to ensure their sales continuity despite the change in end customers' consumption preferences.For the period between 2024 and 2029, the long-term trend of declining alcohol consumption worldwide is expected to continue. In particular, the progressive ageing of the global population and increasing health awareness worldwide are likely to have a diminishing effect on alcohol consumption. In addition, as global trade expands, price competition is also likely to intensify in export markets in the future. In view of this, it can be assumed that industry turnover will decrease by an average of 1.4% per year over the next five years and will amount to 2.4 billion euros in 2029.

Trends and Insights

  • German spirits are internationally recognised for quality. The industry generates around half of its turnover from exports. The "Made in Germany" seal of quality makes German spirits popular abroad.
  • The top-selling product category is liqueur. As liqueurs are primarily consumed when going out, as a digestif or aperitif and are usually sold at comparatively low consumer prices, they continue to enjoy great popularity.
  • More than a third of all distilleries are based in the two federal states of the southern region. Many of the industry players there are also farmers and specialise in the production of fruit brandy.
  • Competition in the spirits industry is strong and is primarily driven by aggressive marketing and a wide range of products. It is likely to intensify in the future due to falling domestic demand for spirits and increasing market entry by foreign spirits producers.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated €2.6bn in 2024.

Trends and Insights

The falling demand for alcohol in Germany is driven by greater health awareness

  • The falling demand for alcohol in Germany is mainly due to the change in consumer behaviour, which is characterised by increased health awareness and demographic changes.
  • Additional trends and insights available with purchase
Spirit Production in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

Biggest companies in the Spirit Production in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Mast-Jägermeister SE
445.0
Rotkäppchen GmbH
255.0
Henkell & Co. Sektkellerei KG
233.0

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Spirit Production in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Liqueur, Korn and other clear spirits and Vodka. Liqueur is the largest segment of the Spirit Production in Germany.

Trends and Insights

Liqueurs are very popular due to their versatility and therefore generate the highest share of sales

  • Bitter, semi-bitter and herbal liqueurs as well as other liqueurs such as eggnog are by far the most popular spirits in Germany, meaning that this product group accounts for by far the largest share of sales. Well-known products in this spirits category include Kleiner Feigling, Kuemmerling and Jägermeister.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This sector deals with the production of distilled alcoholic beverages and mixed drinks containing spirits. Companies in this sector also mix spirits. However, its activities do not include the production of non-distilled alcoholic beverages, synthetic ethyl alcohol and fermented alcohol from agricultural raw materials, as well as bottling and labelling only.

What's included in this industry?

LiqueurKorn and other clear spiritsVodkaWhiskySugar cane-based spiritsFruit brandySpirits made from wine or grape marcGin and jenever

Companies

Mast-Jägermeister SERotkäppchen GmbHHenkell & Co. Sektkellerei KG

Purchase this report to view all 5 major companies in this industry.

Related Terms

BRENNMEISTERDESTILLATIONDESTILLERYMIXINGMELASSEMOSTTRESTERSUGAR COULEUR

Industry Code

WZ 2008

WZ 11.01 - Spirit Production in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

German spirits are internationally recognised for quality. The industry generates around half of its turnover from exports. The "Made in Germany" seal of quality makes German...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The top-selling product category is liqueur. As liqueurs are primarily consumed when going out, as a digestif or aperitif and are usually sold at comparatively low consumer p...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

More than a third of all distilleries are based in the two federal states of the southern region. Many of the industry players there are also farmers and specialise in the pr...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition in the spirits industry is strong and is primarily driven by aggressive marketing and a wide range of products. It is likely to intensify in the future due to fal...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Mast-Jägermeister SE has the highest market share in the spirits production industry. The family-owned company is one of the world's largest spirits producers.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Mast-Jägermeister SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Rotkäppchen GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Henkell & Co. Sektkellerei KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Mast-Jägermeister SE, and factors influencing its performance in the industry
  • Description and key data for Rotkäppchen GmbH, and factors influencing its performance in the industry
  • Description and key data for Henkell & Co. Sektkellerei KG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Increasing health awareness is leading to lower alcohol consumption. Consumer awareness of the potential health risks of alcohol consumption has increased significantly, whic...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profit margin of spirits producers has fallen slightly in recent years. The reason for this is increasing health awareness, which leads to lower alcohol consumption, and ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Spirit Production industry in Germany in 2024?

The market size of the Spirit Production industry in Germany is €2.6bn in 2024.

How many businesses are there in the Spirit Production in Germany industry in 2024?

There are 42 businesses in the Spirit Production industry in Germany, which has declined at a CAGR of 1.4 % between 2019 and 2024.

Has the Spirit Production industry in Germany grown or declined over the past 5 years?

The market size of the Spirit Production industry in Germany has been declining at a CAGR of 1.2 % between 2019 and 2024.

What is the forecast growth of the Spirit Production industry in Germany over the next 5 years?

Over the next five years, the Spirit Production industry in Germany is expected to decline.

What are the biggest companies in the Spirit Production market in Germany?

The biggest companies operating in the Spirit Production market in Germany are Mast-Jägermeister SE, Rotkäppchen GmbH and Henkell & Co. Sektkellerei KG

What does the Spirit Production in Germany include?

Liqueur and Korn and other clear spirits are part of the Spirit Production industry.

Which companies have the highest market share in the Spirit Production in Germany?

The company holding the most market share in Germany is Mast-Jägermeister SE.

How competitive is the Spirit Production industry in Germany?

The level of competition is high and increasing in the Spirit Production industry in Germany.

Related Industries

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Complementors

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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