Craft brewery boom in Switzerland draws to a close

Switzerland | Blame it on higher prices for raw materials and energy that nearly 100 breweries closed in 2022, dragging their total number down to 1,179, from 1,278 in 2021.

For decades, the brewery boom in Switzerland knew no bounds. From 32 breweries in 1991, the number exploded to reach 1,278 in 2021. Even the pandemic could not stop the upward trend. During covid (2020/2021), almost 150 new breweries opened their doors.

As beer evolved from a mass product to a trendy drink, the alpine country of 8.7 million people managed to become one of Europe’s nations with the highest density of breweries.

But now this upward trend seems to be coming to an end, as data collected by the Swiss customs office shows. Beer excise applies to all breweries that produce more than 400 litres beer per year. Breweries that are not commercial but organised in clubs or associations are allowed to brew 800 litres tax-free.

Some 90 percent of all breweries are nano-breweries, often run as a hobby and producing less than 500 hl per year. They were largely responsible for the boom - and now many face the risk of closure. Media say that plenty are struggling with the consequences of the war in Ukraine. The prices for raw materials, especially hops and malt, have risen dramatically, so have energy prices.

Domestic beer output is stable

Incidentally, domestic beer output is holding up well. According to the Swiss Brewers Association, beer production rose to 3.68 million hl beer in 2022, from 3.4 million hl in 2021 and 2020 respectively.

Even compared to the pre-covid year 2019, last year’s beer sales were higher. Beer imports have been stable at 1 million hl. Not enough, beer has managed to take away share of throat from wine. Wine consumption has declined steadily in recent years, while beer has become increasingly popular.

However, the beer market has been saturated - if not oversaturated - with local craft beers in recent years. The country’s Big Brewers, Carlsberg and Heineken, have not been tardy either, and introduced beer specialties themselves. Consumers will have found it hard to distinguish between an independent and a corporate craft beer.

Spoilt for choice

Despite the closures, the density of breweries in Switzerland remains above average. As of 2022, there are 134 breweries per million inhabitants (previous year: 146). In second and third place in Europe are the Czech Republic and the Netherlands, with just over 50 breweries per million inhabitants.