Spain’s Brewers Post Record Profits

Spain’s beer industry is facing a clear contradiction: people are drinking less at home and in bars, yet the country’s biggest brewers are posting record profits by shifting their business toward nonalcoholic drinks, premium products and exports.

The latest figures show that per-capita beer consumption in Spain fell to 52.8 liters in 2024, down 4.9% from the year before and well below the roughly 60 liters that had long been typical. Total beer sales also slipped 0.2% to 38.6 million hectoliters, marking a second straight annual decline, something not seen since the financial crisis of 2008. But Mahou San Miguel, Damm, Hijos de Rivera and Heineken, which together account for about 95% of production in Spain, ended the year with a combined profit of €593 million, up 44% from the previous year.

The gap between falling consumption and rising profits reflects a broader shift in how beer is sold and consumed. The industry says inflation, weaker household spending power, uncertainty about the economy and more cautious leisure spending have all weighed on demand. Weather has also played a role in some regions, reducing terrace traffic and cutting into a key part of beer sales. At the same time, brewers say the market is changing because younger consumers are drinking less alcohol, older generations are aging out of nightlife habits and social life is moving toward daytime formats such as late-afternoon gatherings rather than long nights out.

Emilio Gallego, secretary general of Hostelería de España, said the market is not collapsing but evolving. He pointed to demographic change as one of the main reasons growth has slowed. In the 1980s, he said, Spain had about 500,000 people turning 18 each year; now that figure is closer to 300,000. That matters because younger adults have traditionally driven much of the social beer market.

The shift is visible in drinking habits as well. More than half of adults say they have cut back on alcoholic beverages, and a growing share say they did not drink alcohol in the previous month. Health concerns, exercise routines and teleworking have all changed when and where people meet. Gallego said time once spent meeting for beers is now often used for gym sessions or running.

Even so, beer remains closely tied to Spanish social life. Jacobo Olalla, the director general of Cerveceros de España, said the drink still plays an important role as a point of connection in a more digital and individual society. Bars and restaurants remain central to that role: 63% of beer in Spain is still consumed outside the home. But that channel has not fully recovered from the pandemic. Consumption in hospitality fell about 2% last year to 19.2 million hectoliters, while retail sales rose 1%, showing that some drinking has shifted from bars to supermarkets and other stores.

Data from NielsenIQ reviewed by Actualidad Económica show that between April 2025 and April 2026 sales volume in retail barely changed, slipping from 1.894 billion liters to 1.892 billion liters, while revenue rose from €3.363 billion to €3.409 billion. That suggests consumers are buying about the same amount but paying more and choosing higher-value products.

One of the clearest examples is nonalcoholic beer. Spain has become one of the world leaders in both production and consumption of beer without alcohol. The category now represents about 14% of total beer sold and nearly 16% of home consumption, with annual volume estimated at between seven million and eight million hectoliters. It has moved from being a niche option to a regular part of Spanish drinking habits.

For brewers, nonalcoholic beer has become a major growth engine. Sales in that category rose nearly 4% last year after gains of 11% in 2022 and about 3.5% in 2023. Mahou San Miguel says almost 30% of its sales already come from nonalcoholic beverages. Heineken has made it one of its main growth areas alongside premium brands. Damm and other companies have also expanded their investment in innovation around alcohol-free products.

The response has gone beyond beer itself. Mahou San Miguel has entered coffee with Café 170, launched an energy drink called Refeel and introduced Los Cachis, wine-based drinks aimed at new consumption trends. It also owns Solán de Cabras water, whose sales have doubled since it joined the company’s portfolio in 2011.

Hijos de Rivera, owner of Estrella Galicia, has taken a similar path by expanding into spirits with Vánagandr gin and into kombucha through Soul K, while also strengthening its water business with Cabreiroá. Damm has added Nestea to its portfolio after Coca-Cola and Nestlé split their tea business and has controlled Cacaolat since 2021.

Companies are also looking abroad for growth as domestic demand slows. Cerveceros de España says exports rose nearly 8% in 2025. Mahou San Miguel now gets about 21% of its sales from outside Spain and has focused recently on the Middle East through Egypt, where it is pushing nonalcoholic products adapted to local tastes such as pineapple with caramel, apple with cinnamon and peach with vanilla.

Damm has expanded internationally too, opening a brewery in Bedford, England, last October after investing €80.5 million there. The plant is aimed at a market that already accounts for about 30% of its international business. Heineken’s Spanish operation has also used its global network to push brands abroad, including Cruzcampo’s entry into Britain in 2023.

The industry’s message is that Spain may be drinking less beer overall, but brewers are finding ways to make more money from what consumers still want: lower-alcohol options, more premium products and brands that travel well beyond the domestic market.