Romania: Beer market hit by taxes and excise duties on road to stabilisation
The Romanian beer market managed to stay afloat last year in terms of production, though it faced major problems stemming from higher excise duties and inflation. This year is not looking any better for beer producers, but optimism remains high among both Romanian and European brewers, Business Review reported on July 22.
At the European level, the beer market provides 2 million jobs, has an annual added value of EUR 52 billion, and pays EUR 40 billion to the authorities. According to data from the European Brewers’ Association (EBA), one brewing job generates another 17 jobs in the economy. Of these, two are in agriculture, two in retail, and 13 in bars, clubs, restaurants, and cafés. Of the EUR 40 billion total, EUR 14 billion is taxes and other duties, EUR 12.5 billion comes from domestic VAT (on-trade), EUR 7 billion from excise duties, and EUR 6.5 billion from export VAT (off-trade).
In the COVID and post-COVID period, beer consumption fell in most of the 28 member countries of the EBA, an association that represents the interests of more than 10,000 brewers and gathers data from across Europe. But the downward trend in consumption goes back further than 2020. According to data presented by the World Health Organisation (WHO), global per capita alcohol consumption fell by 6.1%, heavy drinking episodes fell by 6.4% between 2014 and 2019, and the number of alcohol-attributable deaths fell by 16.8% between 2010 and 2019.
One trend identified at the European level is an increase in non-alcoholic beer consumption. In 2023, European brewers produced 2.2 billion litres of non-alcoholic beer in 2023, i.e., one in 15 beers had zero alcohol. The biggest markets for alcohol-free beer are Poland (where the market has doubled in just five years), Germany (which has 800 different brands of alcohol-free beer), and Spain, where alcohol-free beer accounts for up to 15% of total beer consumption.
In addition to inflation and rising taxes in most countries, European brewers identified another problem this year: export tariffs. In 2024, European brewers exported products worth EUR 870 million to the US. But after the 20% duty imposed by the US on imports from Europe in April, brewers were shocked to discover that an additional 25% duty would be placed on beer. Surprisingly, it was included by the Americans on the list of so-called “aluminium derivative products,” alongside metal sheets, cables, rods, and wires! If the tax is imposed, it is estimated that around 100,000 jobs in EU beer production will disappear as a result of reduced exports.
As noted at the beginning, the Romanian beer market stabilised at 15 million hectolitres in 2024, according to The Brewers of Romania Association, which represents 90% of the local market. Despite a challenging economic landscape, member contributions to the state budget increased by 15% last year compared to 2023, reaching EUR 356 million.
“Last year, the Romanian beer sector found itself in a delicate point from a production perspective. If we had continued on the downward slope that started in 2021, it would have been a difficult signal to digest for all those directly and indirectly involved. And looking back at the past year, there were plenty of reasons why today we could have spoken of 2024 as one of the weakest years recorded in the two decades of existence of the Romanian Brewers. Only in 2014 did we have a production below the 15 million hectolitre threshold,” said Constantin Bratu, General Manager of The Brewers of Romania.
The reasons for another weak year were plenty: a new 10% increase in excise duty, high inflation that has further eroded purchasing power, as well as a difficult economic and security context. “And let’s not forget the small producers, who feel the economic challenges most acutely. If they are not doing well, the pressure on the market increases.”
“All in all, 2024 was a good year from many perspectives—enough to assess it as such. First, it was the year in which Romania’s brewers managed to achieve more predictability in terms of excise duties. The government has been open to this sector, understanding its importance in the economy and, therefore, the importance of proper business planning in this area,” said Constantin Bratu. Then, he explained, it was a very good year for the non-alcoholic beer segment, the production of which marked a 15% increase compared to 2023. It is also a testament to the responsible approach to alcohol consumption by companies in the sector. As a result, the non-alcoholic beer segment surpassed a 6% market share in 2024.
At the moment, data generated from the most recent market research shows that almost three out of ten Romanians drink non-alcoholic beer at least once a week.
Deliveries of non-alcoholic beer by Romanian producers increased by 15% last year compared to 2023. Within this segment, beer mixes and flavoured beers saw a 21% rise in deliveries. By packaging type, draft beer recorded the highest growth, with deliveries increasing by 13% compared to 2023, while PET packaging continued to decline, dropping by 4%. Bottled beer deliveries remained steady, while canned beer deliveries rose by 9% year-over-year.
“If we were to look at a map of Romania and the distribution of breweries by county, we’d see that beer production plays a crucial role in local economies across nearly three-quarters (75%) of the country. Beer is one of the few industries with a truly national footprint, with production facilities in 30 of Romania’s 41 counties. It’s not just Bucharest, Ploiesti, Timisoara, Iasi, Brasov, or Cluj-Napoca; beer is also brewed in places like Poiana Marului, Marginimea Sibiului, and Maneciu-Ungureni. After 20 years of The Brewers of Romania, we can confidently say that the Romanian beer sector is truly national—not just in terms of consumption, with 97% of beer coming from domestic production, but also in terms of its widespread production network,” Constantin Bratu pointed out.
While the beer market is seeing a rise in non-alcoholic options, including fruit-flavoured varieties, the spirits segment reveals a few more trends. Overall, Romania’s alcoholic beverages market is one of the most dynamic consumer sectors, with revenues reaching USD 5.2 billion in 2024 and an estimated USD 5.4 billion for 2025, according to Statista data presented in a study by Unlock and M Works. The average annual consumption per capita is 11.08 litres of pure alcohol, placing Romania among the key markets in Europe.
The market for alcoholic beverages is undergoing a profound change, driven by new consumption behaviours and emerging consumer priorities. The study shows that people are drinking less, but are choosing higher quality products, integrated in relaxed social contexts. Alcohol is perceived as an element of social connection, a facilitator of interactions, not an end in itself. This shift will redefine brand strategies in the industry. Consumers seek experiences that foster authentic socialisation, and brands must respond to this need with messages that promote moderation, sophistication, and community. Future success will be dictated by brands’ ability to create relevant consumption contexts—from social events and tastings to convivial storytelling and premium experiences. For players in the industry, adapting to this new reality is essential. Alcohol is no longer perceived as an addiction, but as a social glue, and communication must reflect this nuance, emphasising interaction, balance, and the pleasure of sharing quality moments.
“We, as researchers, are constantly following trends and for several years now we have noticed the tendency for people to take better care of their mental and physical health. In this context, the role of alcohol in their lives is being repositioned in an area where the added value of the product is more important than the volume. They are no longer consuming craft beer but a selection of craft beers. It’s no longer fashionable to drink uncontrollably in a bar, but to “lengthen” the socialising moment with an interesting cocktail that looks and tastes good. They prefer to enjoy a glass of dry whisky on some evenings at home rather than binge drink. Drinking alcohol is not disappearing, but reinventing itself, emphasising the social-disinhibiting and sensory role of the category,” says Adina Vlad, Managing Partner at Unlock.
Whisky is the third most consumed alcoholic beverage in Romania, second only to beer and wine. According to the study, over 60% of consumers prefer to savour it in its pure form, either neat or on the rocks, at the expense of cocktails.
While in the past, whisky was predominantly perceived as a drink to be consumed in clubs and nightclubs, today there is a significant change in consumer behaviour. More and more Romanians are choosing to enjoy a glass of whisky in the comfort of their own home, with half of respondents associating this drink with moments of relaxation and introspection.
A similar trend can be observed for rum, which is drunk in the same contexts, but less frequently and still growing in popularity on the local market.
Unfortunately for brewers and other beverage producers, this year is no longer fiscally stable. The urgent need for cash in the budget has persuaded the authorities to look towards alcohol, tobacco, and fuel, sectors that can quickly bring money into the budget. The final version of the tax measures is not yet available, but it will certainly be part of the list of tax measures that will come into force this year or next.
In this context, The Brewers of Romania reiterate the need for predictability in fiscal policy as a prerequisite for business planning, investment, and long-term development. In Romania, beer does not only mean a drink with zero tax evasion on the production chain, but also Romanian agriculture, local services and raw materials, contributions to the public and local budgets, and tens of thousands of jobs.
“In 2024, for the first time in several years, we saw a clear and predictable excise calendar. This was welcomed by the beer sector as a vital signal of stability and good governance. That measure finally addressed our most important and long-standing concern—abrupt fiscal changes that disrupt operations and undermine investor confidence. Rescinding the predictability framework now would not only erode trust, but also jeopardise planned investments in local production facilities and infrastructure,” said Constantin Bratu.
The excise tax on beer increased by 46% between 2016 and 2025, and was modified twice a year, outside the provisions of the Fiscal Code. The representatives of the industry, which provides over EUR 2 billion in direct investments and a sustained commitment to sustainability, responsible consumption, and national economic resilience, demand that the fiscal framework continue to provide a minimum of one year’s notice for any future adjustments in excise duties.
Elsewhere, the National Association for Soft Drinks (ANBR), which brings together the largest soft drinks producers in Romania, has sent an open letter to Prime Minister Ilie Bolojan to protest against a possible increase in taxes and excise duties on soft drinks. “We have noted with concern the statements regarding the likely increase of some taxes and excise duties and we draw attention to the fact that their increase—already included in the draft Government Programme—would penalise an industry with a high level of tax compliance, which has already been hit hard in 2023–2024 by two consecutive measures: the VAT increase from 6% to 16%, and the introduction of a non-harmonised sugar excise, applied exclusively to non-alcoholic beverages,” the ANBR said in the letter.
Before the implementation of the excise duty, the soft drinks industry had a total direct and indirect contribution of over EUR 3.5 billion to the Romanian economy, of which EUR 1 billion represented direct gross value added (Socio Economic Impact Study 2017-2020).
At the same time, the soft drinks industry is a major employer in the communities in which it operates and a regional driver of beverage production, with 15 factories in Romania, contributing to the local economies as well as to balancing the trade deficit through significant exports to more than 10 countries in the region.
24 July, 2025
