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Bulgarian Craft Beer: A Growing Market Amidst Oligopoly Dominance

by Michael Brown - Business Editor
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Bulgaria ranks among the most consistent beer consumers in Europe, with an average of over 100 large beers purchased per household annually. Despite this high consumption, the Bulgarian beer market is heavily concentrated, with three global corporations – Heineken, Molson Coors, and Carlsberg – controlling nearly all popular brands. This ownership structure closely resembles a classic oligopoly.

Over the past decade, dozens of microbreweries have emerged in Bulgaria, influencing the tastes of urban consumers. The craft beer culture is particularly prominent in cities like Sofia, Plovdiv, and Varna, where specialized stores and establishments offer a wider selection of craft brews.

The development of craft beer in Bulgaria began around 2010-2013, with the emergence of pioneers like 359 Brewery and Glarus Craft Brewing. Currently, there are 42 small, local breweries operating in the country, though they collectively account for only about 1% of total sales.

Although their overall sales volume is relatively small, craft breweries play a crucial role in developing beer culture by introducing new styles – such as IPAs, stouts, and ales – as well as seasonal and experimental offerings. This innovation has even prompted larger, established players to adapt and diversify their product lines.

The economic impact of the craft beer sector remains limited, with over 90% of sales still dominated by major domestic producers.

“What’s commendable, and what everyone should acknowledge and encourage Bulgarian craft brewers for, is that despite everything, most of them persevere. And not only do they continue, but they consistently improve their products, taking steps even beyond our national borders. They observe international trends and constantly introduce innovations, diversifying beer styles, expanding the consumer’s beer horizons, and striving to keep the dream and desire for quality beer alive,” says Ivan Ivanov, who has an insider’s perspective on the industry.

Ivan previously worked on brand identity for the Russe-based craft beer “Dunav,” but was not involved in the brewing process.

“I’ve moved on from that role. I admit that beer is a great passion of mine, particularly in the areas of branding and market approach. Because only those who haven’t been involved don’t realize that brewing a good beer is truly a craft, but there are many who can do it around the world. And to even be noticed for having a good product, you necessitate a well-created, distinctive brand that allows for uncomplicated expansion into all the necessary practices leading to successful sales. In other words, yes, I would be involved again, if it made sense,” he said, reflecting on his experience with brand creation.

When asked to describe the situation for craft brewers in Bulgaria, Ivan stated, “I’m trying to find a comparison, and the first thing that comes to mind is the myth of Icarus. Because Bulgarian craft brewers, just like that mythical hero, do everything themselves, and in spite of everything – they strive forward, and upward. But I don’t want to employ that analogy, because in the complete he dies, and it would be a tragedy if that happened to the Bulgarian craft beer scene. I would rather say that the situation seems like a marathon without a finish line…”

He added, “Most are self-taught. Most are enthusiasts. They start with energy, with strong faith, with a triple dose of enthusiasm, with invested savings, loans, with the belief that if the product is good, the market and consumers will appreciate and reward them… The first kilometers are run on adrenaline, but soon unexpected expenses, standards, inspections, excise taxes, distribution, pressure from the big players, empty warehouses, full invoices start to appear along the route, and it turns out that the finish line is not where you thought it was. And that to reach it, you need more endurance, more money, more compromises… Some slow down, some change course, some drop out of the race. Fortunately, the latter are not many, but there are some.”

The Bulgarian Beer Market Landscape

A market for beer, whether craft or mass-produced, exists in Bulgaria. Data from the National Statistical Institute (NSI) shows that average beer purchases in the country reached 56 liters per household in 2024, up from 52.8 liters in 2023, 50.2 liters in 2022, and 49.4 liters in 2021. This represents an increase of 6.6 liters per household over four years.

According to a survey commissioned by the Union of Brewers in Bulgaria (UBB), 75% of Bulgarians drink beer at least once a month in 2025, and 57% at least once a week.

Beer production from malt in Bulgaria has also been growing in recent years. In 2024, the country produced 471 million liters of beer, according to Eurostat data, compared to 463 million liters the previous year. Production in 2022 was 442 million liters, and in 2021, 439 million liters.

Ivan notes a shift in the overall beer market. “There’s a change of ownership, the entry of new international brands, the appearance of new beer products. What impressed me most in the last year was the boom in the supply of non-alcoholic beer. And if there’s supply, there’s demand. It’s impossible to ignore the fact that every mass beer producer in Bulgaria has launched non-alcoholic versions of almost all the brands in their portfolio. Even radlers, which are traditionally low-alcohol beer products, now have 0.0% alcohol versions.”

These observations regarding non-alcoholic beer are confirmed by the UBB, which notes that in 2024, every 15th beer sold in the EU was non-alcoholic, and while Bulgaria is still far from these average figures, sales of 0% alcohol beer in the country are growing.

Ivan also points to the common promotional tactics of mass producers. “They all have periods where they send the message ‘Discover hundreds of thousands of beers!’, ‘Grab a million and one beers!’ and so on. I don’t know… from a consumer’s point of view, I somehow want to be surprised with something more exciting. But who would refuse another beer, especially a free one?” he added.

Regarding the import of established international brands and the appearance of their own beer brands in major international chains, he says, “It probably has a negative impact on the sales of Bulgarian breweries, but it certainly doesn’t have a positive impact on the quality of the products they offer on the market. My humble opinion, which I definitely don’t want to commit to or offend anyone with, is that the quality of Bulgarian beer has been slowly but significantly declining for many years. And I’m sure that anyone who loves and consumes beer has felt it. I say this because the big chains offered people their brands of beer produced outside of Bulgaria, which have a variety of beer styles and are in an extremely good ratio between quality and price. Let’s not mention specific brands, but some of them are simply a logical choice when a person gives their money for a product. I don’t know, maybe we will see whether domestic producers will retaliate with reciprocal products.”

The European Beer Landscape

The production and sale of beer in the European Union provides employment for 2 million people. Each job in breweries generates 15 additional jobs along the supply chain, in trade, hospitality, and tourism.

In recent years, the brewing industry has repeatedly called on European institutions to create an environment with as little bureaucracy as possible. These demands were included in the “Brewing Industry Manifesto” presented to the European Parliament.

In numbers: in 2024, EU countries produced 32.7 billion liters of beer with an alcohol content of more than 0.5%, as well as 2 billion liters of beer with less than 0.5% or no alcohol content, for a total of 34.7 billion liters of beer.

Germany remains a major beer producer, brewing 7.2 billion liters of beer with an alcohol content of more than 0.5% in 2024, representing 22.2% of total EU production. Spain produced 4 billion liters, or 12.3% of the EU total, followed by Poland (10.6%), the Netherlands (6.8%), and Belgium (6.3%).

Regarding exports, the Netherlands leads, followed by Germany, Belgium, the Czech Republic, and Ireland. France is the largest importer of beer in 2024, followed by Italy, Spain, Germany, and the Netherlands.

Spain and Non-Alcoholic Beer

Notably, Spain accounts for 25% of all non-alcoholic beer consumption in the EU. Sales of non-alcoholic beer are growing by 4%, confirming a sustained trend that reflects a change in consumer habits.

Non-alcoholic beer now accounts for 14% of all beer consumed by Spaniards. “This phenomenon is based on a clear reality: 90% of those who consume non-alcoholic beer also consume or have consumed traditional beer. This represents not a gateway to alcohol, but a real alternative,” according to the Spanish Association of Brewers.

This shift may be due to several factors – a greater focus on health and well-being, the desire for opportunities to socialize without compromising sobriety, and the increasing quality and variety of non-alcoholic beers available on the market.

This is not the only trend in Spain. The production of craft beer has moved beyond being a mere fad and has become a significant and growing sector. According to the Spanish Association of Independent Craft Breweries (AECAI), craft beer production increased by 79.58% between 2015 and 2019 – from 12.4 million liters to 22.4 million liters.

The market share of craft beer compared to the sector’s total turnover has reached 1.1%. An significant detail is that the selling price per liter of craft beer is higher than that of beer produced in large factories.

The new reality in the country is prompting major producers to diversify their products. For example, the Spanish brand “Alhambra” has more than 10 varieties, including non-alcoholic, lemon, and IPA options. “Victoria” also offers variety – dark beer, wheat beer, 0.0% roasted beer, and non-alcoholic beer. “Estrella” offers gluten-free beer.

The Italian Case

In Italy, 2024 saw a decline in key market indicators after a decade of growth and recovery from the pandemic, largely due to the overall rise in prices, which impacted beer consumption. Production decreased by 1.27%, and consumption by 1.54%. The impact isn’t limited to these figures – exports fell by 7.82%, and imports by 4.95%. The data comes from Assobirra, the association that has united large companies producing and offering beer, malt, and hops on the Italian market since 1907, collectively covering more than 92% of national production.

According to Assobirra, Germany remains Italy’s main beer importer, accounting for 44.7% of total imports, followed by Belgium (11.6%), Poland (11.4%), and the Netherlands (8.8%).

The Italian association emphasizes that social issues are as important as environmental and economic ones.

“The sector is actively committed to promoting responsible behavior related to the consumption of alcoholic beverages through investments in products with low or no alcohol content and specific initiatives on the themes of diversity, equality, and inclusion. Low-alcohol and non-alcoholic beers represent a dynamic segment capable of responding to the new needs of consumers oriented towards a healthier and more conscious lifestyle. In line with the Italian consumption model, historically characterized by moderation, low-alcohol and non-alcoholic beers accounted for 2.11% of total consumption in 2024, an increase compared to 2023, and marking a constant positive trend since 2020,” the association stated.

This article was created within the framework of the PULSE project, a European initiative that supports cross-border journalistic cooperation. It was developed by journalists from Mediapool, Il Sole 24 Ore, and El Confidencial.

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