Global falls in beer consumption are flowing through to Australian farmers who provide a key ingredient for the amber fluid.
CommBank agriculture and sustainability economist Dennis Voznesenski said falling beer consumption did not just impact beer companies.
It also impacted farmers who produced barley, which plays a vital role in beer production.
A report, released by CommBank this week, said September quarter 2025 data showed global beer sales volumes declined over the past year, with the largest falls recorded in the United States and Europe.
“Asia has held up better, but overall demand has weakened,” the report said.
“Shifts in alcohol preferences are part of the story, but economic conditions are also playing a role.”
CommBank economists are forecasting global economic growth of 2.7 percent in 2026, down from the historical average of about 3.7 percent.
“That’s a full percentage point lower than what we’re used to,” Mr Voznesenski said. “So if we’re not drinking because economic times are tough, this year might not be much different.”
Mr Voznesenski said the malt used for beer came from malt barley grown by Australian farmers.
“When beer demand falls, that barley needs to find another home,” he said. “If you’re not making beer out of it, you feed it to animals.”
