Germany's brewing industry suffered its eighth decline in the last nine years. Beer consumption plummeted to a record low of 29.7 gallons (112.5 liters) per person for 2007.

In the 1980s, Germans guzzled down 41.2 gallons (156 liters) of beer. However, Brewery Association managing director Peter Hahn attributed the decline in beer consumption to changing demographics and a poor summer.

The only time there was an increase in per capita beer drinking the past decade was in 2006 when Germany hosted the World Cup; indicating foreigners could have been responsible for the boost, not locals.

The decline will likely continue in the coming years as more Germans opt for non-alcohol beverages over beer, especially those from the younger generation. And when the current German youth hit their 60s by 2050, the market size will reduce further given Germany's dwindling birth rates and the preference of younger Germans for other types of drinks.

With 1,284 beer manufacturers, Germany has the largest number of breweries worldwide, although it has slid down to number 3 of per capita beer consumption, trailing the Czech Republic and Ireland. Hahn said in the near future there are no indicators yet of brewery closures, but there might be mergers and acquisitions.

The decline of the brewery industry is not unique to Germany. A similar phenomenon is taking place in the United Kingdom bought by a smoking ban in pubs and bad weather. As a result beer consumption has fallen flat in the U.K. and it is expected to experience further declines in the coming years.

Michael Turner, chairman of the British Beer and Pub Association, said at the All-Party Parliamentary Beer Group's yearly Christmas party last week, "Beer drinking in pubs is now at its lowest level since the Great Depression of the 1930s. Today's pubs are selling 14 million fewer pints of beer a day than they were are the peak of the market in 1979.

As a result, it is not only the bottom line of British pubs that have fallen, but also share prices of listed pub groups.