Beer.

Europe, according to statistics supplied by Japan's Kirin Brewery Company, is the world's largest beer consuming region. European consumption, based on 2004 figures, accounts for 32.8 percent of total world consumption. Asia is number two at 28.7 percent.

But Europe is not, by any means, the fastest growing region at a year-on-year increase of only 1 percent. In fact, only North America-growing at 0.8 percent-and Oceania, where the market is contracting at minus 0.7 percent, are growing at less impressive rates.

Asia is growing at 11.2 percent year-on-year. And world growth is at 4.2 percent.

But world growth may not be able to maintain momentum. According to an April 5, 2007 Reuters filing, "Analysts believe that the world's beer market is close to saturation."

While Europe as a whole may have already reached saturation, there are dynamic markets where growth rates are still accelerating. Russia is one example.

Russia is the world's fifth largest beer market according to the Reuters story. According to Kirin statistics 2004 Russia was number four, tied with Brazil. Russia's beer market was predicted to grow at a maximum of 5.6 percent in 2006. But it exceeded the prediction and instead soared 10 percent-reflecting the shift in dynamism from Western Europe to Eastern Europe.

The top three world markets are China, the United States, and Germany (using Kirin figures).

Obviously, Germany is the biggest market in Europe. According to The Brewers of Europe, a trade association headquartered in Brussels, Germany produced 28.6-million gallons of beer in 2005.

The United Kingdom is the second biggest market with production at 14.9-million gallons, about half that of Germany's. Poland is third with production of 8.3-million gallons.

Consumption ratings are somewhat different. Germany is number one in Europe with per capita consumption of 30.6 gallons. Austria is number two with per capita consmption registering 28.7 gallons, and Ireland is number three with consumption per capita at 28.5 gallons.

Other major markets with per capita consumption in the 20-gallon plus range are (in order) the UK, Belgium, Denmark, Finland, Lithuania, and the Netherlands.

The beer market in Finland is an interesting study. The country is considered a "hard drinking" country by the Foreign Agricultural Service (USA). And half the alcohol consumed in Finland is beer.

CONSUMER MARKET INSIGHTS: