The Federal Statistics Office said Germans brewed 96.5 million hectolitres of their national beverage in 2012, down nearly two percent from the year before.
"This was the lowest amount since reunification," the office said in a statement.
A quarter of the country's beer was made in the densely populated state of North Rhine-Westphalia. Bavaria, home of the legendary beer festival Oktoberfest, only came second, accounting for 22.9 percent of all German beer.
Despite Teutonic beer's international reputation, nearly 84 percent of the amber nectar was consumed within Germany's borders.
Perhaps most disheartening for traditional German beer lovers, mixtures including cola and juice made up 4.5 percent of total beer volume.