Per capita alcohol consumption declines by 35.6% since 2001, while drinks industry calls for a 10% excise reduction in Budget 2027.
The Irish never claimed to be just “average” drinkers, but international data shows that alcohol consumption in Ireland now is well within average European levels due to societal changes. But for the drinks industry in Ireland the shift to more moderate drinking habits is presenting business challenges.
Alcohol consumption among Irish adults continued its long-term decline last year, falling by 2.1% to 9.30 litres of pure alcohol (LPA) per person, according to a new report commissioned by the Drinks Industry Group of Ireland (DIGI).
“We would urge policymakers to also acknowledge the importance of pubs to the social fabric and wellbeing of local communities, particularly in rural areas”
The findings, compiled by economist Anthony Foley, Associate Professor Emeritus at Dublin City University, show that alcohol consumption in Ireland has fallen by 35.6% since peaking in 2001, reflecting a sustained shift towards more moderate drinking habits over the past quarter-century.
The report also indicates that Ireland’s alcohol consumption levels are now broadly in line with the European average. Based on OECD data covering 17 EU countries and the UK in 2023, Ireland’s consumption level of 9.9 LPA was just below the overall average of 10.0 LPA across the countries surveyed.
According to the report, ten of the countries analysed recorded higher levels of alcohol consumption than Ireland, while seven recorded lower levels, reinforcing the view that Ireland is no longer an outlier in terms of alcohol consumption.
Tourism and hospitality competitiveness
“Today’s report demonstrates that Irish people continue to consume alcohol at levels in line with the European average. Despite this, Irish consumers are forced to pay one of the most punitive and unjust rates of excise tax on alcohol in the European Union.
“This policy increases cost pressures on both consumers and struggling small family-owned pubs and restaurants, during a prolonged period of economic turbulence. High excise rates also reduce our competitiveness in tourism and hospitality compared to our EU counterparts.
“We would urge policymakers to also acknowledge the importance of pubs to the social fabric and wellbeing of local communities, particularly in rural areas where social isolation is an increasingly common reality.
“These are small businesses that have faced a decade of deep financial uncertainty, with Brexit, Covid, transatlantic trade disruption and geopolitical tensions combined with sharp increases in Govt-imposed costs, all compounding to drive rapidly rising cost pressures. We must help rather than hinder small business.
“This year, we are urgently calling on Government to introduce an immediate 10% cut in excise tax in order to reduce cost pressures on small hospitality businesses around the country.” This is especially critical for pubs that do not serve food, as they do not benefit from the welcome reintroduction of VAT9.
Consumer trends
The report shows that consumption habits and tastes have continued to evolve among Irish consumers over the last year.
- Beer was the country’s most popular alcohol last year, holding a 42.1% market share, despite experiencing a 2.7% drop in total volume.
- Wine remained the second most popular drink, increasing its volume by 4.0% to claim a 29.4% market share. Wine’s popularity has more than doubled since 2000, when it held just a 13.2% share.
- Spirits saw a minor volume increase of 0.2%, resulting in a 22.4% market share (up slightly from 22.3% the previous year).
- Cider volume dipped by 0.2%, maintaining a stable 6.1% market share.
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