Irish food and drink exports show resilience despite US tariff concerns, says the head of Food & Beverage sector at Bank of Ireland Lucy Ryan.
“Despite geo-political uncertainty and a high cost base, the food and drink sector has remained resilient. It continues to adapt and meet changing consumer trends”
Ireland’s food and drink sector continues to demonstrate resilience despite geopolitical uncertainty and US tariff challenges, with exports valued at €2.7bn in January-February 2025, representing a 12% increase year-on-year.
The sector has shown strong performance across key markets, with exports to Great Britain and Northern Ireland reaching €1.1bn (+7%), EU markets at €916m (+22%), and US exports at €271m (+16%). Notably, exports to China and other global markets have also increased by 31% and 13% respectively.
Diversification of food businesses
“Despite geo-political uncertainty and a high cost base, the food and drink sector has remained resilient. It continues to adapt and meet changing consumer trends,” said Lucy Ryan, head of Food & Beverage Sector, Bank of Ireland.
She said companies are actively diversifying their market presence while simultaneously investing in automation and production efficiencies to maintain competitiveness in this challenging environment.
“Whilst the shadow of tariffs creates uncertainty for US- focused businesses in particular, overall the general outlook remains cautiously positive.
“Many producers’ largest export markets are UK and EU. Some producers are focusing their efforts on building outside-US markets, but this process takes time and dedication.”
The US implemented a 10% tariff on EU food and drink imports in April 2025, down from an initially threatened 20% rate, with a 90-day pause period for negotiations. This development is particularly significant for Ireland, as US markets accounted for €1.9bn (11%) of total Irish food and drink exports in 2024.
Irish alcoholic beverage exports to the US reached €900m in 2024, with whiskey accounting for €450m. The US market represents nearly 40% of Ireland’s global alcoholic beverage export value, making the sector particularly vulnerable to tariff changes.
Historical data suggests potential impact – during previous US tariffs on EU products, single malt Scotch whisky reportedly lost over £500m in sales with approximately 30% decline due to 25% tariffs, though Irish whiskey was exempt at that time.
Dairy exports to the US totalled €840m, with butter accounting for approximately €500m. Industry observers note that during previous tariff disputes in 2018, Kerrygold – the second largest butter brand in the US – maintained growth in both volume and value despite trade tensions.
While many producers have shipped additional inventory to the US ahead of tariff implementation, US importers are now paying these tariffs as goods arrive, affecting value chains and potentially consumer prices. Industry experts indicate that businesses are focusing on controlling costs, exploring automation, and developing alternative markets, though building new market presence requires significant time and investment.
The general outlook for 2025 remains cautiously positive, with industry leaders emphasising the need for businesses to remain agile in response to evolving market conditions.
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