Beer production and exports up but consumption down

BEER remains Ireland’s favourite alcohol beverage, but consumption remains below pre-pandemic levels and more and more consumers are trying zero alcohol variants of their favourite beer. The annual Irish Beer Market Report from Drinks Ireland - Beer, shows that the ending of the pandemic resulted in a 110% increase in total production of beer in Ireland as both the domestic and international markets reopened, but beer - and overall alcohol consumption - continues to decline. Data from Revenue shows that beer consumption fell by 3.2 % between 2019 and 2022.

Amongst the report’s key findings are:

• Beer’s share of the national alcohol market grew by over 8% to 43.5%, meaning it remains Ireland’s favourite drink;

• Total beer production in Ireland more than doubled in 2022, as national and global restrictions due to the Covid-19 pandemic were phased out and people once again were able to drink in pubs, clubs and restaurants;

• The UK is the biggest export market for Irish beer, followed by the United States, France, Germany and Belgium;

• While consumption grew year-on-year in 2022 as pandemic restrictions were lifted, total consumption is still down over 3% compared to 2019, with per capita consumption down by 7.8%, mirroring a continued fall in alcohol consumption in Ireland over the last 20 years;

• Nearly 60% of the beer consumed in Ireland is lager, with stout accounting for nearly 35%;

• 28% of the price of a pint paid for by the consumer goes directly to the Exchequer in VAT and excise, with Irish excise rates the second highest in the EU, behind Finland;

• Two thirds of beer is purchased in on-trade venues like bars;

• Sales of zero alcohol beer increased by 25% last year and 0.0% beer’s market share has increased four-fold over the last five years. All signs are that Ireland will develop a significant zero alcohol beer market in the years to come, if promotion continues.

Cormac Healy, Director of Drinks Ireland, welcomed the recovery in beer sales, but reminded us that these increased sales followed large drops in consumption in 2020 and 2021, as consumers stayed home. “However, it is notable that beer sales have not fully recovered, as consumers generally reduce their alcohol consumption. Ireland’s extremely high rates of excise duty on beer do nothing to help sales either, of course,” he said.

The Drinks Ireland Director described the growth of 0.0% beer as a promising trend, offering consumers a choice that supports moderation: “While the category is emerging from a low base here, we see from markets like Spain and Germany that 0.0% drinks have a market share of over 10%. Based on data from Drinks Ireland - Beer members, we can see that over the last five years, the market share for 0.0% beers has grown by 325% and last year alone, volume sales increased by 25%. Brewers should be allowed to market and promote these products under the strict codes already in places, and not be targeted with unnecessary additional regulation on products that can actually support the Government and industry objective of reducing alcohol misuse.”

Meanwhile, Drinks Ireland responded to claims from anti-alcohol lobby group Alcohol Action Ireland, who claimed that alcohol is too “affordable” in Ireland, stating that such claims are “simply untrue” and “out of touch with reality”.

“Recent Eurostat data, looking at the cost of living in Ireland indicated that Ireland has some of the most expensive alcohol prices in the EU,” noted Cormac Healy. “This is driven by extremely high levels of excise duty on alcohol, which is the second highest in the EU, as well as Minimum Unit Pricing, introduced in January 2022.

“In this context, the Alcohol Action Ireland proposal to further increase alcohol prices is simply ludicrous and totally out of touch with reality. It would do nothing except hit already extremely hard-pressed Irish consumers, who face some of the highest prices on consumer goods in the EU. While we fully support the objective of reducing harmful consumption, hitting consumers who enjoy a drink and do so in moderation with such broad based extreme policies is not logical.

“Further, Ireland has some of the most stringent legislation and codes in the world for the marketing and sale of alcohol, including price measures, so calls for further punitive action show nothing more than a desire to target consumers and an important Irish indigenous sector.

“This call also comes at a time when alcohol consumption and patterns are changing for the better. Alcohol consumption is down by around 30% in the past 20 years, according to Revenue data, and younger people are leading a trend of more moderate drinking.”