Alcohol consumption in Ireland fell again last year

Alcohol consumption in Ireland fell again last year, extending a long decline that has reshaped the country’s drinks market and sharpened a debate over taxes, hospitality costs and tourism competitiveness.

New figures from the Drinks Industry Group of Ireland, known as DIGI, show that average alcohol consumption per adult dropped 2.1% to 9.30 liters of pure alcohol. The group said that marks a 35.6% decline from the peak reached in 2001, continuing a downward trend that has lasted about 25 years.

The data points to a market where overall drinking is falling even as consumer preferences shift among categories. Beer remained the most consumed alcoholic drink in Ireland, with a 42.1% market share, but its total volume sales fell 2.7%. Wine held its place as the second-largest category and posted a 4% increase in volume, bringing its market share to 29.4%. Spirits recorded only slight growth, with volume up 0.2% and a 22.4% share of the market. Cider volumes slipped 0.2%, while its market share stood at 6.1%.

For producers, distributors, bars and restaurants, those figures matter beyond headline consumption trends. They suggest weaker overall demand in the market while also showing where consumers are shifting their spending. They also feed into a broader argument over excise policy that could affect pricing, margins and the position of spirits and other drinks in pubs and other on-trade venues.

DIGI said the latest numbers also support the view that Ireland no longer stands apart in Europe as a country with unusually high alcohol consumption. Citing OECD comparisons for 2023 across 17 European Union countries plus the United Kingdom, the group said 10 countries were above Ireland’s average consumption level for that year of 9.9 liters of pure alcohol, while seven were below it. According to DIGI, Ireland sits just under the unweighted sample average of 10 liters across that group.

That argument has become central to the industry’s push for tax relief ahead of the next national budget. DIGI is calling for a 10% cut in excise duties on alcohol, saying Irish consumers face some of the highest alcohol tax rates in the European Union.

A spokesperson for the group said high state-imposed costs have weighed heavily on licensed premises for years. DIGI says more than 2,200 pubs, or about one in four, have closed in Ireland since 2005. The organization argues that lowering excise would ease pressure on operators and improve their chances of surviving through the next decade.

Donall O’Keeffe, secretary of DIGI and chief executive of the Licensed Vintners Association, said the new figures show Irish people are consuming alcohol at levels broadly in line with the European average. He said that despite this, consumers still face what he described as punitive excise rates, adding that those taxes raise costs for drinkers as well as for small family-owned pubs and restaurants during a prolonged period of economic strain.

O’Keeffe also linked tax policy to tourism and hospitality. He said high excise rates reduce Ireland’s competitiveness against other European destinations, an issue with implications for pubs, restaurants and drinks sales tied to visitor spending. That concern is especially important for spirits and other categories sold heavily through hospitality channels, where pricing can influence both consumer choice and venue profitability.

The industry’s concerns come at a time when parts of Ireland’s beverage sector are already dealing with other cost pressures and strategic changes. Diageo, owner of Guinness, has invested €30 million in alcohol-free stout production at St. James’s Gate in Dublin and has also announced plans to expand a €200 million facility in Littleconnell, County Kildare, to more than double export and domestic capacity. The investment reflects another shift inside the market: growth in low- and no-alcohol products even as traditional alcohol consumption declines.

Independent brewers have also raised concerns about rising operating expenses, including a reported 9.8% increase in water charges. For smaller producers and pub operators, those added costs come on top of broader pressures that industry representatives say have built up over several years.

O’Keeffe said many pubs are still dealing with the effects of Brexit, the Covid pandemic, transatlantic trade disruption and geopolitical tensions, alongside higher government-imposed costs. He said those factors have combined to create rapidly rising pressure on small businesses across the hospitality sector.

He also argued that pubs play a wider role in Irish life beyond food and drink sales, particularly in rural areas where they can serve as social centers at a time when isolation is becoming more common. That social argument has become part of the industry’s case for tax relief as pub numbers continue to shrink.

The latest figures do not suggest a collapse in every drinks category. Wine continued to gain ground, building on long-term growth since 2000, while spirits managed to edge higher in volume even as total alcohol consumption fell. But beer’s decline remains significant because of its size in the market, and the broader trend still points to lower per-capita drinking overall.

That leaves Ireland’s beverage sector facing two realities at once: consumers are drinking less alcohol than they did a generation ago, and businesses tied to serving those drinks are pressing for policy changes they say are needed to remain viable. With budget discussions ahead, excise duties are likely to remain at the center of that debate as producers, publicans and hospitality groups try to adapt to changing demand and tighter economics.