Spirits lead alcohol consumption growth in Ireland

Spirits consumption in Ireland grew by 5.6% in 2018, making up 20% of the country’s alcohol market, according to a recent report.

Irish gin and whiskey is helping to boost spirits consumption in Ireland

The Drinks Market Performance 2018 report by Dublin City University economist Anthony Foley, and commissioned by the Drinks Industry Group of Ireland (DIGI), was published ahead of DIGI’s 2019 ‘Support Your Local’ campaign.

Spirits witnessed the largest volume growth last year, “pointing to the success” of Irish gin and whiskey products, the report claimed.

Beer remains the country’s leading drink, increasing by 2.5% in volume, with the category making up 45.2% of the alcohol market last year. Wine was the only alcohol category to decline, falling by 2% in 2018. Cider increased slightly to 0.4%.

Average alcohol consumption per adult in 2018 was 11lpa (litres of pure alcohol), a small increase of 0.1% on the previous year but a decline of almost 18% since 2007.

The report said the Irish alcohol market was “highly competitive and constantly evolving in line with consumer preferences and tastes”, with consumption at a “stable level” since 2018.

Bar sales volumes, including food and other sales as well as alcohol, dropped by 1.3% in 2018 compared to a total retail sales volume increase of 3.7%. The decline in bar sales volume includes an estimated 2% decrease in alcohol volume and a “small increase” in food volume.

Rosemary Garth, chair of DIGI, and communications and corporate affairs director at Irish Distillers, said: “The Irish drinks market continues to showcase its contribution to Irish society as it consistently innovates and invests in line with consumer preferences and tastes.

“There were four active distilleries in Ireland in 2013, now there are 24 in operation, with a further 24 in development. An increase of 5.6% in the market share of spirits is no surprise and proves the determination of Irish distilleries.”

However, Garth warned that “state support and protection are needed to avoid a plateauing” of Ireland’s drinks sector and “to cease the rapid number of pub closures in every county”.

She added: “This industry must continue to innovate and invest in itself to sustain its development, realise its potential and drive Ireland’s competitiveness on a European and international level.
“Therefore, and considering its contribution to the economy, we are asking the government to review its current alcohol taxation policy and to work with the Irish drinks industry and wider hospitality sector to help deliver the best post-Brexit life in order to allow for the conditions necessary to make the domestic drinks market as productive and successful as possible.”