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Alcohol consumption falls again, dropping 4.5% last year
Alcohol consumption falls again, dropping 4.5% last year

Irish Examiner

time11 hours ago

  • Business
  • Irish Examiner

Alcohol consumption falls again, dropping 4.5% last year

Alcohol consumption in Ireland fell sharply last year, dropping 4.5% according to a report from the Drinks Industry Group of Ireland (DIGI), which is demanding cuts to excise rates. The representative body said the data shows consumption of alcohol by Irish consumers was now on par with their European counterparts, but that excise rates remain the second-highest in Europe. The report by economist Anthony Foley shows the average adult consumed 9.5 litres of pure alcohol last year, a drop from 9.9 litres in 2023. All four beverage categories, beer, spirits, wine, and cider, experienced volume decreases in 2024. Ranked against a sample of 16 European countries, Ireland's average consumption was lower than nine countries and was higher than seven countries. 'Ireland is no longer an outlier in terms of high average levels of alcohol consumption as measured by the methodology used for that indicator,' the report notes. The report highlights the changing pattern of alcohol consumption. Secretary of DIGI and CEO of the Licensed Vintners Association, Donall O'Keefe said the report shows Irish people are increasingly drinking in a restrained manner, with consumption continuing the downward trajectory that has been recorded since the millennium. 'This downward trend also raises the obvious question as to why Ireland continues to have the second-highest excise rates on alcohol in Europe,' he said. 'Given that we now consume alcohol at average European levels it makes sense that we should pay excise at average European levels also. This is particularly true following the introduction of minimum unit pricing which prevents the sale of strong alcohol at low prices in supermarkets and shops. 'In contrast to the negative stereotypes that once existed, alcohol consumption in Ireland is now at average European levels, with the purchase of non-alcoholic drinks continuing to increase. 'Across Ireland, hundreds of small rural pubs and restaurants are struggling for survival due to repeated increases in the cost of doing business, including staff, energy and insurance. A cut in excise would offer these businesses an opportunity to continue acting as vital hubs in their communities, as well as a crucial part of our tourism product. 'DIGI will be seeking a 10% cut in excise in this year's budget as an urgent measure to give these businesses a fighting chance of survival,' Mr O'Keefe said. Last week, drinks giant Diageo said bar sales of non-alcoholic Guinness 0.0 grew 27% in the last year, with the non-alcoholic version set to take up 12% of total stout production at the Dublin brewery next year. The product has enjoyed a huge 161% increase in yearly volume on-trade sales between June 2022 and March 2025. Other breweries report similar increases in non-alcoholic versions of their beers. The change in drinking patterns is also borne out elsewhere. In March, the Central Statistics Office (CSO) said the volume of sales in bars had dropped 10% over the previous year. Vintners' Federation of Ireland chief executive Pat Crotty said the CSO figures support anecdotal evidence from publicans around the country that drink sales have fallen in the region of 9% over the past year. 'This comes on the back of rising costs, with the likes of rates, water charges, and labour costs all surging way ahead of inflation,' he said. 'Publicans are now facing a perfect storm of rising costs and falling turnover, which is not sustainable if the pub trade is to survive over the long term. 'It should be noted that most cost increases come from the Government, so we need to see meaningful supports that will make a difference to the average publican struggling to attract customers through the door.'

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