"Overall alcohol consumption continues to decline dramatically in Ireland," according to the report
The sale of beers dropped dramatically during the Covid-19 pandemic, with sales of stout particularly hit.
The continued closure of hospitality venues domestically and in key international markets resulted in another challenging year for Irish brewers in 2021, but there were some signs of early recovery in the second half of the year, according to a new report released today.
The annual Irish Beer Market Report from Drinks Ireland|Beer, shows that the pandemic resulted in a 46% fall in production between 2020 and 2021, with sales down by 1.3% and per capita consumption down by 2.3%.
"Overall alcohol consumption continues to decline dramatically in Ireland," according to the report.
The value of beer exports fell by 3% last year but were still significant at €246m. The most popular destination for Irish beer was Great Britain, with the United States in second place.
According to the report, stout sales were heavily hit by the pandemic, as stout is mostly consumed in the on-trade - in pubs, hotels and restaurants.
Prior to Covid, around 30% of beer consumed in Ireland was stout. This fell to 25.3% in 2020, but rose by 6.9% to 32.2% last year. Lager, which was more popular during Covid as it was consumed at home, saw its market share fall last year by just over 8.3%, with ale’s market share was up by 1%.
Non-alcoholic beer is also becoming increasingly popular, with its market share up from 1.1% in 2020 to 1.5% in 2021. For context, non-alcoholic beer’s market share was 0.4% in 2017.
Producers are now focused on driving recovery in the sector but face a range of external pressures like inflation which has increased business costs.
To support recovery and manage these significant pressures, it has called on government to reduce alcohol excise in this year’s budget, as Irish beer drinkers continue to pay the second highest rate of excise on beer in the EU.
Seamus O’Hara, Managing Director of the Carlow Brewing Company said:
“We are a proud employer in Carlow, supporting local jobs and the community. We are calling for an excise reduction in this year’s Budget, to enable us to increase investment and innovation, and to continue to enhance our economic contribution to the region.
“This would also benefit hard pressed consumers, facing rising cost of living pressures.”
Jonathan McDade, Director of Drinks Ireland|Beer said:
“Following two of the most challenging years for the brewing sector and the ongoing issue of spiralling business costs, we are calling for an excise reduction in this year’s Budget. This would enable more investment and innovation within the sector. It would also benefit hard pressed consumers, facing rising cost of living pressures.”
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