Ireland: Alcohol consumption down 32% since 2001

Alcohol consumption in Ireland has dropped by 32pc since 2001, according to Revenue statistics. This includes a drop of 4.7pc between 2020 and 2021, a decline powered by government initiatives, Independent.ie reported on June 11.

Rising inflation and insurance premiums look set to impact hospitality sector profits in the coming months, with the industry also contesting with the lowest rates of alcohol consumption in 20 years.

“There’s been a number of things that have been implemented by the government, starting with the smoking ban, the tighter drink-driving regulations and more recently, you’ve seen it in supermarkets,” Bank of Ireland head of hospitality Gerardo Larios Rizo told the Irish Independent.

This includes the “segregation” of alcohol in stores which was introduced in 2020, as well as minimum unit pricing early this year which set a minimum price for any alcoholic drink based on the grams of alcohol contained within it.

Younger generations are also drinking less which may be attributed to health concerns, greater acceptance for teetotalism or the increased awareness of the impact of images shared on social media.

However, while volumes are declining, consumers are now spending more when they do opt for a drink due to a wider selection – and higher quality – of options. “Because people are drinking less, if they are having one drink, they’ll say ‘I’ll have the nice gin and the nice tonic’,” said Mr Larios Rizo.

This has led to the rise in popularity of premium gins and whiskeys, as well as wine. While overall alcohol consumption continues to fall, wine and spirits are proving more resilient. Wine consumption fell by 5pc from 2019 to 2021 but has grown 51pc since 2000. In comparison, beer consumption fell by a fifth in the past two years and has dropped 52pc in the past 20.

Spirit consumption remained steady over the pandemic, dropping 1pc from 2019 and down a quarter compared with 2021.

The demise of the nightclub in towns and cities across Ireland has also been a factor in the downward trend due to rising insurance premiums. “After two or three insurance claims, businesses can become unviable as you’re only working to pay your claims,” Mr Larios Rizo added.

As inflation continues to hold its grip on the economy, the industry also faces the introduction of rising prices at the bar due to cost pressures. In February, Diageo introduced an increase of six cent per pint.

Despite well-publicised discussions around such price increases, consumers look set to maintain current levels of socialising. This trend is mainly motivated by the return to socialising following long spells of restrictions, as well as access to pandemic savings.

“Whilst there could be an erosion of spending power, I don’t think [the impact] will be that dramatic because people still have a need to connect,” Mr Larios Rizo said. “This will support this moderate level of performance, albeit there could be a softening driven by inflation.”

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .