Downward trajectory of Irish alcohol consumption shows IBEC report

Leads to call for a 15% decrease in excise

Wine sales in 2022 showed no real change compared to the year earlier and remain almost 3% below pre-pandemic figures, according to a new report released by Ibec trade association Drinks Ireland. Per capita consumption of wine was also down by 2% last year, pointing to the continued downward trajectory of Irish alcohol consumption.

The annual Wine Market Report 2022 shows that wine’s market share in Ireland decreased by 8.9% in 2022 and 17% on the market share recorded in 2020 during the height of Covid lockdowns when pubs were closed and stay-at-home consumers favoured wine purchases at retail. Wine remains Ireland’s second favourite drink after beer.

The report highlights that Irish wine drinkers face the highest excise level on wine in the EU, paying €3.19 per standard bottle of wine (13% ABV). Sparkling wine drinkers’ excise hit is doubled that, with a rate of €6.37. The wine sector as whole contributed €385 million in excise alone to the exchequer.

Given the strong public finances and this disproportionately high rate, Drinks Ireland | Wine is calling for a 15% decrease on excise over the next two budgets.

Sparkling wine has become increasingly popular, with its market share up from 2% in 2021 to 2.3% in 2022. White wine remained the favourite of the category (48% market share) while red is a close second (45%) and rosé decreased slightly (6%). Chilean wine remains the most popular wine sold in Ireland, holding an impressive 24.7% of the market share. While Spanish, Australian and French were the next favourites respectively. South African wine saw the biggest market share growth by 10%.

While beer continues to lead the charge in the non-alcoholic market, 0.0% wine also saw an increase of the market share in 2022 as consumers continue to look for choice and prioritise balance in their social habits.

Cormac Healy, director of Drinks Ireland, said: “We are continuing to witness an overall shift in consumption trends, with Ireland moving to a more balanced and moderate approach to drinking.

 “Today’s report shows a resilient wine category, one with conscious and mindful consumers who relish in the substantial choice of high quality products the category has to offer. It is therefore disappointing that Irish consumers continue to pay disproportionally high levels of excise duty. We are calling for a 15% decrease on alcohol excise duty over the next two budgets, easing the burden on hard pressed consumers and businesses and moving us somewhat closer to EU norms.”