The continued closure of hospitality venues domestically and in key international markets resulted in another challenging year for Irish brewers in 2021 with alcohol consumption down, according to a new report.

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.

Revenue data shows that alcohol consumption fell by 4.7% between 2020 and 2021, and declined by 9.6% between 2019 and 2021.

On a longer-term basis, alcohol consumption is at its lowest level in 20 years, down by about 30% since the peak of 2001.

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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, pre-Covid around 30% of beer consumed in Ireland was stout. This fell to 25.3% in 2020 and recovered 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 eight points while ale’s market share improved by one point.

Non-alcoholic beer market share rose from 1.1% in 2020 to 1.5% in 2021. For context, non-alcoholic beer’s market share was 0.4% in 2017.

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. 

Peter Mosley, managing director of the Porterhouse Brewing Company and Chair of Drinks Ireland|Beer said: “Today’s report illustrates the significant impact the pandemic continued to have on Irish brewers last year, with production particularly hit.

“There were some signs of early recovery, as consumers returned to the on-trade in the second half of the year. Prior to Covid just over 60% of beer sales were in Ireland’s pubs, restaurants, and hotels. In 2020 an estimated 29% of beer sales were from the hospitality sector, but this rose to 46% in 2021.

“Irish brewers are now working to return to growth, driven by strong innovation in the sector from established and emerging players.”

Jonathan McDade, Director of Drinks Ireland|Beer commented: “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.”

Drinks Ireland|Beer is a part of Drinks Ireland, the Ibec group that represents alcohol drinks manufacturers and suppliers in Ireland.

Over 90% of all beer sold in Ireland is manufactured or distributed by members of the association.