Drinks Ireland/Spirits, the Ibec representative group for the wider spirits sector in Ireland, has unveiled its annual Spirits Report. The report indicates a total export value for the sector of €1.3 billion, representing a 9% decline from the previous year. This downturn is largely attributed to heightened competition in the global marketplace and challenging economic conditions that have complicated sales across various drinks categories. Nevertheless, the long-term prospects for the sector remain growth-oriented; continued government support and a balanced regulatory environment will be vital as we move forward.
Over the last decade, Irish Spirits—including Irish Whiskey, Gin, Irish Cream, and Poitín—have experienced robust export growth. This growth has significantly contributed to the economy, generated job opportunities, and bolstered tourism across the island of Ireland.
However, key factors contributing to the challenging export conditions since early 2023 include rising inflation and cost-of-living concerns, which have led to increased interest rates and, consequently, weakened consumer spending. While our sector holds ambitious growth goals for the future, it is evident that progress cannot be taken for granted. Businesses require a supportive environment to achieve their objectives.
Domestically, sales volume for Irish Spirits slightly declined by 1.4% in 2023, reflecting broader trends in alcohol consumption. At home, Vodka continues to be the most popular category, followed by Irish Whiskey, Gin, Rum, and Irish Creams.
In 2023, Irish Whiskey exported 14.9 million cases; however, the export value fell by 14% to €875 million, primarily due to the challenging market conditions previously mentioned. Despite this short-term decline, the overall growth trajectory for Irish Whiskey is positive, particularly considering that sales surged by nearly €200 million (+25%) from 2021 to 2022, reaching €1 billion in value.
The United States remains the primary export destination for Irish Whiskey, accounting for over one-third of total global sales. Meanwhile, Poland has emerged as a significant market, overtaking both Ireland and the United Kingdom to become the second largest, with a remarkable growth rate of 16% in 2023. Consequently, despite a 6.7% increase in 2023, the United Kingdom has fallen to fourth place in the global Irish Whiskey market.
Other key findings from the report include:
- Irish Cream recorded sales of 9.5 million cases, but the export value decreased by 8.7% to €370 million in 2023. Drinks Ireland continues to advocate for the international protection of Irish Cream’s geographic indication (GI) status, particularly in North America.
- Sales of Irish Poitín rose by 13.5% in 2023, reflecting growing interest both domestically and internationally. Drinks Ireland, with support from Bord Bia and Invest NI, is launching a new marketing campaign to further develop this category.
- Irish Gin saw a 6% decline in sales within Ireland. However, the premium segment, where many Irish producers operate, remains strong. In 2023, premium gins accounted for 32% of the Irish Gin Market, an increase from 22% in 2019.
- Vodka sales in Ireland experienced a 1.2% decline in 2023 compared to 2022. On a positive note, the share of premium Vodkas doubled in 2023 compared to 2019.
- Ireland ranks among the European countries with the highest excise rates on alcohol.
Irish Spirits are at the forefront of the premiumization trend, continually innovating to provide consumers with high-quality options while adapting to shifting preferences in alcohol consumption. Notably, individuals who choose to drink are now focusing on quality rather than quantity, contributed by a 30% decline in per capita consumption over the past two decades.
Commenting on the report, Director of Drinks Ireland/Spirits Aengus King stated: “The Irish Spirits sector has delivered phenomenal export growth over recent years, and while confronted with challenging international markets at present, has strong ambitions for future growth that will deliver for regional economic development. Sustaining businesses during challenging periods so that they continue to deliver to the wider economy in the future requires a supportive enterprise and regulatory environment. We depend on government and state agencies to work with us to ensure the best possible market access internationally, including the avoidance of tariff barriers; the protection of our important geographic indication (GI) status for Irish Whiskey, Irish Cream, and Poitín across global markets; and increased investment through state agencies and support for exporters for export promotion and development.”
Chair of Drinks Ireland/Spirits and founder of Rademon Estate Distillery in Co Down, David Boyd-Armstrong, remarked: “As a distiller, I, like my fellow distillers and spirits producers dotted all over the island, have an ambition for further growth and a hope for the future. Despite the current market conditions, I am encouraged that growth is expected to return in the period ahead. However, we need the right encouragement and supports to sustain businesses and ensure a return to this place of growth.
“The last decade has been wholly positive, with Spirits exports in particular lauded as a key all-island economic success story, not just for exports, but for job creation, innovation, and investment that have had both positive direct and indirect economic impact. Now, as increased international competition and the cost of doing business are biting, we cannot afford to be complacent.
“While still robust, Irish Spirits need support and promotion to build on the progress already made, and this must be underpinned by a fair and balanced regulatory environment.”
