The wine market in Ireland has undergone a significant transformation, prompted by the pandemic and shifting consumer preferences.
Wine consumption and sales experienced a decline, while purchases during lockdowns surged.
As the second most popular alcoholic beverage in Ireland, wine faces the highest excise duty within the EU, adding considerable costs.
This article explores the impact of the pandemic on wine consumption, the prevailing preferences in Ireland, and the calls for a decrease in excise duty to align with EU norms.
The Impact of the Pandemic on Wine Consumption
The pandemic had a significant impact on wine consumption, with sales remaining below pre-pandemic levels and a shift towards more moderate drinking habits observed in Ireland.
According to data, the wine market share fell by 8.9% last year, and per capita consumption of wine was down 2% in 2022. Wine sales remained almost 3% below pre-pandemic levels, despite an increase in purchases during lockdowns.
This shift in consumption trends is part of a broader movement towards a more balanced and moderate approach to drinking in Ireland. Beer consumption also decreased by 7.8% compared to 2019 levels, while sales of non-alcoholic beer increased by 25% last year.
Overall, there is a clear change in consumer behavior, indicating a preference for more moderate drinking habits.
Excise Duty on Wine in Ireland: The High Costs and Calls for Decrease
Calls for a decrease in excise duty on wine in Ireland have gained momentum, highlighting the high costs and the need for a more affordable market.
Irish wine drinkers currently pay the highest excise level on wine in the EU, with excise duty adding around €3.19 per standard bottle of wine.
The wine sector contributed over €385m in excise to the Exchequer last year.
Drinks Ireland, the representative body for the drinks industry, is calling for a 15% cut in alcohol excise duty over the next two budgets. This decrease in excise duty is supported by Drinks Ireland director Cormac Healy, who believes it would ease the burden on consumers and businesses and bring Ireland closer to EU norms.
Overall, there is a growing consensus that a reduction in excise duty would help create a more affordable wine market in Ireland.
Wine Preferences in Ireland: Popular Types and Growing Demand for Non-Alcoholic Options
Chilean wine, accounting for almost a quarter of all sales, is increasingly preferred in Ireland, with a growing demand for non-alcoholic options as well.
White wine remains the most popular type, holding a 48% market share, followed closely by red wine with a 45% market share. Rosé wine holds a 6% market share.
However, there has been a noticeable shift in consumption trends, with Ireland moving towards a more balanced and moderate approach to drinking. Beer consumption has decreased by 7.8% compared to 2019 levels, while sales of non-alcoholic beer have increased by 25% last year.
Wine consumption also remains below pre-pandemic levels. As a result, there are calls for a decrease in excise duty on alcohol, with Drinks Ireland advocating for a 15% cut over the next two budgets.
This would not only ease the burden on consumers and businesses but also align Ireland with EU norms.
Shift in Consumption Trends: Moving Towards a Balanced and Moderate Approach
Ireland’s shift towards a more balanced and moderate approach to consumption reflects changing attitudes towards alcohol.
In recent years, there has been a noticeable decrease in beer consumption, with a 7.8% decrease compared to 2019 levels. This trend is also reflected in the wine market, which saw a decline of 8.9% last year.
Additionally, there has been a growing demand for non-alcoholic options, with sales of non-alcoholic beer increasing by 25% in 2022.
This shift towards moderation in drinking habits is also evident in the calls for a decrease in excise duty on alcohol. Drinks Ireland, the industry representative body, has called for a 15% cut in alcohol excise duty over the next two budgets, aiming to ease the burden on consumers and businesses and bring Ireland closer to EU norms.
This change in consumption trends highlights a growing awareness of the importance of a balanced and moderate approach to alcohol consumption in Ireland.
Calls for Decrease in Excise Duty: Easing the Burden on Consumers and Businesses
With the aim of alleviating the financial strain on consumers and businesses, there are strong appeals for a reduction in the excise duty on alcohol in Ireland. Currently, Irish wine drinkers pay the highest excise level on wine in the EU, with excise duty adding around €3.19 per standard bottle of wine. Sparkling wine has double the excise duty compared to still wine.
The wine sector contributed over €385m in excise to the Exchequer last year. Drinks Ireland is calling for a 15% cut in alcohol excise duty over the next two budgets. This decrease in excise duty is supported by Drinks Ireland director Cormac Healy.
Not only would this bring Ireland closer to EU norms, but it would also help ease the burden on consumers and businesses during these challenging times.
Conclusion
In conclusion, the wine market in Ireland has faced challenges during the pandemic. There has been a decline in overall consumption but an increase in wine purchases during lockdowns. Irish wine drinkers bear the highest excise duty on wine in the EU, adding significant costs to each bottle. Despite this, there is a growing demand for both white and red wine, as well as non-alcoholic options.
The shift in consumption trends towards moderation calls for a decrease in excise duty to relieve the burden on consumers and businesses.
