Irish cider exports increased this year as domestic sales held steady, according to a recent report by Drinks Ireland | Cider.
The industry is now calling for a reduction in excise duties and an extension to the recently introduced excise relief scheme for craft cider producers to ensure future growth and sustainability in the face of challenging market conditions.
While overall cider sales in Ireland remained stable last year, they were still nearly 12% below pre-pandemic levels, according to the report.
Irish cider’s share of the alcohol market decreased from 6.6% to 6.2%.
The per capita consumption also fell by 3.0% reflecting a broader trend in Ireland where alcohol consumption has decreased by nearly one-third over the past two decades.
In contrast, international research suggests that the emerging non-alcoholic cider segment will grow by 5% over the next five years, reflecting shifting consumer preferences towards non-alcoholic options.
Irish cider exports grew by 5% – reaching almost €77 million – with the UK accounting for 90% of these exports.
This is a significant performance, as it comes despite overall drinks exports declining by 8% in 2023 due to challenging economic headwinds in international markets.
The second most popular destination for Irish cider is the US, then Australia.
Despite these moderate successes, high excise rates continue to challenge the industry’s growth prospects.
Ireland currently has the fourth-highest cider excise rate in the European Union and second highest across all drinks categories.
Just over 27% of the price of a pint of a cider goes to taxes once excise and VAT are combined.
Considering this, Drinks Ireland | Cider, the representative body for the industry, is advocating for a reduction in Irish excise duties to align with European averages.
‘Long-Term Sustainability’
Speaking about the report, Cormac Healy, director of Drinks Ireland, said, “The high excise rates not only impact our competitiveness but also stifle the growth potential of craft cider producers who are critical to the diversity and innovation of the Irish drinks market.
“Reducing these rates will provide much-needed relief for producers and help secure the long-term sustainability of the sector.”
Drinks Ireland said it welcomes the recent introduction of a 50% relief from Alcohol Products Tax (APT) for cider produced by qualifying small producers.
This initiative has already demonstrated positive outcomes by enabling craft cider producers to invest in distribution, innovation and expansion.
Drinks Ireland | Cider added that it believes the relief should extend to qualifying craft producers of fruit-flavoured ciders and intermediate products linked to the category to encourage new entrants and support small-scale cideries.
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