Drinks Ireland | Spirits has reported that the export value of the sector is €1.3 billion worldwide, representing a 9% decline on the previous year.
The Ibec representative group for the spirits sector in Ireland published these results in its annual Spirits Report this week.
Drinks Ireland | Spirits attributes the decline to a highly competitive global market and touch economic headwinds which have complicated the market for drinks categories worldwide, though the long-term trajectory remains growth-oriented.
Irish spirits have achieved strong export growth over the last decade, which has delivered significant economic contribution, created jobs and increased tourism.
However, since early 2023, key factors such as high inflation and cost-of-living concerns contributed to more challenging export market conditions and weaker consumer spending.
Domestically, Irish spirits volume sales were marginally down by 1.4% in 2023, reflecting general trends in alcohol consumption.
The most popular spirits in Ireland were vodka, Irish Whiskey, gin, rum and Irish cream in that order.
Irish whiskey exported 14.9 million cases in 2023, yet the value of the category declined by 14% to €875 million due in large part to challenging market conditions.
However, the overall growth trajectory for this sector remains positive and the report notes that the short-term decline should be viewed in the context of an almost €200 million (25%) increase in 2022 sales.
The United States remains a key market for Irish whiskey, with Poland now surpassing the UK and Ireland to become the second largest.
The UK saw an increase of 6.7% in 2023 but still fell to the fourth market globally for Irish whiskey.
‘Supportive Enterprise’
Commenting on the report, the director of Drinks Ireland | Spirits Aengus King said, “The Irish Spirits sector has delivered phenomenal export growth over recent years, and while confronted with challenging international markets at present, it 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.”
King added that government and state agency supports will be key to support exporters moving forward.
The chair of Drinks Ireland | Spirits and the founder of Rademon Estate Distillery David Boyd Armstrong added, “As a distiller, I, like my fellow distillers and spirits producers dotted all over the island, have an ambition for future growth and 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.”
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