2024 was a "mixed year" for the Irish spirits sector as exports were up but domestic sales fell, according to a new report.

Drinks Ireland | Spirits, the Ibec representative group for the wider spirits sector in Ireland, said there was modest spirit export volume growth of 2.8% in 2024.

While value growth was higher, this was largely driven by supply chain inflation, the 2024 annual report said.

Exports were valued at €2.1 billion in 2024.

Whiskey volumes up

Sales of spirits in the Irish market fell by over 2%, reflecting the continuing moderation of consumption amongst Irish drinkers.

Despite a dip in sales, vodka remained Ireland's favourite spirit, followed by Irish whiskey and gin.

Sales in Ireland of tequila grew by over one-fifth in 2024 compared to the previous year.

Irish whiskey volumes increased globally by 3.6% with Irish cream volumes up by a more modest 1.5%.

The US remains the biggest export market for Irish spirits, followed by the UK and Germany.

India was the fifth biggest market for Irish whiskey in 2024, growing at 57.5%.

According to the report, the opportunity is huge if the EU–India trade deal can be concluded and delivers a sizeable reduction in tariff rates.

Ireland continues to have the third highest level of excise tax in Europe, and the second highest across all alcohol, inhibiting investment by producers, the report said.

Uncertainty

Drinks Ireland | Spirits chairperson, David Boyd-Armstrong, said: "2024 saw sales volume growth of 2.8% across our main spirits drinks and higher value growth, largely reflecting inflation across the supply chain.

"Medium-term, our projections remain toward growth, but the pace of the growth has eased, and trade developments since early 2025 have presented an incredibly challenging business environment.

"The return to zero-for-zero tariff trading position with the US must remain a top priority for government and for EU negotiators."

Director of Drinks Ireland | Spirits, Aengus King, said that spirits are a "major component of Ireland's total food and drinks exports and are an important part of the export economy". 

"2024 was a mixed year for our sector, with exports up and domestic sales down," King said.

"However, we know that 2025 has been very challenging for our members and their businesses.

"We appreciate the ongoing efforts of government to resolve trade issues.

"Given the current trading environment, distillers and spirits producers need more direct supports to drive export market development and diversification."

He added that with per-capita consumption now 34% lower in Ireland than 2001, as well as the headwinds being faced by industry, "now is the time for a 10% excise reduction in Budget 2026".