Sales of non-alcohol beer increased by 25% last year, while production was up 77%, according to a new report.
The Drinks Ireland Annual Beer Market Report, published today (Monday, September 15) shows that non-alcohol beer now accounts for more than 2.5% of the overall beer market.
This represents a 150% increase in market share over five years.
According to research conducted by Drinks Ireland, one in four adults now considers choosing a non-alcohol product.
68% of people believe that these products provide healthier options, and more than half of Irish adults (56%) agree that availability and advertising of 0.0% products is encouraging more responsible consumption.
Today's report also shows that beer is still Ireland’s most popular alcohol drink, with a 43.3% share of the market in 2024, a gain of nearly 1% compared to the previous year.
Overall, beer production levels also increased by 10.7% which was driven by exports.
Irish beer exports grew by 3.8% to €330 million, with exports to the UK accounting for almost 50% of total exports, followed by exports the US (14%), France (10%) and Germany and Canada (both at 4.8%).
The report stated that total beer sales in Ireland declined by 1.6% in 2024 marking the second consecutive year of decline.
Per capita consumption of beer also fell by nearly 3%, aligning with the long-term downward trend in alcohol consumption, which has dropped by 34% over two decades.
The majority of the beer sales in Ireland, 63.7%, comes from the on-trade sector, which includes pubs, restaurants, and hotels.
Lager remained the dominant beer category in the Irish market despite decreasing slightly for the second consecutive year to 57.2% of the market.
In 2024, stout saw its market share continue to grow by almost 1% to 35.9%. Ale’s market share fell by 10% to 4.4%.
Drinks Ireland said that in 2024, Ireland continued to have the second highest rate of excise tax on alcohol when compared to other EU member states and the UK.
In the past decade, the Irish beer sector has contributed over €4.4 billion in excise receipts. For every pint of lager, €1.70 is paid to Revenue through excise and VAT.
Cormac Healy, director of Drinks Ireland said that the Irish beer industry "continues to be resilient, adaptable and innovative".
"While domestic consumption continues to fall, exports are rising. However, the international environment remains challenging.
"Exports to the US, Ireland’s second-largest market, now face a 15% tariff, a weaker dollar, and ongoing trade uncertainty. This presents a challenging environment for all exporters.
"We support the government and European Commission’s continued push for the removal of these new tariffs and a return to zero-for-zero tariff trading.
"Additionally, beer cans are now faced with a further steel/ aluminium-linked tariff which needs to be removed," he said.
Drinks Ireland has called for increased government investment through state agencies such as Bord Bia and Enterprise Ireland to support market development and diversification.
Healy added that he was particularly pleased to see the continued growth of the non-alcohol beer sector.
"Ireland must ensure that this growth opportunity is not undermined by restrictive or disproportionate regulation.
"There is evidently a growing acceptance and appreciation for non-alcohol products, one of the most significant innovations in the Irish drinks industry in decades.
"In the EU, one in 15 beers consumed is now a non-alcohol beer. We predict consumption levels in Ireland can reach similar levels with proper government support," he said.