The total export value of Irish spirits stood at €1.3 billion in 2023, which is a 9% decrease on the previous year, according to a new report.
Drinks Ireland | Spirits, the Ibec representative group for the wider spirits sector in Ireland, blamed the decline on a “highly competitive global market and tough economic headwinds”.
The group’s annual spirits report states that these factors have “complicated the market for drinks categories worldwide”.
The report said that government support, along with “a fair and balance regulatory environment”, will be crucial for the future of the “growth-oriented” sector.
Irish spirits
The group said that exports had been impacted by higher inflation levels and the cost of living which is impacting consumer spending.
Domestically, Irish spirits volume sales were marginally down by 1.4% in 2023, reflecting general trends in alcohol consumption here.
Vodka, followed by Irish whiskey, gin, rum and Irish creams were the most popular categories at home.
Irish whiskey exported 14.9 million cases in 2023. However, the export value of the category declined by 14% to €875 million, due in large part to the challenging market conditions.
The report states that the overall growth trajectory for this sector remains positive, and this short-term decline should be viewed in the context of 2022 sales of Irish whiskey leaping by almost €200 million (+25%) on the previous year, to €1 billion in value.
The US continues to be the key export destination for Irish whiskey, accounting for more than one in three bottles of total global sales.
Poland has become a significant market, surpassing both Ireland and the UK to become the second largest, with 16% growth in 2023.
Despite an increase of 6.7% in 2023, the UK dropped to the fourth largest market globally for Irish whiskey.
Exports
The report also shows that Irish cream saw sales of 9.5 million cases with export value down by 8.7% to €370 million in 2023.
Drinks Ireland said that it continues to work on the international protection of the Irish Cream geographic indication (GI) status, especially in North America.
Cases sales of Irish poitín rose by 13.5% in 2023, reflecting growing interest domestically and internationally.
Sales in Ireland of gin experienced a decline of 6%. However, the premium end of the market, where many Irish producers operate, continues to perform well.
Vodka sales in Ireland declined in 2023 to end down by 1.2% compared to 2022. However, sales of premium vodkas doubled in share in 2023 compared with 2019.
“The Irish spirits sector has delivered phenomenal export growth over recent years, and while confronted with challenging international markets at present, has strong ambitions for future growth that will deliver for regional economic development,” Aengus King, director of Drinks Ireland | Spirits, said.
“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.
“We depend on government and state agencies to work with us to ensure the best possible market access internationally, including the avoidance of tariff barriers; the protection of our important geographic indication (GI) status for Irish Whiskey, Irish cream, and poitín across global markets; and increased investment through state agencies and support for exporters for export promotion and development,” he added.