Zero-alcohol beer sales increased by over a quarter in past year
Business

Zero-alcohol beer sales increased by over a quarter in past year

ACCORDING to the latest Annual Beer Market Report from Drinks Ireland, sales of zero-alcohol beer rose by an impressive 25% in 2024.

The surge has pushed 'zero-zero' beer to more than 2.5% of the total beer market, marking a 150% increase in market share over the past five years.

The trend reflects a broader movement toward “responsible consumption”, driven by people making healthier lifestyle choices.

Drinks Ireland Director Cormac Healy described the sector as “resilient, adaptable and innovative”, noting that one in every 15 beers consumed in the EU is now alcohol-free.

“Consumers are continuing to choose moderation,” Healy said, emphasising the potential for further growth with appropriate government support and less restrictive regulation.

While beer remains Ireland’s most consumed alcoholic drink, accounting for 43% of the market, overall alcohol consumption continues to fall.

The Drinks Industry Group of Ireland (DIGI) reported that average adult alcohol consumption dropped by 4.5% in 2024, reaching 9.49 litres per capita, a 34.3% decrease since 2001.

DIGI spokesperson Donall O’Keefe said the data confirms a "restrained" drinking culture in Ireland, now in line with average European levels, behind countries like Spain, Austria and France.

“This shift in habits debunks outdated stereotypes,” said O’Keefe.

“As consumption drops, the demand for non-alcoholic options continues to rise, indicating a significant cultural change.”

Lager remains the most consumed beer category, holding 57.2% of the market, although it has declined slightly for the second year in a row.

Meanwhile, stout has grown in popularity, now representing 35.9% of the market, while ale saw a sharp 10% decrease, falling to just 4.4%.

Exports to Britain accounted for nearly half of all beer shipments, followed by the US (14%), France (10%), and both Germany and Canada (4.8%).

However, Healy warned that exporters are facing significant challenges due to tariffs, particularly a 15% levy on exports to the US.

Despite stable on-trade beer sales (63.7% of sales), Ireland’s hospitality sector is under strain.

Since 2005, over 2,050 pubs have closed, with the rate of closures rising in recent years.

O’Keefe emphasised the mounting pressure on the sector from rising operational costs, including energy, staff wages, and insurance.

He called on the government to provide relief through a reduction in alcohol excise taxes, which remain the second highest in the EU.

“Given the introduction of minimum unit pricing, it’s only fair that our excise rates fall in line with European norms,” he said.

“A tax cut would help businesses stay open and continue serving as vital community hubs.”

As Ireland's alcohol landscape evolves, industry leaders are optimistic about the growing role of non-alcoholic beer, according to the report.

With the right policy environment, Drinks Ireland believes that domestic consumption of non-alcoholic beer could soon match EU averages.

“Innovation, investment, and sensible regulation will be key to ensuring that Ireland stays at the forefront of this global trend,” Healy concluded.