Sales of Chilean wine in Ireland continue to dominate the market, however, they have yet to reach pre-pandemic levels. The Irish wine industry has called for a reduction in excise duty in the upcoming Budget to further support sales. Drinks Ireland, a branch of the business group IBEC, highlighted that Irish wine drinkers face the highest excise duty on wine in the EU and proposed a 15% decrease in excise rates over the next two budgets from the government.
According to Drinks Ireland’s market report for 2022, the market share of wine in Ireland decreased by 8.9% compared to the previous year and by 17% compared to 2020, which was heavily impacted by COVID-19 lockdowns and pub closures. Per capita, wine consumption in Ireland declined by almost 2% in 2022, indicating a continued downward trend in alcohol consumption.
White wine remains the most popular category in Ireland, accounting for 48% of the market share, followed closely by red wine at 45% and rosé at 6%. Among the various wine-producing countries, Chilean wine holds the highest market share at 24.7%, with Spanish, Australian, and French wine following closely behind. South African wine experienced a significant growth in market share, increasing by 10% in 2022.
Although non-alcoholic beer has made some progress in the Irish market in recent years, the IBEC group noted that 0.0% wine also saw an increase in market share in 2022. Additionally, sparkling wine experienced a slight increase in market share. However, Drinks Ireland emphasized that the excise duty placed on sparkling wine adds €6.37 to the price of a standard bottle, compared to €3.19 for a standard bottle of wine with 13% alcohol content.
In terms of revenue, wine sales contributed €385 million in excise duty to the Exchequer last year, as reported by the industry body. Cormac Healy, Director of Drinks Ireland, expressed disappointment regarding the high levels of excise duty paid by Irish consumers and called for a 15% decrease in alcohol excise duty over the next two budgets. This reduction aims to alleviate the financial burden on consumers and businesses, while also aligning Ireland with EU norms in terms of excise rates.
Sources:
– Drinks Ireland (market report for 2022)
– IBEC