Ireland Has Second-Highest Excise Rate On Wine In The EU

By Robert McHugh
Ireland Has Second-Highest Excise Rate On Wine In The EU

Wine remains Ireland’s second-most popular alcohol beverage, with only beer commanding a larger portion of the market, according to the latest Wine Report from Drinks Ireland.

The report shows that wine’s share of the overall drinks market grew by 5.9% in 2023, reaching 28.3%, following a period of stagnant sales in 2022 and a decline in 2021. This increase in wine sales comes in contrast to the decreases seen in other alcohol categories last year.

“The improvement in wine sales figures in 2023 is encouraging for the category, especially following some relatively poor performances in recent years,” said Cormac Healy, director of Drinks Ireland. “Given wine’s popularity, the patterns we’re seeing in how customers enjoy the beverage speak volumes about broader trends in the Irish market.”

White wine continues to be the nation’s favourite, accounting for 48% of the market. Chile maintained its lead as the most popular wine country of origin for Irish consumers in 2023, commanding a 25.3% market share. It was followed by Spain, Australia and France. Meanwhile, New Zealand saw the largest growth in market share in 2023.

Drinks Ireland noted that the wine category has been facing some challenging market conditions globally, but there was some positive news for wine sales in Ireland last year, with sales volumes rising by nearly 7%, to over nine million cases.

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The group noted that the data in the report should be viewed in the context of a significant overall decline in alcohol consumption, with per-capita drinking in Ireland having dropped by over 30% in the past 20 years. Drinks Ireland noted that this is driven by a ‘less but better’ approach in consumer behaviour and marked difference in attitudes to alcohol within Gen Z.

“As consumer behaviour shifts, we’re noticing a distinct movement towards moderation, with a ‘less but better’ approach driving preferences,” said Healy. “People are increasingly choosing quality over quantity, opting for premium and sustainable options. This trend is particularly strong among younger generations, such as Gen Z.”

The report shows that the Irish wine trade made a substantial contribution to the Exchequer, generating €395 million in excise duty alone in 2023. Over the past decade, the industry has contributed €4.1 billion in excise to the Irish economy.

However, Drinks Ireland noted that Ireland continues to have the second-highest excise rate on still wine in the EU, with consumers paying €3.19 per standard bottle (13% ABV). For sparkling wine, the excise is even higher, at €6.37 per bottle.