The total export value of the Irish Spirits sector was €1.3 billion in 2023, which represented a 9% decline on the previous year.
This is according to Drinks Ireland | Spirits, the Ibec representative group for the wider spirits sector in Ireland, which published its annual Spirits Report.
The group believes the decline is attributed to a 'highly competitive global market' and tough economic headwinds which have complicated the market for drinks categories worldwide.
'Strong Ambitions'
“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," said Aengus King, director of Drinks Ireland | Spirits.
“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."
Weaker Consumer Spending
The report shows strong export growth has been achieved by Irish Spirits (Irish Whiskey, Gin, Irish Cream and Poitín) over the last decade, which has delivered significant economic contribution, created jobs, and indeed increased tourism visits throughout the island of Ireland.
However, since early 2023, key factors that contributed to more challenging export market conditions include higher inflation levels and cost-of-living, driving higher interest rates, leading to weaker consumer spending.
General Trends
Domestically, Irish Spirits volume sales were marginally down by 1.4% in 2023, reflecting general trends in alcohol consumption in Ireland.
Vodka, followed by Irish Whiskey, Gin, Rum and Irish Creams were the most popular categories.
Irish Whiskey
Irish Whiskey exported 14.9 million cases in 2023. However, the export value of the category declined by -14% to €875 million.
Drinks Ireland | Spirits noted 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 €200m (+25%) versus 2021 to €1 billion in value.
United States
The United States continues to be the key export destination for Irish Whiskey, accounting for more than one in three bottles of total global sales.
The report shows Poland has become a significant market, surpassing both Ireland and the United Kingdom to become the second largest, with 16% growth in 2023.
Consequently, and even with an increase of 6.7% in 2023, the United Kingdom dropped to the fourth largest market globally for Irish Whiskey.
'Innovation And Investment'
"The last decade has been wholly positive, with Spirits exports in particular lauded as a key all-island economic success story, not just for exports, but for job creation, innovation and investment that have had both positive direct and indirect economic impact," said David Boyd-Armstrong, Chair of Drinks Ireland|Spirits and the founder of Rademon Estate Distillery in Co Down.
"Now, as increased international competition and the cost of doing business are biting, we cannot afford to be complacent."
