The on-premise sector in Irish hospitality has been boosted by stout and sport in 2024, but remains challenged by cost pressures and moderation, according to research from CGA by NIQ in an analysis of the first half of the year across the country’s pubs, bars and restaurants.
The data shows that pubs have taken share from restaurants with Ireland’s pubs outperforming the market as a whole in 2024.
Pubs And Restaurants
Pubs gained 1.3 percentage points of share, as rising prices made up for drops in distribution and RoS.
Restaurants lost 0.7 percentage points, with spirits particularly weak.
'Eager As Ever'
"High costs continue to affect businesses and households alike, but Ireland’s consumers remain as eager as ever to visit pubs, bars and restaurants," said Darren Bradley, CGA’s senior client manager, Ireland.
"Despite drops in frequency and distribution there is still plenty of headroom for growth in multiple categories, channels and occasions."
Inflationary Pressures
Inflationary pressures continue to affect consumers’ confidence, and three in five (62%) told CGA’s Cost of Living Pulse that they are still at least moderately affected by rising costs.
It has accelerated the shift towards the LAD category, which is perceived by some to offer better value than smaller spirits serves.
Rising Prices
CGA’s data shows on premise drinks volumes in the first half of 2024 (H1) were 3% behind the first six months of 2023, CGA believes this is the result of both tough comparatives and some consumers reducing visits.
Despite this, sales by value nudged up by €93.7 million, following an average 10.5% rise in the price of a round of drinks, from €26.68 to €29.47.
Regional Breakdown
The regional breakdown shows Cork picked up 0.2 percentage points of share in H1, with the rest of Munster losing 0.3.
CGA this is partly the result of higher-than-average rises in costs and consumer spending in city centres.
Six Nations
The data shows that big sporting events like rugby’s Six Nations and football’s Euros 24 tournament have boosted pub and stout sales in the first half of the year.
Over a quarter (29%) of all consumers now watch live sport in pubs and bars.
Lowering Of Alcohol Consumption
CGA said sales and consumer data has highlighted a steady lowering of alcohol consumption in countries around the world, and Ireland is no exception.
The group claims this is being led by growing interest in health, prompting pubs, bars and restaurants to adjust menus accordingly.
Nearly half (46%) of consumers now expect venues to offer healthy options, and more than a quarter are open to trying no and low alcohol beer (30%) and mocktails (26%).
