Wine sales in Ireland fall as consumers drift back to bars and drink less overall

After a record year in 2020, which saw more than 10 million cases sold, wine sales in the State slumped last year due to a combination of forces, including the reopening of the hospitality sector and a decline in alcohol consumption generally.

The latest Wine Market Report from industry group Drinks Ireland shows wine sales here fell by 13 per cent to 8.7 million cases, corresponding to the lowest level of sales since 2015.

The fall-off was linked to the reopening of hospitality venues, which typically saw consumers move away from wine to other alcoholic beverages; a pick-up in domestic spirit sales; consumers drinking stock bought in 2020; supply chain issues and a decline in overall per capita consumption of alcohol.

With 54 per cent of a standard bottle going to tax, Drinks Ireland called on the Government to significantly reduce the excise duty imposed on wine here, which is among the highest in Europe.

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“We are calling for a 15 per cent decrease on excise on wine over the next two budgets. As the cost-of-living crisis worsens, Irish consumers face the highest excise on wine in the EU, which is €3.19 on a standard bottle,” Jonathan McDade, director of wine at Drinks Ireland, said.

“For sparkling wine drinkers, the excise hit is doubled, with a rate of €6.37 on a standard bottle,” he said.

“This is effectively a tax on life’s celebrations and special occasions. This disproportionate high level of tax must urgently be addressed at this challenging time,” Mr McDade said.

The group’s annual report showed white wine remains the most popular wine category in Ireland, commanding 48 per cent of market share, with red wine holding a 45 per cent share, both unchanged from 2020.

Rosé has become increasingly popular in recent years, particularly during summer months, Drinks Ireland said, but its market share was static at 7 per cent in 2021, having grown from 3 per cent in 2016. Elsewhere, the market share of sparkling wine was marginally down from 2.3 per cent in 2020 to 2 per cent in 2021.

Chilean, Spanish and Australian wines topped the popularity stakes, but their market share declined last year.

While French wines remain the fourth most popular, it was one of the few countries that saw an increase in its market share. This was primarily due to French wine being easier to export to Ireland compared to the logistical challenges that face wines in other markets, Drinks Ireland said.

Overall, the report showed that wine is the Republic’s second most popular drink after beer, with a market share of 29.3 per cent, down by 2.9 per cent last year.