By Rory McGinn

Copyright independent

The report found that alcohol-free beer now accounts for more than 2.5pc of the market – a 150pc increase over the past five years.

The report provides a picture of the increase in popularity and acceptance of the beverages among Irish consumers, according to Cormac Healy, director of Drinks Ireland.

“There is evidently a growing acceptance and appreciation for non-alcohol products, one of the most significant innovations in the Irish drinks industry in decades,” Mr Healy said.

“In the EU, one in 15 beers consumed is now a non-alcohol beer. We predict consumption levels in Ireland can reach similar levels with proper government support.”

Beer remains the most popular alcoholic beverage, with a 43.3pc share of the market last year, a gain of almost 1pc when compared to 2023. Beer production levels increased in 2024 by 10.7pc. The report said this was driven by exports.

However, total beer sales decreased by 1.6pc, the second consecutive year of decline, while per capita consumption also fell by nearly 3pc.

Drinks Ireland explained how the drop aligns with the long-term downward trend in alcohol consumption, which has fallen by 34pc over the last two decades.

A majority of beer sales in Ireland come from the on-trade sector – which includes pubs, restaurants, and hotels – making up 63.7pc.

Exports of Irish beer continued to grow in 2024, up by 3.8pc on the previous year to €330m.

Exports to the United Kingdom accounted for nearly 50pc of the total, followed by the United States at 14pc, France at 10pc, with Germany and Canada both at 4.8pc of beer exports last year.

While there was growth in US exports, tariffs present a new challenge, Mr Healy said.

“The international environment remains challenging. Exports to the United States – Ireland’s second-largest market – now face a 15pc tariff, a weaker dollar, and ongoing trade uncertainty. This presents a challenging environment for all exporters.”

The report also highlighted that in 2024, Ireland continued to have the second highest rate of excise tax on alcohol when compared with the other 26 EU member states and the United Kingdom. In the past decade, the Irish beer sector has contributed over €4.4bn in excise receipts.

On every pint of lager, €1.70 is paid to Revenue when combining excise and Vat, they said.