2 | Market structure, trends
and developments
Irish breweries produced 8.249 million hectolitres of
beer in 2010, slightly less than in 2008 (8.846 million
hectolitres)
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, but a marginal recovery on 2009 (8.041
million hectolitres).Consumption was relatively stable
following a period of decline. The annual consumption
per capita was approximately 90 litres in 2010.
Most beer is consumed in pubs and restaurants.
Around 66% of total beer sales is sold in the on-trade.
The economic impact of the brewing sector is
infuenced by the following trends, developments
and characteristics of the Irish beer market and the
brewing sector :
The Irish beer market is mature and highly competitive.
The largest Irish brewing company has a market share
of over 50%, while the second company has a market
share of 25%.
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There are over 20 microbreweries.
Other developments which infuence the economic
impact of the brewing sector are :
Ireland has one of the highest excise duty rates on beer
in Europe (15.71 euro per hectolitre per cent of alcohol
in beer).
Beer is the most popular alcoholic beverage, but
consumption is shifting from beer to wine.
Although most beer is still sold in hospitality venues,
consumption of beer in pubs and restaurants has
declined in recent years. The introduction of a smoking
ban in Irish hospitality venues in 2008 might be one of
the explanations for this.
The most important characteristics of the Irish beer
market are :
There are two large brewing companies in Ireland with a
combined market share of 76%. In 2010 Irish breweries
produced 8.249 million hectolitres of beer.
Direct employment in the Irish brewing sector
is 1,441 jobs.
Employment in supplying sectors arising from beer
production and sales is estimated at 5,880 jobs. The
induced employment in hospitality is around 35.700
jobs while a little over 1,500 jobs in the retail sector can
be attributed to beer sales.
Total employment in Ireland due to beer production and
sales is thus 44.540 jobs.
Consumption has diminished from 5.508 million
hectolitres in 2006 to 4.814 million hectolitres in 2010.
This is also shown in the consumption per capita in litres.
In 2007 this was 106 litres; in 2010 it was 90 litres.
Most beer is consumed in the hospitality sector (66%).
However, there is an ongoing trend towards off-trade
consumption. This is partly due to the economic crisis
that hit Ireland hard. People have less to spend.
Government revenues are estimated to be 1.144
million euro comprising 320 million euro excise, 524
million euro VAT and 320 million euro in income-related
contributions and taxes.
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Source : Irish Brewers Association.
33
Source : Canedean Ltd. 2010.
34
Source : Ernst & Young estimate, 2011
The Contribution made by Beer to the European Economy
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