Ireland: Number of pubs continues to decline alongside sliding demand for beer

The number of pubs in Ireland continues to decline, as more people are increasingly socialising at home, according to latest figures from the Drinks Industry Group of Ireland (DIGI).

The report also found that demand for beer continues to slide, even as wine is becoming more popular in the country.

The DIGI report found that just 7,140 pubs operate in Ireland as of end-2017, down 17% from 2005, as more than two pubs have been closing a week on average. The strongest decline was in Cork, where 25% of pubs have shut down in the past 12 years. In contrast, the number of off-licences rose by 12% in the same period to 3,331.

According to DIGI, 90,000 jobs across the country are dependent on the drinks industry, which purchases more than €1.1 bln worth of Irish produce annually, exports goods worth more than €1.25 bln, and provides more than €2.3 bln in State revenue (via excise and VAT).

Beer remained the most popular alcoholic beverage in the country, but its market share slid by 100bps to 44.8%, even as wine saw its market share edge up 10bps to 27.7%. Wine consumption grew by 0.5% during the year, in contrast to the overall decline in alcohol consumption. White wine was the most popular amongst drinkers (50%), followed by red (45%), and rose (5%).

However, the Irish Wine Association has said proposed changes in the law could hurt this growth, saying plans for special labels carrying health warnings will result in extra costs for producers, which could be passed on to consumers, thus putting some of them off buying wine.