Cider industry calls for excise duty cuts – Drinks Ireland
Despite stable domestic sales, the Irish cider industry calls for a reduction in excise duties and the extension of excise relief for craft producers, as export growth helps offset challenging market conditions
Print19 September 2024
The Irish cider industry is calling for a reduction in excise duties and an extension to the recently introduced excise relief scheme for craft producers to ensure future growth and sustainability in the face of challenging market conditions.
While overall cider sales at home remained stable last year, they were still nearly 12% below pre-pandemic levels, according to the most recent report from Drinks Ireland | Cider.
Irish cider’s share of the alcohol market decreased from 6.6% to 6.2% and the per capita consumption fell by 3.0%, reflecting a broader trend in Ireland, where alcohol consumption has decreased by nearly one-third over the past two decades.
Non-alcoholic cider
In contrast, according to international research, the emerging non-alcoholic cider segment is expected to grow by 5% over the next five years, reflecting shifting consumer preferences toward non-alcoholic options.
Irish cider exports grew by 5%, reaching almost €77 million, with the UK accounting for 90% of these exports. This is a significant performance, as it comes despite overall drinks exports declining by 8% in 2023 due to challenging economic headwinds in international markets. The second most popular destination for Irish cider is the United States followed by Australia.
High excise rates
Despite these moderate successes, high excise rates continue to challenge the industry’s growth prospects. Ireland currently has the fourth-highest cider excise rate in the European Union, and second highest across all drinks categories, with just over 27% of the price of a pint of cider going to taxes when excise and VAT are combined.
Considering this, Drinks Ireland | Cider, the representative body for the industry, is advocating for a reduction in Irish excise duties to align with European averages.
Cormac Healy, director, Drinks Ireland, said: “The high excise rates not only impact our competitiveness but also stifle the growth potential of craft cider producers who are critical to the diversity and innovation of the Irish drinks market. Reducing these rates will provide much-needed relief for producers and help secure the long-term sustainability of the sector.”
Drinks Ireland welcomes the recent introduction of a 50% relief from Alcohol Products Tax (APT) for cider and perry produced by qualifying small producers. This initiative has already demonstrated positive outcomes by enabling craft cider producers to invest in distribution, innovation, and expansion. Drinks Ireland | Cider believes that this relief should also be extended to qualifying craft producers of fruit-flavoured ciders and intermediate products linked to the category to encourage new entrants and support small-scale cideries.
The Drinks Ireland | Cider report is available here.
Read more: DRS launch welcomed by Irish Beverage Council and Drinks Ireland
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