Craft brewers buck trend of declining beer sales

The craftiest of local brewers appear to have bucked a trend of declining beer sales and recorded a bounce in business over the past six years, according to the latest report from Bord Bia.

The report shows the consumption of beer has fallen by 2.1 per cent since 2017, but Irish craft beer sales have climbed by 13.5 per cent over the same period.

But while consumers are increasingly drawn to small brewing companies, the giants of the trade’s dominance in pubs has meant microbreweries have found it difficult to get publicans to put taps dispensing their beers and ciders behind the bar, the research suggests.

The report also points to an increase in market share of the 79 independent microbreweries operating in the Republic up from 2.9 per cent in 2017 to 3.4 per cent in 2022. Craft cider sales are also growing with 12 craft cider producers in Ireland accounting for 2.2 per cent of total domestic cider consumption.

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Highlighting the importance of local business, Irish cider producers generated more than 50 per cent of their sales within 50km of their premises. On average, 52.9 per cent of apples and pears used in craft products are sourced from the producer’s own orchard.

The Bord Bia report also suggests there is room for growth in the export market where sales have doubled since 2017 with France, Italy and the UK identified as the most high-potential markets. Half of microbrewers do not export, but two-thirds of these intend to export in the next three years.

“It’s reassuring that the craft beer market is growing albeit at a low rate. It’s also reassuring that we see exports are growing strongly and that’s a key focus for Irish craft beer companies,” said James Dunne, of the Independent Craft Brewers of Ireland and operations director at Galway Bay Brewery.

Brewers have said that by far the most common challenge in the sector was in the on-trade with difficulties in gaining access to taps.

There is also appetite to improve sustainability across sectors, with a common top priority focus being on reduction of energy usage across both cider and beer producers. More than 90 per cent of microbrewers consider sustainability as extremely or very important to their company.

Four of the seven craft cider producers in Ireland rated sustainability as being extremely important to their company, with the remaining three producers considering it very important.