The Minister for Justice is to introduce legislation relating to the off-licence trade later this year.
Mr O'Donoghue said drafting new laws was not a simple task, given the complexity of the existing legislation.
He was impressed, he added, by an interim report from the Commission on Liquor Licensing on the issue, adding that it struck "an important balance between the need for a competitive market system geared to the needs of consumers, while at the same time taking account of legitimate social and health concerns".
Referring to the problem of under-age drinking, the Minister said he was reviewing, in consultation with the Garda, the operation of the current age card scheme, with a view to promoting its use and to strengthening the message to licensees.
"Under-age drinking will not be solved alone by the Government, the various Departments and their agencies, and the gardai. Parents have a particular responsibility, but the drinks industry and the media must also play their part in tackling the problem," Mr O'Donoghue said.
Speaking in Dublin at the opening of the commission's offices, he said this was a period of unprecedented change in society and in the economy.
"Changing conditions and expectations mean that we must keep our laws and various licensing systems under review and be prepared to reform and adapt them as may be necessary in the light of such changing conditions," he said.
