Demand For Premium Cider Driving Growth In Ireland, Report
Total cider consumption rose by 0.4% in 2018, according to the latest Irish Cider Association Market Report, as the demand for premium products driving growth across the industry.
The report, the first since 2012, showed that 64 million litres of cider were consumed in Ireland last year, making a €61 million contribution to the exchequer in excise payments in 2018.
It added that cider is the third most popular beverage in Ireland.
Since 2001, however, the average per adult alcohol consumption has fallen by 23.2% in Ireland, which has driven the drinks industry into a premiumisation phase.
The Cider Market
Cider had a market share of 7.7% in 2017, but it had a market share of 7.5% in 2018, according to Revenue.
Consumers drink cider from the Republic of Ireland about 75% of the time, which is a 2% increase in the market share for local purchases year-on-year. About 50,000 tonnes of apples are used for cider every year.
The chairman of the Irish Cider Association Seamus O’Hara said the Irish Cider Association is being re-established to help its 15 members adapt to the 'quality over quantity' reality of the market.
“Consumers are demanding quality products and thus, as an industry, we’ve had to change our products to cater to that."
"Ireland’s cider industry makes a valuable contribution to our economy and cultural life, making it one of the most exciting industries to be in at the moment."
"As a result, cider drinkers in Ireland have an unprecedented choice of cider products in our restaurants, pubs and retail outlets.”
Brexit and Cider
The head of the Irish Cider Association Jonathan McDade said he is worried about the effects of Brexit on the cider industry. About 85% of cider exports go to the UK, and he said the potential tariffs could impact the industry negatively.
McDade wants the government to reduce the excise rate in Ireland, so it’s less than 30%. The excise rate of cider is currently the third highest in the European Union.
“Today, about 85% of cider exports go to the UK."
"The likelihood of a no-deal Brexit, with potential tariffs on both inputs and finished product, has increased uncertainty for producers and could impact investment within the sector."
"It is vital that the Government does all it can to mitigate these external negatives for the industry.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Libby Seline. Click sign-up to subscribe to Checkout.