Microbrewery beer production rose 550% over three years

The amount of beer brewed in Ireland increased by 6 per cent last year, on the back of a sharp rise in output from microbreweries, a new report shows.

The study shows beer production rose to 750 million litres in 2015 from 730 million litres a year earlier. This marks the first increase in production since 2011 when 850 million litres of beer was produced.

The increase was largely due to a big jump in craft beer production, which now stands at 24.1 million litres, up from 14.5 million litres a year earlier. Output from microbreweries has risen 550 per cent from just 3.7 million litres in 2012 and craft producers share of the beer market has climbed from 1.2 per cent in 2014 to 2 per cent last year.

In addition to a rise in production, exports of Irish beer also increased last year. Overall, €265 million worth of beer was exported in 2015, up 16 per cent on the €228 million of exports transported a year earlier, and equivalent to 43 per cent of all beer produced in Ireland.

According to the Irish Brewers’ Association (IBA) annual report, beer now accounts for 21 per cent of Ireland’s total beverage exports, which was valued at €1.26 billion last year.

“Ireland already boasts to produce some of the world’s most popular and iconic beer brands and it is encouraging that Irish beer remains so popular in other markets,” said Jonathan McDade, head of the IBA.

Despite the rise in production, consumption levels declined slightly in 2015, falling by 2.5 per cent, having risen for the first time in a decade in 2014.

Favourite beverage

The study shows beer remains the country’s favourite alcoholic beverage, accounting for 47 per cent of all alcohol consumed in Ireland last year. This compares to 27 per cent for wine, 18.7 per cent for spirits, and 6.6 per cent for cider.

According to the latest report, beer excise contributed €417 million to the exchequer in 2015, down from €425 million in 2014, but up by €110 million since 2011, due to a 42 per cent duty increase over the last four years.

Ireland still pays the third highest rate of excise on beer in the EU, a rate that is 11 times greater than in Germany, according to the IBA.

“Beer production is up, exports are up, direct employment remains steady and the sector continues to contribute enormously to the exchequer, particularly through excise,” said Mr McDade.

The IBA has called for a reduction in the excise burden in the forthcoming budget.