Food and drink exports from the Republic rose by 5 per cent in 2025 to reach a record €17 billion, but it comes at a time when alcohol sales are falling at home, environmental pressures are intensifying and new trade realities demand adaptation.
Dairy remains the State’s export heavyweight, with shipments worth €6.3 billion in 2024. Butter was the standout performer, surging by more than 30 per cent to €1.7 billion. Yet milk collections fell by around 2.5 per cent, a reminder that weather, input costs and environmental restrictions are tightening supply.
Global demand for Irish dairy remains strong, particularly in Asia and the Middle East, where nutritional powders and butter are in high demand.
Meat and livestock exports rose by 6 per cent in 2024, to about €4.3 billion. However, the sector faces some of the most acute sustainability challenges, with livestock responsible for much of Ireland’s agricultural emissions.
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At the same time, consumer preferences are shifting, with more people reducing red meat consumption. Linda Stuart-Trainor, deputy director of Food Drink Ireland, Ibec, says labour availability is a growing barrier for processors, making it harder to manage costs and adapt to these changes quickly.
Drinks were another bright spot, with exports up 19 per cent to more than €2.1 billion. Irish whiskey alone crossed the €1 billion mark, while cream liqueurs and beer also grew. Ready-to-drink beverages were the fastest riser, with exports jumping to €235 million.
Yet the success abroad contrasts with falling alcohol sales domestically, driven by health trends and regulatory pressures. Producers are responding with innovation in low- and no-alcohol products, while continuing to build whiskey and spirits brands in the US, Asia and emerging markets.
Prepared consumer foods, a category covering everything from ready meals and frozen pizzas to confectionery and baked goods, has quietly become one of Ireland’s strongest export stories. Over the past decade, sales have grown by more than 50 per cent, reaching €3.4 billion in 2024.
“The scale of growth highlights the importance of prepared foods to the Irish economy, supporting thousands of jobs in towns and cities across the country,” says Stuart-Trainor.
The UK takes almost 70 per cent of these exports, making a streamlined trading relationship critical. She warns that the absence of an EU-UK sanitary and phytosanitary (SPS) agreement has been “a drag on the sector since Brexit”, adding costs and complexity. She also highlights competitiveness concerns, citing high energy and labour costs, skills shortages and the need for faster employment permit processing.
Meeting consumer demand for healthier, more sustainable foods will also require investment. “Simplified access to financial supports and tweaks to the R&D tax credit could unlock further innovation,” she says.
Stuart-Trainor adds that enabling a new generation of Irish PCF companies and products to become global leaders would benefit the economy, consumers at home and abroad, and all those along the supply chain.
While the figures are impressive, the industry is grappling with structural challenges. The State’s food sector is particularly exposed to climate targets, with agriculture accounting for a third of national emissions.
Competitiveness is another pressure point. Rising energy bills and high labour costs make the Republic an expensive base for food production compared to EU peers. Access to skilled workers remains difficult, particularly in processing. Stuart-Trainor has emphasised that progress on the Government’s commitment to increase employment permits is urgently needed if the sector is to remain internationally competitive.
Despite the headwinds, there are clear opportunities. Premiumisation is a powerful driver. Consumers in both established and emerging markets are paying more for food that is high-quality, traceable and sustainable. The State’s reputation for grass-fed dairy and beef, along with the global cachet of Irish whiskey, give it an edge.
Health and sustainability trends are also creating openings for plant-based and functional foods, as well as non-alcoholic beverages.
And while continental Europe and the UK remain core markets, Asia, the Middle East and Africa are set to play a larger role. Butter and dairy ingredients are in strong demand in China, while whiskey sales in Asia are rising rapidly from a low base.
