High spirits: Exceptional export performance has supported strong industry growth

In Ireland, distillers are particularly renowned for the production of three spirits, namely Irish whiskey, Irish cream and poitin, which are protected by EU geographical indications (GI), meaning that they can only be legally produced domestically in line with a government-approved technical file. Gin and other non-GI classified spirits are also distilled, bottled and sold by Irish producers, albeit on a smaller scale. In the mid-1980s, Ireland had just two operational distilleries as unrelenting competition from global spirits, such as highland Scotch, meant that domestic producers were unable to generate sufficient sales to remain commercially viable: Irish whiskey's share of global volume sales fell to less than 1%...read more.

Industry Statistics & Market Size
Revenue
€1.1bn
Annual Growth 13-18
7.6%
Forecast Growth 18-23
Profit
Employment
1,597
Businesses
46
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has benefited from a surge in demand for authentic craft-distilled alcohols
  • Industry performance has been somewhat limited by exceptional excise duties
  • The industry is expected to continue to contend with strong global competition
  • Industry Report - Industry Analysis Chapter

    Spirit alcohol has been distilled in the Republic of Ireland for centuries, with production led by whiskey distillation. At its height in the mid-19th century, 88 licenced Irish whiskey distilleries produced in excess of 12 million nine-litre cases of the geographically defined alcohol made Irish whiskey the largest global spirits category of the time. However, by the mid-1980s, just two Irish whiskey distillers remained in operation due to an unprecedented surge in the popularity and global competitiveness of highland Scotch, US bourbon and Canadian whiskey. According to the Irish Whiskey Association (IWA) trade body, Irish whiskey's share of global volume sales fell to a historical low of less than 1% at this time. How...purchase to read more.

    Additional Insights for the Spirit Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Spirit Production Industry are

  • Effective product promotion
  • Economies of scale
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Alcohol consumption per capita and Gross disposable income of households in the Spirit Production industry impact industry performance..

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    What's in this report

    What is the Spirit Production in Ireland Industry?

    Operators in the industry are concerned with the end-to-end process of spirits production with a particular focus on distilling, bottling and trading with retailers and wholesalers. The independent marketing and packaging of spirits are not considered to be industry-related, unless these functions are included within a firm's complete manufacturing process. Beverages produced through alcoholic fermentation (e.g. beer, cider and wine) are not included in the industry.

    Industry Products
  • Irish whiskey
  • Irish cream
  • Gin
  • Vodka
  • Poitin
  • Industry Activities
  • Distilling and bottling whiskey
  • Distilling and bottling Irish whiskey of geographic indication
  • Distilling and bottling gin
  • Distilling and bottling Irish cream liqueurs
  • Distilling and bottling poitin
  • Distilling and bottling vodka
  • Distilling and bottling rum
  • Distilling and bottling brandy
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Alcohol consumption per capita
  • Gross disposable income of households
  • Perceived health
  • Real effective exchange rate
  • Supermarket retail sales

  • Current Performance
    Raise a glassSobering effect
  • Chart: Revenue Growth

  • Industry Outlook
    Clear opportunityGlobal competitionSupportive backdrop
  • Table: Spirit Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Spirit Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets in Ireland
  • Off-Licences in Ireland
  • Pubs and Nightclubs in Ireland
  • Food, Beverage & Tobacco Wholesaling in Ireland

  • Key Selling Industries
  • Fruit Growing in Ireland
  • Hollow Glass Manufacturing in Ireland
  • Malt Manufacturing in Ireland
  • Sugar Production in Ireland

  • Products & Services
  • Irish whiskey
  • Irish cream
  • Gin
  • Vodka
  • Poitin
  • Other
  • Chart: Spirit Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • On-trade
  • Off-trade
  • Chart: Major Market Segmentation for the Spirit Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Taxation
  • Ancillary services
  • Depreciation
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Spirit Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Spirit Production Industry

  • Industry Globalization
    Irish Distillers Ltd, Diageo Ireland,
  • Table: Irish Distillers Ltd - financial performance
  • Table: Diageo Ireland - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Spirit Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Spirit Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Case
  • An industry measurement for nine-litres of spirit alcohol sold.
  • Cask
  • A term used by distillers to describe a whiskey that has not been substantially diluted after its storage in a cask container for maturation.
  • Drams
  • A term used to describe a small portion of spirit alcohol.
  • Geographical Indication (Gi)
  • Commodities and products that have a specific geographical origin by domestic and international law.
  • Loss Leader
  • A product sold at a loss to attract customers.
  • Neat
  • A single or double measure of unmixed liqueur served without being chilled and without any water, ice, or other mixer.
  • On The Rocks
  • A term used in reference to alcoholic drinks poured over ice.
  • Whiskey Thieves
  • Tools that a distiller uses to extract small portions of whiskey from an aging barrel for sampling or quality control.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Spirit Production in Ireland market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Spirit Production in Ireland:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Spirit Production in Ireland market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Spirit Production in Ireland, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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