Representatives of the drinks industry claim that 15,000 jobs have been lost in the past 18 months.
According to the Drinks Industry Group, drinking levels are down over 20% compared to the height of the boom, with one bar or restaurant going out of business every day.
Chairman of the Drinks Industry Group of Ireland Kieran Tobin said that 'as predicted, 2009 turned out to be an even poorer year than 2008 for drinks sales and consumption in Ireland, meaning that it was the worst year for our industry in living memory.
'The 8.9% decline came on top of a 5.9% fall in 2008.
'While some of this decline is attributable to the major increase in cross-border purchasing of alcohol that emerged in the last 18 months, even when this is factored-in there is still a substantial consumption decline of over 7% in 2009.'
The report's author, Anthony Foley said the declines recorded in the report are profound.
'Across all four drinks categories there were marked reductions in 2009. The lowest decline was cider at 5.9%; beer fell by 6.5%; wine by 6.9%; and spirits by 18.5%.
'Bar sales volumes alone decreased by 11.1% in 2009, while off-sales fell 6%. As a result of this, the off-trade's share of the drinks market is now in excess of 50% and growing, while the on-trade's share continues to decline.
'Prospects for 2010 remain weak. DIGI estimates that alcohol volumes will continue to decrease this year by 5%, but that there will be larger proportionate declines in the on-trade with a knock-on effect on jobs and employment.'