The value of Irish spirits exports hit a record €1.455 billion last year, which represented growth of 17%.
That followed growth of 25% in the value of spirits exports in 2021 as the drinks and hospitality industries recovered from Covid lockdowns.
According to a report from the Ibec trade association, Drinks Ireland | Spirits, of the 120 international markets that Irish spirits are exported into, the US remained by some distance the top destination.
Some of the increase in the value of spirits exports in the last two years can be accounted for by inflation with producers passing on substantial production cost increases to end consumers.
"During 2022 we saw the spectre of inflation in costs of grain, glass, transport, and energy become a reality and unfortunately these challenges have showed little sign of abating going into 2023, driving up producer and consumer pricing across the globe," the report noted.
The Irish Spirits Market Report 2022 also looked at the domestic market where spirits sales were up by 6% last year and by 10% compared to pre-pandemic levels in 2019.
Much of the growth in sales at home and overseas was driven by the consumer trend of 'premiumisation' - an effort to boost appeal by emphasising quality.
Three Irish spirts - Irish Whiskey, Irish Cream and Poitín - have Geographic Indication protection, which is an indicator that products have a specific geographical origin and possess qualities, reputation or characteristics that are attributable to that place of origin.
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Global sales of these three spirts categories grew by 6% in volume terms in 2022.
Sales of Irish whiskey reached 15.245 million cases in 2022. Irish Cream sales moved closer to the 10 million case benchmark last year.
While no alcohol beer leads the growth of the 'low and no' category, low and no spirits have emerged in greater numbers here in recent years with growth of over 1000% between 2019 and 2022, albeit from a low base.
"The spirits industry is of significant importance to the economic, social, and cultural fabric of the whole Island of Ireland, rural and urban," Bryan Fallon Chair of Drinks Ireland | Spirits, and Managing Director of Heaven Hill Ireland, brand owners of Carolan's Irish Cream liqueur and Irish Mist Honey liqueur, said.
"There were a number of key challenges in 2022, most notably the impact of inflation on raw materials, which put huge pressure on the industry and continues to do so. The sector also continues to be burdened with the second highest overall excise tax on drinks products in the EU, with spirits having the third highest rates behind Finland and Sweden," he added.
Cormac Healy, Director of Drinks Ireland, said the growing awareness and appreciation of the Irish spirits product offering was contributing to performance in key markets and attracting newer ones.
"We are seeing the continuing trend of premiumisation in the drinks industry and the culture around drinking in Ireland is evolving, with consumers increasingly choosing quality over quantity. Irish spirits will continue to rise to the occasion, delivering on the unmatched quality and authenticity consumers crave," he said.
