NZ Alcohol Consumption Falls: Beer Down, Spirits Up, Kiwis Drink Less Overall
New Zealanders are drinking less alcohol, and when they do drink, they are opting for beverages with lower alcohol content, according to recently released data from Stats NZ. Total alcohol consumption fell 8.3% in the year ended , reaching 442 million litres – the lowest recorded in the 15 years Stats NZ has been collecting the data.
The decline is broad-based, with beer consumption falling 10% to 265 million litres and wine down 11% to 85 million litres, marking the fifth consecutive year of decline for wine and the lowest volume recorded. Notably, beer with an alcohol content above 5% experienced the steepest drop, falling 27% year-on-year. Even lower-alcohol beer saw a significant decrease, down 19%.
While overall consumption is down, spirits bucked the trend, increasing by 1.3% to 93 million litres. This increase was largely driven by ready-to-drink (RTD) beverages, which rose 1.9% year-on-year. However, traditional spirits like vodka, gin, and whisky saw a decline of 2.4%.
The shift towards moderation is also reflected in the average daily consumption. Kiwis are now drinking 1.6 standard drinks per person per day, an 8.4% decrease and the largest year-on-year drop on record. This represents a 24.5% decline from 2.16 standard drinks per person per day in .
Despite the overall decline, beer remains the most popular alcoholic beverage in New Zealand, accounting for 60% of the total volume consumed, although this share has decreased by 3% since . Spirits have gained ground, increasing their share from 16% to 21% over the same period, while wine has seen its share fall from 21% to 19%.
The changing consumption patterns come at a challenging time for the New Zealand wine industry, which has recently faced a series of high-profile liquidations, including that of Te Awanga Estate Winery group. Winegrowers are also grappling with a supply imbalance following a bumper crop in coupled with declining demand.
Industry representatives acknowledge the shift in consumer behavior. Dylan Firth, executive director of the Brewers Association of New Zealand, stated that the data confirms a “clear and consistent message – New Zealanders are drinking less and drinking more moderately.” He highlighted that the decline in higher-strength beers suggests consumers are actively seeking more moderate options.
Firth also pointed to the impact of New Zealand’s excise tax regime on beer, which taxes beer based on its volumetric alcohol content. He noted that excise rates have risen by over 20% in the past five years, yet total excise revenue from beer has remained relatively flat due to declining volumes. “What that tells us is the tax per litre has risen sharply while the overall tax take from beer has stagnated,” Firth explained. “That places increasing pressure on brewers, pubs and consumers without delivering additional revenue growth to the Government.” He called for a “fair and sustainable tax and regulatory framework” to support the local brewing industry.
Virginia Nicholls, executive director of the New Zealand Alcohol Beverages Council, emphasized that the industry has responded to the trend towards moderation by expanding its offerings of full-strength, mid-strength, and zero-alcohol products. She also noted that, on average, Kiwis drink less than people in many other OECD countries, including the US, Britain, Australia, Germany, France, and Ireland.
“In New Zealand we are committed to encouraging responsible drinking and believe that for adults, moderate alcohol consumption can be part of a well-balanced lifestyle,” Nicholls said.
The decline in alcohol consumption represents a significant shift in New Zealand’s drinking culture. While the economic implications for the alcohol industry are considerable, the data suggests a broader trend towards greater health consciousness and moderation among consumers. The interplay between changing consumer preferences, government policy, and industry innovation will likely shape the future of alcohol consumption in New Zealand.