The Shout Magazine (New Zealand)

Beer consumption back to pre-COVID levels

Just released Statistics New Zealand data shows the volume of beer available for consumption has rebounded to pre-COVID levels in the year ended December 2024, reflecting a shift in consumer preferences towards traditional, lower-alcohol beer brands and the increasingly popular lower carb varieties.

According to the latest data, the total volume of beer available for consumption rose by 5.4% to 296 million litres, marking a significant recovery after declines in previous years.

This resurgence in beer consumption stands in contrast to other alcoholic beverage categories, which have seen declines.

Wine volumes fell by 4.1% to 95 million litres, while spirits and spirit-based drinks dropped by 5.5% to 92 million litres.

The total volume of alcoholic beverages available for consumption increased slightly by 1.2 percent to 482 million litres, driven largely by the recovery in beer sales.

A return to traditional beer brands

The data indicates a notable trend towards lower-alcohol beer products, with beer containing between 2.5 and 4.35% alcohol by volume (ABV) experiencing a 34% increase in volume.

This shift in part reflects the growth in low carb beer brands which typically fall in this ABV range and suggests that New Zealanders are also gravitating back towards more mainstream, traditional beer brands, which typically have a lower ABV after several years of growth in craft and premium products.

“The rise in lower-alcohol beer consumption reflects a broader cultural shift towards moderation and low carb traditional beers,” says Dylan Firth, Executive Director of the Brewers Association of New Zealand.

“This may also be influenced by economic factors, as consumers seek value for money during challenging financial times.”

Economic contribution of the brewing sector

The New Zealand brewing sector continues to play a vital role in the national economy.

In addition to the 296 million litres of beer available for local consumption the sector contributes NZD 3.58 billion to annual GDP and supporting over 35,200 jobs.

The sector’s contribution represents 0.9% of the national GDP, with tax revenues reaching NZD 1.7 billion.

This includes $881 million from excise and GST, showcasing the brewing sector’s vital role in government revenue generation.

“Our industry is not just about producing great beer; it’s about supporting local communities and contributing to the economy,” said Firth.

“The recovery in beer volumes is a positive sign for the sector, but we must continue to advocate for policies that support sustainable growth.”

A shift in drinking habits

The data also reveals a broader trend towards moderation, with the equivalent volume of pure alcohol available per person aged 18 years and over falling by 4.9% to 1.77 standard drinks per day.

This decline aligns with global trends towards healthier drinking habits and a focus on quality over quantity.

“New Zealanders are making more conscious choices about their alcohol consumption, and the brewing industry is responding by offering a wider range of lower-alcohol options,” said Firth.

“We’re proud to be part of this shift towards moderation and responsible drinking.”

Looking ahead

As the brewing sector continues to recover and adapt to changing consumer preferences, the Brewers Association of New Zealand remains committed to supporting the industry’s growth and advocating for policies that benefit both brewers and consumers.

“The resilience of the beer sector is a testament to the quality and diversity of New Zealand’s brewing industry,” said Firth.

“We look forward to building on this momentum and continuing to provide consumers with great-tasting, responsibly produced beer.”

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