NZ Alcohol Consumption Falls: Beer Down, Spirits Up, Kiwis Drink Less Overall
New Zealanders are drinking less alcohol with a significant shift away from high-strength beverages, according to newly released data from Stats NZ. The total volume of alcoholic beverages available for consumption fell by 7.6%, while the average number of standard drinks consumed per person per day dropped 8.4% to 1.6 – the lowest figure ever recorded.
The most substantial decline was observed in beer with an alcohol content above 5%, which experienced a year-on-year decrease of 27%. Beer with up to 2.5% alcohol also saw a notable drop, falling 19%. In contrast, the volume of spirits increased by 1.3% to 93 million litres, driven largely by the popularity of ready-to-drink (RTD) beverages, which rose by 1.9%.
Despite the overall increase in spirit consumption, individual spirits like vodka, gin, and whisky saw a decline of 2.4%. Beer remains the dominant alcoholic beverage in New Zealand, accounting for 60% of the total volume, although this represents a 3% decrease since 2011.
Spirits and spirit-based drinks have gained ground, increasing from 16% to 21% of the total volume over the same period. Wine, however, has lost its position as the second most popular choice, falling from 21% to 19%. This decline coincides with recent turmoil in the New Zealand wine industry, including liquidations such as the Te Awanga Estate Winery group.
Brewers Association of New Zealand executive director Dylan Firth attributed the decline in beer volumes to sustained economic pressure and a growing trend towards moderation. “Beer consumption is now at its lowest point on record. That’s not just a short-term fluctuation, it reflects long-term behavioural change,” Firth said. He noted that the steepest declines were seen in higher-strength beers, indicating a consumer preference for sessionable options.
Firth also highlighted the impact of New Zealand’s excise regime, which taxes beer based on its alcohol content. He stated that excise rates have risen by over 20% in the past five years, yet total excise revenue from beer has remained flat due to declining volumes. “What that tells us is the tax per litre has risen sharply while the overall tax capture from beer has stagnated. That places increasing pressure on brewers, pubs and consumers without delivering additional revenue growth to the Government,” Firth explained.
The New Zealand Alcohol Beverages Council executive director Virginia Nicholls stated that Kiwis drink less on average than people in many other OECD countries, including the US, Britain, Australia, Germany, France and Ireland. She added that the industry has responded to the trend towards moderation by offering a wider range of full-strength, mid-strength, and zero-alcohol products. “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 data also reveals a 24.5% decrease in the number of standard drinks consumed per person per day over the past 15 years, from 2.16 in 2011 to the current 1.6.