WEALTH September 29, 2025 0 Comments

Irish Spirits’ US Empire Faces a Game-Changer: Can They Survive the Tariff Storm or Will Giants Fall?

Ever wonder why the United States still lights up as the superstar stage for Irish spirits, even as sales back home take a little tumble? It’s like spotting your favorite band, not in their hometown but rocking a stadium miles away—curious, right? The latest Drinks Ireland | Spirits 2024 Annual Report reveals a fascinating dance: Irish distillers are nursing domestic sales dips, yet their exports bubble up by 2.8%, buoyed by inflation-fueled value gains. Vodka’s holding strong as Ireland’s top pour, but tequila’s crashing the party with over 20% sales growth—now that’s a plot twist! Meanwhile, Irish whiskey is making waves globally, with the US still the loyal dance floor, India sprinting ahead with a 57.5% rise, and a promising EU–India trade deal on the horizon. But, hey, it’s not all smooth sipping—those sky-high excise duties in Ireland are putting a damper on creativity and investment. In a world where market shifts feel like a rollercoaster, this report’s insight is a must for anyone watching the business of spirits. Curious for the full scoop? LEARN MORE

The United States continues to be the most important market for Irish spirits, even as distillers grapple with falling sales at home and mounting international trade pressures, according to the Drinks Ireland | Spirits 2024 Annual Report, published today.

The report shows that overall export volumes of Irish spirits grew by 2.8% in 2024, with value growth outpacing volume increases due mainly to supply chain inflation.

Domestically, however, sales fell by more than 2% as Irish consumers continued to moderate their alcohol consumption.

Vodka held its position as Ireland’s most popular spirit, followed by Irish whiskey and gin, though tequila was the standout performer with sales rising by more than 20% year-on-year.

On global markets, Irish whiskey volumes increased by 3.6%, while Irish cream liqueurs posted more modest growth of 1.5%.

The United States remains by far the largest export destination for Irish spirits, followed by the UK and Germany.

India has emerged as a fast-growing market for Irish whiskey, climbing to fifth place in 2024 with volumes up 57.5%.

The report notes that the conclusion of an EU–India trade deal, with a reduction in tariff rates, could unlock significant opportunities for producers.

Ireland’s high taxation regime remains a challenge for the sector.

The country continues to levy the third-highest excise duty on spirits in Europe and the second-highest across all alcohol categories.

Donald Trump’s USA remains the most important market for Irish spirits. (Photo by Demetrius Freeman/The Washington Post via Getty Images)

Drinks Ireland argues this is restricting investment and innovation by producers.

Drinks Ireland | Spirits Chairperson, David Boyd-Armstrong, said: “2024 saw sales volume growth of 2.8% across our main spirits drinks and higher value growth, largely reflecting inflation across the supply chain.

“Medium term, our projections remain toward growth, but the pace of the growth has eased, and trade developments since early 2025 have presented an incredibly challenging business environment.”