Irish Whiskey Association unveils Budget 2027 strategy to counter cost headwinds
The Irish Whiskey Association (IWA) has today published its Pre-Budget Submission ahead of Budget 2027, noting that sector-specific supports may be required to protect this key agri-food export in the long-term.
The Irish Whiskey sector proved its resilience over the past year; while 2025 saw pauses in production and some distillery closures, this year has seen renewed focus on emerging markets, considerable investment in the industry from international partners and strong sales figures (in terms of both volume and value). This was achieved in the face of significant challenges: increases in the cost of doing business, the introduction of tariffs in key markets, and soaring energy inflation. Despite delivering €930 million in export value and record sales of 16.4 million cases globally in 2025, the IWA warns that the resilience of domestic producers (and particularly rural and fledgling SMEs) will be tested in the years ahead should certain supports not be made available.
To safeguard the sector's long-term global competitiveness, the IWA’s Pre-Budget 2027 submission outlines three core priorities to support the industry:
- A 10% Reduction in Excise Duty to Reflect Modern Consumption Realities
Ireland currently maintains one of the highest spirits excise duty regimes in the European Union, heavily penalising local distillers, hospitality providers, and tourism businesses. Although per capita consumption has declined by 35% in Ireland over the past 25 years, the excise rate remains punitive and well above the EU average; this combined with increases in the cost of living is now threatening the viability of homegrown hospitality sector. The IWA is requesting an immediate 10% cut in drinks excise duty to stimulate the domestic and tourist economy while aligning Ireland’s tax policy with modern consumption realities.
- Targeted Funding for Strategic Global Market Diversification
In response to an uncertain trading environment, Irish Whiskey distillers proactively expanded into emerging regions. Industry efforts successfully reduced exposure to the US market from 49% of total exports in 2023 to 38% in 2025. To sustain this momentum in high-potential growth regions such as India, Japan, South Africa, and Nigeria, the IWA calls for expansion of dedicated teams within Bord Bia and direct support to exporters to assist with in-market trade fair participation and promotional expertise.
- Energy, Logistics, and Water Infrastructure Support to Protect Competitiveness
Distilling is an energy-intensive manufacturing process, and producers face projected energy cost surges of up to 20% alongside international shipping cost spikes of up to 80%. Additionally, proposed non-domestic water tariff hikes scheduled for 2026–2029 threaten business certainty. The IWA urges the Government to introduce a sector-specific energy relief scheme, fully absorb scheduled non-domestic water tariff increases through central subventions to Uisce Éireann, and streamline regulatory burdens on SMEs.
"Irish whiskey is a €5 billion global success story, but we cannot afford to take its resilience for granted. Our distillers and regional producers are grappling with a challenging combination of exorbitant domestic tax rates, severe energy inflation, and increased costs in doing business – everything from energy and packaging to international shipping costs. Without decisive Government intervention in Budget 2027 - most notably an immediate 10% excise reduction and direct market diversification supports - we risk stalling regional growth, discouraging investment, and losing the competitive edge which made us the only spirit category to grow its market share in 2025. Our distillers have proven themselves time and again, we need to see this spirit of resilience from our government also.”
— Eoin Ó Catháin, Director of the Irish Whiskey Association
Key Sector Statistics (2025 Data)
- Global Export Value: €930 million
- Global Sales Volume: 16.4 million Cases (Record High)
- Total Economic Value to Sector Worldwide: Over €5 billion
- US Export Exposure Reduction: Decreased from 49% (2023) to 38% (2025)
The IWA emphasizes that targeted fiscal relief in Budget 2027 will deliver strong returns on investment by restoring industry confidence, protecting high-value regional employment, and ensuring Irish whiskey remains a premier global ambassador for the Irish agri-food sector.
