Beer remains the country’s beverage of choice, holding nearly 60 percent of the market despite broader economic pressures.
Latest figures from Stats NZ reveal that total alcohol consumption per capita fell to 6.98 litres of pure alcohol for the year to June, placing the country among the lowest in the OECD.
Economic Pressures and Industry Agility in New Zealand
Brewers Association Executive Director Dylan Firth pointed to tight household budgets as a primary driver behind the dwindling figures. Speaking on Newstalk ZB’s Mike Hosking Breakfast, Firth noted that most New Zealanders already practice moderate drinking habits, meaning the drop stems largely from economic tightening rather than a sudden shift in social behavior.
I think the industry’s been pretty agile,
he told Newstalk ZB’s Mike Hosking Breakfast. Most New Zealanders drink moderately anyway, so it’s not really about that.
“What we’re seeing is that people are looking to maybe spend a little bit less money in tough economic times, and also, the cost of production’s definitely gone up over that time as well.”
Per capita consumption has dropped significantly over the past decade and a half. According to data, consumption has fallen to 5.98 litres per person—a decline of a third since 2011.
Beer Maintained Market Dominance Amid Changing Preferences
Despite the broader downturn, beer retains its position as the nation’s preferred beverage. Figures show beer accounts for roughly 60 percent of all alcohol consumed in the country, with wine and spirits splitting the remainder evenly at around 20 percent each. Stats NZ data for the year to June 2026 shows beer has maintained its market cap rate of 59.7% of all alcohol available for consumption, marking a minimal decrease of 0.1% since 2020.
To sustain these figures, breweries have adapted by expanding offerings in non-alcoholic and low-carbohydrate options. Firth noted that growth in zero-alcohol and low-carb beer sales, driven by mindful moderation and a desire for healthier alternatives to traditional brews, was bucking the trends, with Speight’s Summit Ultra – a low-carb beer – cited as the country’s most popular.
“You see every brewery’s kind of got one in their stable.”
Industry Outlook and Excise Tax Concerns
Firth expressed expectations for a balancing out over the next few years as economic conditions settle and consumers regain discretionary spending power.
Firth accepted breweries were having to lean into alternatives to maintain this, but still expected there’d be a balancing out over the next few years, adding: It’s been tough economically. As things kind of settle down and people have a few more dollars in their pocket, we’ll see hopefully a bit of growth again, people going back out to hospitality venues and supporting them.
Firth emphasized that lower excise tax increases will remain a critical factor for manufacturers struggling against high production expenses, noting that inflation obviously hurts as well.
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