Per Capita Alcohol Consumption

IBISWorld forecasts per capita alcohol consumption to edge downwards by 0.2% in 2023-24, to 8.62 litres per capita. Increasing Health consciousness is expected to drive down alcohol consumption this year, particularly among younger generations. Many are prioritising fitness and choosing beverages with lower alcohol content or even zero-alcohol beers. The alcohol excise rates rose by 6.6% on 1 July 2023. This tax, which affects both domestically crafted and imported alcoholic beverages such as beer, wine and spirits, earlier marked a record rise of 6.9% in 2022. The Central Government (Te Kawanatanga o Aotearoa) had introduced these hikes in the 2022 Budget with a goal to minimise alcohol-induced harm and thereby cut down on healthcare expenses. These measures have increased the cost of alcohol, which is likely to curb alcohol consumption, especially while high inflation and cash rate rises have increased cost of living pressures on New Zealand households.

Beer is the most consumed alcoholic beverage in New Zealand, with a per capita consumption of 3.16 litres of pure alcohol in 2022-23 (latest data available). However, per capita beer consumption has declined over the past five years. Wine has fallen by the most substantial rate of all alcohol types over the same period, to total 2.49 litres of pure alcohol in 2022-23. Conversely, spirit consumption has risen over the past decade, to account for 1.64 litres of pure alcohol per capita in 2022-23. Spirit consumption is most prominent among older age demographics, while RTD consumption is more common among younger demographics. Despite this, the surge in low or no-alcohol options indicates a growing awareness of alcohol-related harm and has brought down per capita alcohol consumption over the years.