Alcoholic drinks in 2024: The big picture
Total volume and current value sales of alcoholic drinks in New Zealand declined in 2024. A major issue for alcoholic drinks was the cost-of-living crisis, which pressured the budgets of local consumers. During the review period, the RBNZ (Reserve Bank of New Zealand – the central bank) raised interest rates to near 40-year highs in an effort to combat record high inflation rates. The economic sugar high of the early stages of the Coronavirus (COVID-19) pandemic was followed by a crash in economic output over 2023-2024, with New Zealand facing a sustained recession. In response to the pressure on household and individual budgets, many consumers have moved away from alcoholic drinks to save money. This has been visible across the board, including in RTDs, a strong-performing category in alcoholic drinks in the review period. The success of RTDs has significantly influenced the dynamics of alcoholic drinks in New Zealand, but the category has not been immune from the downturn in demand.
2024 key trends
The rise of the “sober curious” movement in New Zealand has had a significant impact on alcoholic drinks, with increasing numbers of people revisiting their relationship with alcohol and seeking out healthier, more mindful drinking alternatives. This trend, which embraces moderation and explores alcohol-free living, has been driven by a combination of health-consciousness, a desire for mental clarity and a growing focus on overall wellbeing. In response, many New Zealand wineries and beverage companies have recognised this shift and they are innovating to meet the demand for alcohol-free options. The increase in demand for non/low alcohol beer, wine and spirits has prompted established brand owners to develop alcohol-free lines that still offer a sophisticated drinking experience. For example, Nautilus Estate in Marlborough has created a non alcoholic range that maintains the flavours and complexities of its signature wines, without the alcohol content. Similarly, Invivo Wines has launched a low alcohol version of their popular Sauvignon Blanc, appealing to those who wish to reduce their alcohol intake, but still enjoy the taste and culture of wine.
Competitive landscape
The competitive landscape of alcoholic drinks in New Zealand is fragmented, owing to the diverse nature of the constituent categories and the unique manufacturing processes across beer and cider, wine and spirits. Owing to their strength in beer, the largest category in both volume and value sales terms, Lion - Beer, Wine & Spirits (NZ) and DB Breweries were the leading players in alcoholic drinks in 2024. They leverage strong distribution, sales and marketing capabilities. These two players also led cider/perry. Meanwhile, Lion headed spirits, while remaining a significant player in wine and RTDs. While there remained a large number of craft brewers present in beer, the economic challenges of high inflation and significantly reduced levels of discretionary consumer spending resulted in a number of prominent local craft brewers, such as Brothers Beer and Epic, going into receivership. This highlighted the difficulties faced by smaller independent operators without the capital structure available to the likes of Lion and DB Breweries.
Retail developments
Channel dynamics for alcoholic drinks in New Zealand are influenced heavily by the performance of the constituent categories. Supermarkets can sell beer, cider/perry and wine, whereas spirits and RTDs can only be sold through specialist retailers. While restricted in what they can sell, supermarkets like New World and Countdown often stock more substantial ranges of beer, cider/perry and wine than specialist retailers. They often engage in heavy promotional and strategic pricing strategies to drive foot traffic in store. However, this has led to allegations in previous years of loss-leading on certain beers and wines, claims which the major supermarket retailers have denied.
On-trade vs off-trade split
2024 was a challenging year for the on-trade channel. In the midst of a severe economic recession, discretionary spending has dropped significantly, resulting in a contraction in overall hospitality spend, according to Statistics New Zealand. This downturn comes despite an increasing number of tourists and population growth, highlighting the challenges faced. Within alcoholic drinks, the effects were more pronounced, with on-trade sales declining strongly in both value and volume terms. Many customers eating out in bars, restaurants and pubs turned away from alcohol, due to both cost and health and wellness considerations.
What next for alcoholic drinks?
Alcoholic drinks in New Zealand is expected to see retail volume and retail value (constant 2024 prices) growth over the forecast period. The expected economic recovery is set to drive improvements in discretionary spending levels. With New Zealand experiencing a sustained recession through to the end of 2024, the lowering of interest rates and significant drop in the rate of inflation provide positive signs for the forecast period. The on-trade channel was particularly hard hit in 2024, with a number of closures of bars and restaurants across the country amidst the downturn in foodservice. A recovery is anticipated in the forecast period. For example, on-trade volume sales of wine are expected to rebound as people go out more, although off-trade volume sales are also projected to recover. Meanwhile, consumer preferences within wine are shifting towards non alcoholic options.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in New Zealand with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in New Zealand report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in New Zealand?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in New Zealand?
- How are products distributed in New Zealand?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in New Zealand
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
TAXATION AND DUTY LEVIES
Contraband/parallel trade
Duty free
Cross-border/private imports
Outlook
DISCLAIMER
Beer in New Zealand
KEY DATA FINDINGS
Beer consumption suffers a notable decline amidst the cost-of-living crisis
Lion and DB Breweries continue to dominate while craft brewers feel the pinch
Drop in discretionary spending levels hurts on-trade consumption
Flat outlook for beer
Competition to intensify for non alcoholic beer
Replicating the on-trade experience at home as beer players learn lessons from non-alcoholic drinks players
Lager price band methodology
Cider/Perry in New Zealand
KEY DATA FINDINGS
Changing attitudes towards alcohol drives a decline in cider/perry
DB Breweries continues to evolve to pique the interest of local consumers
Supermarkets is an increasingly popular channel for cider/perry
Improving economic conditions to spur a return to total volume growth
Local cider players to take inspiration from wine to create premium points of difference
Focus on alcohol-free offerings is expected
Rtds in New Zealand
KEY DATA FINDINGS
RTDs is not immune from the effects of the economic downturn
White Claw launches to challenge local star Pal’s
Regulation limits distribution outside of food/drink/tobacco specialists
RTDs is set to rebound but not reach review period highs
Fragmented competitive landscape is primed for consolidation
RTD cocktail kits may add dynamism to the category
Spirits in New Zealand
KEY DATA FINDINGS
Economic pressures drive down volume sales
Strong players drive spirits
Regulatory constraints see food/drink/tobacco specialists dominate distribution
Volume sales are set to rebound, but a full recovery is unlikely in the forecast period
Economic recovery offers opportunities for the emerging local whisky offer
Incorporating local culture into local products
Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Wine in New Zealand
KEY DATA FINDINGS
Wine sees a downturn amidst cost-of-living and supply pressures and changing consumer preferences
Wine is increasingly fragmented and segmented, while the national carrier launches its own wine label
Supermarkets remains the leading channel for wine
Wine is expected to bounce back, but headwinds remain
Sustainability considerations to grow in importance
Innovation potential lies in non/low alcohol wine
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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