The largest category within beer to decline was beer with alcohol levels above 5%, falling 27% year on year.
However, beer with alcohol levels up to 2.5% experienced the next largest decline, dropping 19%.
Meanwhile, the volume of spirits was the only category to increase, rising by 1.3% to 93 million litres.
Ready-to-drink beverages (RTDs) led the increase, up by 1.9% year on year, while spirits such as vodka, gin and whisky were down 2.4%.
The equivalent total volume of pure alcohol in all alcoholic beverages for consumption also fell, down 7.6%.
Fewer drinks per day
The data showed Kiwis are drinking fewer standard drinks per day on average.
The number fell 8.4% to 1.6 standard drinks per person per day, the lowest recorded figure and the largest year-to-year drop recorded in Stats NZ’s data.
In 2011, the number of standard drinks per person per day was 2.16, representing a 24.5% drop over the past 15 years.
Beer still remains the beverage of choice for Kiwis, representing 60% of the total volume of alcoholic beverages available for consumption, although this has fallen by 3% compared with 2011.
Spirit and spirit-based drinks have become Kiwis’ second drink of choice, rising from 16% of the total volume to 21% over the same period.
Wine, however, has lost its second-place position, falling from 21% of total volume to 19% over the past 15 years.
New Zealand’s wine industry has been in turmoil recently with a spate of high-profile liquidations, including the Te Awanga Estate Winery group.
Winegrowers are facing a supply hangover after a bumper crop in 2025 but a decline in wine consumption.
Brewers Association executive director Dylan Firth says the decline in beer volumes partly reflects sustained economic pressure. Photo / Supplied
Industry reacts
Brewers Association of New Zealand executive director Dylan Firth said the data reinforced a clear and consistent message – New Zealanders are drinking less and drinking more moderately.
“Beer consumption is now at its lowest point on record. That’s not just a short-term fluctuation, it reflects long-term behavioural change. Kiwis are moderating and beer is playing a central role in that shift,” Firth said.
“The strongest beers saw the steepest declines. That tells us this is about strength as much as it is about volume. Consumers are clearly favouring moderation and sessionability.”
Firth highlighted the cost impact of producing higher alcohol volume beer, noting it is materially greater because of New Zealand’s excise regime, which taxes beer on a volumetric alcohol basis.
Excise rates on beer have risen more than 20% over the past five years through automatic annual inflation adjustments.
Yet over the same period, total beer excise revenue has remained broadly flat as volumes decline.
“What that tells us is the tax per litre has risen sharply while the overall tax take from beer has stagnated. That places increasing pressure on brewers, pubs and consumers without delivering additional revenue growth to the Government.
“Beer volumes are down. Consumers are moderating. The industry is adapting responsibly. What we now need is a fair and sustainable tax and regulatory framework that supports local brewers and hospitality businesses operating in an already contracting market.”
New Zealand Alcohol Beverages Council executive director Virginia Nicholls says Kiwis are drinking less on average than people in many other OECD countries. Photo / Linda Robertson, Otago Daily Times
New Zealand Alcohol Beverages Council executive director Virginia Nicholls said the industry had responded to the trend towards moderation by offering a wide range of full strength, mid strength and zero alcohol products.
Nicholls said when comparing the habits of New Zealanders with other countries in the OECD, Kiwis are drinking less than average.
This includes less than the US, Britain, Australia, Germany, France and Ireland.
“In New Zealand we are committed to encouraging responsible drinking and believe that for adults, moderate alcohol consumption can be part of a well-balanced lifestyle,” Nicholls said.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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