A report from the Drinks Industry Group of Ireland (DIGI) shows that 2,054 pubs have closed in Ireland over the past 20 years, with an average of 114 pubs closing annually, increasing to 144 closures between 2019-2023.
The closure trend is particularly pronounced in rural areas, with Limerick experiencing a 35.6pc decrease in pubs since 2005, followed by Roscommon and Cork with drops of 31.9pc and 31.4pc respectively.
Rising costs, societal changes, and evolving consumer preferences, including a shift towards low-alcohol and alcohol-free products, have contributed to the decline in pub numbers, impacting small, family-run businesses.
The DIGI has called for a 15pc reduction in excise tax on alcohol over the next two years to support the struggling sector, with a proposed 7.5pc decrease in 2025 and another 7.5pc reduction in 2026, aiming to address the challenges faced by pubs and restaurants dealing with increased business costs.
The National Drug and Alcohol Survey showed that 25.7pc of Irish people are non drinkers, the highest level wince the 1950s, with females (28.4pc) more likely than males (23.1pc) to abstain.
Last month it was reported that 239 pubs had closed in England up 56pc in first three months of the year.
Author of the report, Professor Tony Foley said: “This analysis verifies the consistent trend we have been seeing with pub numbers in every part of the country. There is clearly a variation on closures between counties which broadly sees rural areas adversely impacted. The continuing decline is taking place against a backdrop of societal change and cost of business strains. Consumption of alcohol has notably decreased, how we socialise is changing, the types of drinks we consume are changing, particularly the rise of low-alcohol and alcohol-free products. We are also seeing that with many pubs, which are often small, family-run businesses, sustaining business is becoming harder and harder.
Fostering commercial sustainability is crucial to safeguarding rural Irish pubs. Ireland’s drinks and hospitality businesses are operating in an environment where the costs of doing business are ever rising. Energy, insurance, and other cost line items continue to rise, many by double digits. The sector is also faced with one of the most regressive excise tax environments for small and medium enterprises in Europe.
