One quarter of Ireland’s pubs have closed in the last twenty years, according to a report published this week.
2,205 Irish pubs disappeared between 2005 and 2025, according to the nationwide study.
The study, The Decline in the Number of Public Houses 2005 – 2025, was authored by economist Anthony Foley of Dublin City University (DCU) and commissioned by the Drinks Industry Group of Ireland (DIGI).
It shows that the number of pub licenses dropped from 8,617 to 6,512 in the last two decades – marking a 25.6% decline.
The report shows that an average of about 110 pubs are closing every year, with every one of the 26 counties witnessing a decline. Rural communities have experienced the most acute losses, said DIGI.
Limerick had the largest fall in the number of pubs – 37.2%, followed by Offaly at 34.1% and Cork at 32.7%.
Roscommon had a drop of 32.3%, while Tipperary had a 32% fall. The smallest decline in the number of pubs by far was seen in Dublin, which saw a decline of just 1.1%.
The report says that is evidence of an urban contrast – with lesser declines of 9.5% reported in Wicklow and in Meath (11.4%).
Revenue Commissioners’ alcohol licensing date was used in the report.
On foot of the report, DIGI, one of the industry’s biggest lobbying groups, called for a 10 per cent reduction in alcohol excise duty.
It said this would safeguard remaining small, family-owned pubs and protect rural communities, urging the Government to make the reduction in its upcoming budget.
The organisation said that without intervention, economic projections suggest that between 600 and 1,000 additional pub closures will take place over the coming decade.
IRELAND HAS SECOND HIGHEST EXCISE TAX ON WINE
DIGI previously highlighted that Irish consumers pay 11 times more excise duty on beer than Germans – and 80 times more excise on wine than the French.
It has said excise duty on alcohol here far in excess of most of the European Union, with 15 EU countries paying zero excise tax on wine – compared to the Irish rate of 80 cent per glass.
Taxes also make up 27% to 29% of every drink sold in a pub or restaurant here – and almost two thirds (63%) of a bottle of whiskey sold in an off-licence.
This is despite the fact that consumption rates here have fallen by 34% to average EU levels.
Research compiled by Anthony Foley and commissioned by DIGI from 2025 shows that overall excise duty on beer, wine and spirits in Ireland is the second highest in EU and UK, with only Finnish customers paying more. Broken down by drinks category, Ireland has the second highest excise tax on wine, the third highest on beer and the third highest on spirits, DIGI said.
“By way of example, a pint of beer in Ireland is levied with an excise rate of 55 cent, compared to just five cent in Germany. Similarly, a glass of wine in Ireland incurs excise of 80 cent compared to just one cent in France, while 15 EU countries pay no excise on wine whatsoever,” said DIGI.
“On a bottle of whiskey, excise duty is over four times higher in Ireland than in Spain, with Irish consumers paying almost €12 compared to their Spanish counterparts who pay only €2.69 in tax. This is a difference of €9.23, even though the whiskey is produced here in Ireland.
“The steep rate of excise is separate to the VAT that is also applied on alcohol purchases, meaning the Government takes a combined total of between 27% to 29% of the price of every drink sold in a pub or restaurant. The Government’s tax take is even higher for off-licence sales, with excise and VAT accounting for 63% of the cost of a bottle of a €27 bottle of whiskey and 48% of the price of a bottle of an €11 bottle of wine.”
The organisation said that drinks producers are also grappling with steep tariffs on exports into the American market.
Associate Professor Emeritus, DCU, Anthony Foley said:
“The figures continue to highlight that Ireland maintains very high alcohol excise rates compared to most of the EU, placing a particularly heavy tax burden on both the Irish drinks sector and consumers relative to other member states. When the different drinks categories of beer, wine and spirits are measured together, Ireland ranks second highest across the EU and UK, with only Finland applying higher average rates. In terms of the top four, excise rates in Finland, Ireland, the UK and Sweden are substantially higher than the rest of Europe.”