New research has found that Kiwis are drinking, while beer remains the nation's favourite despite Budget 2026 assertions.
New government data confirms the long-term sustained decline in New Zealand alcohol consumption. But as volumes fall and the Budget passes without excise reform, the Brewers Association is putting Treasury’s own revenue forecasts under the microscope.
Statistics New Zealand data released last week for the year to March, shows per capita consumption of pure alcohol has fallen to 7.24 litres per person in the year to March 2026, the lowest level ever recorded, and a 16.5 percent decline from 8.67 litres in 2020.
Total volumes of beer, wine and spirits available for consumption was 447 million litres, down 10.7 percent from 2020.
Beer held up the strongest of all major beverage types, declining 7.6 percent over the same period to 268 million litres. The result is that beer’s share of total beverage volume has edged higher, from 59.9 percent in 2020 to 60.8 percent in 2026.
Brewers Association of New Zealand Executive Director Dylan Firth said while consumption is declining, beer remains the nation’s preferred choice by a wide margin.
“The data confirms what the brewing industry has been seeing on the ground: New Zealanders are drinking less and drinking more responsibly. At the same time, the vast majority of adult New Zealanders who choose to drink, are more often than not reaching for a beer.
“Beer is proving more resilient than other beverage types, with a huge range in styles and naturally lower in alcohol. In a contracting market, this reflects real loyalty and product innovation.”
The broader picture of behaviour is equally clear. According to the New Zealand Health Survey, hazardous drinking has declined 22 percent since 2020. Binge drinking (or heavy episodic drinking) stands at 17.5 percent, well below the OECD average of 27 percent and lower than Canada, the United States, Australia, Italy, Ireland, Germany and the United Kingdom. Since 2020, it has declined 21.8 percent.
“The New Zealand public is being done a disservice by outdated narratives about how we drink; moderation is by far the norm, and we are well below the OECD average on binge drinking. This is important context in policy conversations and effective alcohol regulation,” said Firth.
Subscribe to the Restaurant & Café newsletter for weekly industry updates and event coverage.
