Dylan Firth, Executive Director of the Brewers Association of New Zealand, discussed growth within the local brewing sector.
The New Zealand brewing sector remains one of the country’s most vibrant and economically significant parts of the beverage industry. According to the latest Brewing in New Zealand report produced by the Brewers Association and Brewers Guild, beer contributes an estimated NZD 3.58 billion to GDP, representing almost one percent of the entire economy. More than 35,000 jobs are supported across brewing, supply, distribution, retail, and hospitality, a value chain that stretches from hop fields and maltsters to taprooms and supermarket shelves.
Like many developed markets, New Zealand has seen a gradual decline in per capita beer consumption over recent decades. The latest data showed a slight bounce back in volumes from the all-time low of last year. The overall declining trend has been driven by changing demographics, more mindful consumption, and competition from other alcohol categories. However, the overall market has remained substantial, and within it we see growth in premium, craft, low- and no-alcohol segments and low carb, evidence of consumers trading “less” for “better” and seeking beverages that fit with balanced lifestyles.
Innovation is the lifeblood of the sector. From packaging advances, such as lighter cans and bottles, higher recycled content, and multipack formats, to new brewing techniques that retain flavour while reducing alcohol, Kiwi brewers are quick to adapt. The industry also punches above its weight in sustainability initiatives, from energy-efficient brewing to circular packaging schemes.
Exports are another bright spot. While Australia remains our largest market, accounting for 70 percent of beer exports, many brewers, large and small, are finding offshore opportunities. Even modest-sized producers are seeking a place in global markets, reflecting both the quality of New Zealand beer and the ambition of its makers.
Breweries are also tourism assets. Around 80 percent of breweries offer taprooms, providing unique experiences for both locals and visitors. One of the great attributes of the beer sector is it’s regionality. Unlike wine, beer has the ability to embed itself in almost any community in New Zealand. With around 200 breweries across the country, breweries make a great stop for any domestic or international traveller while making their way around. Many partner with food producers, tourism operators, and events, creating wider economic benefits in their regions. Community contribution is part of the DNA of New Zealand brewing, with 85 percent of brewers reporting direct support for local causes, from sponsorships to charitable donations.
While there is much to celebrate, significant challenges remain. Chief among these is the excise tax burden. Beer is one of the most heavily taxed consumer goods in New Zealand, with excise and GST making up a substantial portion of the retail price. In hospitality, this impact is even sharper, for a standard keg, taxes (excise and GST) can account for over 40 percent of the purchase cost for venues.
The Brewers Association has been advocating for a differentiated keg excise rate to support the struggling hospitality sector. On-premise beer sales have dropped from around 40 percent of total beer volume two decades ago to roughly 15 percent today, reflecting the combined effects of changing consumption habits, regulatory costs, and economic pressures. A fairer keg tax would help level the playing field, encourage more venue-based consumption, and support the social and tourism role of pubs, bars, and restaurants.The outlook for New Zealand beer is one of cautious optimism. An improving economic environment, a strong summer tourism season, and continued product innovation offer opportunities for growth.
Our industry’s resilience lies in its adaptability to consumer trends, economic cycles, and evolving expectations around sustainability and responsibility. By working with government on pragmatic policy settings, including excise reform, and by continuing to innovate, New Zealand brewers can ensure that beer retains its place as the nation’s favourite social drink, enjoyed responsibly in homes, venues, and communities across the country.
Read more in the 2025 Beverage Report:
