Beer consumption has fallen to record lows as New Zealand drinkers have continued to shift to moderation and new behaviours.
New Statistics New Zealand data released today shows the volume of beer available for consumption fell 10 percent to 265 million litres in the year ended December 2025, the lowest level recorded and part of a sustained downward trend in overall alcohol consumption.
Across all categories, the total volume of alcoholic beverages available for consumption declined 8.3 percent to 442 million litres. The equivalent volume of pure alcohol fell 7.6 percent, while the number of standard drinks available per person aged 18 and over dropped 8.4 percent to 1.6 standard drinks per day, continuing a five-year decline.
Brewers Association of New Zealand Executive Director Dylan Firth said the data reinforces a clear and consistent message: New Zealanders are drinking less, and drinking more moderately.
“Beer consumption is now at its lowest points 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.”
The breakdown of beer by strength shows the most significant declines were in higher-alcohol categories.
- Beer above 5 percent ABV fell 27 percent to 25 million litres.
- Beer between 4.35 and 5 percent ABV fell 13 percent to 139 million litres.
- Mid-strength beer between 2.5 and 4.35 percent ABV was broadly stable, rising slightly by 0.8 percent to 96 million litres.
The volume of pure alcohol from beer fell 11 percent overall, a larger drop than total beer volume, underscoring the move away from higher-strength products.
“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 said.
He noted the continued consumer interest in mid-strength and lower-carb products, which typically sit in the 2.5 to 4.3 percent ABV range.
“Brewers have invested heavily in producing quality lower-ABV and low-carb beers that deliver flavour without excess strength. The data suggests consumers are responding.”
While moderation is a positive social trend, the decline in beer volumes also reflects sustained economic pressure.
Beer remains New Zealand’s most popular alcoholic beverage, accounting for 60 percent of total beverage volume. Of the beer available for consumption in 2025, 86 percent was produced in New Zealand, highlighting the sector’s strong domestic base.
However, the cost of producing higher-ABV beer is materially greater due to New Zealand’s excise regime, which taxes beer on a volumetric alcohol basis.
“The excise system means the higher the ABV, the higher the tax burden per litre. That significantly increases the cost of producing and selling stronger beer, particularly in a low-margin hospitality environment,” Firth said.
Excise rates on beer have risen more than 20 percent over the past five years through automatic annual CPI 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.”
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