In her 2024 Insights and 2025 Outlook, Bank of Ireland head of Food & Drink Sector Sector Lucy Ryan says the sector is well-placed for growth in 2025.
The Irish Food and Beverage sector continues to evolve with export value of €17bn in 2024 (+5% YoY) reflecting this.
Ireland’s ability to develop its product capability and respond to evolving consumer trends means it is well placed for 2025, with the sector outlook positive
“Quality, innovation, and sustainability are key to the sector’s continued development and Ireland’s ambition to lead in sustainable food production”
Summary
2024 saw food and beverage producers continue to operate in a challenging environment with macro economic factors, global instability and high input costs in the mix. The delicate balance of producing high quality food and beverages to specific price points remains tricky. Staffing is a challenge, with a further minimum wage increase (Jan ’25) and higher salaries for foreign work permit holders since Dec 2023 adding to cost pressures. International Federation of Accountants (IFAC) reported that 61% of 120 food & agri-businesses surveyed availed of Government supports in 2024.
Poorer harvests, and supply chain issues, of certain commodities like cocoa beans and coffee, challenged some sub sectors.
Nonetheless, the sector has retained strong exports, reflecting a solid industry performance in 2024. Whilst food inflation eased to 1.9% in Ireland in Nov 2024, tight cost control continues to be a big focus with producers looking for ways to manage costs as consumers seek value. The closure of Holyhead port after storm Darragh in December caused supply chain issues. Thankfully the port has reopened albeit with some capacity limitations.
Key sector trends in 2024
Exports:
The value of Irish food and drink exports from ROI was €17 Bn +5% compared to 2023.
- Dairy had a challenging first half but full year value held its own YoY due to better prices.
- Meat exports grew 6% to reach €4.3bn with beef accounting for €2.8bn.
- Alcoholic drinks had a strong year, €2.1Bn +19% YoY, with whiskey €1Bn. Stockpiling of whiskey in markets such as U.S. did impact operators in a competitive global market.
- Prepared consumer foods – including bakery, prepared foods, confectionary and non alcoholic drinks – accounted for €3.4bn +7% YoY with value-added meats flat YoY.
- The seafood sector operated in a challenging global environment but at €595m exports gained some lost ground on 2023. Key markets for Irish seafood, like France and Spain, saw less demand due to global pricing pressure, more seafood being imported from outside the EU and cost of living factors impacting consumer spend. The European Commission’s Dec 2024 report (EU Fish Market report 2024 reveals trends and insights – European Commission) captures this European trend.
To learn more and read about the 2025 trends to watch, download the FULL Insight & Outlook 2025 report for the Food & Drink sector below:
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