Total Alcohol Consumption

IBISWorld expects that total alcohol consumption will rise by 1.5% over 2032-24, to 197.7 megalitres. A recovering hospitality scene post-pandemic will underpin this growth as more Australians return to bars, restaurants and nightclubs. A rebound in migration to Australia following the international border reopening and the increasing popularity of RTDs is also expected to support alcohol consumption over the year. Nonetheless, rising health consciousness and higher cost-of-living pressures will restrain consumption growth.

Changes to alcohol taxation influence the composition of alcohol consumption. The current taxation system for alcohol is complex, with various tax rates applicable to alcoholic beverages. Beer and spirits are taxed depending on the type and alcoholic content of the product, while wine and cider are taxed based on their wholesale value. For example, The Federal Government reduced the Wine Equalisation Tax (WET) rebate from $500,000 per producer to $350,000 in July 2018, with knock-on effects elevating prices of cask wine and private-label brands sold in supermarkets at the expense of consumer demand.