Brewing Brilliance: Our Rich Legacy and Future of New Zealand Breweries

Whenever I think about how beer fits into New Zealand’s hospitality tapestry, I’m reminded of the first time I tasted a homegrown Kiwi lager. There was something about its crisp freshness, a subtle hint of local hops, that made me realize this country’s beer culture is a force unto itself. From that moment on, I’ve been fascinated by the tapestry of history, innovation, and resilience that defines our brewing sector.

I’ve spent years working alongside brewers, hoteliers, and hospitality professionals as a hospitality manager & recruiter, and one thing rings true: Kiwi beer culture is as vibrant and resourceful as the people behind it.

Today, I want to walk you through where we’ve been, where we are, and where we might be headed—armed with data that tells a story far more dramatic than you’d expect for a laid-back island nation.

A Storied Beginning: The Roots of NZ Brewing

You can’t talk about New Zealand beer without tipping your hat to Captain James Cook. Back in 1773, he famously brewed a rudimentary beer using rimu and mānuka leaves, aiming to keep scurvy at bay. Who would’ve guessed that one small step for scurvy prevention would become a giant leap for Kiwi brewing?

By 1835, the spark of innovation ignited a commercial movement when Joel Polack established the first commercial brewery in Kororāreka. This wasn’t merely about producing beer—it was about pioneering a new way of life, setting the foundation for an industry that would eventually become an integral part of New Zealand’s identity.

In the 1930s, the brewing world was forever changed by Morton Coutts’ introduction of the continuous fermentation process, which revolutionized lager production. As decades passed, the landscape shifted—by the 1970s, giants like Lion and DB Breweries had dominated, only for the 1980s to usher in a renaissance with the rise of craft beer, led by trailblazers such as Mac’s Brewery in 1981. Today, the legacy endures, reinvigorated by a booming craft and low/no-alcohol scene that mirrors modern consumer values.

The Modern Craft Revolution & Data-Driven Success

Craft & Low/No-Alcohol Trends

The post-COVID era has seen an explosion in both craft and low/no-alcohol beers. Consumer preferences have evolved, driving brewers to innovate and diversify. This trend isn’t just a fleeting moment—it’s a testament to how tradition and modernity can coexist, creating beers that are as mindful as they are flavorful.

The Post-COVID Landscape (2020–2023)

The pandemic threw a massive spanner into the works for hospitality, and beer was no exception. Yet, amid lockdowns and economic uncertainty, the sector showed grit and resilience.

2020: Weathering the Storm

• Consumption: ~291.55 million liters

• Production: ~247.82 million liters

• Imports: ~43.73 million liters

• Exports: Negligible

• Industry Value: ~$3.28 billion

• GDP Contribution: ~$633 million

• Jobs Supported: ~6,560

• Tax Revenue: ~$398 million

With lockdowns hammering on-licence sales, many breweries pivoted to online orders and takeaway services. It was a scramble, but it kept the lights on.

2021: Cautious Recovery

• Consumption: ~292.5 million liters

• Production: ~248.63 million liters

• Imports: ~43.88 million liters

• Exports: Negligible

• Industry Value: ~$3.29 billion

• GDP Contribution: ~$635 million

• Jobs Supported: ~6,580

• Tax Revenue: ~$399 million

Restrictions eased, and people trickled back into pubs. The industry value crept up, thanks to a small but meaningful boost in consumer confidence.

2022: A Strong Comeback

• Consumption: ~294 million liters

• Production: ~249.9 million liters

• Imports: ~44.1 million liters

• Exports: Negligible

• Industry Value: $3.3 billion

• GDP Contribution: $637 million

• Jobs Supported: 6,600

• Tax Revenue: $401 million

Finally, the sector felt a real surge. Craft beer fans flocked to taprooms, and that $3.3 billion valuation was a testament to both pent-up demand and the sheer variety on offer—from traditional lagers to experimental IPAs and low-alcohol brews.

2023: A Slight Dip, But Steady

• Consumption: ~281 million liters

• Production: ~238.85 million liters

• Imports: ~42.15 million liters

• Exports: Negligible

• Industry Value: ~$3.15 billion

• GDP Contribution: ~$609 million

• Jobs Supported: ~6,320

• Tax Revenue: ~$379 million

This year saw a noticeable drop in consumption—down 4.4% from 2022. Maybe it’s belt-tightening, or a general shift toward moderation. Either way, breweries continue to innovate, ensuring the sector remains an economic anchor.

Deep Dive Into 2024

Here’s where it gets really interesting. If you asked me back in 2022 how 2024 would look, I’d have predicted smooth sailing. But reality had a few curveballs to throw.

Economic Figures: The Hard Numbers

• Consumption: ~283 million liters (a modest rebound from 2023)

• Production: ~283 million liters (matching consumption, with 85% produced locally)

• Imports & Exports: ~42.45 million liters each, showing stable trade dynamics.

• Industry Value: ~$3.27 billion

• GDP Contribution: ~$631 million

• Jobs Supported: ~6,530

• Total Tax Revenue: ~$891 million

  • Excise Tax: ~$400 million

  • GST: ~$491 million

That might look like a lot of numbers, but the takeaway is clear: the sector’s still a heavyweight in New Zealand’s economy, even if growth is slightly tempered by ongoing pressures.

The 2024 Trade Picture

In 2024, New Zealand’s brewery sector maintained balanced trade dynamics with both imports and exports estimated at 42.45 million liters. Imports were mostly lagers with a rising share of low/no-alcohol beers from Australia and the US, while exports were largely craft beers—particularly hazy IPAs—with Australia snapping up 70% of Kiwi craft exports.

Consumer shifts were striking:

• Low/No-Alcohol Beers: Now represent 18% of total sales—a 750% increase since 2019.

• Craft Beer: Hazy IPAs have jumped to 23% of craft sales, driven by bold, experimental flavor trends among younger drinkers (18–34), even as older consumers (45+) continue to favor traditional lagers.

Sustainability also took center stage:

• Industry Efforts: Garage Project in Wellington implemented CO₂ recapture to mitigate shortages, and Emerson’s Brewery in Dunedin adopted zero-waste packaging and water reduction measures.

• Government Impact: The 2024 excise tax hike, which climbed to $440.5 million (an 18% increase over three years), has pushed many brewers to embrace greener practices and trim operational costs.

Meanwhile, brewery tourism bounced back strongly:

• Experiences & Economic Boost: Over 60% of NZ breweries now offer taproom experiences, contributing an estimated $50–70 million to regional economies—especially in Otago.

• Events: Flagship events like Beervana continued to attract around 16,000 attendees, reinforcing the sector’s cultural and economic significance.

Looking Forward: The 2025 Outlook

What does the future hold? All indicators point to a vibrant future for New Zealand’s breweries:

• Craft & Low/No-Alcohol Boom:
  Consumer interest has soared, with low/no-alcohol beer consumption reportedly increasing by an astonishing 750% since 2019.

• Tourism & Community Engagement:
  Over 60% of breweries are actively engaging with tourists, and nearly 80% offer unique taproom experiences that double as cultural hubs.

• Sustainability & Innovation:
  With an ever-increasing focus on sustainability, many breweries are adopting eco-friendly practices, ensuring that the industry remains not only profitable but also responsible.

• Economic Projections:
  By 2025, industry analysts predict further growth, potentially boosting the GDP contribution to around $3.58 billion and expanding job support significantly.

As we toast to the future, one can’t help but wonder: How will NZ breweries continue to innovate? What new sustainable practices will emerge? How will the blend of tradition and modernity redefine the art of brewing?

Reflections: A Legacy in Every Pint

New Zealand’s brewery sector is much more than a collection of production statistics—it is a vibrant cultural tapestry woven through centuries of innovation, resilience, and community spirit. From the audacious experiments of Captain Cook to the modern craft revolution, every stage of this journey tells a story of passion, adaptation, and enduring excellence.

The economic impact is undeniable, but beyond the numbers lies a legacy that invites you to experience it firsthand. Whether it’s exploring a local taproom, attending a lively beer festival, or simply savoring a meticulously crafted brew, every sip connects you to a rich history and a promising future.

So, raise your glass to the enduring spirit of New Zealand’s breweries—a true testament to ingenuity, community, and the timeless joy of a well-crafted beer.

Cheers to the past, to the present, and an exciting future ahead!