Alcohol prices vary significantly across Europe, often due to taxes imposed to reduce the harm associated with alcohol consumption.
On average, €1.50 of every €100 that households spend on goods and services in the EU goes to alcoholic beverages, according to Eurostat. The share of alcoholic beverages in household expenditures varies significantly between countries.
The price level index, which compares the cost of the same basket of alcoholic beverages across Europe, is useful for assessing differences in alcohol prices. The average value for the EU is set at 100: if such a basket costs €100 at the EU level, the index shows how much it will cost in each country.
A value above 100 means that it is more expensive in that country than the EU average. A value below 100 means it is cheaper. For comparison, in Latvia, this index is above average - 137.
The most expensive alcohol is in Northern European countries, Turkey, and Ireland.
As of 2024, the most expensive country for alcohol prices is Iceland among 36 European countries (EU members, candidates, and EFTA states). In Iceland, drinks that cost €100 on average in the EU cost €285. This is 185% higher than the EU average.
Next in the ranking, the basket costs €226 in Norway, €210 in Finland, and €203 in Turkey. This means that alcohol costs more than twice as much as the EU average. Ireland, with a figure of €198, is also close to this level.
The three most expensive countries for alcohol prices are in Northern Europe. The other two northern countries are also above the EU average: Sweden (€146) and Denmark (€125).
The Cheapest Alcohol is in Italy, Germany, and Austria
The lowest prices for alcohol are recorded in Italy, Germany, and Austria. The basket of alcoholic beverages that costs €100 in the EU costs only €84 in Italy. This is 16% lower than the EU average.
In Germany, it is €87, in Austria €90. In Spain, the same basket costs €91. Overall, in the "big four" EU economies, alcohol is cheaper than the average in the Union. Only France is above average with a figure of €102, which is just 2% more.
Income is Not Taken into Account
Income or earnings are not included in price comparisons, meaning that the ranking does not consider salaries and other personal income indicators.
"It is important to distinguish between the price of alcohol and its affordability," said Colin Angus, a professor at the University of Sheffield, to Euronews Business.
In a country with low alcohol prices but low disposable incomes, affordability may remain low; the reverse is also true.
"Taxes are a key factor determining price differences… Higher alcohol excise duties are one of the main drivers of higher alcohol prices in several European countries, primarily in Northern Europe," Angus added.
He noted that in Northern European countries, such as the Scandinavian states, as well as in Ireland and the UK, higher tax rates are generally a response to high levels of alcohol consumption and associated harm.
In 2020, the last year the UK participated in this comparison, its index was 139 with an EU average of 100.
"In most Mediterranean countries today, alcohol consumption levels and associated harm are significantly lower, meaning there is less need for increased tax rates to curb excessive consumption," he added.
Dr. Jakob Mantey from the University of Hamburg also emphasized that higher excise rates on specific types of alcohol are a key factor in price differences for alcohol.
For example, in 2020, the five countries in the WHO European Region with the highest share of alcohol taxes in the retail price of beer were Finland, Turkey, Norway, Estonia, and Iceland. The share of taxes ranged from 28% to 39%, and for spirits, it is even higher (can reach 50% or more). In low-tax countries, the share of taxes is 10% or less.
Tax Increases Boost Government Revenues
"These data show that a significant portion of the retail price is determined by excise duties," Mantey told Euronews Business.
He noted that tax increases are associated not only with reduced consumption. "Raising taxes also increases tax revenues to the budget," he added.
Colin Angus also explained that another important factor in setting alcohol tax rates, at least for wine, is production. Across Europe, countries that produce significant volumes of wine generally do not tax it at all or set very low rates. In contrast, countries where wine is not produced tend to impose higher taxes on it.
