Economic Trends in High-emitting Sectors 2023

Greenhouse Gas Emissions and Economic Activity in the Manufacture of Food, Beverages & Tobacco Sector

Figure 7.1 shows trends in territorial greenhouse gas emissions, gross value added at constant (2023) prices, and employment numbers for the Manufacture of Food, Beverages & Tobacco sector from 2011 to 2023. Compared with 2011, in 2023 GVA had risen by 66%, employment was up 13%, and emissions had increased by 9%. 

Figure 7.2 shows the Manufacture of Food, Beverages & Tobacco sector share of total emissions, GVA, and employment. In 2023, emissions from the sector were 2.8% of total greenhouse gas emissions, compared with 2.5% in 2011. The share of GVA fell from 4.1% in 2011 to 2.1% in 2023, although GVA in this sector increased during the same time period. The employment share was 2.8% in 2011 and 2.2% in 2023, although again employment rose in absolute terms.

Table 7.1 shows data on levels of greenhouse gas emissions, GVA, and employment numbers for the Manufacture of Food, Beverages & Tobacco sector from 2011 to 2023, as well as the share of total emissions, GVA and employment. In 2023, emissions were 1.6 million tonnes of carbon dioxide equivalent, GVA was €10.6 billion, and employment in the sector was 59,759 persons.

Sources of Greenhouse Gas Emissions

Figure 7.3 shows sources of greenhouse gas emissions in the Manufacture of Food, Beverages & Tobacco sector in 2023. Non-transport fuel use was the source of 67% of emissions in 2023, while 20% came from electricity consumption, and 8% from transport fuel use.

Table 7.2 shows that the share of the main emissions sources each year from 2011 to 2023. The share of emissions from electricity fell fairly steadily across the time period, likely as the renewable share of electricity rose. 

Energy Use in the Manufacture of Food, Beverages & Tobacco Sector

Figure 7.4 and Table 7.3 show energy use in the Manufacture of Food, Beverages & Tobacco sector, based on CSO Business Energy Use survey data. Energy use in the sector rose by 12% from 2011 to 2023, as fossil fuel use and electricity consumption increased.

Large dairy and other large food and beverage manufacturers are included in the EU Emissions Trading Scheme. In 2023, 50% of emissions from the Manufacture of Food, Beverages & Tobacco sector were included in the scheme (see Table 7.4). Participants in the scheme must obtain an emissions permit for each tonne of carbon dioxide equivalent emitted in the manufacturing plant. A certain number of free permits are allocated to each plant while the remainder must be purchased through the scheme. In 2011 and 2012, free permits slightly exceeded ETS emissions in this sector. From 2013 to 2023, free allowances were less than ETS emissions and in 2023 free permits covered around half of the ETS emissions from this sector. 

Interactions with other NACE Sectors

Figure 7.6 and Table 7.5 show shares of uses of Food, Beverages & Tobacco products. Outputs from this sector are mainly exported (47%) or used by households (33%).

Table 2.5 in the chapter on Agriculture shows interactions between the sectors. The Manufacture of Food, Beverages & Tobacco sector was the main user of Agriculture, Forestry & Fishing products in 2021, making up 49% of the value of the output of these sectors.