Improved Alcohol Policy Supports Healthier Communities
Estonia is planning to improve alcohol policy solutions to prevent and reduce alcohol harm. The plans include gradual increases in alcohol excise duties and shorter retail sales hours. The government’s Prevention Council has outlined an alcohol policy framework through 2035, building on the country’s 2014 Alcohol Policy Green Paper.
The framework responds to a clear people’s health challenge. According to ERR, Estonia’s population-level alcohol use remains higher than the European average.
People aged 15 and over consumed an average of 10.7 litres of pure alcohol per person in 2024, up from 10.4 litres in 2019. The figure reached 11.2 litres in 2022.
Alcohol Has Become More Affordable
One important reason for the need to further improve alcohol policy action is the rising affordability of alcohol.
An analysis by the Estonian Institute of Economic Research found that between 2018 and 2024, net wages increased by 44%. Over the same period, beer prices increased by only 15%, while vodka prices even fell by 0.33%.
In fact, the average monthly net salary in 2024 could purchase 27 more litres of vodka and 88 more litres of beer than six years earlier.
Higher alcohol affordability drives up alcohol consumption, harm and costs to society. The proposed excise tax increases therefore target an important factor shaping the alcohol burden on Estonian society.
Raising Alcohol Taxes Promotes People’s Health
The Prevention Council’s first recommendation calls for a gradual increase in alcohol excise duties. It says higher taxes are effective in reducing population-level alcohol use within three months while also increasing government revenue.
Evidence from Estonia’s earlier experience demonstrates this. A 2020 analysis of Estonia’s comprehensive alcohol policy reported that alcohol use fell by almost one-third, from 14.8 litres of pure alcohol per person in 2007 to 10.3 litres in 2017. Over the same period, mortality from alcohol-related diseases also fell by one-third, while alcohol-related injuries and crime decreased.
This experience shows how evidence-based alcohol policy action promotes better health and social outcomes.
Another report from 2023 highlighted the health and fiscal benefits linked with alcohol taxation in Estonia. It reported that alcohol excise duty generated €225 million in government revenue in 2019, equal to 2.4% of all tax revenues in the state budget.
The same source cited a 2022 study linking higher alcohol taxation with a significant reduction in alcohol deaths, particularly deaths from ischemic heart disease caused by alcohol.
Reducing Alcohol Availability and Protecting People From Alcohol Marketing
Estonia’s proposed policy also seeks to make alcohol less physically available. The government is considering shortening retail alcohol sales hours, reducing the number of alcohol outlets and stopping alcohol sales in the immediate vicinity of schools and kindergartens.
The proposal also includes new limits on alcohol sales at gas stations and public beaches.
Estonia has already used time-based alcohol availability limitations. For example, Tallinn introduced nighttime sales limits in 2021 to reduce alcohol-related disturbances and protect residents’ quality of life.
These measures reflect a broader principle: shaping environments to promote health and reduce exposure to alcohol harm.
Learning From Experience for Future-Proof Alcohol Policy Progress
The new framework also proposes improved standards for alcohol marketing. Recommendations include rotating health warnings in alcohol advertisements and adding warnings about cancer risk.
The strategy also encourages alcohol-free events and other alcohol-free environments. These measures can help create spaces where people do not face constant pressure or expectations to consume alcohol.
Estonia’s experience shows that comprehensive and evidence-based alcohol policy does generate meaningful health gains. In 2019 alcohol use had reached a 10-year low, with annual consumption at 10.1 litres of pure alcohol per adult in 2018.
However, Estonia later reduced alcohol excise duties by 25% in 2019, which led to rising harms.
The new framework offers an opportunity to future-proof public health-oriented alcohol policy directions, learning from positive and negative lessons.