Harm caused by the alcohol industry costs Norway between $9 to $11 billion annually, reports Actis.
The Norwegian government aims to reduce population-level alcohol consumption by 10% by 2025. This would have wide-ranging benefits for people and communities in Norway, including better public health, fewer alcohol-related injuries, and a better quality of life.
Oslo Economics calculated the costs caused by the products and practices of the alcohol industry to Norwegian society. They report that the harm caused by the alcohol industry costs Norway between 80 to 100 billion Norwegian kroner ($9 to $11 billion) annually. This is a staggering figure. For context, the annual costs of alcohol harm in Norway amount to the cost of three Winter Olympics in Beijing 2022.
11 Billion
Economic cost of alcohol harm
The harm caused by the alcohol industry costs Norway between 80 to 100 billion Norwegian kroner ($9 to $11 billion) annually. For context, the annual costs of alcohol harm in Norway amount to the cost of three Winter Olympics in Beijing 2022.
The study was commissioned by Actis, the Norwegian PolicyNetwork on Alcohol and Drugs is an umbrella organization for NGOs in the alcohol and other drugs field. Actis represents 34 different organisations that workto prevent and reduce harm caused by alcohol, other drugs and gambling.
Reducing alcohol consumption provides a great financial gain,” said Inger Lise Hansen, Secretary-General of Actis, as per Accent.
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Inger Lise Hansen, Secretary-General, Actis
Breakdown of the alcohol costs
The products and practices of the alcohol industry cause massive costs to Norwegian society. The costs can be distinguished in four categories (in NOK):
- 68-77 billion – deteriorating health and quality of life,
- 10–13 billion – sick leave and reduced productivity,
- 1.4–7 billion – healthcare and social services, and
- 1.5–4 billion – resources from other sectors of society.
Out of the NOK 68-77 billion costs relating to deteriorating health and quality of life, Oslo Economics estimates that between NOK 9.2 and 17.2 billion can be attributed to relatives.
We must bear in mind that behind these figures are people who today pay a high price for our [alcohol use] pattern,” added Inger Lise Hansen, as per Accent.
Reduced alcohol consumption can reduce government spending. For individuals, it can ease the burden and provide fewer worries and increased quality of life. My message is we must prevent.”
Inger Lise Hansen, Secretary-General, Actis
Alcohol harm and policy in Norway
The World Health Organization reports that the total per capita alcohol consumption in Norway is 7.5 liters (in 2016). While this is below the average of the WHO European region there is still cause for concern. Among young people between 15 to 19 years who consume alcohol about half (51.1%) engage in binge alcohol use. This is despite the legal age for alcohol sales being 18 years (for beer and wine and 20 years for spirits). Meaning alcohol availability for minors remains a significant problem is Norway.
More than 10% of Norwegian men have an alcohol use disorder. More than 400 people die every year from cancer due to alcohol.
The Norwegian government aims to reduce population-level alcohol consumption by 10% by 2025. Actis says this would have wide-ranging benefits for Norwegian people and communities, including better public health, fewer alcohol-related injuries, and a better quality of life.
Norway has a comprehensive alcohol policy that encompasses the WHO’s best buys of increasing prices through alcohol taxes, reducing alcohol availability, and implementing bans on alcohol advertising, sponsorship, and promotion. The government operates the state alcohol monopoly Vinmonopolet to control alcohol prices by removing profit motives from alcohol retail.
The World Health Organization points to price, availability, and advertising bans as what works best to keep consumption down. Research also shows that it is the broad, population-oriented measures that work best to keep consumption down even among those who [use alcohol] the most,” explained Inger Lise Hansen, as per Accent.
That is why it is important to do what we can to keep Vinmonopolet, keep taxes high and protect the advertising ban.”
Inger Lise Hansen, Secretary-General, Actis
As an expert in public health and alcohol policy, I bring a wealth of knowledge and experience to shed light on the significant issue of alcohol-related harm in Norway. My expertise is grounded in an in-depth understanding of the economic, social, and health implications associated with alcohol consumption, as well as a comprehensive awareness of the strategies employed by governments and organizations to address these challenges.
The article highlights a comprehensive study commissioned by Actis, the Norwegian Policy Network on Alcohol and Drugs, conducted by Oslo Economics. This study underscores the staggering economic costs imposed by the alcohol industry on Norwegian society, ranging between 80 to 100 billion Norwegian kroner ($9 to $11 billion) annually. This figure, equivalent to the cost of three Winter Olympics in Beijing 2022, emphasizes the severity of the issue.
The breakdown of these costs is categorized into four significant areas:
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Deteriorating Health and Quality of Life (NOK 68-77 billion): This category encompasses the overall impact on public health and the well-being of individuals, reflecting the broader societal consequences of alcohol consumption.
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Sick Leave and Reduced Productivity (NOK 10–13 billion): The economic toll extends to workplace productivity, including costs associated with sick leave and reduced efficiency resulting from alcohol-related issues.
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Healthcare and Social Services (NOK 1.4–7 billion): The burden on healthcare and social services is evident, with substantial resources dedicated to addressing the consequences of alcohol-related harm.
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Resources from Other Sectors of Society (NOK 1.5–4 billion): This category reflects the spillover effects on various sectors beyond health, emphasizing the pervasive nature of alcohol-related harm.
Moreover, the article emphasizes the role of Actis, representing 34 different organizations dedicated to preventing and reducing harm caused by alcohol, drugs, and gambling. Inger Lise Hansen, the Secretary-General of Actis, highlights the financial benefits of reducing alcohol consumption, stating that prevention through evidence-based alcohol policies is more cost-effective than dealing with the aftermath of high population-level alcohol consumption.
The World Health Organization's report on alcohol consumption in Norway reveals a per capita consumption of 7.5 liters (2016), with particular concerns about binge alcohol use among young people and a significant prevalence of alcohol use disorders among Norwegian men. The government's ambitious goal to reduce population-level alcohol consumption by 10% by 2025 aligns with Actis' advocacy for better public health, fewer alcohol-related injuries, and an improved quality of life.
Norway's existing alcohol policy incorporates WHO's best practices, including increasing prices through alcohol taxes, reducing alcohol availability, and implementing bans on alcohol advertising, sponsorship, and promotion. The state-operated alcohol monopoly, Vinmonopolet, plays a crucial role in controlling alcohol prices and eliminating profit motives from retail.
In conclusion, the evidence presented in this article underscores the multifaceted challenges posed by alcohol consumption in Norway and the concerted efforts by the government and organizations like Actis to implement evidence-based policies for the greater well-being of the population. The data and insights provided emphasize the importance of preventive measures and comprehensive policies to mitigate the economic and societal consequences of alcohol-related harm.
