High spirits: Consumer demand for high-quality beverages boosts industry growth

Operators in the Liquor Retailing industry have faced several challenges over the past five years, including declining per capita alcohol consumption, rising health consciousness and mounting competitive pressures. Despite these trends, the industry is expected to grow over the period, largely on the back of increasing consumer demand for higher value, premium beverages. Industry revenue is expected to increase at an annualised 3.3% over the five years through 2018-19, to $12.5 billion. Rising discretionary income is expected to contribute to industry revenue growth of 2.5% in the current year.The biggest influence on the industry over the past five years has been the growing market dominance of Woolworths and Coles supermarkets, at the expense of independent liquor retailers...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The growing dominance of Woolworths and Coles has negatively affected independent retailers
  • Oversupply and heavy discounting have reduced the price of wine over the past five years
  • Online liquor sales represent a small but fast-growing segment of revenue
  • Industry Report - Industry Key Buyers Chapter

    The Liquor Retailing industry is highly concentrated. The four largest industry players (Woolworths, Coles, Metcash and ALDI) are estimated to account for over 80% of the industry in 2018-19. Woolworths and Coles have increased industry concentration over the past five years through acquisitions and strategic expansions, which aimed to capture sales from both bricks-and-mortar and online stores. Both Woolworths and Coles are opening new stores, purchasing independent stores and chain operators, and establishing retail outlets in close proximity to their existing supermarkets. The supermarkets are also involved in establishing big-box liquor stores under the Dan Murphy's and First Choice Liquor brands...purchase to read more.

    Additional Insights for the Liquor Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Liquor Retailing are:

  • Development of a symbiotic relationship with another industry
  • Proximity to key markets
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Total alcohol consumption and Demand from pubs, bars and nightclubs in the Liquor Retailing industry impact industry performance..

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    What's in this report

    What is the Liquor Retailing Industry?

    Liquor retailers sell liquor (including beer, wine, spirits and ready-to-drink mixers) in packaged form (i.e. bottles and cans). Alcohol retailed by the industry is intended for consumption away from liquor store premises. The industry includes both online and bricks-and-mortar retailers.

    Industry Products
  • Wine
  • Beer
  • Bottled spirits
  • RTDs
  • Cider
  • Industry Activities
  • Alcoholic beverage retailing
  • Online liquor retailing
  • Liquor shop operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total alcohol consumption
  • Demand from pubs, bars and nightclubs
  • Real household discretionary income
  • Average weekly hours worked
  • Population aged 18 and older

  • Current Performance
  • Alcohol consumption trends
  • Declining profitability
  • Rising competition
  • Independent retailers
  • Chart: Revenue Growth

  • Industry Outlook
  • Online liquor sales
  • Varied profitability
  • Rising competition
  • Taxation
  • Table: Liquor Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Liquor Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beer Manufacturing
  • Liquor Wholesaling
  • Spirit Manufacturing
  • Wine Production

  • Products & Services
  • Beer
  • Wine
  • Bottled spirits
  • RTDs
  • Cider
  • Chart: Liquor Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Males aged 18 to 39
  • Males aged 40 and over
  • Females aged 40 and over
  • Females aged 18 to 39
  • Chart: Major Market Segmentation for the Liquor Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Liquor Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Liquor Retailing Industry

  • Industry Globalization
    Woolworths Group Limited, Coles Group Limited, Metcash Limited,
  • Table: Woolworths Group Limited - financial performance
  • Table: Coles Group Limited - financial performance
  • Table: Metcash Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Liquor Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Liquor Retailing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A retail outlet with floor space several times greater than traditional retailers in the sector, providing for a large amount of merchandise.
  • Off-Premise
  • A retailer that sells alcoholic beverages to be consumed off the premises.
  • On-Premise
  • A retailer that sells alcoholic beverages to be consumed on the premises.
  • Rtd
  • Ready-to-drink mixed spirits.
  • Spirits
  • Distilled alcohol products.
  • What Our Customers Say

    Why buy this report?

    The Liquor Retailing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Liquor Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Liquor Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Liquor Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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