Tired and emotional: Declining alcohol consumption and high competition have constrained growth

The Liquor Wholesaling industry has faced multiple challenges over the past five years. The industry is sensitive to factors affecting alcohol consumption, including trends in alcohol demand, discretionary incomes, regulation and changing social attitudes. Wholesale bypass and competition among downstream retailers have also influenced the industry's performance. Industry revenue is expected to grow at an annualised 1.6% over the five years through 2017-18, to reach $5.3 billion. This includes expected growth of 0.2% in the current year.Changing consumer tastes, combined with an expanding range of liquor, have prompted consumers to increasingly try new beverages...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Fierce competition among downstream liquor retailers has put downward pressure on wholesale prices
  • Rising demand for spirits and higher discretionary incomes have boosted industry demand
  • The industry’s slim profit margins will remain stable as more players focus on niche products
  • Industry Report - Industry Key Buyers Chapter

    The Liquor Wholesaling industry exhibits a high degree of market share concentration. Metcash Limited and The Independent Liquor Group Co-operative (ILG) are together anticipated to account for over 70% of industry revenue in 2017-18. Metcash wholesales liquor under its Australian Liquor Marketers arm. ILG is a non-profit cooperative that supplies several liquor retail banners, providing enhanced negotiating power and therefore more competitive supplier prices. Many medium-sized businesses characterise the industry, occupying between 3% and 5% market share. These players include Brown-Forman and Beam Suntory Australia.Outside these players, the industry includes numerous small businesses. Over 50% of wholesalers in the industry are non-employing businesses, with a further 40.7% e...purchase to read more.

    Additional Insights for the Liquor Wholesaling Industry

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

  • Ability to control stock on hand
  • Ability to accommodate environment requirements
  • Use of high volume/low margin strategy
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Demand from liquor retailing in the Liquor Wholesaling industry impact industry performance..

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    What's in this report

    What is the Liquor Wholesaling Industry?

    Liquor wholesalers buy beer, wine, spirits and other alcoholic beverages from manufacturers and sell these products to pubs, bars, supermarkets and other liquor retailers. The industry excludes the wholesale operations of alcohol product manufacturers.

    Industry Products
  • Beer
  • Wine
  • Spirits
  • Ready-to-drink alcoholic beverages
  • Other alcoholic beverages
  • Industry Activities
  • Wholesaling beer
  • Wholesaling wine and champagne
  • Wholesaling spirits
  • Wholesaling ready-to-drink alcoholic beverages
  • Wholesaling cider
  • Wholesaling other alcoholic beverages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita alcohol consumption
  • Demand from liquor retailing
  • Demand from pubs, bars and nightclubs
  • Real household discretionary income
  • Health consciousness

  • Current Performance
  • Rising retail pressures
  • Alcohol consumption
  • Profitability and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium products
  • Downstream consolidation
  • Parallel imports
  • Table: Liquor Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Liquor Retailing
  • Pubs, Bars and Nightclubs
  • Social Clubs
  • Casinos
  • Catering Services
  • Supermarkets and Grocery Stores
  • Restaurants

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

  • Products & Services
  • Wine
  • Spirits
  • Beer
  • Ready-to-drink alcoholic beverages
  • Other alcoholic beverages
  • Chart: Liquor Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Licensed venues
  • Retail liquor stores
  • Supermarkets
  • Chart: Major Market Segmentation for the Liquor Wholesaling 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 Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Liquor Wholesaling Industry

  • Industry Globalization
    Metcash Limited, Independent Liquor Group,
  • Table: Metcash Limited - financial performance
  • Table: Independent Liquor Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Liquor Wholesaling 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 Wholesaling Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An alcoholic beverage produced by brewing and fermenting cereal grains, usually malted barley. Most beer is flavoured with hops, although other flavours are sometimes used.
  • Premiumisation
  • The shift in consumer preference towards more expensive premium alcoholic beverages.
  • Ready-To-Drink (Rtd)
  • Pre-mixed, single-serve spirits usually mixed with sweet soft drink.
  • Spirits
  • Distilled, highly alcoholic liquor such as vodka, whisky and gin.
  • Wholesale Bypass
  • Where retailers interact directly with manufacturers or producers, cutting out wholesalers from the supply chain.
  • Wine
  • An alcoholic drink produced by fermenting grapes. Varieties include red (e.g. shiraz and cabernet sauvignon), white (e.g. sauvignon blanc and chardonnay) and rose.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Liquor Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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