Bottoms up: Premiumisation has increased revenue despite falling alcohol consumption

The Liquor Retailing industry has expanded strongly over the past five years. Increased consumer demand for premium spirits, craft beer and high quality wine has driven revenue growth, as these alcoholic beverages typically attract a higher price tag. This trend, combined with rising discretionary incomes and positive consumer sentiment, has encouraged households to increase expenditure at liquor retailers. Consequently, industry revenue is expected to grow by an annualised 3.5% over the five years through 2017-18, to reach $2.0 billion. Despite this positive trend, the overall volume of liquor purchased has declined as per capital alcohol consumption has fallen. Consumers have reduced their overall consumption and instead opted for premium alcoholic beverages in smaller amounts...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
3.5%
Forecast Growth 18-23
Profit
Employment
3,322
Businesses
1,113
Market Share of Companies

Industry Threats & Opportunities

  • Consumer demand for premium alcoholic beverages has supported revenue growth
  • Consumers have increasingly opted for premium, high-quality alcoholic beverages
  • The industry is expected to grow at a slower pace compared with the previous five years
  • Industry Report - Industry Key Buyers Chapter

    The Liquor Retailing industry is characterised by a low level of market share concentration, with the top four players expected to account for less than 35% of revenue in 2017-18. The industry is highly fragmented and diverse, and consists of many small, independent retailers that have a single store. The industry's largest operators tend to be chain stores, such as Super Liquor, that have franchises located throughout the country. Most industry operators sell a range of liquor products from a variety of brands. This gives consumers a range of choice, making it difficult for any one player to dominate the industry. Market share concentration has fallen slightly over the past five years, primarily due to an increased number of independent players entering the industry...purchase to read more.

    Additional Insights for the Liquor Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Liquor Retailing Industry are

  • Having a good technical knowledge of the product
  • Ensuring pricing policy is appropriate
  • Development of a symbiotic relationship with another industry
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Real household discretionary income in the Liquor Retailing industry impact industry performance..

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    What's in this report

    What is the Liquor Retailing in New Zealand Industry?

    Firms in this industry primarily retail beer, wine or spirits in packaged form for consumption off the premises only. The industry includes the online sales of bricks-and-mortar retailers, but excludes pure-play online operators.

    Industry Products
  • Beer
  • Wine
  • Spirits
  • Spirit-based drinks
  • Other alcoholic beverages and products
  • Industry Activities
  • Alcoholic beverage retailing
  • Bottle shop operation
  • Liquor store operation
  • Online liquor retailing
  • 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
  • Real household discretionary income
  • Demand from pubs, bars and nightclubs
  • Average weekly hours worked

  • Current Performance
  • Demand trends
  • Profit
  • Competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer demand
  • Industry participation
  • Profit margins
  • 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 in New Zealand

  • Key Selling Industries
  • Beer Manufacturing in New Zealand
  • Liquor and Tobacco Product Wholesaling in New Zealand
  • Spirit Manufacturing in New Zealand
  • Wine Production in New Zealand

  • Products & Services
  • Beer
  • Wine
  • Spirits
  • Spirit-based drinks
  • Other alcoholic beverages and products
  • Chart: Liquor Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Males aged 18 to 34
  • Males aged 35 and over
  • Females aged 35 and over
  • Females aged 18 to 34
  • 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
  • Internal competition
  • External competition

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

  • Industry Globalization
    Foodstuffs Liquor New Zealand Limited, Super Liquor Holdings Limited,
  • Table: Foodstuffs Liquor New Zealand Limited - financial performance
  • Table: Super Liquor Holdings 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
    Includes:
  • 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
    Craft Beer
  • A beer made in a traditional or non-mechanised way by a small brewery.
  • Off-Premise Licence
  • An establishment that is licensed to sell alcohol for consumption off the premises.
  • On-Premise Licence
  • An establishment that is licensed to sell alcoholic beverages to be consumed on the premises.
  • What Our Customers Say

    Why buy this report?

    The Liquor Retailing in New Zealand 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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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