In low spirits: Reduced per capita alcohol consumption drains industry revenue

The RTD Mixed Spirit Production industry has been struggling to recover from the introduction of the alcopops tax in 2008. Industry revenue is expected to decline at a compound annual rate of 1.2% over the five years through 2017-18, to reach $933.1 million. The alcopops tax sparked a steady decline in RTD consumption per capita, as the price of the industry's products was made significantly more expensive. Some consumers have gradually substituted the industry's products with other similar beverages such as cider. Meanwhile, increasing health consciousness has reduced per capita alcohol consumption over the past five years.Industry revenue declines have been partially offset by new products being steadily introduced to the market over the period...read more.

Industry Statistics & Market Size
Revenue
$933m
Annual Growth 13-18
-1.2%
Forecast Growth 18-23
Profit
Employment
1,065
Businesses
47

Industry Threats & Opportunities

  • The industry has struggled to recover from the introduction of the alcopops tax
  • Demand for industry products from export markets has grown over the past five years
  • Product innovation is projected to support industry revenue growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The RTD Mixed Spirit Production industry has a moderate level of market share concentration, with the top four producers contributing just under 50% of industry revenue. Market share concentration has decreased slightly over the past five years, largely due to increased industry participation and the exit of Lion from the industry. The production of industry products, which are mostly canned, is highly capital-intensive and has high start-up costs. Having substantial production lines allows for large distribution networks, economies of scale and scope, strong brand recognition and advanced marketing teams. The industry’s high capital intensity tends to result in large operations that have a high-volume turnover. The industry is therefore mostly made up of large businesses. Rec...purchase to read more.

    Additional Insights for the RTD Mixed Spirit Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the RTD Mixed Spirit Production Industry are

  • Ability to effectively manage risk
  • Degree of globalisation in the firm
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Demand from pubs, bars and nightclubs in the RTD Mixed Spirit Production industry impact industry performance..

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    What's in this report

    What is the RTD Mixed Spirit Production Industry?

    Industry firms manufacture pre-mixed alcoholic beverages in a variety of serving sizes. The industry excludes RTD flavoured beers and RTD wine-based drinks.

    Industry Products
  • Dark spirit-based RTDs
  • White spirit-based RTDs
  • Ready-to-serve beverages
  • Other RTD beverages
  • Industry Activities
  • Ready-to-drink mixed spirit production
  • Ready-to-drink cocktail production
  • 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 pubs, bars and nightclubs
  • Real household discretionary income
  • Health consciousness

  • Current Performance
  • Consumer trends
  • Industry participation
  • Export markets
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends
  • Industry participation
  • Export markets
  • Table: RTD Mixed Spirit Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - RTD Mixed Spirit Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Liquor Wholesaling
  • Liquor Retailing
  • Pubs, Bars and Nightclubs

  • Key Selling Industries
  • Glass and Glass Product Manufacturing
  • Printing
  • Soft Drink Manufacturing

  • Products & Services
  • White spirit-based RTDs
  • Dark spirit-based RTDs
  • Ready-to-serve beverages
  • Other RTD beverages
  • Chart: RTD Mixed Spirit Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Liquor wholesalers
  • Retailers
  • Hospitality venues
  • Exports
  • Chart: Major Market Segmentation for the RTD Mixed Spirit Production 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 RTD Mixed Spirit Production

  • Basis of Competition
  • Internal Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the RTD Mixed Spirit Production Industry

  • Industry Globalization
    Diageo Australia Limited, Asahi Holdings (Australia) Pty Ltd, Coca-Cola Amatil Limited,
  • Table: Diageo Australia Limited - financial performance
  • Table: Asahi Holdings (Australia) Pty Ltd - financial performance
  • Table: Coca-Cola Amatil Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the RTD Mixed Spirit Production 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 RTD Mixed Spirit Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alcopops Tax
  • The alcopops tax refers to the 70% tax increase implemented in 2008 on RTD mixed spirit or wine beverages mixed with a non-alcoholic beverage.
  • Ready To Drink (Rtd)
  • Ready-to-drink beverages generally refer to alcoholic spirits, that have been pre-mixed and packaged and are ready for consumption.
  • Ready To Serve (Rts)
  • Ready-to-serve beverages are a new form of RTD beverages. They refer to cocktails that are pre-mixed and packaged and ready to be served directly as a cocktail.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s RTD Mixed Spirit Production 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:
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    This report on RTD Mixed Spirit Production:
    • 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 RTD Mixed Spirit Production 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 RTD Mixed Spirit Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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