Put a cork in it: Falling alcohol consumption has limited industry revenue growth

The Wine Bars industry has grown modestly over the past five years, despite declining per capita wine consumption and growth in demand for other hospitality establishments. The increasing sophistication of Australian consumers' palates has boosted the popularity of premium foods and drinks, which has increased wine bar patronage. As a result, industry revenue is expected to grow at an annualised 0.6% over the five years through 2018-19, to $1.2 billion. However, a continued decline in per capita alcohol consumption is expected to reduce revenue by 0.5% in the current year.Over the past five years, significant changes to the industry and its consumer demographic have aided growth...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
0.6%
Forecast Growth 19-24
Profit
Employment
3,569
Businesses
436
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The increasing sophistication of consumers' palates has increased wine bar patronage
  • Declining per capita alcohol consumption has posed a problem for the industry over the period
  • Operators are likely to continue expanding their product ranges to include more New World wines
  • Industry Report - Starting a New Business Chapter

    The industry exhibits moderate barriers to entry, with the ability to procure fine wines and to provide a premium wine and dine experience the key barriers restricting potential entrants. These have remained the most influential barriers over the past five years. Despite this, many small owner-operated wine bars operate in the industry, many of which are owned and operated by renowned chefs and purveyors of fine wine. Initial capital investment requirements do not restrict new firms from entering the industry, as wine bars are typically labour-intensive rather than capital intensive. Although some premises are purchased upfront, many operators lease properties, which further reduces initial capital investment and makes entry into the industry easier. How...purchase to read more.

    Additional Insights for the Wine Bars Industry

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

  • Access to highly skilled workforce
  • Proximity to key markets
  • Word-of-mouth recommendations
  • IBISWorld analysts also discuss how external factors such as Demand from pubs, bars and nightclubs and Health consciousness in the Wine Bars industry impact industry performance..

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    What's in this report

    What is the Wine Bars Industry?

    Lounges and bars in the industry primarily prepare and serve wine for immediate consumption. These establishments also offer food, often to complement the beverages served.

    Industry Products
  • White wine
  • Red wine
  • Food
  • Other alcoholic drinks
  • Other wine
  • Non-alcoholic drinks
  • Industry Activities
  • Selling wine for immediate consumption
  • Selling other beverages for immediate consumption
  • Selling food for immediate consumption
  • Table of Contents

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

  • Current Performance
  • Falling alcohol consumption
  • Taste for quality
  • Competitive pressure
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising competition
  • The future of wine
  • Profit and participation
  • Table: Wine Bars Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wine Bars Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Liquor Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Wine Production

  • Products & Services
  • White wine
  • Red wine
  • Food
  • Other alcoholic drinks
  • Other wine
  • Non-alcoholic drinks
  • Chart: Wine Bars Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers in the highest income quintile
  • Consumers in the fourth income quintile
  • Consumers in the third income quintile
  • Consumers in the second income quintile
  • Consumers in the lowest income quintile
  • Chart: Major Market Segmentation for the Wine Bars Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Wine Bars

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wine Bars Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Wine Bars 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 Wine Bars Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hors D'oeuvre
  • Food items and appetisers that are served with drinks before a main meal.
  • Rtds
  • Premade ready-to-drink beverages, which include a range of ready-to-drink spirits and cocktails.
  • Wine Glut
  • Refers to the oversupply of Australian wine grapes since the early 2000s.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wine Bars market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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

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