Losing strength: Declining alcohol consumption and wholesale bypass caused revenue to fall

Operators in the Alcoholic Beverage Wholesaling industry purchase alcoholic beverages from producers and distribute them to on-trade and off-trade retailers. Changing consumer habits and trends within downstream markets have knock-on effects on alcoholic beverages wholesalers. As a result of fluctuating downstream conditions, revenue grew briefly at the start of the five-year period through 2018-19 and declined thereafter.Over much of the period, downstream markets have been under pressure from declining alcohol consumption, high alcohol taxes, and challenging economic conditions. Rising levels of health consciousness have resulted in consumer attitudes towards alcohol consumption changing, which has contributed to the declining levels of per-capita alcohol consumption...read more.

Industry Statistics & Market Size
Revenue
£12.3bn
Annual Growth 14-19
-2.6%
Forecast Growth 19-24
Profit
Employment
18,614
Businesses
2,529

Industry Threats & Opportunities

  • Demand for craft beers and high-quality wine has limited decline over the past five years
  • Contingencies have been made for the weak pound by operators in order to protect industry margins
  • Growing demand from restaurants is expected to support distributors of imported wines
  • Industry Report - Industry Key Buyers Chapter

    The Alcoholic Beverage Wholesaling industry displays a low level of market share concentration. Collectively, the top four players in the industry are expected to account for only 31.3% of revenue in 2018-19. With the exception of Matthew Clark, the largest players in the industry are either alcohol producers like Diageo or cash-and-carry chains such as the Booker Group.The industry is characterised by a large number of small businesses. These operators typically focus on small geographic areas or a niche group of customers, as they often do not have the operating scale or capacity to distribute products on a national scale but benefit from strong local distribution and supply chains and strong customer bases...purchase to read more.

    Additional Insights for the Alcoholic Beverage Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Alcoholic Beverage Wholesaling Industry are

  • Ability to control stock on hand
  • Highly trained workforce
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Demand from pubs and bars and Alcohol consumption per capita in the Alcoholic Beverage Wholesaling industry impact industry performance..

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    What's in this report

    What is the Alcoholic Beverage Wholesaling Industry?

    Firms in this industry purchase alcoholic beverages from producers and distribute them to retailers in both the on- and off-trades. The industry also includes alcohol producers that import products for distribution in the United Kingdom.

    Industry Products
  • Wine
  • Beer
  • Spirits
  • Cider
  • Sparkling wine
  • Industry Activities
  • Wholesaling beer
  • Wholesaling wine
  • Wholesaling spirits
  • Wholesaling cider
  • 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 and bars
  • Alcohol consumption per capita
  • Real household disposable income
  • Demand from supermarkets
  • Consumer confidence index
  • Health consciousness

  • Current Performance
  • Dispirited demand
  • Downstream struggles
  • Splashing out
  • Profit and wages
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium thirst
  • Market mix
  • Regulatory influences
  • Stemming the flow
  • Table: Alcoholic Beverage Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Off-Licences
  • Pubs & Bars

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

  • Products & Services
  • Wine
  • Beer
  • Spirits
  • Cider
  • Sparkling wine
  • Chart: Alcoholic Beverage Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • On-trade venues
  • Off-trade venues
  • Chart: Major Market Segmentation for the Alcoholic Beverage Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Alcoholic Beverage Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Diageo plc, Matthew Clark Bibendum Limited,
  • Table: Diageo plc - financial performance
  • Table: Matthew Clark Bibendum Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Alcoholic Beverage 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 Alcoholic Beverage Wholesaling 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
    Lager
  • A type of beer brewed using bottom-fermenting yeast at lower temperatures and for longer periods of time than those used to brew ales.
  • Off-Trade
  • Establishments licensed to sell alcohol to be consumed off the premises.
  • On-Trade
  • Establishments such as pubs, bars and restaurants, where alcohol is consumed on the premises.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Alcoholic Beverage Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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

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