Last orders: Many firms have been forced to exit the industry due to strong external competition

Off-licences are licensed to sell alcoholic beverages to be consumed off their premises. Industry firms have endured turbulent operating conditions over the past decade, leading to constrained revenue and strong and consistent declines in establishment numbers. Traditional off-licences have struggled under the weight of predatory pricing by supermarkets, while subdued economic conditions also weighed on performance in the early part of the period. Real disposable income growth has been subdued over much of the past five-year period, resulting in consumers cutting back on discretionary products such as alcoholic beverages. As their sales and margins collapsed, some off-licences were forced out of the more.

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

Industry Threats & Opportunities

  • Changing drinking patters and supermarket competition have negatively affected revenue
  • Minimum alcohol pricing is likely to affect supermarkets to a greater extent that off-licences
  • Operators must leverage their customer service and specialised knowledge to compete with supermarkets
  • Industry Report - Industry SWOT Analysis Chapter

    The Off-Licences industry is in the decline stage of its life cycle. The value that the industry adds to the economy is weakening, a key indicator of its declining life cycle stage. Over the decade through 2022-23, the industry’s contribution to GDP is expected to decrease at a compound annual rate of 1% while GDP is expected to grow at a compound annual rate of 2% over the same period. Industry participants have been affected by consumer trends and increasing levels of external competition.Lower prices at supermarkets have forced industry participants to slash their own prices, which has placed a great amount of pressure on profit margins. Some retailers have been unable to cope and have exited the industry. Ove...purchase to read more.

    Additional Insights for the Off-Licences Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Off-Licences Industry are

  • Access to highly skilled workforce
  • Production of premium goods/services
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as trade alcohol prices and Real household disposable income in the Off-Licences industry impact industry performance..

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    What's in this report

    What is the Off-Licences Industry?

    Operators in this industry are specialised retailers licensed to sell alcoholic beverages for consumption off the premises. The industry does not include supermarkets and grocery-focused convenience stores that may also have this licence.

    Industry Products
  • Wine
  • Spirits
  • Beer
  • Other alcoholic beverages
  • Non-alcoholic beverages
  • Food and snacks
  • Industry Activities
  • Beer retailing
  • Wine retailing
  • Spirits retailing
  • Cider retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • trade alcohol prices
  • Real household disposable income
  • Alcohol consumption per capita
  • Demand from pubs and bars
  • Demand from supermarkets

  • Current Performance
  • EU referendum
  • Priced out
  • Minimum alcohol price
  • Pressure mounts
  • Duty calls
  • Prices and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Operators reposition themselves
  • Competitive pressures
  • Competitive advantages
  • Input prices
  • Table: Off-Licences Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Off-Licences Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling

  • Products & Services
  • Wine
  • Spirits
  • Beer
  • Other alcoholic beverages
  • Food and snacks
  • Non-alcoholic beverages
  • Chart: Off-Licences Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 50 and 64
  • People aged between 65 and 74
  • People aged between 30 and 49
  • People aged under 30
  • People aged 75 and over
  • Chart: Major Market Segmentation for the Off-Licences Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRentOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Off-Licences

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Off-Licences Industry

  • Industry Globalization
    Conviviality Retail plc, Majestic Wine Warehouses Ltd,
  • Table: Conviviality Retail plc - financial performance
  • Table: Majestic Wine Warehouses Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Off-Licences 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 Off-Licences 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
  • A retailer licensed to sell alcoholic beverages for consumption off its premises.
  • Perry
  • A drink similar to cider that is made by fermenting pears.
  • Sparkling Wine
  • A wine that is fizzy because it contains high levels of carbon dioxide.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Off-Licences market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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

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