Happy hour: The expansion of m-commerce is expected to accelerate industry revenue growth

The Online Alcohol Retailing industry encompasses a number of specialist online alcohol retailers and wine clubs that do not have physical storefronts. The industry is in its infancy, and a large proportion of its operators have transitioned from mail order to internet businesses. Over the past five years, the industry has grown strongly. An increasing number of households with internet access has supported revenue growth. Wine in particular, which accounts for the largest proportion of industry revenue, has recorded increased demand over the period, driven by the rising popularity of wine clubs and premium wines. However, rising health consciousness has led to falling levels of alcohol consumption per capita, which has weighed on industry growth to an extent...read more.

Industry Statistics & Market Size
Revenue
£632.5m
Annual Growth 14-19
13.3%
Forecast Growth 19-24
Profit
Employment
2,093
Businesses
174

Industry Threats & Opportunities

  • Revenue has grown strongly, but is partly limited by constrained disposable income
  • Rising alcohol taxes have weighed on margins over the past five years
  • Operators focusing on their online presence are likely to benefit from a larger customer base
  • Industry Report - Starting a New Business Chapter

    The Online Alcohol Retailing industry is estimated to have low barriers to entry. Although the industry is highly regulated, prospective entrants require minimal capital investment to begin operation. The ease of entering the industry is illustrated by the number of enterprises, which is forecast to increase at a compound annual rate of 2.7% over the five years through 2018-19.Although the initial cost of entering the industry is minimal, the barriers to success are substantial. Over the past five years, the levels of internal and external competition have increased. The industry is moderately concentrated, with large operators benefiting from economies of scale. Naked Wines, for example, sells 95% of its wines at discounted prices. It ...purchase to read more.

    Additional Insights for the Online Alcohol Retailing Industry

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

  • Ability to control stock on hand
  • Having links with suppliers
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Alcohol consumption per capita and Demand from supermarkets in the Online Alcohol Retailing industry impact industry performance..

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    What's in this report

    What is the Online Alcohol Retailing Industry?

    This industry covers companies that sell packaged beer, wine and spirits exclusively over the internet. It thus excludes firms that also have a bricks-and-mortar presence.

    Industry Products
  • Wine
  • Spirits
  • Cider
  • Beer
  • Industry Activities
  • Selling alcohol through online and mobile portals
  • Operating wine clubs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Alcohol consumption per capita
  • Demand from supermarkets
  • trade alcohol prices
  • Percentage of households with internet access
  • Real household disposable income

  • Current Performance
  • A growing industry
  • Wine societies
  • Alcohol duty
  • New demand
  • Referendum effect
  • Mild margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Weighing on profit
  • Mobile commerce
  • Enterprises expand
  • Product trends
  • Table: Online Alcohol Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Alcohol Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Beer Production
  • Spirit Production
  • Wine Production

  • Products & Services
  • Wine
  • Spirits
  • Beer
  • Cider
  • Chart: Online Alcohol Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 26 and 40
  • People aged between 41 and 60
  • People aged 25 and under
  • People aged 61 and over
  • Chart: Major Market Segmentation for the Online Alcohol Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Warehousing and distribution
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Online Alcohol Retailing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Alcohol Retailing Industry

  • Industry Globalization
    Direct Wines Limited, www.nakedwines.com Limited, The International Exhibition Co-operative Wine Society Ltd, Ocado Group plc, Virgin Wine Online Limited,
  • Table: Direct Wines Limited - financial performance
  • Table: www.nakedwines.com Limited - financial performance
  • Table: The International Exhibition Co-operative Wine Society Ltd - financial performance
  • Table: Ocado Group plc - financial performance
  • Table: Virgin Wine Online Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Online Alcohol 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 Online Alcohol Retailing 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
    Bricks-And-Mortar
  • Describes stores that have a physical presence, in contrast to online retailers.
  • En Primeur
  • The practice of offering a customer the opportunity to invest in a particular wine before it is bottled.
  • M-Commerce
  • Commercial transactions conducted electronically by mobile phone.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Online Alcohol Retailing 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 Online Alcohol Retailing:
    • 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 Online Alcohol Retailing 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 Online Alcohol Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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