Beer, Wine and Liquor Stores in the US Industry Market Research Report Now Available from IBISWorld

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Over the five years to 2012, uncertainty and unemployment constrained consumer budgets and as a result, consumers are buying more alcoholic beverages from the Beer, Wine and Liquor Stores industry instead of going out in order to save money. In the five years to 2017, however, escalating competition from restaurants and bars is expected to inhibit revenue growth as consumers with rising incomes choose to drink more on-premises beer, wine and liquor. Profit will improve just slightly as states' deregulation allows stores to purchase more products in bulk and bypass some distributors. Stores will offer a wider selection of products or specialize in a specific type of beverage to meet consumer demand in particular locations, especially ones that face competition due to deregulation. For these reasons, industry research firm IBISWorld has added a report on the Beer, Wine and Liquor Stores industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Competition from on-premises sales will stifle growth, but specialization will boost demand

Uncertainty and unemployment have constrained consumer budgets causing consumers to buy more alcoholic beverages from the Beer, Wine and Liquor Stores industry instead of going out in order to save money. “Each state is responsible for regulating its sale of alcoholic beverages, and some states are considering privatizing stores they currently run,” says IBISWorld industry analyst Agata Kaczanowska. “Privatization of state-run liquor stores, notably in Washington state, is expected to boost industry growth.” As a result, industry revenue is expected to grow at an average rate of 1.0% per year over the five years to 2012 to total $45.8 billion, driven mainly by industry growth in Washington state. However, state deregulation of liquor laws is bolstering competition from other liquor retailers, stalling industry growth.

Apart from privatizing liquor stores, some states have proposed making heavily taxed alcoholic beverages more easily available to consumers through grocery and convenience store sales in an effort to raise state revenue. “Deregulation on a state-by-state basis is expected to result in higher competition for the Beer, Wine and Liquor Stores industry, squeezing the profit margins of establishments located near deregulated grocery and convenience stores,” adds Kaczanowska. Nonetheless, profit is forecast to increase from 2012 to 2017 because deregulation is also expected to allow stores to purchase certain products in bulk, bypassing distributors.

Competition and deregulation will lead to industry consolidation and specialization. In 2012, 97.7% of firms are expected to employ fewer than 20 people, and no companies are expected to employ more than 50 people. Many stores are family owned and operated. The concentration of ownership of beer, wine and liquor stores is low due to state regulations that mostly prohibit vertical and horizontal integration. Not only are large chains expected to purchase mom-and-pop stores but they are also anticipated to open new locations in order to provide liquor sales in locations convenient to desirable and under saturated markets. Stores will offer a wider selection of products or specialize in a specific type of beverage to meet consumer demand in particular locations. The overall effect is expected to keep establishment growth low. Revenue is forecast to grow in 2017 along with rising disposable income and consumer spending, despite the concurrent competition from on-premises sales that improved consumer sentiment will likely bring. For more information, visit IBISWorld’s Beer, Wine and Liquor Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes specialist and non-specialist stores licensed specifically to sell alcoholic beverages for off-premises consumption. The industry excludes wholesale, grocery, convenience and gas station stores.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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