Overall, beer consumption has declined in favour of wine and spirits
Melbourne, Australia (PRWEB) January 11, 2013
Australians generally enjoy a drink, and with growing sophistication of the Australian palate, an expanding liquor variety has given room for Australians to try new things. Overall, beer consumption has declined in favour of wine and spirits, although the growing popularity of premium, craft and imported beer has increased. Liquor wholesalers have benefited from such trends as most industry players deal mainly in wine, spirits and imported beer, with only a select few being preferred by large retailers, often dealing with high-turnover, low-value products. The Liquor Wholesaling industry is sensitive to factors that affect alcohol consumption. According to IBISWorld Industry analyst Ryan Lin, ‘these factors include alcohol demand, tax changes to alcoholic products, real household disposable income, regulations affecting the consumption of alcohol and changing social attitudes’. In the five years through 2012-13, the industry has had its ups and downs due to generally weak consumer conditions, shifting tastes, falling per capita alcohol consumption and increasing wholesale bypass. IBISWorld estimates that industry revenue growth will be largely flat over the five years through 2012-13, with industry revenue growing at an annualised rate of just 0.3% to reach $6.05 billion. Revenue is expected to increase by 1.7% in 2012-13.
The industry is forecast to record moderate revenue growth over the next five years. ‘While some favourable product trends will boost liquor sales, the growing market power of the supermarkets and associated increase in wholesale bypass will continue to hurt industry operators’, says Lin. During this period, liquor wholesalers will be looking to improve on the industry's reach and performance across the liquor market. Improvements in operating efficiency will be paramount to remaining competitive and retaining clients; as will cost cuts and warehouse efficiency improvements that aim to reduce labour costs. Increasing sophistication of the Australian palate proves a big opportunity to capitalise on future growth.
The two largest companies operating in the industry are Metcash and Diageo Australia. The Liquor Wholesaling industry in Australia has a moderate level of market share concentration level. The five years to 2012-13 are expected to be stable in terms of market share consolidation, with industry participant numbers relatively stable. This trend is expected to continue in coming years as enterprise number stay similar, reflecting the low level of changes in consumer alcohol consumption.
For more information, visit IBISWorld’s Liquor Wholesaling in Australia industry page.
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IBISWorld industry Report Key Topics
Liquor wholesalers buy beer, wine and spirits from manufacturers and sell these products to pubs, bars, supermarkets and other liquor retailers, or manufacture alcohol products and sell these directly to retailers and wholesalers. Large companies that wholesale and manufacture a diverse range of beverages at relatively low margins dominate the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
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Technology & Systems
Regulation & Policy
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