Melbourne, Australia (PRWEB) August 29, 2013
As online sales boom, product lines diversify and competition grows throughout the market. Liquor retailers were slow to move online. However, the Online Beer, Wine and Liquor Sales industry has gained momentum as it stabilises within the Retail division. The booming online retail sector has struggled to get consumers to invest the same confidence in online grocery and liquor sales compared with other products. As major players have strengthened online sales systems and delivery methods, sales have skyrocketed. As online purchasing of alcohol cements itself within the retail sector, the Online Beer, Wine and Liquor Sales industry is estimated to grow at an annualised 9.8% over the five years through 2013-14. As market uptake strengthens, revenue is forecast to increase 6.5% over the year to reach $692.3 million, capturing just over 4% of total liquor sales.
The online sale of alcohol lends itself to higher sales of wine and spirit-based beverages compared with beer and cider. Spirits and wine tend to be higher value purchases that are forward purchased for in-house stock. IBISWorld industry analyst Emily Witham states “the industry has challenges ahead as it finds ways to mitigate competition with the convenience of tangible purchases from bricks-and-mortar liquor retailing.” As consumers become increasingly health conscious, high levels of alcohol consumption is viewed as a poor health choice. Wine and spirit sales lend well to a feasible online purchasing choice and as an option for purchases of higher quality and value consumption with lower consumption levels. Purchasing of online alcohol is expected to increase as delivery systems and technology improve. The industry is viewed favourably due to the diverse range available at competitive prices. Volatility in discretionary income is likely to drive online alcohol purchases as consumers look for value for money. According to Witham, “unlike many online retail industries, online alcohol sales are somewhat sheltered from international competition due to importation requirements and the nature of the produce.”
The Online Beer, Wine and Liquor Sales industry exhibits a low level of market share concentration. The industry is characterised by a large number of highly fragmented firms of varying sizes. Most players are smaller, independently owned firms that have limited operations outside their key markets and employ few employees. Over the next five years, IBISWorld expects that the industry's market share concentration will increase, as large supermarket chains begin to make a move on smaller industry players. Currently, Woolworths is the only major industry plater. For more information, visit IBISWorld’s Online Beer, Wine and Liquor Sales report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau/.
IBISWorld Industry Report Key Topics
Firms in this industry sell packaged liquor, wine and beer to consumers via the internet.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.