Online Beer, Wine and Liquor Sales in the US Industry Market Research Report from IBISWorld Has Been Updated

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Alcohol sales will increase as the youngest Millennials reach drinking age in 2015. For these reasons, industry research firm IBISWorld has updated a report on the Online Beer, Wine and Liquor Sales industry in its growing industry report collection.

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Some online retailers have outsourced filling and delivering orders to brick-and-mortar stores.

Over the past five years, the Online Beer, Wine and Liquor Sales industry has exhibited growth driven by an expansion in households with internet connections. For example, during the five years to 2014, the number of broadband connections is expected to skyrocket at an annualized rate of 19.8%, creating a robust potential customer base for the industry. Furthermore, according to Nielsen's 2014 E-commerce report, 10.0% of consumers in North America browsed and purchased alcoholic beverages online over a six-month period, which bolstered industry revenue. “The increased number of time-strapped, amateur wine connoisseurs and individuals interested in mixology and craft beer has also raised the popularity of online alcohol purchases,” according to IBISWorld Analyst Sarah Turk.

Nevertheless, state-by-state variations in regulations for interstate alcohol distribution has posed as a key hurdle for the industry. “For example, some states have limited consumers' ability to purchase alcohol if it is directly shipped by online retailers that operate distribution warehouses out-of-state, whereas some states require that industry operators have licenses,” says Turk. During the five years to 2014, industry revenue is expected to grow at an annualized rate of 10.9% to $3.0 billion. In 2014, revenue is expected to rise 8.4%, due to growing consumer demand for craft beer. Profit is anticipated to increase from 3.2% of industry revenue in 2009 to 3.6% in 2014, driven by many industry operators forming favorable partnerships with brick-and-mortar liquor stores. For example, some online retailers have outsourced filling and delivering orders to brick-and-mortar stores, effectively lowering costs related to complying with state regulations (e.g. purchasing licenses and obtaining permits for distribution vehicles).

During the five years to 2019, industry revenue is forecast to grow at an annualized rate of 7.8% to $4.4 billion. Alcohol sales will increase as the youngest Millennials reach drinking age in 2015. According to data from Nielsen, Millennials account for 53.0% of respondents who plan on making online purchases, which will provide the industry with a larger potential customer base.

For more information, visit IBISWorld’s Online Beer, Wine and Liquor Sales in the US industry report page.

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IBISWorld industry Report Key Topics

This industry comprises operators that sell prepackaged beer, wine and liquor through online stores. This also includes companies that sell online as a complement to physical storefronts.

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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Gavin Smith
IBISWorld Inc.
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