Melbourne, Australia (PRWEB) November 21, 2014 -- Declining per capita alcohol consumption, rising health awareness and competitive pressures have weighed on the operators in the Liquor Retailing industry in Australia over the past five years. “The major driver of industry growth over this period has been the increasing consumer demand for higher value, premium beverages,” according to IBISWorld industry analyst Ryan Lin. Industry revenue is expected to increase at an annualised 1.8% over the five years through 2014-15 to $10.4 billion. The industry is forecast to record growth of 1.5% in 2014-15, slightly lower than the five-year average as the uncertain retail environment and heavy price competition constrains liquor sales at bricks-and-mortar establishments.
The real story of the industry over the past five years has been the growing market dominance of Woolworths and Wesfarmers at the expense of independent liquor retailers. During the past decade, the supermarkets have increased their combined market share to account for almost 60% of total industry revenue. “There has been a major shift away from bottle shops and high street liquor retailers to big-box liquor stores,” says Lin. Over the five years through 2014-15, the supermarkets have taken advantage of this to strike favourable agreements with alcohol producers, discounting some liquor products to levels independent retailers have struggled to compete with. The supermarkets have also exploited their market position to reduce shelf space dedicated to branded products and push their own higher margin private-label beer and wine. The industry exhibits a medium level of market share concentration. Major players include Woolworths Ltd and Wesfarmers Limited.
The Liquor Retailing industry is expected to continue to grow modestly over the next five years, driven by a strengthening retail environment, expanding interest in premium product offerings and a rise in the consumption of wine, spirits and premium beer at home. Woolworths and Wesfarmers are anticipated to continue to increase their market dominance during the period, with more big-box retail outlets expected to open around Australia. Independent liquor retailers will continue to feel the squeeze and will be forced to band together. However, opportunities still exist for independent retailers that are well located, customer driven and focused on higher margin, niche and high-quality products and services.
For more information, visit IBISWorld’s Liquor Retailing industry in Australia report page.
Retailers in this industry sell liquor (including beer, wine, spirits and ready-to-drink mixers) in packaged form (i.e. bottles and cans). Alcohol retailed by the industry is intended for consumption away from liquor store premises. The industry includes both online and bricks-and-mortar retailers.
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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.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
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