Liquor Wholesaling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC F3606aRevenue
$6.0bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
7,245
Businesses
2,344
Wages
$XXX.Xm
Liquor Wholesaling in Australia industry analysis
The Liquor Wholesaling industry has faced several challenges over the past few years. The Liquor Wholesaling industry depends on factors affecting alcohol consumption, including trends in real household discretionary incomes, health consciousness, and consumer tastes and preferences. Wholesale bypass and competition among downstream retailers have also influenced the performance of liquor wholesalers. Despite this, revenue is expected to increase at an annualised 1.2% over the five years through 2023-24, to $6.0 billion. While losing the major hospitality market for large portions of the period following COVID-19 restrictions, strong demand from liquor retailers more than offset those losses. Revenue is expected to decline by 2.6% in the current year. Demand from pubs, bars and nightclubs is expected to surge, but liquor demand will be constrained by rising health consciousness and reduced alcohol consumption per capita.Changing consumer tastes and an expanding range of liquor have prompted consumers to try new beverages over the past few years. Some liquor wholesalers, mainly those dealing in premium or niche wine, spirits have benefited from these trends. However, fierce competition among liquor retailers negatively affected wholesalers at the beginning of the period. Wholesale bypass has also increasingly threatened the industry, as Coles and Woolworths have extended their influence over liquor retailing. Consequently, only a few major wholesalers trade with the major liquor retailing chains. These wholesalers tend to deal with large volumes of high-turnover, low-value products rather than the low-turnover, high-value products carried by smaller wholesalers.The Liquor Wholesaling industry is set to expand over the next few years, although the growing market power of the major retail chains and associated increases in wholesale bypass are poised to limit this growth. Wholesalers attempting to remain competitive will need to improve their operating efficiencies, cut costs and improve warehouse efficiency to reduce labour costs. The Liquor Wholesaling industry is set to benefit from evolving food and beverage trends, including consumers' willingness to try premium products that are more expensive and difficult for retailers to obtain without wholesalers. A rise in discretionary incomes and positive consumer sentiment will drive these trends. Revenue is set to grow at an annualised 1.0% over the five years through 2028-29, to $6.3 billion.
Trends and Insights
- Rising health consciousness among Australians has limited revenue growth. Reduced alcohol consumption per capita and a shift towards non-alcoholic alternatives have constrained demand for liquor, adversely impacting liquor wholesaling revenue.
- Shifts in consumer patterns are vital in influencing liquor product demand. Evolving consumer behaviours and premiumisation trends have bolstered demand for products like wine and spirits, while dampening beer demand.
- Distribution of wholesalers mirrors population distribution. Victoria has the greatest number of establishments, followed by New South Wales, aligning with the availability of labour.
- Internal competition is high in the Liquor Wholesaling industry. Having many supply contracts with downstream consumers is vital for liquor wholesalers to thrive and the competition for supply contracts is very intense.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $6.0bn in 2023.
Trends and Insights
Wholesale bypass trends have adversely affected performance
- Greater interaction between liquor manufacturers and major liquor retailers, like those owned by Coles and Woolworths has increased wholesale bypass over the past few years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Expanding supermarket presence will exert downward pressure on revenue growth
- As major supermarket chains continue to expand their presence in liquor retailing by leveraging outlets connected to their stores to obtain market share, the wholesale bypass trend is poised to continue.
Biggest companies in the Liquor Wholesaling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Metcash | 4,649.7 | |
Independent Liquor | 428.4 | |
Beam Global Australia | 300.9 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Beer , Wine and Spirits . Beer is the largest segment of the Liquor Wholesaling in Australia.
Trends and Insights
Changes in consumer behaviour strengthen wine demand
- The wine segment includes red wine, sparkling wine and white wine. This segment accounts for the largest revenue for liquor wholesalers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Beer Manufacturing in Australia
- Wine Production in Australia
- Liquor Retailing in Australia
- Pubs, Bars and Nightclubs in Australia
- Social Clubs in Australia
- Supermarkets and Grocery Stores in Australia
International industries
- Beer Wholesaling in the US
- Wine & Spirits Wholesaling in the US
- Beer, Wine & Spirits Wholesaling in Canada
- Liquor and Tobacco Product Wholesaling in New Zealand
- Alcoholic Beverage Wholesaling in the UK
Table of Contents
About this industry
Industry definition
Liquor wholesalers buy beer, wine, spirits and other alcoholic drinks from manufacturers, and sell them to pubs, bars, supermarkets and other liquor retailers. The industry excludes wholesale activities of alcohol product manufacturers.
What's included in this industry?
BeerWineSpiritsReady-to-drink alcoholic beveragesCiderCompanies
MetcashIndependent LiquorBeam Global AustraliaPurchase this report to view all 4 major companies in this industry.
Related Terms
SPIRITSWINEBEERPREMIUMISATIONREADY-TO-DRINK (RTD)WHOLESALE BYPASSIndustry Code
ANZSIC 3606 - Liquor Wholesaling in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rising health consciousness among Australians has limited revenue growth. Reduced alcohol consumption per capita and a shift towards non-alcoholic alternatives have constrain...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Shifts in consumer patterns are vital in influencing liquor product demand. Evolving consumer behaviours and premiumisation trends have bolstered demand for products like win...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Distribution of wholesalers mirrors population distribution. Victoria has the greatest number of establishments, followed by New South Wales, aligning with the availability o...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Internal competition is high in the Liquor Wholesaling industry. Having many supply contracts with downstream consumers is vital for liquor wholesalers to thrive and the comp...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Metcash Limited’s Australian Liquor Marketers (ALM) continues to dominate the Liquor Wholesaling industry. Through acquisitions, contract renewals and extensions, ALM has enj...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Metcash's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Independent Liquor's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Beam Global Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Metcash, and factors influencing its performance in the industry
- Description and key data for Independent Liquor, and factors influencing its performance in the industry
- Description and key data for Beam Global Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Fluctuating spending patterns in downstream markets, driven by the COVID-19 pandemic has substantially influenced revenue volatility. Factors like real household discretionar...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Intensifying competition and shifting consumer preferences have dwindled profitability. Rising number of small-scale liquor wholesalers, coupled with the growing number of su...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Liquor Wholesaling industry in Australia in 2024?
The market size of the Liquor Wholesaling industry in Australia is $6.0bn in 2024.
How many businesses are there in the Liquor Wholesaling in Australia industry in 2023?
There are 2,344 businesses in the Liquor Wholesaling industry in Australia, which has grown at a CAGR of 1.7 % between 2018 and 2023.
Has the Liquor Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Liquor Wholesaling industry in Australia has been growing at a CAGR of 1.2 % between 2018 and 2023.
What is the forecast growth of the Liquor Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Liquor Wholesaling industry in Australia is expected to grow.
What are the biggest companies in the Liquor Wholesaling market in Australia?
The biggest companies operating in the Liquor Wholesaling market in Australia are Metcash, Independent Liquor and Beam Global Australia
What does the Liquor Wholesaling in Australia include?
Beer and Wine are part of the Liquor Wholesaling industry.
Which companies have the highest market share in the Liquor Wholesaling in Australia?
The company holding the most market share in Australia is Metcash.
How competitive is the Liquor Wholesaling industry in Australia?
The level of competition is high and increasing in the Liquor Wholesaling industry in Australia.
