Spirit Manufacturing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC C1213Revenue
$2.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,339
Businesses
321
Wages
$XXX.Xm
Spirit Manufacturing in Australia industry analysis
Rising exports, largely to the Asia-Pacific region, have provided some support to industry revenue over the past few years, but it hasn’t been enough to prevent falls. Spirit manufacturers face strong external competition, with imports now expected to account for almost one-third of domestic demand. Australian spirit manufacturers derive a large portion of revenue from bottling and blending overproof spirits imported from overseas. The premiumisation of consumer tastes and stronger demand for ready-to-serve cocktail products have benefited the industry over the past five years. Industry revenue is expected to fall at an average annual rate of 1.7% over the five years through 2024-25, to an estimated $2.4 billion. This trend includes an expected fall of 1.9% in the current year, driven by high inflation and a weaker economic environment.
Trends and Insights
- Premiumisation trends have aided spirit manufacturers performance. Demand for spirits relative to other alcoholic beverages and within the spirit market, consumers have favoured premium products like ready-to-serve cocktails and native botanical gins.
- RTS cocktails have grown in popularity as distillers have developed new products to meet consumer interests. This segment is dominated by the larger spirit makers but craft distillers are increasing their range.
- Most spirit manufacturers position themselves close to downstream markets. Victoria and New South Wales are the two most populous states and the largest spirit manufacturing states.
- Spirit manufacturers compete with each other on price and quality. The large distillers are very competitive on price, while many new entrants compete with premium spirit offerings.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated $2.4bn in 2024.
Trends and Insights
Changing consumer health trends have benefited spirit manufacturers
- Changing alcohol consumption patterns, health consciousness and heavy excise tax burdens have affected industry performance and competition over the past decade.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The Spirit Manufacturing industry is forecast to return to growth
- Industry sales volumes are projected to grow moderately over the next five years, with increased emphasis on higher value products. Interest rates are projected to be gradually cut as inflation rates fall. This will support growth in discretionary income, which will help bolster sales.
Biggest companies in the Spirit Manufacturing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Diageo Australia | 572.4 | |
Coca-Cola Europacific Partners Holdings (Australia) | 365.8 | |
Asahi Holdings | 249.9 |
To view the market share and analysis for all 5 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 Liqueurs, Spirits and RTD products. Liqueurs is the largest segment of the Spirit Manufacturing in Australia.
Trends and Insights
RTD products have become entrenched as the leading spirit type
- RTD products are single-serve and contain a spirit like, whiskey, bourbon or rum, mixed with carbonated soft drinks, fruit drinks or other sweet beverages.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Beer Manufacturing in Australia
- Soft Drink Manufacturing in Australia
Complementors
- Bottled Water Manufacturing in Australia
- Fruit Juice Drink Manufacturing in Australia
International industries
- Global Spirits Manufacturing
- Distilleries in the US
- Vodka Distilleries in the US
- Whiskey & Bourbon Distilleries in the US
- RTD Mixed Spirit Production in the US
Table of Contents
About this industry
Industry definition
The industry purchases ingredients such as grapes, sugar and malt, then ferments and distils these to produce spirit beverages including vodka, gin, whisky and liqueurs. Industry participants also blend overproof spirits imported from overseas. Operators package these products and sell them to alcoholic drink wholesalers and retailers. While the industry makes fortified spirits, it does not produce fortified wines.
What's included in this industry?
SpiritsRTD productsRTS productsLiqueursCompanies
Diageo AustraliaCoca-Cola Europacific Partners Holdings (Australia)Asahi HoldingsPurchase this report to view all 5 major companies in this industry.
Related Terms
READY-TO-DRINK (RTD)EXCISEREADY-TO-SERVE (RTS)Industry Code
ANZSIC 1213 - Spirit Manufacturing 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
Premiumisation trends have aided spirit manufacturers performance. Demand for spirits relative to other alcoholic beverages and within the spirit market, consumers have favou...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
RTS cocktails have grown in popularity as distillers have developed new products to meet consumer interests. This segment is dominated by the larger spirit makers but craft d...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
Most spirit manufacturers position themselves close to downstream markets. Victoria and New South Wales are the two most populous states and the largest spirit manufacturing ...
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 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
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
Spirit manufacturers compete with each other on price and quality. The large distillers are very competitive on price, while many new entrants compete with premium spirit off...
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 2019-2024
- 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
Diageo, Coca-Cola Europacific Partners and Asahi dominate market share primarily through their RTD and RTS beverage portfolios. Diageo’s brand includes Gordon’s, Tanqueray an...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Diageo Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Coca-Cola Europacific Partners Holdings (Australia)'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Asahi Holdings's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Diageo Australia, and factors influencing its performance in the industry
- Description and key data for Coca-Cola Europacific Partners Holdings (Australia), and factors influencing its performance in the industry
- Description and key data for Asahi Holdings, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Spirt Manufacturing is heavily regulated by the ATO. Distillers require licensing by the ATO and must keep detailed records, including still-house records, spirit store recor...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Purchase costs have risen over the past five years. World prices of major commodity inputs like grain and sugar have risen as supply conditions have tightened.
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 Spirit Manufacturing industry in Australia in 2024?
The market size of the Spirit Manufacturing industry in Australia is $2.4bn in 2024.
How many businesses are there in the Spirit Manufacturing in Australia industry in 2024?
There are 321 businesses in the Spirit Manufacturing industry in Australia, which has grown at a CAGR of 2.6 % between 2019 and 2024.
Has the Spirit Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Spirit Manufacturing industry in Australia has been declining at a CAGR of 1.7 % between 2019 and 2024.
What is the forecast growth of the Spirit Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Spirit Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Spirit Manufacturing market in Australia?
The biggest companies operating in the Spirit Manufacturing market in Australia are Diageo Australia, Coca-Cola Europacific Partners Holdings (Australia) and Asahi Holdings
What does the Spirit Manufacturing in Australia include?
Spirits and RTD products are part of the Spirit Manufacturing industry.
Which companies have the highest market share in the Spirit Manufacturing in Australia?
The company holding the most market share in Australia is Diageo Australia.
How competitive is the Spirit Manufacturing industry in Australia?
The level of competition is moderate and increasing in the Spirit Manufacturing industry in Australia.
