Spirit Production in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: August 2024
SIC C11.010Revenue
£7.9bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
19,533
Businesses
1,344
Wages
£XXX.Xm
Spirit Production in the UK industry analysis
The UK Spirit Production industry has continued to strive forward since the pandemic. Premium spirits, specifically whiskies, have seen an impressive surge in demand, with many distilleries focusing their production on these high-end creations. Inflation easing in 2024-25 has underpinned purchase costs while improving the industry's profitability.
Trends and Insights
- Major sports events in 2024 boosted spirit sales. The Euros, Wimbledon and the Paris Olympics drew more customers to pubs and event spaces, leading to a significant revenue increase for the UK hospitality sector, with spirit sales on the up.
- Scotch Whiskey remains popular in Britain. Scotch whisky remains popular in Britain, with single-malt whiskey being preferred due to its quality taste.
- Scotland is home to the majority of establishments.The region is a world-famous whisky production hub with a perfect climate for producing barley, which is a key input in whisky production.
- More and more craft distilleries are joining the industry. Craft gin and vodka distilleries are looking to capitalise on increased interest into these spirits, bringing out high-quality gin and vodka.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.6 % over the past five years, to reach an estimated £7.9bn in 2024.
Trends and Insights
The summer of sports boosts revenue via the hospitality industry
- The summer of 2024 is seeing various sports events that are lifting spirits sales from the hospitality segment.
- 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
Interest rate cut presents a bright outlook for the industry
- In August 2024, the Bank of England reduced the interest rate from 5.25% to 5%, marking the first cut since 2020. This decision could positively impact the UK's spirit industry.
Biggest companies in the Spirit Production in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Diageo plc | 2,919.2 | |
The Edrington Group Ltd | 1,312.1 | |
Pernod Ricard SA | 1,253.2 |
To view the market share and analysis for all 8 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 Blended whisky, Single malt whisky and Gin. Blended whisky is the largest segment of the Spirit Production in the UK.
Trends and Insights
Growing demand for high-quality single-malt whisky is driving sales
- Whisky is a type of alcohol made from malted grains. Scotch whisky must be produced in Scotland under UK and EU law. There are three major types of whisky: single grain, single malt and blended. Over 90% of the whisky produced in Scotland is blended and contains both malt and grain.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Wine Production in the UK
- Cider Production in the UK
- Beer Production in the UK
Complementors
- Alcoholic Beverage Wholesaling in the UK
- Pubs & Bars in the UK
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
Operators within this industry are concerned with the end-to-end process of spirits production with particular focus on distilling, bottling, and trading with retailers and wholesalers. The independent marketing and packaging of spirits is not included in the industry.
What's included in this industry?
Blended whiskySingle malt whiskyGinVodkaRum, brandy, liqueurs, pure alcohol and other spiritsCompanies
Diageo plcThe Edrington Group LtdPernod Ricard SAPurchase this report to view all 8 major companies in this industry.
Related Terms
BOURBONLONDON GINSMALL BATCH WHISKYIndustry Code
SIC 11.01 - Spirit Production in the UK
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
Major sports events in 2024 boosted spirit sales. The Euros, Wimbledon and the Paris Olympics drew more customers to pubs and event spaces, leading to a significant revenue i...
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
Scotch Whiskey remains popular in Britain. Scotch whisky remains popular in Britain, with single-malt whiskey being preferred due to its quality taste.
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
Scotland is home to the majority of establishments.The region is a world-famous whisky production hub with a perfect climate for producing barley, which is a key input in whis...
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 Europe, 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
More and more craft distilleries are joining the industry. Craft gin and vodka distilleries are looking to capitalise on increased interest into these spirits, bringing out h...
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
Companies have benefited from engaging in M&A activity. Players like Diageo have benefited from acquiring smaller up-and-coming players to help diversify their product ranges...
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 plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Edrington Group Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Pernod Ricard SA's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Diageo plc, and factors influencing its performance in the industry
- Description and key data for The Edrington Group Ltd, and factors influencing its performance in the industry
- Description and key data for Pernod Ricard SA, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Demand from supermarkets influences revenue. UK supermarkets order spirits in bulk, making them a high-value market. Demand from supermarkets is rising in 2022-23, to the ben...
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
Consumer confidence and premiumisation boosted UK spirit profits in 2024-25. Major events like the Euros and increased spending on premium spirits drove higher sales, while c...
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
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- 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 the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
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 Production in the UK industry in United Kingdom in 2024?
The market size of the Spirit Production in the UK industry in United Kingdom is £7.9bn in 2024.
How many businesses are there in the Spirit Production in the UK industry in 2024?
There are 1,344 businesses in the Spirit Production in the UK industry in United Kingdom, which has grown at a CAGR of 14.3 % between 2019 and 2024.
Has the Spirit Production in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Spirit Production in the UK industry in United Kingdom has been growing at a CAGR of 1.6 % between 2019 and 2024.
What is the forecast growth of the Spirit Production in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Spirit Production in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Spirit Production in the UK market in United Kingdom?
The biggest companies operating in the Spirit Production market in United Kingdom are Diageo plc, The Edrington Group Ltd and Pernod Ricard SA
What does the Spirit Production in the UK in United Kingdom include?
Blended whisky and Single malt whisky are part of the Spirit Production in the UK industry.
Which companies have the highest market share in the Spirit Production in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Diageo plc.
How competitive is the Spirit Production in the UK industry in United Kingdom?
The level of competition is high and increasing in the Spirit Production in the UK industry in United Kingdom.
