On the rocks: Canadian distilleries continue to be marginalized by major international competition

The Distilleries industry in Canada is currently at a crossroads. While hard liquor remains a popular alcoholic beverage, demand for domestically produced spirits is increasingly vulnerable to the effects of globalization. Imports represent a significant portion of consumers' demand for distilled spirits, but steady increases in imports over the past five years have come at the expense of domestic distillers. Moving forward, IBISWorld anticipates that continued consolidation among the world's largest alcoholic beverage producers will continue at an accelerating rate, causing the industry to decline in relevance even further...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
3.4%
Forecast Growth 17-22
Profit
Employment
1,460
Businesses
108
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand for domestically produced spirits is increasingly vulnerable to the effects of globalization
  • The most popular liquor brands tend to be well-known exported brands
  • The international market for distilled spirits provides a massive selection of products
  • Industry Report - Industry SWOT Analysis Chapter

    Continued import penetration will erode industry profit despite increasing interest in cocktails and mixed drinks among the younger age bracket and some growing production of premium, domestic brands. Demand for popular foreign brands has come at the expense of many domestic distilleries. Industry value added (IVA), measured as the industry's contribution to the Canadian economy, is anticipated to decrease at an annualized rate of 1.0% over the 10 years to 2022. Comparatively, the overall Canadian economy is anticipated to grow at an annualized rate of 1.9% over the period. This is indicative of the mature stage of the industry's life cycle...purchase to read more.

    Additional Insights for the Distilleries Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Distilleries Industry are

  • Effective product promotion
  • Economies of scale
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Per capita disposable income in the Distilleries industry impact industry performance..

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    What's in this report

    What is the Distilleries Industry?

    This industry consists of distilleries that purchase ingredients, such as grain, corn, rice, potatoes and sugar, and manufacture them into alcoholic spirits. These beverages are then bottled and sold to liquor distributors, licenced retailers and drinking establishments.

    Industry Products
  • Vodka
  • Whisky
  • Rum
  • Liqueurs
  • Gin, brandy, tequila and other spirits
  • Industry Activities
  • Distilling liquors
  • Blending liquors
  • Bottling liquors
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita alcohol consumption
  • Per capita disposable income
  • Canadian-dollar effective exchange rate index
  • World price of wheat

  • Current Performance
  • High profitability
  • Trade expansion
  • Premiumization
  • Innovation
  • Chart: Revenue Growth

  • Industry Outlook
  • Minimal interest in domestic alcoholic beverages
  • Import and export trends
  • Table: Distilleries Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Distilleries Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beer, Wine & Spirits Wholesaling in Canada
  • Beer, Wine & Liquor Stores in Canada

  • Key Selling Industries
  • Corn Farming in Canada
  • Glass Product Manufacturing in Canada
  • Printing Services in Canada
  • Sawmills & Wood Production in Canada

  • Products & Services
  • Whisky
  • Vodka
  • Rum
  • Liqueurs
  • Gin, brandy, tequila and other spirits
  • Chart: Distilleries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Consumers aged 19 to 30
  • Consumers aged 31 to 50
  • Consumers aged 51 to 70
  • Consumers aged 71 and older
  • Chart: Major Market Segmentation for the Distilleries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Distilleries

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Distilleries Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Distilleries Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Distilleries Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per capita alcohol consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Distillation
  • The evaporation and collection of a liquid, undertaken in order to separate a more volatile liquid from a less volatile one; used as a means of purification.
  • Premiumization
  • Trading up toward products that are of a higher quality and price.
  • Ready-To-Drink (Rtd)
  • A bottled beverage that typically has some combination of spirits and juices. Examples include Smirnoff Ice and Jack Daniels and Cola.
  • Still
  • A distilling apparatus consisting of a vessel, in which a liquid is heated and vaporized.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Distilleries market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Distilleries:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Distilleries market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Distilleries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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