In high spirits: Loosening regulations will support industry revenue growth

The Beer, Wine and Liquor Stores industry in Ontario comprises specialty shops specifically licensed to sell alcoholic beverages for off-premises consumption. The industry contends with strict government regulation controlling everything from prices to the number of operators. The Alcohol and Gaming Commission of Ontario (AGCO) issues licences that permit a manufacturer of alcohol to sell its products to the Liquor Control Board of Ontario (LCBO) for sale or distribution. Changes to Ontario's long-standing alcohol regulation laws promoted growth during the period. Most notably, in 2015 the AGCO authorized up to 450 grocery stores to sell some combination of beer, cider and wine. As government qualifications for selling alcohol become less stringent, retailers are expected to benefit...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
15,537
Businesses
478

Industry Threats & Opportunities

  • Rising health consciousness and stagnant alcohol consumption in Ontario will threaten revenue
  • Industry Report - Industry Products Chapter

    • Spirits and liquor account for the largest share of industry revenue in 2018 at 38.5%, which is significantly higher than the national figure of 23.1%. However, according to the LCBO, this segment has declined for the last eight consecutive years.• Beer accounts for 22.3% of industry revenue, which is lower than the national average. Craft beer is growing in popularity in Ontario. In 2017, the LCBO recorded a 27.0% increase in craft beer sales (latest data available).• Wine sales increased as a share of revenue during the five-year period, and are estimated to account for 35.1% of industry revenue in 2018, similar to the national average.• Other products, including ciders and coolers, are estimated to account for 4.1% of industry revenue...purchase to read more.

    Additional Insights for the Beer, Wine & Liquor Stores in Ontario Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beer, Wine & Liquor Stores in Ontario Industry are

  • Ability to control stock on hand
  • Proximity to key markets
  • Proximity to key suppliers
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income in Ontario and Number of Adults aged 15 to 64 in Ontario in the Beer, Wine & Liquor Stores in Ontario industry impact industry performance..

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    What's in this report

    What is the Beer, Wine & Liquor Stores in Ontario Industry?

    This industry includes stores and agencies that are primarily licensed to sell alcoholic beverages for off-premises consumption in Ontario. The industry excludes wholesalers and grocery, convenience and gas station stores.

    Industry Products
  • Beer
  • Wine
  • Liquor
  • Ciders, coolers and other products
  • Industry Activities
  • Retailing beer
  • Retailing wine
  • Retailing liquor
  • 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 disposable income in Ontario
  • Number of Adults aged 15 to 64 in Ontario
  • Per capita alcohol consumption
  • Total health expenditure

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beer, Wine & Liquor Stores in Ontario Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hotels & Motels in Canada
  • Full-Service Restaurants in Canada
  • Bars & Nightclubs in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Beer, Wine & Spirits Wholesaling in Canada
  • Breweries in Canada
  • Distilleries in Canada
  • Packaging & Labelling Services in Canada

  • Products & Services
  • Liquor
  • Wine
  • Beer
  • Ciders, coolers and other products
  • Chart: Beer, Wine & Liquor Stores in Ontario Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 40 to 54
  • Consumers aged 55 to 64
  • Consumers aged 30 to 39
  • Consumers aged 19 to 30
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Beer, Wine & Liquor Stores in Ontario Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Beer, Wine & Liquor Stores in Ontario

  • Basis of Competition
    Barriers to Entry
    Liquor Control Board of Ontario, Brewers Retail Inc., Wine Rack, The Wine Shop,
  • Table: Liquor Control Board of Ontario - financial performance
  • Table: Brewers Retail Inc. - financial performance
  • Table: Wine Rack - financial performance
  • Table: The Wine Shop - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beer, Wine & Liquor Stores in Ontario 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 Beer, Wine & Liquor Stores in Ontario Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income in Ontario (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Mom-And-Pop Store
  • A business that is owned and operated in a single location with few or no employees other than the owner or owners.
  • Off-Premise
  • The purchase of liquor in packaged form (bottles, cans or casks) for consumption at home or anywhere other than the location of purchase.
  • On-Premise
  • The purchase of liquor for immediate consumption, typically at a bar or restaurant.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Beer, Wine & Liquor Stores in Ontario market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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
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    This report on Beer, Wine & Liquor Stores in Ontario:
    • 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 Beer, Wine & Liquor Stores in Ontario 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 Beer, Wine & Liquor Stores in Ontario, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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