Raise your glass: Rising disposable income and more establishments will drive industry revenue growth

California has relatively relaxed regulation when it comes to the distribution of alcohol. Since the state enables several different types of businesses to sell beer, wine and liquor, the industry is much more fragmented than other states. Overall, industry growth has been healthy. Per capita alcohol consumption in California and per capita disposable income in California have both been increasing steadily over the past five years. Large-scale operators have started to carve out greater market share as small independent operators have been forced to close down. Millennials being one of the largest age demographics, as more millennials reach the legal drinking age, industry revenue is expected to grow over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
1.1%
Forecast Growth 17-22
Profit
Employment
18,035
Businesses
6,122
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Industry Threats & Opportunities

  • As more millennials reach the legal drinking age, industry revenue will rise
  • Industry revenue will grow as disposable income and minimum wage increases
  • The number of enterprises is expected to grow at a slightly slower pace than industry revenue
  • Industry Report - Industry Analysis Chapter

    The Beer, Wine and Liquor Stores industry in California has grown steadily over the five years to 2017 at an estimated annualized rate of 1.1% to $4.5 billion, with low volatility. While alcohol consumption levels change, demand is relatively steady because addictive goods such as alcohol are generally considered much more inelastic. However, while demand has grown as per capita income in California has increased, the industry experiences many external and growing threats from grocery stores, gas stations, and convenience stores. Thus, growth has been slow and profits have been squeezed, particularly as labor costs have increased. Overall, industry growth is expected to be slightly slower than the national Beer, Wine and Liquor Stores industry’s projected growth of an annualized 1.7%. The...purchase to read more.

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

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

  • Close monitoring of competition
  • Use of high volume/low margin strategy
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Per Capita Alcohol Consumption in California and Per Capita Disposable Income in California in the Beer, Wine & Liquor Stores in California industry impact industry performance..

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

    Operators in this industry include retail stores specifically licensed to sell alcoholic beverages for off-premises consumption. This industry excludes grocery stores, wholesalers, convenience stores and gas stations.

    Industry Products
  • Beer
  • Wine
  • Liquor
  • Industry Activities
  • Beer retailing
  • Wine retailing
  • Spirits retailing
  • Cider, mead and other alcoholic beverage retailing
  • 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 in California
  • Per Capita Disposable Income in California
  • Total recreation expenditure
  • Excise tax on beer
  • Healthy eating index

  • Current Performance
  • Rising wages
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising wages
  • Industry landscape
  • Table: Beer, Wine & Liquor Stores in California Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beer Wholesaling
  • Breweries
  • Wine & Spirits Wholesaling
  • Wineries

  • Products & Services
  • Wine
  • Liquor
  • Beer
  • Chart: Beer, Wine & Liquor Stores in California Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 18-44
  • Consumers aged 45-65
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Beer, Wine & Liquor Stores in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Rent and utilities
  • Wages
  • Chart: Cost Structure Benchmarking – Sector vs Beer, Wine & Liquor Stores in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beer, Wine & Liquor Stores in California Industry

  • BevMo!Total Wine and MoreKeg N BottleVendome Wine and Spirits
  • Table: BevMo! - financial performance
  • Table: Total Wine and More - financial performance
  • Table: Keg N Bottle - financial performance
  • Table: Vendome Wine and Spirits - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beer, Wine & Liquor Stores in California 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 California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Disposable income in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alcoholic Beverages
  • A beverage category that includes beer, wine and liquors.
  • Mom-And-Pop Shop
  • A business that is owned and operated in a single location with few or no employees other than the owner or owners.
  • Off-Premises
  • The purchase of liquor in packaged form (bottles, cans or casks) for consumption at home or anywhere other than the location of purchase.
  • On-Premises
  • The purchase of liquor for immediate consumption.
  • Why buy this report?

    The Beer, Wine & Liquor Stores in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

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

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