Raise a glass: Increasing demand for gin and whisky supports continued revenue growth

Over the past five-year period, operators in the Spirit Production industry have had to contend with volatile exchange rates and changing consumer preferences. Export demand suffered in 2015-16 due to poor economic conditions in Europe and a strong pound. Despite rising health consciousness encouraging a decline in alcohol consumption, growth in demand for whisky and gin has offset any negative effects on industry performance. Following the EU referendum in June 2016, the value of the pound depreciated, supporting industry revenue as international demand for premium spirits grew and allowed exports to rise. Overall, industry revenue is expected to grow at a compound annual rate of 1.8% over the five-year period through 2019-20. In the current year, revenue is projected to rise by 3.2%...read more.

Industry Statistics & Market Size
Revenue
£5.5bn
Annual Growth 15-20
1.8%
Forecast Growth 20-25
Profit
Employment
27,606
Businesses
573

Industry Threats & Opportunities

  • Revenue has risen, and the popularity of gin has resulted in significant enterprise growth
  • A renaissance in the gin market has supported a substantial influx of new entrants in recent years
  • Increasing consumer demand for high-quality spirits is expected to drive industry revenue growth
  • Industry Report - Industry Products Chapter

    WhiskyWhisky 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, or blended. Over 90% of the whisky produced in Scotland is blended and contains both malt and grain. The average blended Scotch is between 60% and 85% grain. The alcohol content of Scotch whisky ranges between 40% and 95% alcohol by volume. IBISWorld estimates that blended whisky will account for 68.7% of industry revenue in 2019-20. Meanwhile, single malt whisky is expected to account for 12.4% of industry revenue. Single malt whisky must be produced at a single distillery, distilled from malted barley and water, and is considered synonymous with sophistication and premium quality. Gro...purchase to read more.

    Additional Insights for the Spirit Production Industry

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

  • Effective product promotion
  • Economies of scale
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Real effective exchange rate and Demand from supermarkets in the Spirit Production industry impact industry performance..

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    What's in this report

    What is the Spirit Production Industry?

    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. Beverages produced through alcoholic fermentation are not considered within this industry; these include beer, cider and wine.

    Industry Products
  • Blended whisky
  • Single malt whisky
  • Gin
  • Other products
  • Vodka
  • Industry Activities
  • Distilling and bottling whisky
  • Distilling and bottling gin
  • Distilling and bottling vodka
  • Development of flavoured spirits
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real effective exchange rate
  • Demand from supermarkets
  • Real household disposable income
  • Alcohol consumption per capita
  • Health consciousness

  • Current Performance
  • Export growth
  • Health awareness
  • Gin-gin
  • Chart: Revenue Growth

  • Industry Outlook
  • Quality over quantity
  • Operating conditions
  • Trade flow
  • Table: Spirit Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Alcoholic Beverage Wholesaling
  • Supermarkets
  • Off-Licences
  • Nightclubs
  • Pubs & Bars

  • Key Selling Industries
  • Hollow Glass Manufacturing
  • Malt Manufacturing
  • Sugar Production

  • Products & Services
  • Blended whisky
  • Gin
  • Single malt whisky
  • Other products
  • Vodka
  • Chart: Spirit Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Off trade
  • On trade
  • Chart: Major Market Segmentation for the Spirit Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Spirit Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Spirit Production Industry

  • Industry Globalization
    Diageo plc, Chivas Brothers Ltd, The Edrington Group Ltd, William Grant & Sons Distillers Ltd,
  • Table: Diageo plc - financial performance
  • Table: Chivas Brothers Ltd - financial performance
  • Table: The Edrington Group Ltd - financial performance
  • Table: William Grant & Sons Distillers Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Spirit Production 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 Spirit Production Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bourbon
  • A type of US whisky made using corn.
  • London Gin
  • A label that can be applied to high-quality gins made using specified processes and ingredients.
  • Small Batch Whisky
  • Premium whiskies that are distilled in small quantities by mixing the contents of selected barrels.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Spirit Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Spirit Production:
    • 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 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 Spirit Production 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 Spirit Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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