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Spirit Production in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Spirit Production Market Research Report | SIC C11.010 | Dec 2016

In high spirits: Revenue growth to be supported by consumer preference for high-quality spirits

IBISWorld’s Spirit Production 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.

Report Snapshot
Market Share of Companies
Chivas Brothers Ltd Chivas Brothers Ltd market share
Diageo plc Diageo plc market share
Edrington Group Ltd Edrington Group Ltd market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • The popularity of whisky has supported revenue growth over the past five years
  • Authorities have blamed falling demand on the high amount of tax charged on spirits
  • Whisky exports are expected to benefit from a relatively weak pound in the short term
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Industry Analysis & Industry Trends

The Spirit Production industry is heavily reliant on international trade. Scotch whisky in particular propelled the industry forward at the start of the period as it maintained its reputation as a global powerhouse, accounting for the largest volume of exports in the Scottish manufacturing sector. High demand encouraged many producers to introduce innovative variations of their whiskies. Limited editions proved very popular in China, where rare luxury spirits have been popular for business gifts. However, anti-extravagance measures in China, rising competition in the United States and slowing global economic growth have weighed on the industry over the past five years. Falling alcohol consumption per capita and declining demand in the on-trade have also constrained revenue growth... purchase to read more

Industry Report - Industry Investment Chapter

The Spirit Production industry has a medium level of capital intensity. Using wage costs as a proxy for labour and depreciation charges as a proxy for capital investment, IBISWorld estimates that operators in the Spirit Production industry spend £3.08 on labour for every pound they invest in capital.

Producing spirits requires equipment to mash the grains or other base ingredients, ferment the resulting liquid, distil it to create a spirit, put it into appropriate storage and bottle it.

This must then be repaired, maintained and replaced as necessary. Although the process is heavily reliant on capital, it is also important that these processes are carefully monitored. However, the majority of the production process does not require significant labour activity.

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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... purchase to read more


    Industry ProductsRelated Reports

    What is the Spirit Production Industry?

    Firms in this industry distil, bottle and sell spirits and liqueurs to wholesalers, retailers and the on-trade. The industry does not include the exclusive practice of bottling and labelling spirits without manufacturing them.

    Industry Products
    WhiskyGinOther spiritsPure alcoholPre-mixed beveragesVodka
    Industry Activities
    Distilling and bottling whiskyDistilling and bottling ginDistilling and bottling vodkaDistilling and bottling liqueurs

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Real effective exchange rate
  • Demand from supermarkets
  • Real household disposable income
  • Alcohol consumption per capita
  • Current Performance
  • Higher spirits
  • Evaporating exports
  • Tax troubles
  • Demand trends
  • Chart: Revenue Growth
  • Industry Outlook
  • Supporting growth
  • Cause for concern
  • International demand
  • Table: Spirit Production Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Spirit Production Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Alcoholic Beverage Wholesaling
  • Supermarkets
  • Off-Licences
  • Nightclubs
  • Pubs & Bars
  • Key Selling Industries
  • Hollow Glass Manufacturing
  • Malt Manufacturing
  • Products & Services
  • Whisky
  • Gin
  • Other spirits
  • Vodka
  • Pure alcohol
  • Pre-mixed beverages
  • Chart: Spirit Production Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Exports
  • Off trade
  • On trade
  • Chart: Major Market Segmentation for the Spirit Production Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Excise duty
  • Wages
  • Advertising
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Spirit Production
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Spirit Production Industry
  • Industry Globalization
    Major Companies
    Diageo plc
    Chivas Brothers Ltd
    Edrington Group Ltd
  • Table: Diageo plc - financial performance
  • Table: Chivas Brothers Ltd - financial performance
  • Table: Edrington Group Ltd - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Spirit Production 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)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • A Chinese distilled spirit made from grains.
  • Bourbon
  • A type of US whiskey made using corn.
  • London Gin
  • A label that can be applied to high-quality gins made using specified processes and ingredients.
  • Poitin
  • A traditional Irish spirit made from cereals, grain, whey, sugar beet, molasses and potatoes.
  • Small Batch Whisky
  • These are premium whiskies that are distilled in small quantities by mixing the contents of selected barrels.

  • Why Buy this Report?
    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 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 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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