So neat: Industry revenue will be buoyed by favourable consumer trends

The Distilleries industry in Canada has thrived over the past five years, buoyed by favourable consumer trends and strong export increases that have driven revenue growth. Government intervention through control of liquor retail sales and high excise taxes have prevented further industry growth and have been the most significant impediment to the industry's expansion. The industry experiences vigorous competition from foreign producers that have high Canadian market penetration. This is the result of reputable brands being preferred over unknown spirit brands by Canadian consumers. However, consumer trends have shifted demand toward domestic craft spirits, fuelled by changing tastes parallel to those experienced with craft more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry experiences competition from foreign producers that have high Canadian market penetration
  • The vast majority of industry exports are to the United States
  • The industry is not expected to experience a major shift in government intervention
  • Industry Report - Starting a New Business Chapter

    The difficulty of entering this industry varies depending on the target market for new entrants. Liquor production is costly and highly capital intensive, and new producers tend not to purchase massive distilling equipment unless their planned output justifies the initial investment. Additionally, the long interval between the start of production and the final product being available means that cash flows are not established for some time. While some products can be distilled over shorter periods of time, some styles of aged liquor can take several years to mature before hitting retail shelves. Delayed revenue can deter prospective entrants with smaller cash reserves from entering the market.However, distilleries with low output can be formed with minimum initial expenses. Due...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, licensed retailers and drinking establishments.

    Industry Products
  • Vodka
  • Whisky
  • Rum
  • Liqueur
  • 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 effective exchange rate index
  • World price of wheat

  • Current Performance
  • Low profitability despite enterprise growth
  • Trade expansion and US growth
  • Premiumization and consumer tastes
  • Chart: Revenue Growth

  • Industry Outlook
  • Slower craft growth and the threat of regulation
  • 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
  • Gin, brandy, tequila and other spirits
  • Liqueur
  • Chart: Distilleries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Liquor stores
  • Wholesalers
  • Consumers
  • 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 competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Distilleries Industry

  • Industry Globalization
    Corby Spirit and Wine Limited, Diageo plc, Beam Suntory Inc.,
  • Table: Corby Spirit and Wine Limited - financial performance
  • Table: Diageo plc - financial performance
  • Table: Beam Suntory Inc. - financial performance

  • 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Per capita alcohol consumption (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The evaporation and collection of a liquid, undertaken 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
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    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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