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Online Alcohol Retailing in the UK - Market Research Report (2014-2029)

Timilehin Atere Timilehin Atere London, United Kingdom Last Updated: November 2024 SIC SP0.140

Revenue

£1.3bn

2024-25

£1.3bn

Past 5-Year Growth

Profit

£XXX.Xm

Employees

3,545

Businesses

298

Wages

£XX.Xm

Online Alcohol Retailing in the UK industry analysis

The Online Alcohol Retailing industry has grown following the pandemic and increasing digital literacy and online expenditure has aided the industry. Through easy access to extensive alcohol product varieties at competitive prices, more and more consumers are migrating online and buying premium beverages, which has boosted revenue growth. Over the five years through 2024-25, online alcohol retailing revenue is projected to climb at a compound annual rate of 9.8% to reach under £1.2 billion. In 2024-25, online alcohol revenue is anticipated to drop by 3.2% as climbing on-trade consumption is set to hinder revenue growth. 

Trends and Insights

  • Businesses extend their reach to non-alcoholic customers. Online retailers benefit by expanding their offerings to include non-alcoholic beer, wine, and spirits, as seen in The Wine Society's 200% sales increase after launching a new low and no-alcohol range.
  • Online retailers drive the premium spirits market. Offering hard-to-find luxury brands and investment spirits, online platforms cater to discerning consumers, while standard brands available locally struggle to attract the same interest.
  • High disposable income levels in London attract retailers. Many online alcohol retailers set up shop in the capital because of its dense population, high income per capital paired with the demand for alcohol.
  • Wine clubs are very popular. They are the most influential companies in the industry and many of them are well versed in selling wine through the post before moving their services online.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 9.8 % over the past five years, to reach an estimated £1.3bn in 2024.

Trends and Insights

Businesses are increasingly catering to non-alcoholic drinkers

  • Ever-growing health consciousness presents an obstacle for many wine industries, with consumers looking to reduce their alcohol intake and cut out alcohol consumption altogether. Trends like dry January threaten industry sales.
  • Additional trends and insights available with purchase
Online Alcohol Retailing in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Improved economic outlook is set to boost demand for online retailers

  • Economic conditions are set to improve over 2024-25, boosting sales opportunities for online alcohol retailers.

Biggest companies in the Online Alcohol Retailing in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Naked Wines plc
165.2
International Exhibition Co-operative Wine Society Ltd
131.2
Ocado Retail Ltd
96.6

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Online Alcohol Retailing in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Wine, Spirits and liqueurs and Cider and perry. Wine is the largest segment of the Online Alcohol Retailing in the UK.

Trends and Insights

Wine sales suffer from seasonal volatility

  • The segment comprises red, white, sparkling and rosé wines. Sales of sparkling wines, like prosecco, have surged recently.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry covers companies that sell packaged beer, wine and spirits exclusively over the internet. This also includes E-commerce businesses and online grocery businesses who sell alcohol.

What's included in this industry?

Selling alcohol through online and mobile portalsOperating wine clubs

Companies

Naked Wines plcInternational Exhibition Co-operative Wine Society LtdOcado Retail Ltd

Purchase this report to view all 5 major companies in this industry.

Related Terms

BRICKS-AND-MORTAREN PRIMEURM-COMMERCEE-TAILERS

Industry Code

SIC 2007

SIC 47.25 - Online Alcohol Retailing in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Businesses extend their reach to non-alcoholic customers. Online retailers benefit by expanding their offerings to include non-alcoholic beer, wine, and spirits, as seen in T...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Online retailers drive the premium spirits market. Offering hard-to-find luxury brands and investment spirits, online platforms cater to discerning consumers, while standard ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

High disposable income levels in London attract retailers. Many online alcohol retailers set up shop in the capital because of its dense population, high income per capital p...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Wine clubs are very popular. They are the most influential companies in the industry and many of them are well versed in selling wine through the post before moving their ser...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Virgin Wine aims to cut greenhouse gas emissions significantly by 2030. The company already reduced Scope 1 and Scope 2 emissions substantially in 2023 by utilizing eco-frien...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Naked Wines plc's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of International Exhibition Co-operative Wine Society Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Ocado Retail Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Naked Wines plc, and factors influencing its performance in the industry
  • Description and key data for International Exhibition Co-operative Wine Society Ltd, and factors influencing its performance in the industry
  • Description and key data for Ocado Retail Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Total online expenditure highlights the amount of consumer purchases online. When total online spending is higher, the volume of alcohol bought online will typically follow s...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Exchange rate fluctuations impact online alcohol retailers' costs. Heavy reliance on wine imports and post-Brexit customs checks inflate expenses, though easing global inflat...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Online Alcohol Retailing in the UK industry in United Kingdom in 2024?

The market size of the Online Alcohol Retailing in the UK industry in United Kingdom is £1.3bn in 2024.

How many businesses are there in the Online Alcohol Retailing in the UK industry in 2024?

There are 298 businesses in the Online Alcohol Retailing in the UK industry in United Kingdom, which has grown at a CAGR of 9.3 % between 2019 and 2024.

Has the Online Alcohol Retailing in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Online Alcohol Retailing in the UK industry in United Kingdom has been growing at a CAGR of 9.8 % between 2019 and 2024.

What is the forecast growth of the Online Alcohol Retailing in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Online Alcohol Retailing in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Online Alcohol Retailing in the UK market in United Kingdom?

The biggest companies operating in the Online Alcohol Retailing market in United Kingdom are Naked Wines plc, International Exhibition Co-operative Wine Society Ltd and Ocado Retail Ltd

What does the Online Alcohol Retailing in the UK in United Kingdom include?

Selling alcohol through online and mobile portals and Operating wine clubs are part of the Online Alcohol Retailing in the UK industry.

Which companies have the highest market share in the Online Alcohol Retailing in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Naked Wines plc.

How competitive is the Online Alcohol Retailing in the UK industry in United Kingdom?

The level of competition is high and increasing in the Online Alcohol Retailing in the UK industry in United Kingdom.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Off-Licences in the UK
  • Online Grocery Retailers in the UK

Complementors

  • Wine Production in the UK
  • Beer Production in the UK
  • Alcoholic Beverage Wholesaling in the UK
  • Spirit Production in the UK

International industries

  • Beer, Wine & Liquor Stores in the US
  • Online Beer, Wine & Liquor Sales in the US
  • Beer, Wine & Liquor Stores in Canada
  • Liquor Retailing in Australia
  • Liquor Retailing in New Zealand

View all industries in United Kingdom

Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

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