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Vodka Distilleries in the UK - Market Research Report (2014-2029)

Timilehin Atere Timilehin Atere London, United Kingdom Last Updated: October 2024 SIC SP0.005

Revenue

£65.7m

2024-25

£65.7m

Past 5-Year Growth

Profit

£XXX.Xk

Employees

385

Businesses

239

Wages

£X.Xm

Vodka Distilleries in the UK industry analysis

Alcohol consumption, demand from pubs and bars, disposable income, health consciousness and the exchange rate heavily influence the revenue of vodka distilleries. Competition in the vodka industry is fierce, with many of the most popular brands in the UK being produced internationally. Other spirits also pose strong competition. However, AU Vodka has emerged as the largest UK-produced vodka brand, significantly boosting the industry. Its revenue has increased substantially over the last five years, driving the industry forward. Improved living costs and increased footfall in the on-trade market have increased revenue opportunities for producers, and as a result, industrial revenue is set to increase by a compound annual rate of 3% at £65.7 million, with a 1.4% growth in the year 2024-25. 

Trends and Insights

  • Competition is fierce for UK vodka distilleries. With tequila, gin and whisky constantly vying for market share and international vodka, this adds to the challenge.
  • Plain vodka with soda water is rising in popularity. Driven by health consciousness and a desire for lower-calorie options, consumers prefer this "skinny drink" over traditional flavoured vodka mixes, which often involve juice and fizzy drinks, known for causing headaches.
  • The South East of England and London foster local vodka production. With an abundant local pub scene and a wealthy consumer base, the South East and London provide ideal conditions for vodka distilleries to flourish.
  • Achieving differentiation is no small feat. The task of creating a novel product in the saturated vodka market with a vast array of flavours and styles presents a significant challenge for new entrants.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 3.0 % over the past five years, to reach an estimated £65.7m in 2024.

Trends and Insights

Consumers prefer vodka produced by international distilleries

  • Many of the vodka consumed in the UK are produced by foreign distilleries, despite some being owned by British spirit companies, which challenge their revenue.
  • Additional trends and insights available with purchase
Vodka Distilleries in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

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

Trends and Insights

Fallen interest could spark an increase in investment for UK distilleries

  • The distillery market in the industry is fairly small, especially when compared to other spirit distilleries like gin and whiskey, which have large distilleries all over the UK.

Biggest companies in the Vodka Distilleries in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
AU VODKA LTD
49.3
Chase Distillery Ltd
4.5
Sipsmith Ltd
2.3

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

Products & Services Segmentation

Vodka Distilleries in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Flavoured vodka and Non-flavoured vodka. Flavoured vodka is the largest segment of the Vodka Distilleries in the UK.

Trends and Insights

Shifting drinking culture has maintained sales of traditional vodka

  • Traditional vodka products, generally unflavoured, clear and of a 40% ABV, have been the largest-selling product for as long as they have existed.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Operators in the Vodka Distilleries industry manufacture vodka from fermented potatoes or cereal grains to create traditional, flavoured, craft and low-calorie spirits for consumption.

What's included in this industry?

Non-flavoured vodkaFlavoured vodkas

Companies

AU VODKA LTDChase Distillery LtdSipsmith Ltd

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

Related Terms

VODKA BOTANICALSCRAFT VODKAFLAVOURED VODKASTILLSTILLMANFIELD-TO-BOTTLE OPERATIONS

Industry Code

SIC 2007

SIC 11.01 - Vodka Distilleries 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

Competition is fierce for UK vodka distilleries. With tequila, gin and whisky constantly vying for market share and international vodka, this adds to the challenge.

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

Plain vodka with soda water is rising in popularity. Driven by health consciousness and a desire for lower-calorie options, consumers prefer this "skinny drink" over traditio...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

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
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

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

The South East of England and London foster local vodka production. With an abundant local pub scene and a wealthy consumer base, the South East and London provide ideal cond...

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

Achieving differentiation is no small feat. The task of creating a novel product in the saturated vodka market with a vast array of flavours and styles presents a significant...

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

AU Vodka excels despite tough international competition. Celebrity endorsements from Floyd Mayweather, Jake Paul and Fredo boost its exposure. At the same time, unique gold p...

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 AU VODKA LTD's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Chase Distillery Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Sipsmith 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 AU VODKA LTD, and factors influencing its performance in the industry
  • Description and key data for Chase Distillery Ltd, and factors influencing its performance in the industry
  • Description and key data for Sipsmith 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

Licencing and duty obligations. Distillers are legally required to hold a licence, comply with the Spirits Regulations 2015 and pay alcohol duties according to the Alcohol Li...

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

UK vodka distilleries have mixed fortunes. While improved economic conditions and lower input costs boost profits, intense competition from international brands continues to ...

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 Vodka Distilleries in the UK industry in United Kingdom in 2024?

The market size of the Vodka Distilleries in the UK industry in United Kingdom is £65.7m in 2024.

How many businesses are there in the Vodka Distilleries in the UK industry in 2024?

There are 239 businesses in the Vodka Distilleries in the UK industry in United Kingdom, which has grown at a CAGR of 13.0 % between 2019 and 2024.

Has the Vodka Distilleries in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Vodka Distilleries in the UK industry in United Kingdom has been growing at a CAGR of 3.0 % between 2019 and 2024.

What is the forecast growth of the Vodka Distilleries in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Vodka Distilleries in the UK industry in United Kingdom is expected to decline.

What are the biggest companies in the Vodka Distilleries in the UK market in United Kingdom?

The biggest companies operating in the Vodka Distilleries market in United Kingdom are AU VODKA LTD, Chase Distillery Ltd and Sipsmith Ltd

What does the Vodka Distilleries in the UK in United Kingdom include?

Non-flavoured vodka and Flavoured vodkas are part of the Vodka Distilleries in the UK industry.

Which companies have the highest market share in the Vodka Distilleries in the UK in United Kingdom?

The company holding the most market share in United Kingdom is AU VODKA LTD.

How competitive is the Vodka Distilleries in the UK industry in United Kingdom?

The level of competition is high and increasing in the Vodka Distilleries in the UK industry in United Kingdom.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Wine Production in the UK
  • Cider Production in the UK
  • Whisky Production in the UK
  • Gin Production in the UK

Complementors

  • Spirit Production in the UK
  • Pubs & Bars in the UK

International industries

  • Global Spirits Manufacturing
  • RTD Mixed Spirit Production in the US
  • Spirit Manufacturing in Australia
  • Spirit Manufacturing in New Zealand
  • Herstellung von Spirituosen

View all industries in United Kingdom

Methodology

How are IBISWorld reports created?

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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.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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