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Online Beer, Wine & Liquor Sales in the US - Market Research Report (2014-2029)

Christopher Lombardo Christopher Lombardo New York, United States Last Updated: September 2024 NAICS OD5087

Revenue

$3.1bn

2024

$3.1bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

4,773

Businesses

1,552

Wages

$XXX.Xm

Online Beer, Wine & Liquor Sales in the US industry analysis

Online beer, wine and liquor sales have skyrocketed alongside per capita disposable income and consumer awareness surrounding the online sale of alcohol. Mobile internet connections have swelled since 2019, creating a robust potential consumer base for online alcohol retailers. The pandemic provided a significant opportunity for alcohol delivery as many states loosened regulations surrounding direct-to-consumer shipments of alcohol to accommodate stay-at-home orders. Still, state-by-state variations in regulations for online alcohol distribution have challenged online retailers. Over the past five years, revenue has been surging at a CAGR of 16.5% and is expected to reach $3.1 billion in 2024, when sales are estimated to expand by 4.0%.

Trends and Insights

  • Regulatory shifts present mixed outcomes. Easing regulations offer growth opportunities but also introduce challenges as competition increases, particularly from wineries' and distilleries' direct-to-consumer models. These changes necessitate strategic adaptations.
  • An emphasis on marketing from upstream wineries boosts online wine sales. Online liquor stores partner with wineries to sell their products, so expanded consumer interest in specific brands of wine benefits digital retailers.
  • Online liquor stores prioritize tech hubs over population centers. The West comprises the largest share of online alcohol retailers since the region contains ample skilled labor and many venture capitalists.
  • Online liquor stores stock craft and specialty beverages to gain a competitive edge. Having a broader product selection attracts modern consumers seeking unique drinks.

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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 16.5 % over the past five years, to reach an estimated $3.1bn in 2024.

Trends and Insights

Online alcohol sales ease into the common-practice phase

  • Online beer, wine and liquor retailers have been in business since long before the pandemic, but the nonessential business closures and social distancing practices employed during the pandemic's peak led to unmatched booms in sales.
  • Additional trends and insights available with purchase
Online Beer, Wine & Liquor Sales in the US
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

The novelty of online alcohol sales will wane, resulting in more modest sales

  • In previous years, online beer, wine and liquor retailers enjoyed explosive growth as consumers were still discovering these e-commerce platforms, and pandemic-era social distancing orders and nonessential business closures forced consumers to find other outlets for acquiring alcoholic beverages. Moving forward, sales will slow but endure less volatility.

Biggest companies in the Online Beer, Wine & Liquor Sales in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Wine.Com Inc.
471.0
N/A
N/A
Drizly, Inc.
122.9
2.7
2.2

To view the market share and analysis for all 2 top companies in this industry, view purchase options.

Products & Services Segmentation

Online Beer, Wine & Liquor Sales in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Wine, Beer and Liquor . Wine is the largest segment of the Online Beer, Wine & Liquor Sales in the US.

Trends and Insights

Bulk wine orders are popular with consumers and businesses

  • The wine product segment includes all varieties of wine sold through online beer, wine and liquor sellers. The segment accounts for the greatest share of revenue.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Online Beer, Wine and Liquor Sales industry comprises operators that sell prepackaged beer, wine and liquor through online stores. This industry also includes companies that sell online as a complement to physical storefronts.

What's included in this industry?

BeerWineLiquorCigarettes and tobacco productsSouvenirsKitchenwareSoft drinksFood

Companies

Wine.Com Inc.Drizly, Inc.

Purchase this report to view all 2 major companies in this industry.

Related Terms

E-COMMERCERADIO-FREQUENCY IDENTIFICATION (RFID)AGE VERIFICATION SYSTEMUNIQUE VISITORS

Industry Code

NAICS 2017

NAICS 45411 - Online Beer, Wine & Liquor Sales in the US

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

Regulatory shifts present mixed outcomes. Easing regulations offer growth opportunities but also introduce challenges as competition increases, particularly from wineries' an...

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

An emphasis on marketing from upstream wineries boosts online wine sales. Online liquor stores partner with wineries to sell their products, so expanded consumer interest in ...

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

Online liquor stores prioritize tech hubs over population centers. The West comprises the largest share of online alcohol retailers since the region contains ample skilled la...

In this chapter (1)

  • Business Locations

Charts

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

Tables

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

Detailed analysis

  • Geographic spread of the industry across North America, 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

Online liquor stores stock craft and specialty beverages to gain a competitive edge. Having a broader product selection attracts modern consumers seeking unique drinks.

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

Leading online alcohol retailers focus their sights on mobile sales. One-third of Wine.com’s sales result from mobile purchases, driving the company to invest in finetuning t...

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 Wine.Com Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Drizly, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Wine.Com Inc., and factors influencing its performance in the industry
  • Description and key data for Drizly, Inc., and factors influencing its performance in the industry

External Environment

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

Analyst insights

Regulations for online alcohol retailers vary by state. Control states have more stringent regulations surrounding the sale and distribution of alcohol, while retailers in op...

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

Purchase costs dominate online alcohol retailers’ cost structures. Retailers must stock alcohol throughout the year and pay for costly website domains and computer equipment.

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

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • 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 Beer, Wine & Liquor Sales in the US industry in United States in 2024?

The market size of the Online Beer, Wine & Liquor Sales in the US industry in United States is $3.1bn in 2024.

How many businesses are there in the Online Beer, Wine & Liquor Sales in the US industry in 2024?

There are 1,552 businesses in the Online Beer, Wine & Liquor Sales in the US industry in United States, which has grown at a CAGR of 8.2 % between 2019 and 2024.

Has the Online Beer, Wine & Liquor Sales in the US industry in United States grown or declined over the past 5 years?

The market size of the Online Beer, Wine & Liquor Sales in the US industry in United States has been growing at a CAGR of 16.5 % between 2019 and 2024.

What is the forecast growth of the Online Beer, Wine & Liquor Sales in the US industry in United States over the next 5 years?

Over the next five years, the Online Beer, Wine & Liquor Sales in the US industry in United States is expected to grow.

What are the biggest companies in the Online Beer, Wine & Liquor Sales in the US market in United States?

The biggest companies operating in the Online Beer, Wine & Liquor Sales market in United States are Wine.Com Inc. and Drizly, Inc.

What does the Online Beer, Wine & Liquor Sales in the US in United States include?

Beer and Wine are part of the Online Beer, Wine & Liquor Sales in the US industry.

Which companies have the highest market share in the Online Beer, Wine & Liquor Sales in the US in United States?

The company holding the most market share in United States is Wine.Com Inc..

How competitive is the Online Beer, Wine & Liquor Sales in the US industry in United States?

The level of competition is moderate and increasing in the Online Beer, Wine & Liquor Sales in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Beer, Wine & Liquor Stores in the US

Complementors

  • Beer Wholesaling in the US
  • Wine & Spirits Wholesaling in the US
  • Mail Order in the US

International industries

  • Beer, Wine & Liquor Stores in Canada
  • Liquor Retailing in Australia
  • Liquor Retailing in New Zealand
  • Off-Licences in the UK
  • Online Alcohol Retailing in the UK

View all industries in United States

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

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 US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

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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