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Drink Retailing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Gaetana Mak Gaetana Mak London, United Kingdom Last Updated: August 2025 SIC UK-G4722

Revenue

£35.9bn

2025-26

£36.2bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

210k

Businesses

71,786

Wages

£X.Xbn

Drink Retailing in the UK industry analysis

Over the five years through 2025, revenue is expected to fall at a compound annual rate of 4.4%. Specialist drinks retailers in Europe are adapting to a changing market landscape, driven by the rise of the "sober curious" movement and a shift towards premium, value-based purchases. Emerging consumer preferences for low and no alcohol (NOLO) options have led to declining alcohol consumption, even in traditional markets like France and the UK.

Trends and Insights

  • Drink retailers grapple with supermarket competition. To compete with supermarkets’ lower prices, they’re improving their online presence, bringing in delivery options and enhancing customer service to stay relevant.
  • Age influences purchasing preferences. Young, price-conscious consumers flock to supermarkets, whereas older, experience-driven buyers favour drink retailers, aiming to support local businesses and seek out premium brands.
  • The European Food Retailing industry is highly fragmented. Regionally specific beverage preferences, customer loyalty to local retailers and the ability of off-licences to satisfy niche market segments add to the industry's fragmentation.
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Top Questions Answered in this Report

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What is the market size of the Drink Retailing industry in the United Kingdom in 2025?

The market size of the Drink Retailing industry in the United Kingdom is £35.9bn in 2025.

How many businesses are there in the Drink Retailing industry in the United Kingdom in 2025?

There are 71,786 businesses in the Drink Retailing industry in the United Kingdom, which has grown at a CAGR of 0.9 % between 2020 and 2025.

Has the Drink Retailing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Drink Retailing industry in the United Kingdom has been declining at a CAGR of 3.3 % between 2020 and 2025.

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

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

What does the Drink Retailing industry in the United Kingdom include?

Beer and Cider and Wine are part of the Drink Retailing industry in the United Kingdom.

How competitive is the Drink Retailing industry in the United Kingdom?

The level of competition is high and increasing in the Drink Retailing industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Regulations widen significantly throughout the continent. Drink retailing regulations vary widely based on country's attitudes towards alcohol consumption, with the UK adopting stricter controls to mitigate health concerns while other countries prioritise a more liberal approach.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Drink Retailing in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Profit dwindles amid stiff competition. Drink retailers are finding it tough to maintain profitability as rising competition from supermarkets and online delivery services forces them to drop prices and invest in delivery options.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Drink Retailing in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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