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Online Alcohol Retailing in the UK - Market Research Report (2015-2030)

Oliver Parmar Oliver Parmar London, United Kingdom Last Updated: August 2025 SIC SP0.140

Revenue

£1.3bn

2025-26

£1.3bn

Past 5-Year Growth

Profit

£XX.Xm

Employees

3,179

Businesses

271

Wages

£XX.Xm

Online Alcohol Retailing in the UK industry analysis

Strengthening digital literacy and online expenditure have pushed up sales for the Online Alcohol Retailing industry. With easy access to extensive alcohol product varieties at competitive prices, more people are migrating online. Over the five years through 2025-26, online alcohol retailing revenue is projected to climb at a compound annual rate of 5.3% to reach £1.3 billion. 

Trends and Insights

  • On-trade sales are recovering. As cost-of-living pressures ease, more Brits opt to drink at pubs, bars and restaurants. However, online retailers are competing with this by offering promotional deals.
  • People go wild for low alcoholic ready-to-drink beverages. Alcopops have seen a surge in demand as people want a taste of nostalgia.
  • High disposable income levels in London attract retailers. Many online alcohol retailers set up shop in the capital because of its dense population and high income per capita.
  • Wine clubs are very popular. This is because they combine convenience and expertise by providing customers with wines selected by sommeliers. They’re the industry's largest companies, well-versed in selling wine through the post before moving their services online.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 5.3 % over the past five years, to reach an estimated £1.3bn in 2025.

Trends and Insights

The health wave raises demand for low and non alcoholic drinks

  • More Brits are shifting away from alcoholic drinks. A survey by Ocado Retail published in January 2025 found that 50% of 35 to 54-year-olds say they have reduced their alcohol consumption over the past few years, while 32% have given alcohol up entirely. 24% of those aged 55 and over say they no longer drink at all. The change in habits among the older demographics is attributed to a desire to lead healthier lifestyles and an improved range of non-alcoholic and low-alcohol products available.
  • Additional trends and insights available with purchase
Online Alcohol Retailing in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

Falling alcohol consumption will support sales of low-alcoholic drinks

  • Price rises and growing health consciousness will continue to weigh on sales of alcoholic beverages. In February 2025, the government announced new alcohol duties for the industry. The duty on draught products (beer and cider) with an alcohol by volume (ABV) below 8.5% was reduced by 1.7%, supporting beer production with lower alcohol content. The temporary flat duty rate for wines with an ABV between 11.5% and 14.5% ended. Instead, there's a new system that taxes wines with a higher ABV rating more than those without. This is intended to promote the sale of lower alcoholic drinks.

Biggest companies in the Online Alcohol Retailing in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
International Exhibition Co-operative Wine Society Ltd
127.5
Ocado Retail Ltd
115.0
Naked Wines plc
92.0

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 Other. Wine is the largest segment of the Online Alcohol Retailing in the UK.

Trends and Insights

Bulk ordering wine drives sales

  • The segment comprises red, white, sparkling and rosé wines.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Online alcohol retailing in the UK covers companies that sell packaged beer, wine and spirits exclusively online. The industry includes e-commerce businesses and online grocery businesses that sell alcohol.

What's included in this industry?

Products and services covered in the Online Alcohol Retailing industry in the United Kingdom include Selling alcohol through online and mobile portals and Operating wine clubs.

Companies

Companies covered in the Online Alcohol Retailing industry in the United Kingdom include International Exhibition Co-operative Wine Society Ltd, Ocado Retail Ltd and Naked Wines plc.

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

Related Terms

Related terms covered in the Online Alcohol Retailing industry in the United Kingdom include bricks-and-mortar, en primeur, m-commerce and e-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

On-trade sales are recovering. As cost-of-living pressures ease, more Brits opt to drink at pubs, bars and restaurants. However, online retailers are competing with this by o...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

People go wild for low alcoholic ready-to-drink beverages. Alcopops have seen a surge in demand as people want a taste of nostalgia.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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 and high income per capita...

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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. This is because they combine convenience and expertise by providing customers with wines selected by sommeliers. They’re the industry's largest c...

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 2020-2025
  • 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 using eco-friendly ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of International Exhibition Co-operative Wine Society Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Ocado Retail Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Naked Wines plc's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • 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 and key data for Naked Wines plc, 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 is rising. As digital adoption becomes more widespread and consumers increasingly value convenience, more are choosing to shop online.

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

Automation helps UK alcohol retailers manage wage pressures. Rising labour costs have challenged profitability, prompting investment in technology to offset expenses. With st...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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

Top Questions Answered

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

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

The market size of the Online Alcohol Retailing industry in the United Kingdom is £1.3bn in 2025.

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

There are 271 businesses in the Online Alcohol Retailing industry in the United Kingdom, which has grown at a CAGR of 5.2 % between 2020 and 2025.

How may import tariffs affect the Online Alcohol Retailing industry in the United Kingdom?

The Online Alcohol Retailing industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Online Alcohol Retailing industry in the United Kingdom?

The Online Alcohol Retailing industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

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

The market size of the Online Alcohol Retailing industry in the United Kingdom has been growing at a CAGR of 5.3 % between 2020 and 2025.

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

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

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

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

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

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

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

The company holding the most market share in the Online Alcohol Retailing industry in the United Kingdom is International Exhibition Co-operative Wine Society Ltd.

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

The level of competition is high and increasing in the Online Alcohol Retailing industry in the 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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