III. Industry Analysis
[Company Name]directly or indirectly competes with all liquor stores nearby our store. Competition will come from big box retailers, convenience stores and other liquor stores.
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
- Total US revenue for Beer, Wine & Liquor Stores stood at $44.7 billion last year with total industry net income of $3.8 billion. Projected annual growth is forecast to be 2.9% over the next five years.
- A sustained consumer shift away from drinking at restaurants, bars and nightclubs, towards drinking at home. Sales of alcoholic beverages at bars and restaurants fell 4.6%, while sales at liquor stores, supermarkets and other retailers for “at home” drinking rose 9.3%. Americans are consuming 10 drinks on average each month at home, compared with only 5.7 drinks in bars and restaurants.
- Per capita consumption of alcohol is growing across the United States, today 67% of Americans are active drinkers, the highest since 1985.
- Despite the worst recession in nearly 80 years, alcohol stores have proven to be largely recession proof with liquor store revenues expanding 9% over the past five years. Industry experts are forecasting sustained revenue growth for liquor manufacturers and stores across the United States.
- Deregulation of state-run liquor stores, coupled with revitalization in consumer demand, bolstered industry revenue. In particular, many consumers switched to low-cost liquor in economical packaging, which kept industry revenue afloat.