The Liquor Store industry has grown 5% over the past five years to reach $69 billion. Per capita expenditure on alcohol is expected to grow more strongly over the next five years, increasing at an annualized rate of 3.0% The industry’s success over the next five years will likely depend on how it markets high-margin brands to consumers. Operators may boost in-store marketing activities and hire more well-versed personnel to better demonstrate the taste and potential health benefits of purchasing high-quality products.
Growth will be driven further by state deregulation. Deregulation is expected to permit more retailers to enter the industry, while longer selling hours will likely enable these operators to generate added revenue.
Industry operators will likely benefit from a growing share of the population that may consume alcohol. The number of millennials currently represents a greater percentage of the US population than the baby boomer generation, and the youngest millennials will all be of legal drinking age over the next decade. As a result, industry operators will likely cater to a growing market of new and young consumers whose tastes are entirely different from consumers in older age groups.