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Off-Licences in the UK Industry Data and Analysis
The past five years have been a challenge for the UK’s off-licences, with revenue expected to decline at a compound annual rate of 1.4% over the five years through 2025-26 to £3.1 billion. Cost pressures are mounting across the board. Higher alcohol duties, especially a new strength-based tax regime, are squeezing profit margins, while wage hikes, rising rents and extra compliance costs have all made trading conditions tougher. Late-night levies and stricter regulations have increased operating costs for independent off-licences in city centres. Unlike supermarkets, off-licences now find it much harder to turn a sale into profit, as larger retailers benefit from scale and property ownership, leaving smaller shops disadvantaged.Younger shoppers drink less or choose no- and low-alcohol options, while price-conscious households opt for supermarket deals or quick online orders. Major chains like Majestic Wine are responding by expanding their store networks and investing in exclusive and alcohol-free lines, while smaller shops double down on specialist ranges and rapid local delivery to stay competitive. The arrival of AI-powered age checks and digital IDs is changing the game on compliance, cutting queuing times and helping manage labour costs. Still, revenue is expected to dip by 1.3% in 2025-26, and profit margins remain below the broader retail sector, reflecting the ongoing squeeze from costs and competition.There are reasons for cautious optimism. Revenue is forecast to grow at a compound annual rate of 1.1% over the five years through 2030-31 to reach £3.3 billion as the industry stabilises and adapts to new consumer trends. Ongoing innovation will be crucial, as shops that carve out a niche, offering premium, alcohol-free, or locally sourced products, will stand out. However, rising labour costs, new packaging fees and supermarket expansion mean that profit margins will remain under pressure. The off-licence market will stay fiercely competitive, with only the most adaptable businesses thriving as the landscape evolves.
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What's included in this industry analysis
IBISWorld's research coverage on the Off-Licences industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
About this industry
What's this industry report about?
The Off-Licences industry in the United Kingdom operates under the SIC industry code G47.250. Off-licences are specialised retailers licensed to sell alcoholic beverages for consumption off the premises. The industry also includes value-added products like non-alcoholic beverages, food and snacks. Related terms covered in the Off-Licences industry in the United Kingdom include off-licence, perry and sparkling wine.
What's included in this industry?
Products and services covered in Off-Licences industry in the United Kingdom include Wine, Spirits and Beer .
What companies are included in this industry?
Companies covered in the Off-Licences industry in the United Kingdom include Naked Wines plc, Majestic Wine Warehouses Ltd and Bestway Retail Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Off-Licences industry in the United Kingdom.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Off-Licences industry in the United Kingdom.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Off-Licences industry in the United Kingdom.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Off-Licences industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Off-Licences industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Off-Licences industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Off-Licences industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Off-Licences industry in the United Kingdom.
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Frequently Asked Questions
What is the market size of the Off-Licences industry in the United Kingdom in 2026?
The market size of the Off-Licences industry in the United Kingdom is £3.1bn in 2026.
How many businesses are there in the Off-Licences industry in the United Kingdom in 2025?
There are 4,893 businesses in the Off-Licences industry in the United Kingdom, which has grown at a CAGR of 0.5 % between 2020 and 2025.
How may import tariffs affect the Off-Licences industry in the United Kingdom?
The Off-Licences 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 Off-Licences industry in the United Kingdom?
The Off-Licences 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 Off-Licences industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Off-Licences industry in the United Kingdom has been declining at a CAGR of 1.4 % between 2020 and 2025.
What is the forecast growth of the Off-Licences industry in the United Kingdom over the next 5 years?
Over the next five years, the Off-Licences industry in the United Kingdom is expected to grow.
What are the biggest companies in the Off-Licences industry in the United Kingdom?
The biggest companies operating in the Off-Licences industry in the United Kingdom are Naked Wines plc, Majestic Wine Warehouses Ltd and Bestway Retail Ltd
What does the Off-Licences industry in the United Kingdom include?
Beer and Wine are part of the Off-Licences industry in the United Kingdom.
Which companies have the highest market share in the Off-Licences industry in the United Kingdom?
The company holding the most market share in the Off-Licences industry in the United Kingdom is Naked Wines plc.
How competitive is the Off-Licences industry in the United Kingdom?
The level of competition is high and increasing in the Off-Licences industry in the United Kingdom.
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