The Key Drivers of Alcohol Supply and Demand

Alcohol outlets will open to sell alcohol and meet market demand.  The supply and demand are linked so that greater supply will induce yet greater demand. Analysis of neighbourhood structure is important so as to help shape public health policy and highlight areas of need and concern within particular regions.

A recent study has analysed two of the key drivers of alcohol demand - income and population size - in relation to the number of licensed bars, restaurants and liquor stores in California from 2000 to 2013. 

Results from the study show that measures of population size were positively linked to numbers of all types of outlets within those areas and within nearby neighbourhoods over time. The researchers also found that there tended to be a greater density of alcohol outlets in low-income neighbourhoods located near areas with larger populations with higher incomes. This shows that there is indeed a relationship between income, population and the concentration of alcohol outlets in specific areas.

The longitudinal study contributes towards the understanding of distribution and concentration of alcohol outlets within geographical regions and can be used to make predictions about the consequences of population growth and economic developments in evolving communities.