On the rocks: Declining alcohol consumption and heightened regulation will limit growth

Operators in the Bars and Nightclubs industry have struggled under the weight of a number of social trends, including increased consumption of alcoholic beverages at home rather than at bars and nightclubs. Rising alcohol prices, wariness of drunk driving and evolving attitudes toward alcohol consumption have negatively impacted the industry. Furthermore, the industry has faced strong competition from other industries that serve alcohol, such as restaurants and other places of entertainment. Industry operators have attempted to respond to these challenges by diversifying into a range of new concepts such as wine bars, cocktail lounges and brewpubs to attract new demographics...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 12-17
0.4%
Forecast Growth 17-22
Profit
Employment
43,081
Businesses
5,246
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising alcohol prices and evolving attitudes toward alcohol consumption have negatively affected the industry
  • Health concerns have caused a broad shift away from beer toward wine, cider and spirits
  • The growing trend of at-home alcohol consumption will continue to limit industry growth
  • Industry Report - Industry Investment Chapter

    IBISWorld estimates that for every $1.00 the industry spends on wages, $0.11 is required for capital equipment, including the use and replacement of buildings and fittings. As a result, the industry has a low degree of capital intensity given its dependency on labour to deliver services. Labour provides customer service in a variety of areas, including liquor and food sales as well as entertainment services. As a result, the industry relies more on labour than fixed capital.Operators can significantly reduce their capital investment by renting or leasing establishments, rather than purchasing. In this case, an operator's rental expense will be far greater as a percentage of revenue than depreciation expense. The...purchase to read more.

    Additional Insights for the Bars & Nightclubs Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bars & Nightclubs Industry are

  • Having a loyal customer base
  • Must have liquor licence
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Per capita alcohol consumption in the Bars & Nightclubs industry impact industry performance..

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    What's in this report

    What is the Bars & Nightclubs Industry?

    This industry includes bars, taverns, nightclubs and drinking places that serve alcoholic beverages for immediate consumption. These establishments may also provide limited food services.

    Industry Products
  • Sale of distilled spirit drinks
  • Sale of wine drinks
  • Sale of beer, ale and cider
  • Sale of food
  • Admissions to special events and nightclubs, including cover charges
  • Video Lottery Terminal revenue
  • Other (accommodation, cigarettes and packaged liquor)
  • Industry Activities
  • Operating licenced bars
  • Operating nightclubs
  • Operating wine bars
  • Operating licenced establishments with limited food service
  • Operating Video Lottery Terminals in licenced venues
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Per capita alcohol consumption
  • Consumer Confidence Index
  • Number of households earning $100K or more
  • Urban population

  • Current Performance
  • Regulation
  • Consumer preferences
  • Technology
  • Chart: Revenue Growth

  • Industry Outlook
  • Future risks
  • Consolidation and profitability
  • Table: Bars & Nightclubs Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bars & Nightclubs Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Beef & Pork Wholesaling in Canada
  • Beer, Wine & Spirits Wholesaling in Canada
  • Dairy Wholesaling in Canada
  • Fish & Seafood Wholesaling in Canada
  • Frozen Food Wholesaling in Canada
  • Fruit & Vegetable Wholesaling in Canada
  • Wine & Spirits Wholesaling in Canada

  • Products & Services
  • Sale of beer, ale and cider
  • Sale of distilled spirit drinks
  • Sale of food
  • Video Lottery Terminal revenue
  • Sale of wine drinks
  • Other (accommodation, cigarettes and packaged liquor)
  • Admissions to special events and nightclubs, including cover charges
  • Chart: Bars & Nightclubs Industry Products and Services Segmentation

  • Demand Determinants
  • Income and expenditure
  • Health consciousness
  • Price regulation

  • Major Markets
  • Highest quintile of incomes
  • Fourth quintile of incomes
  • Second quintile of incomes
  • Middle quintile of incomes
  • Lowest quintile of incomes
  • Chart: Major Market Segmentation for the Bars & Nightclubs Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Bars & Nightclubs

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bars & Nightclubs Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Bars & Nightclubs Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Bars & Nightclubs Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita alcohol consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Freehold
  • The owner of the establishment owns the property outright and there is no lease.
  • Leasehold
  • Property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time
  • Off-Premise Consumption
  • The purchase of alcoholic beverages for consumption at home.
  • On-Premise Consumption
  • The purchase of alcoholic beverages for consumption out of the home environment.
  • Ready-To-Drink
  • Packaged beverages are those sold in a prepared form, ready for consumption.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bars & Nightclubs market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Bars & Nightclubs:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Bars & Nightclubs market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Bars & Nightclubs, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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