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The Pubs, Bars and Nightclubs Market size is estimated to grow by USD 31.46 billion accelerating at a CAGR of 5.09% between 2023 and 2027.
Our report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Product (beverages and foods), Application (men and women), and Geography (Europe, APAC, North America, Middle East and Africa, and South America). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2022.
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The increasing number of pubs and bars is a key factor boosting the pubs, bars and nightclubs market. The rising trend of socializing at bars and pubs among urban youth is expected to be a key driver for the market in the coming years. Urbanization has seen significant growth, with a global urban population increase of over 4% in the last decade, and urbanization rates exceeding 80% in developed nations like the US, Canada, and European countries. APAC has experienced more than a 6% increase in urbanization during the same period.
The influx of people to urban areas, particularly a substantial white-collar demographic, has led to a proliferation of bars and pubs. Diverse consumer preferences for premium beverages have given rise to premium bars and pubs. Moreover, the expansion of infrastructure in developing countries, such as new airports and expressways, has encouraged restaurant and hotel chains to establish rooftop bars and pubs, further expanding the market.
Off-premise sales is a major pubs, bars and nightclubs market trends influencing the growth of the market. For bars and pubs that serve alcohol, off-premise sales are expected to increase in the future. Many vendors have already opted for off-premise alcohol sales where the buyer can consume it off-site. This will help the vendors to target new consumer segments who are interested in takeaway options.
Some of the off-premise sales are listed below:
Therefore, it will provide new growth opportunities for the vendors in the market.
Threat from the rising popularity of home-cooked food and takeaway services is a key challenge hindering the market growth. Many opt for homemade meals over dining out at bars due to concerns about the nutritional quality of bar food, which is often perceived as unhealthy due to its high carbohydrate, sugar, salt, unhealthy fats, and artificial additives content. This perception raises health-related risks, such as heart problems, diabetes, and obesity.
Homemade meals are also more cost-effective and nutritious, using fresh, hygienic ingredients. As consumers become more health-conscious, the preference for home-cooked food could hinder the market's growth. The availability of takeaway services for both alcoholic and nonalcoholic beverages is on the rise, leading to increased home consumption, particularly in countries like the UK and Germany. This trend may reduce the number of frequent pub-goers, impacting the market negatively in the forecast period.
The market share growth by the beverages segment will be significant during the forecast period. The beverage segment is classified into alcoholic and nonalcoholic beverages. Pubs, bars, and nightclubs offer various types of beverages.
Pubs, Bars and Nightclubs Market
By Product Segment
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The beverage sector achieved a value of USD 76.07 billion in 2017, and this growth trend persisted until 2021. The demand for alcoholic beverages, including tequila and cognac, has been on the rise, despite stringent government regulations concerning distribution and imports. Variables such as seasonality, weather conditions, demographics, and perceived health impacts influence beer consumption. Nevertheless, the global pubs, bars, and nightclubs market is expected to see an increase in demand for craft beer in the forecast period. This segment also encompasses hot and cold beverages such as coffee, fruit juice, milk-based drinks, and other soft beverages, all of which are anticipated to experience steady growth. The increasing number of health-conscious consumers opting for non-alcoholic alternatives is fueling the growth of this segment.
Europe is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Pubs, Bars and Nightclubs Market
By Europe
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Key European markets for bars, pubs, and nightclubs include the UK, Germany, France, Spain, Italy, and Russia. Europe's strong presence in the global market is attributed to a plethora of restaurant chains and high consumer spending on leisure activities. The region benefits from associations like HORTEC, promoting these establishments in several countries.
Eastern Europe demonstrates consistent growth in alcohol consumption, with breweries and distilleries playing a significant role in employment. France, Germany, Russia, the UK, Belgium, Romania, and Poland are notable alcohol-consuming countries. Off-trade beer sales, particularly lager, flavored lager, and craft beer, outshine on-trade. Wine is preferred by the elderly, especially premium varieties. Whiskey, vodka, liqueurs, and brandy are prominent spirits, with whiskey and brandy experiencing rapid growth. However, the surge in home drinking and takeaway services may hinder the regional market's growth in the forecast period.
In 2020, the COVID-19 outbreak significantly impacted European countries, leading to restrictions and shutdowns in major markets such as the UK, Italy, Spain, France, and Germany. The closure of pubs, bars, and nightclubs due to rising infection cases resulted in a decline in the regional market. However, in 2021, widespread vaccinations allowed many establishments to resume operations, implementing safety measures. This led to increased foot traffic, boosting the demand for beverages and food items. Governments adopted strategies like reducing VAT to support the hospitality sector; for instance, the UK implemented a temporary 5% VAT reduction, and Germany reduced the VAT rate by 2% in July 2020. Additionally, rising disposable income and stable economic growth are expected to drive the regional pubs, bars, and nightclubs market in the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The pubs, bars and nightclubs market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Pubs, Bars And Nightclubs Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.09% |
Market growth 2023-2027 |
USD 31.46 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.11 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 41% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accor SA, Attaboy, Boadas, Floreria Atlantico, Four Seasons Hotels Ltd., Hakkasan Group, J D Wetherspoon plc, Kings Head Pub, Licoreria Limantour, Maybourne Hotel Group., McKs Tavern, Mitchells and Butlers plc, Oberoi Grou, Oetker Hotel Management Company GmbH, PCO, The Atlas, The Cats Eye Pub, The Clumsies, The Dove, and Trailer Happiness |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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