Bars and Nightclubs in the US Industry Market Research Report Now Available from IBISWorld
High unemployment and low disposable income drove consumers away from luxuries like trips to bars and nightclubs. As people cut down on spending across the board, the industry suffered. Competition from a rising trend of consumers preferring to drink at home also hampered the industry over the past five years. Improving conditions across the economy, which will speed up starting in 2013, will bring the industry back to solid health in the near future. For these reasons, industry research firm IBISWorld has added a report on the Bars and Nightclubs industry to its growing industry report collection.
Los Angeles, CA (PRWEB) June 23, 2012
The industry continued to make strides forward in 2011, with revenue growing 3.5% for the year. Industry revenue is expected to grow an additional 3.2% to $22.7 billion in 2012. This growth will keep average annual revenue change relatively flat over the five years to 2012. During the period, IBISWorld estimates that revenue declined at an annualized rate of only 0.7%. A disappointing 2009 — when the Bars and Nightclubs industry’s revenue fell 9.3% in response to slower consumer spending and changes in alcohol consumption patterns — is primarily behind the five-year period contraction, says IBISWorld industry analyst Nima Samadi. In 2010, the industry began to recover, with revenue growth of 1.1% over the year. This industry consists of many small businesses. There are few major operators and many businesses that are family owned and operated. Due to the fragmented and small-business nature of this industry, the level of concentration is not expected to change over the next five years.
The general state of the economy and alcohol-related trends drive the Bars and Nightclubs industry. The recession and the higher unemployment that accompanied it forced people to become more selective in their spending, with consumer spending falling 1.9% in 2009. As people cut down on spending across the board, they were less likely to spend money on luxuries like trips to bars or clubs, says Samadi. Consumer spending grew 2.0% in 2010 and 2.2% in 2011, however, which has resulted in more trips to bars and nightclubs. Spending growth is forecast to continue in 2012, growing 2.0%.
Alcohol consumption is also declining as a proportion of total household expenditure. Over the five years to 2012, alcohol consumption is expected to grow at a marginal rate of 0.08% per year. There have also been significant changes in consumer preferences regarding the types of alcohol they consume and the manner in which it is consumed. For example, a rising number of consumers now prefer packaged beverages to drink at home rather than alcoholic beverages at clubs or bars. Through 2017, the industry is projected to continue experiencing competition from in-home alcohol consumption and non-industry establishments like restaurants. This competition will push down the number of industry establishments and employees. Nevertheless, industry revenue is forecast to grow as the economy improves and consumer spending increases. For more information, visit IBISWorld´s Bars and Nightclubs in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises bars, taverns, pubs, lounges, nightclubs and other drinking places primarily engaged in preparing and serving alcoholic beverages for immediate consumption. These establishments may also provide limited food services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/6/prweb9632623.htm