While the world tries to figure out if craft beer is booming, busting or middling, we all must remember that pretty much no one is sure what the future of alcohol consumption is in the public at large. Let’s take a look at the bar and nightclub scene, which may have a promising future, but there are challenges. The industry is still expected to grow at an annualized rate of 1.2 percent to $25.4 billion over the previous five years, according to this IBISWorld’s Bars & Nightclubs report, and revenue is expected to increase 2.9 percent in 2016 alone, as per capita alcohol consumption and disposable income pick up, allowing people to spend more of their pay at bars and nightclubs.
“Bar and nightclub operators have attempted to respond to volatile growth and increased competition by diversifying into a range of new concepts such as wine bars, cocktail lounges and brewpubs,” says IBISWorld Industry Analyst Andrew Alvarez.
As a result, the industry has become more fragmented because drinking establishments are catering to a larger range of niche markets. Many of the remaining establishments have adapted their menus and entertainment offerings to accommodate consumer tastes.
Over the five years to 2021, the industry is projected to continue facing competition from in-home alcohol consumption and non industry establishments that also serve alcohol, such as restaurants. In spite of these factors, the industry’s financial performance is forecast to remain relatively steady as the economy improves and consumer spending increases.