Out of step: Industry revenue declines due to rising competition and increasing regulation

Nightclubs mainly operate late at night and in the early hours of the morning, and differentiate themselves from pubs and bars by charging entry fees, and including a DJ booth and dance floor. Demand for the Nightclubs industry depends on patrons' alcohol consumption and discretionary income, the size of the population aged 18 and over, and demand from tourists. The industry has benefited from rising discretionary incomes and tourist numbers over the past five years. However, increasing regulation, intensifying competition from alternative forms of entertainment and declining per capita alcohol consumption have all constrained the industry's performance over the period. Industry revenue is expected to decline at an annualised 0.8% over the five years through 2018-19, to $1.27 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Nightclub patronage has declined due to increasing regulation and intensifying competition
  • Rising domestic and international tourist numbers have supported industry revenue
  • Strict regulations will continue to limit the industry’s performance over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Nightclubs industry exhibits low market share concentration. Operators in the industry have little incentive to expand the number of industry establishments they operate, as the potential for profitable or significant economies of scale is negligible. Nightclubs located in close proximity to one another, regardless of owner, will compete strongly for club patrons. Additionally, nightclub operation across different states or regions would be difficult to coordinate, with little opportunity to reduce duplicate costs. As a result, industry concentration has remained stable over the past five years...purchase to read more.

    Additional Insights for the Nightclubs Industry

    IBISWorld has determined the most important Key Success Factors for the Nightclubs are:

  • Having a loyal customer base
  • Access to highly skilled workforce
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Real household discretionary income in the Nightclubs industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Nightclubs Industry?

    Industry operators provide on-premises alcohol sales and entertainment, and predominantly operate at night.

    Industry Products
  • On-premises beverage sales
  • Entrance fees
  • Venue booking
  • Other products and services
  • Industry Activities
  • Nightclub operation
  • Liquor sales
  • Provision of music entertainment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita alcohol consumption
  • Real household discretionary income
  • Population aged 18 and older
  • Demand from tourism

  • Current Performance
  • Alcohol consumption
  • Cultural changes
  • Tourist demand
  • Music preferences
  • Licensing and regulations
  • Chart: Revenue Growth

  • Industry Outlook
  • Government regulations
  • Competition
  • Tourism trends
  • Table: Nightclubs Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beer Manufacturing
  • Liquor Wholesaling
  • Soft Drink Manufacturing
  • Spirit Manufacturing
  • Tea, Coffee and Other Food Manufacturing
  • Wine Production

  • Products & Services
  • On-premises beverage sales
  • Entrance fees
  • Other products and services
  • Venue booking
  • Chart: Nightclubs Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 18 to 24
  • Consumers aged 25 to 34
  • Consumers aged 35 to 54
  • Consumers aged 55 and over
  • Chart: Major Market Segmentation for the Nightclubs Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the 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 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 Nightclubs Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Inbound Tourism
  • The act of a non-resident visiting Australia.
  • Lockout
  • A law that does not allow patrons to enter an establishment after a certain time.
  • Outbound Tourism
  • The act of an Australian resident visiting another country.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Nightclubs market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 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 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 Nightclubs, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.