Sober truth: Falling alcohol consumption to contribute to a drop in current-year revenue

Nightclubs, which mainly operate late at night and during the early hours of the morning, are differentiated from pubs and bars by charging entry fees, and including a DJ booth and dance floor. The Nightclubs industry depends on patrons' alcohol consumption, their discretionary income, the size of the population aged 18 and over, and demand from tourists. The industry has benefited from increases in discretionary income and tourist numbers over the past five years. However, industry operators have faced increased regulation, intensifying competition from live music venues and declining per capita alcohol consumption, which have all constrained revenue growth over the period. Industry revenue is expected to rise at an annualised 0.8% over the five years through 2017-18, to $1.31 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has benefited from rising discretionary income and tourist numbers
  • Nightclubs can differentiate their offerings through the music played and building furnishings
  • Strict regulation will continue to limit the industry’s performance over the five-year period
  • Industry Report - Industry Locations Chapter

    The spread of nightclubs in Australia broadly follows the dispersion of population around the nation. As a result, most industry establishments are located within the most populous states, with New South Wales, Victoria and Queensland accounting for more than 75% of industry establishments. However, within these three states, the share of establishments does not necessarily reflect population. Queensland, the least populous out of the three states, is expected to make up a higher portion of nightclubs than its share of the population would suggest. This is expected to be a result of the state's large share of the tourism industry, due to the popularity of tourist destinations such as the Gold Coast in Queensland. ...purchase to read more.

    Additional Insights for the Nightclubs Industry

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

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    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
  • Tourism
  • Music preferences
  • Marketing and promotions
  • Licensing and regulations
  • Chart: Revenue Growth

  • Industry Outlook
  • Government regulations
  • Competition
  • Social media
  • Tourism
  • 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
  • Profit
  • Purchases
  • Marketing and promotions
  • Wages
  • Rent
  • Other
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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.

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