Nightclubs in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: May 2024
SIC I56.301Revenue
£764.4m
Past 5-Year Growth
Profit
£XX.Xm
Employees
37,135
Businesses
3,110
Wages
£XXX.Xm
Nightclubs in the UK industry analysis
Over the five years through 2024-25, the nightclub industry’s revenue is expected to tumble at a compound annual rate of 14.2% to £764.4 million. The nightclub industry experienced immense revenue volatility due to the COVID-19 outbreak, which resulted in clubs closing temporarily over 2020-21. Following COVID-19, skyrocketing inflation led to consumers becoming more budget-conscious, resulting in decreased spending on nightlife activities or avoiding clubbing altogether. The combined impact of COVID-19 and the cost-of-living crisis poses a risk to the future of nightclubs, with revenue forecast to fall by 5.1% in 2024-25.
Trends and Insights
- COVID-19 and inflation have hindered nightclubs. COVID-19 closures and restrictions, as well as rising living costs, have negatively impacted revenue and attendance and competition has increased from alternative venues.
- Rising club access fees boost revenue. Nightclubs increased entry fees after COVID-19 restrictions were lifted, aiding revenue recovery.
- The North West thrives on student nightlife. High student populations and household alcohol spending attract clubs to this region, providing a steady customer base for a lively entertainment industry.
- Nightclubs require substantial start-up costs. Initial expenses include renting a location, obtaining licenses, furnishing and outfitting with proper equipment and sound systems.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 14.2 % over the past five years, to reach an estimated £764.4m in 2024.
Trends and Insights
The COVID-19 outbreak and rampant inflation devastate revenue growth
- All UK nightclubs had to temporarily close their doors during the height of COVID-19 due to social distancing restrictions, preventing club operators from generating revenue for most of 2020-21 and 2021-22.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Maintaining operational costs low will continue to be a challenge
- The Nightclubs industry will continue to face significant challenges due to escalating rent, energy and labour costs. These increases are driven by inflationary pressures and labour shortages in the hospitality sector, pushing up costs.
Biggest companies in the Nightclubs in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
REKOM Group A/S | 98.5 | |
A3D2 Ltd | 8.9 | |
The Brighton Pier Group plc | 3.3 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Nightclubs in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Drinks, Club access and Venue hire. Drinks is the largest segment of the Nightclubs in the UK.
Trends and Insights
Cost-of-living pressures and changing consumer preferences weigh on drinks sales
- Beer and spirit-based mixers are popular choices for those attending nightclubs, but clubs usually offer a full range of options, with non-alcoholic beverages like water and juice also available.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Pubs & Bars in the UK
- Full-Service Restaurants in the UK
Complementors
- Alcoholic Beverage Wholesaling in the UK
- Hotels in the UK
- Online Event Ticket Sales in the UK
International industries
- Bars & Nightclubs in the US
- Bars & Nightclubs in Canada
- Pubs, Bars and Nightclubs in Australia
- Pubs, Bars and Nightclubs in New Zealand
- Cafes, Bars & Other Drinking Establishments in China
Table of Contents
About this industry
Industry definition
The Nightclubs industry covers licensed establishments, like nightclubs and social clubs, that sell beverages for on-site consumption and usually charge a fee for admission. This may come in the form of an entrance fee or a membership fee. They commonly provide musical entertainment and dance venues.
What's included in this industry?
DrinksClub accessVenue hireCloakroom services and merchandiseCompanies
REKOM Group A/SA3D2 LtdThe Brighton Pier Group plcPurchase this report to view all 3 major companies in this industry.
Related Terms
ON-LICENCESOCIAL CLUBPRE-DRINKIndustry Code
SIC 56.30/1 - Nightclubs in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 and inflation have hindered nightclubs. COVID-19 closures and restrictions, as well as rising living costs, have negatively impacted revenue and attendance and compe...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Rising club access fees boost revenue. Nightclubs increased entry fees after COVID-19 restrictions were lifted, aiding revenue recovery.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The North West thrives on student nightlife. High student populations and household alcohol spending attract clubs to this region, providing a steady customer base for a live...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Nightclubs require substantial start-up costs. Initial expenses include renting a location, obtaining licenses, furnishing and outfitting with proper equipment and sound syst...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Most nightclubs are small and owner-operated. Although some companies have managed to expand their presence across the country, most nightclubs are independent and owner-oper...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of REKOM Group A/S's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of A3D2 Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Brighton Pier Group plc's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for REKOM Group A/S, and factors influencing its performance in the industry
- Description and key data for A3D2 Ltd, and factors influencing its performance in the industry
- Description and key data for The Brighton Pier Group plc, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Significant regulation includes the Licensing Act 2003. This act requires pubs to register with local authorities, ensuring responsible alcohol sales and adherence to operati...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
COVID-19 shrunk nightclub profit. Temporary closures, unmanageable costs and expired inventory during the height of COVID-19 hurt the industry's revenue and profitability.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Nightclubs in the UK industry in United Kingdom in 2024?
The market size of the Nightclubs in the UK industry in United Kingdom is £764.4m in 2024.
How many businesses are there in the Nightclubs in the UK industry in 2024?
There are 3,110 businesses in the Nightclubs in the UK industry in United Kingdom, which has declined at a CAGR of 14.4 % between 2019 and 2024.
Has the Nightclubs in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Nightclubs in the UK industry in United Kingdom has been declining at a CAGR of 14.2 % between 2019 and 2024.
What is the forecast growth of the Nightclubs in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Nightclubs in the UK industry in United Kingdom is expected to decline.
What are the biggest companies in the Nightclubs in the UK market in United Kingdom?
The biggest companies operating in the Nightclubs market in United Kingdom are REKOM Group A/S, A3D2 Ltd and The Brighton Pier Group plc
What does the Nightclubs in the UK in United Kingdom include?
Drinks and Club access are part of the Nightclubs in the UK industry.
Which companies have the highest market share in the Nightclubs in the UK in United Kingdom?
The company holding the most market share in United Kingdom is REKOM Group A/S.
How competitive is the Nightclubs in the UK industry in United Kingdom?
The level of competition is moderate and increasing in the Nightclubs in the UK industry in United Kingdom.
