Pubs, Bars and Nightclubs in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: March 2024
ANZSIC H4520Revenue
$20.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
88,877
Businesses
7,298
Wages
$X.Xbn
Pubs, Bars and Nightclubs in Australia industry analysis
The COVID-19 pandemic has dealt a massive blow to the Pubs, Bars and Nightclubs industry. The initial lockdowns began in late March 2020 and continued intermittently, wreaking havoc on revenue streams. Simultaneously, decreased alcohol consumption, online gambling competition and tighter regulations added more strain. A severe slump in international travel to Australia because of border restrictions resulted in a substantial loss of income from tourism spending. Despite these challenges, the industry has witnessed a silver lining with a rise in discretionary income. This trend has boosted sales of high-end alcoholic drinks and gourmet food offerings, giving the industry a needed lift. Industry revenue is expected to fall at an annualised 0.6% the over the five years through 2023-24 to $20.3 billion, when revenue is anticipated to leap by 3.7%.Declining per capita alcohol consumption has adversely impacted earnings for pubs and clubs. Yet, small-scale bars with refined food and beverage offerings have performed well because of Australia's growing foodie culture and increasingly quality-conscious consumers. In turn, many pubs have enhanced their food and beverage options, with some converting to gastropubs. Limited gambling expenditure have weighed down the industry's bottom line. The initial COVID-19 outbreak caused industry profit margins to decline sharply in 2019-20. But profitability has since returned to growth in line with higher government payment packages and the easing of restrictions. Industry participation has also grown as new establishments succeed in niche segments like wine bars and gastropubs.Industry revenue is forecast to rise at an annualised 1.9% over the five years through 2028-29, to $22.3 billion. Rising discretionary incomes are set to fuel consumer expenditure on premium alcohol and food options. Ongoing economic recovery from the COVID-19 pandemic and improved international travel to Australia will also underpin industry expansion. Industry venues are poised to expand their takeaway options to meet changing consumer trends. Likewise, profit margins are to improve marginally as trading returns to normal, and consumers shift spending toward sectors hampered by the COVID-19 pandemic, like hospitality.
Trends and Insights
- Stricter government regulations and burgeoning health consciousness have been a buzzkill for the nightlife industry in recent years. Bars, pubs and nightclubs face declining performance owing to reduced alcohol consumption and a crackdown on alcohol-related issues.
- Pubs, bars and nightclubs primarily generate revenue from on-site liquor sales, gambling and dining services. These establishments also benefit from selling liquor for off-site consumption and other services. These additional services can include things like nightclub entry fees.
- New South Wales, Victoria and Queensland are the major hotspots for the pub, bar and nightclub industry, with over 75% of all venues located in these states. This aligns with their large population densities, offering high client potential.
- Industry competition has evolved from focusing on price to offering quality services and products. Venues are increasingly targeting higher-income patrons through high-quality food and drinks, refurbishments and the introduction of cocktail bars, licensed restaurants and bistro facilities.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.6 % over the past five years, to reach an estimated $20.3bn in 2024.
Trends and Insights
The COVID-19 pandemic dealt a severe blow to industry revenue
- The COVID-19 pandemic severely impacted the industry's operations.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Industry venues are to expand with Australia's evolving foodie culture
- As international tourism is poised to trail pre-pandemic levels until 2024-25, the industry has set sights on domestic consumers to bolster recovery.
Biggest companies in the Pubs, Bars and Nightclubs in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Endeavour | 1,966.0 | |
Australian Venue Co Limited | 815.5 | |
Redcape Hotel Group Pty Ltd | 321.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Liquor for on-premises consumption, Liquor for off-premises consumption and Gaming and wagering facilities. Liquor for on-premises consumption is the largest segment of the Pubs, Bars and Nightclubs in Australia.
Trends and Insights
Liquor for on-premises consumption, particularly of premium brands, has fuelled industry revenue
- This segment includes alcoholic beverages like beer, cider, wine, spirits and liqueur intended for consumption on the premises.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Liquor Retailing in Australia
- Social Clubs in Australia
- Hotels and Resorts in Australia
Complementors
- Liquor Wholesaling in Australia
International industries
- Bars & Nightclubs in the US
- Wine Bars in the US
- Cigar Lounges in the US
- Strip Clubs in the US
- Bars & Nightclubs in Canada
Table of Contents
About this industry
Industry definition
Industry operators sell alcoholic beverages for consumption either on the premises (e.g. bars) or off the premises (e.g. drive-through bottle shops). Industry venues sometimes also provide food service, live entertainment, and gaming and betting facilities.
What's included in this industry?
Liquor for on-premises consumptionLiquor for off-premises consumptionGaming and wagering facilitiesMeals and non-alcoholic beveragesMerchandise, entrance fees and pool table hireCompanies
EndeavourAustralian Venue Co LimitedRedcape Hotel Group Pty LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
VOLUNTARY PRE-COMMITMENT TECHNOLOGYPOKIESGASTROPUBIndustry Code
ANZSIC 4520 - Pubs, Bars and Nightclubs in Australia
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
Stricter government regulations and burgeoning health consciousness have been a buzzkill for the nightlife industry in recent years. Bars, pubs and nightclubs face declining ...
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
Pubs, bars and nightclubs primarily generate revenue from on-site liquor sales, gambling and dining services. These establishments also benefit from selling liquor for off-si...
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
New South Wales, Victoria and Queensland are the major hotspots for the pub, bar and nightclub industry, with over 75% of all venues located in these states. This aligns with...
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 Asia Pacific, 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
Industry competition has evolved from focusing on price to offering quality services and products. Venues are increasingly targeting higher-income patrons through high-qualit...
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
Endeavour Group alone dominates the industry, albeit with a modest market share of just under 10%. Strategic promotional tactics and strategic acquisitions have catalysed its...
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 Endeavour's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Australian Venue Co Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Redcape Hotel Group Pty Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Endeavour, and factors influencing its performance in the industry
- Description and key data for Australian Venue Co Limited, and factors influencing its performance in the industry
- Description and key data for Redcape Hotel Group Pty Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is subject to a heavy and increasing level of regulation. State governments manage regulation, so some variation exists among states. The industry's regulations ...
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
The financial dynamics of the Pubs, Bars and Nightclubs industry vary according to the business model. Although taxable at higher rates, gaming facilities often contribute si...
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
- 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 Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
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 Pubs, Bars and Nightclubs industry in Australia in 2024?
The market size of the Pubs, Bars and Nightclubs industry in Australia is $20.3bn in 2024.
How many businesses are there in the Pubs, Bars and Nightclubs in Australia industry in 2024?
There are 7,298 businesses in the Pubs, Bars and Nightclubs industry in Australia, which has grown at a CAGR of 3.0 % between 2019 and 2024.
Has the Pubs, Bars and Nightclubs industry in Australia grown or declined over the past 5 years?
The market size of the Pubs, Bars and Nightclubs industry in Australia has been declining at a CAGR of 0.6 % between 2019 and 2024.
What is the forecast growth of the Pubs, Bars and Nightclubs industry in Australia over the next 5 years?
Over the next five years, the Pubs, Bars and Nightclubs industry in Australia is expected to grow.
What are the biggest companies in the Pubs, Bars and Nightclubs market in Australia?
The biggest companies operating in the Pubs, Bars and Nightclubs market in Australia are Endeavour, Australian Venue Co Limited and Redcape Hotel Group Pty Ltd
What does the Pubs, Bars and Nightclubs in Australia include?
Liquor for on-premises consumption and Liquor for off-premises consumption are part of the Pubs, Bars and Nightclubs industry.
Which companies have the highest market share in the Pubs, Bars and Nightclubs in Australia?
The company holding the most market share in Australia is Endeavour.
How competitive is the Pubs, Bars and Nightclubs industry in Australia?
The level of competition is high and increasing in the Pubs, Bars and Nightclubs industry in Australia.
