Pubs & Bars in the UK Industry Market Research Report Now Updated by IBISWorld

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The British pub is an institution under threat from legislative changes that vastly increased operating costs and the crippling economic recession that began in late 2008 resulting in unprecedented levels of pub closures, with nearly seven pubs and bars shutting down every day over 2008-09. Despite the unforgiving climate, operators that have diversified their offerings into areas such as food and accommodation have remained resilient and IBISWorld expects industry revenue to increase marginally during the five years through 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Pubs & Bars industry.

IBISWorld industry market research
The industry diversifies services to combat declining revenue

The British pub is an institution under threat. The Pubs & Bars industry has been facing a difficult trading environment, which began with legislative changes that vastly increased operating costs and culminated in the crippling economic recession in late 2008. The ban on smoking in public places, increased alcohol duties, particularly on beer, food inflation and rising employment costs due to increases in the minimum wage proved challenging for industry operators. In addition, the economic downturn caused near-historic levels of unemployment and dramatic falls in consumer spending and confidence. This resulted in unprecedented levels of pub closures, with nearly seven pubs and bars shutting down every day over 2008-09. According to IBISWorld industry analyst Michael Grosz, “despite the unforgiving climate, operators that have diversified their offerings into areas such as food and accommodation have remained resilient”. Over the five years through 2012-13, industry revenue is expected to decline at a compound annual rate of 1.5% to £18.4 billion.

The Beer Duty Escalator, introduced in 2008, aims at steadily increasing the tax on beer every year until 2014-15 and is expected to have a large adverse effect on industry performance during the next five years. Rebounding consumer confidence are expected to somewhat mute those negative effects, with the UK's role in hosting big events such as the Commonwealth Games in 2014 providing some growth stimulus for the hospitality sector. Grosz adds, “the trend of diversification is expected to continue, with a focus on added amenities such as accommodation, conference and business facilities, hosting community groups and extended morning hours, which aim to attract a diverse group of consumers for a range of different reasons”. IBISWorld expects industry revenue to increase marginally during the five years through 2017-18.

Market share concentration in the Pubs & Bars industry is low, with the largest four companies accounting for a combined market share of 21%. Major companies include J D Wetherspoon, Mitchells & Butlers and Enterprise Inns.

For more information on the Pubs & Bars industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry includes establishments that prepare and serve beverages for consumption on the premises, such as bars, public houses, taverns and cocktail lounges. It also includes discotheques licensed to sell alcohol where beverage serving is the predominant activity of the premises. It excludes nightclubs, hotels, restaurants and membership clubs. Also excluded are those establishments that sell beverages for consumption off the premises.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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