Pubs, Taverns and Bars in Australia Industry Market Research Report now updated by IBISWorld

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The Pubs, Taverns and Bars industry in Australia has posted modest growth over the past five years. Growth has been constrained by declining beer consumption, strong competition from liquor retailers and the economic downturn. This has caused the collapse of some highly leveraged pub operators and led many consumers to swap a bar stool at their local for the comfort of their couch at home. For these reasons, industry research firm IBISWorld has updated its report on the Pubs, Taverns and Bars industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Operators will need to respond to changing consumer trends by running more family friendly establishments

The Pubs, Taverns and Bars industry in Australia has posted modest growth over the past five years. According to IBISWorld industry analyst Steven Connell, “Growth has been constrained by declining beer consumption, strong competition from liquor retailers and the economic downturn”. This has caused the collapse of some highly leveraged pub operators and led many consumers to swap a bar stool at their local for the comfort of their couch at home. To make matters worse, there have been changing community attitudes towards the industry's two major products: alcohol and gambling. During 2012-13, industry revenue is forecast to grow by only 2.1% due to the weak retail environment and wet weather. IBISWorld estimates industry revenue will increase at an annualised 1.0% over the five years through 2012-13, to reach $15.9 billion.

The industry is expected to record moderate growth over the next five years, underpinned by an improving consumer environment, a move towards higher quality food and beverage offerings and a surge in the number of small bars opening in Sydney, Melbourne and Perth. However, the industry also faces a number of headwinds, with declining beer consumption, gaming and wagering revenue forecast to fall, a likely increase in regulation designed to curb alcohol-related violence, and strong price competition from liquor retailers looming. Proposed precommitment poker machine regulation, currently being delayed until 2016, also poses a major threat for publicans with significant gambling operations. “Pub and bar operators will need to respond to changing consumer trends by running more family friendly establishments, offering high quality menus and diversifying their liquor range to include craft beers and cider” adds Connell. IBISWorld estimates industry revenue will increase over the five years through 2017-18.

The Pubs, Taverns and Bars industry in Australia is estimated to have a low level of market share concentration. The two major players are Woolworths Ltd and Wesfarmers Limited. The majority of operators in the industry are subject to a low, but increasing, level of concentration, largely stemming from the large number of small business operators and, therefore, the fragmented nature of the industry. The overall concentration level has increased, due to the consolidation activities of Woolworths and Wesfarmers and of other property and fund managers. The supermarket giants have acquired pubs and hotels in Queensland to get around laws prevented the sale of alcohol unless liquor retailing outlets are attached to licensed venues.

For more information, visit IBISWorld’s Pubs, Taverns and Bars report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Operators in the Pubs, Taverns and Bars industry are establishments that sell alcoholic beverages, either for consumption on the premises (e.g. bars) or off the premises (e.g. drive through bottle shops).

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

About IBISWorld Inc.
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 every Australian industry. 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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