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Pubs, Bars & Coffee shops in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Krasimir Dinev Krasimir Dinev London, United Kingdom Last Updated: June 2025 SIC UK-I563

Revenue

£100.6bn

2025-26

£104.2bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

2m

Businesses

661k

Wages

£XX.Xbn

Pubs, Bars & Coffee shops in the UK industry analysis

Consumer sentiment, disposable income levels and drinking habits impact spending on drinking establishments, including pubs, bars, nightclubs and coffee shops. Europe is known for its well-established drinking culture, which varies from country to country. Beer and wine consumption are very popular on the continent, with many countries also major producers of these beverages. However, alcohol consumption per capita in Europe is on a downward trend, hindering demand for drinking establishments. Meanwhile, coffee shops benefit from resilient demand amid a thriving coffee culture on the continent. Industry revenue is expected to expand at a compound annual rate of 5.8% to €100.6 billion over the five years through 2025, including a 0.1% drop in 2025.

Trends and Insights

  • Rising health consciousness decreases alcohol consumption in Europe. Lower alcohol consumption hinders spending at drinking establishments and encourages venues to expand their non-alcoholic beverage offerings, offering new growth opportunities amid changing consumer preferences.
  • Health awareness among consumers hinders alcoholic beverage sales. A growing number of European consumers are reducing or cutting out completely alcohol consumption, turning to healthier beverages instead.
  • The industry is highly fragmented. Most players are small, independent drinking establishments, with no large players having significant control in the market.
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Top Questions Answered in this Report

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What is the market size of the Pubs, Bars & Coffee shops industry in the United Kingdom in 2025?

The market size of the Pubs, Bars & Coffee shops industry in the United Kingdom is £100.6bn in 2025.

How many businesses are there in the Pubs, Bars & Coffee shops industry in the United Kingdom in 2025?

There are 661k businesses in the Pubs, Bars & Coffee shops industry in the United Kingdom, which has grown at a CAGR of 0.2 % between 2020 and 2025.

Has the Pubs, Bars & Coffee shops industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Pubs, Bars & Coffee shops industry in the United Kingdom has been growing at a CAGR of 7.0 % between 2020 and 2025.

What is the forecast growth of the Pubs, Bars & Coffee shops industry in the United Kingdom over the next 5 years?

Over the next five years, the Pubs, Bars & Coffee shops industry in the United Kingdom is expected to grow.

What does the Pubs, Bars & Coffee shops industry in the United Kingdom include?

Serving non-alcoholic beverages and Serving alcoholic beverages are part of the Pubs, Bars & Coffee shops industry in the United Kingdom.

How competitive is the Pubs, Bars & Coffee shops industry in the United Kingdom?

The level of competition is high and increasing in the Pubs, Bars & Coffee shops industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Drinking establishments must follow the rules on alcohol sales. Pubs, bars and nightclubs must have the relevant licences to operate and serve alcohol on their premises, which affects their sales practices.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Pubs, Bars & Coffee shops in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Elevated costs are detrimental to drink establishments' profitability. Rising European food and beverage costs, heightened by intense market competition and suppliers passing costs to these businesses, have suppressed their ability to fully transfer the inflationary impact to consumers, hurting profit.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Pubs, Bars & Coffee shops in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

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