New Report Reveals Insights into Night-Time Economy

Key Market Trends

Despite a complex landscape, consumer spending shows growth comparable to pre-pandemic levels. However, the pace of recovery has slowed, emphasising the pressures facing businesses.

• Cultural Economy Growth: The night-time cultural economy grew by 3.2%, surpassing the overall market growth of 2.3%.
• Operational Struggles: Rising costs for labour, food, and drink have impacted profitability despite increased consumer spending.

Gross Value Added (GVA) and Employment Insights

GVA, a key metric of productivity, showed stagnation in leisure and night-time economy sub sectors. Employment trends reveal a mixed picture:

• Declines: Licensed club employment fell from 88,300 in 2022 to 68,200 in 2023, while pub and bar employment dropped to 474,300.
• Growth: Jobs in sporting venues, clubs, and gyms rose to 452,800, reflecting changing leisure preferences.

Sector Performance and Employment Landscape

While the industry continues to recover from the pandemic’s economic blow, market stabilisation has become evident:

• The night-time economy remains the largest segment, valued at £153.91bn with 2.5% growth in 2024.
• The day-time economy saw modest growth, reaching £69.6bn with a 1.8% increase.
• Employment in the broader culture and leisure economy reached 3.16 million in 2023.

 

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Industry Call to Action

Michael Kill, CEO of NTIA, stressed the need for urgent government support, citing rising operational costs and declining employment in critical sectors. He warned that without intervention, the night-time economy – a £153.91bn powerhouse – faces an uncertain future.

Reuben Pullan, Senior Insight Consultant at CGA by NIQ, highlighted the sector’s cultural and economic significance. Despite challenges, he pointed to the emergence of new venue types, such as competitive socialising bars, as evidence of an evolving market.

Looking Ahead

The NTIA remains committed to collaborating with industry stakeholders and policymakers to safeguard the night-time economy’s future. With the right support, this vital sector can continue to power the UK’s economic growth and cultural landscape.

Stay tuned for more insights on the Promotion Centre blog as the sector navigates these challenges and opportunities.

Download the full report at: ntia.co.uk/the-night-time-economy-market-monitor-a-changing-landscape