What is the Night Time Economy Market Monitor?
NIQ, in partnership with NTIA, have published the Night Time Economy Market Monitor. This biannual report utilises consumer intelligence, channels and analytics to understand market trends and social appetite. This research can deliver key insights into how the UK nightlife scene is fairing, and what developments are attracting consumer interest. The NTIA use this report to demonstrate how the nighttime economy keeps falling year on year, and what challenges are holding the sector back. And with the Government budget showing little signs of progression or assistance, nighttime trading may yet struggle into the last quarter of 2025 and the first quarter of 2026.
At NDML, we have reviewed the report and statistics, which marry well with our own findings from talk to clients and trade body organisations. We have put together 5 key takeaways to quickly inform nightlife business operators about what’s happening in the sector.
5 Key Takeaways from November’s Night Time Economy Market Monitor
Evening vs Late Night
The report noted a major difference in the growth of businesses which operate in the evening, to businesses which operate at late night. The Evening economy includes restaurants, bar, pubs and competitive socialising venues. The late night economy includes clubs, casinos late bars and more.
Evening venues have seen relative stability, only declining by 0.8% over the last quarter. Whereas late night venues have taken a significant hit, falling by 2.2% in three months, and 4.6% year on year. The nighttime economy is now 28% smaller than in 2020.
Bars outperforming clubs
Theme bars, craft bars and cocktail bars have all grown year on year. Where as nightclubs, late night bars and educational centres have all shrunk. NIQ posit that this decline is due to consumer attitudes. Consumers who want to experience high-tempo occasions are socialising with friends and are looking for experiential venues. The typical young nightclubbing audience are instead gravitating toward purposeful venues or themes for more assured organised fun.
Independent venues are struggling
As it has remained since the pandemic era, independently owned venues are the most vulnerable. Venues owned by larger hospitality groups have fallen by only 14.5%, comparative to the 30.6% drop experienced by independents. This is because larger businesses likely have the capital to be able to withstand the economic downturn and increased financial challenges facing the sector.
Inflationary costs and fluctuating demand hit independents much harder. And larger businesses have the brand visibility and advertising scope to outpace smaller businesses, a factor especially prominent in such a digitally-versed world.
Safe transport requires investment
The two biggest barriers, says the Night Time Economy Market Monitor, are safety on a night out and the availability of public transport. Consumers are going out earlier because they feel it’s safer. And late night transport has seen reduced availability.
Reduced availability effectively shrinks the active hours of late night bars – as dwell time and overall footfall relies and the customers ability to get home. Rising operational cost means every hour counts, so businesses are considering closing earlier to save money.
Better street lighting and later running trains are key investment points which are recommended. Public transport needs to be cheaper and more reliable. Performance data already shows that venues in well-lit areas and strong transport connectivity perform better.
The story changes across the country
The decline of the nightlife sector is a country-wide average, but it does not tell the full story. Many cities and regions are performing far better than expected, with growing nighttime economies. Glasgow saw their evening economy grow by 0.9%in 12 months. Edinburgh, Liverpool, Leeds, Manchester and Newcastle all show signs of growth – demonstrating their vibrancy and continued recovery. London’s nightlife however is shrinking in the face of higher fixed costs and staff shortages. London, with by far the largest nightlife scene, is yet the weakest and is the most affected by government policy.