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Bars in Germany - Market Research Report (2014-2029)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: October 2024 WZ SP56.02DE Spotlight Report

Revenue

€505.9m

2024

€505.9m

Past 5-Year Growth

Profit

€XX.Xm

Employees

20,992

Businesses

3,068

Wages

€XXX.Xm

Bars in Germany industry analysis

The bar industry is struggling with difficult conditions. Legal regulations, growing public health awareness, the decline in alcohol consumption and the coronavirus pandemic have increased the pressure on market players over the past five years. In addition to external competition from pubs, other entertainment venues, restaurants, supermarkets and discounters, which is having a negative impact on the industry's revenue, there is also intense competition within the sector in the highly fragmented market. In the period from 2019 to 2024, industry revenue therefore fell by an average of 10.6% per year. Since 2022, however, the industry has been able to record sales growth again, even if the pre-crisis level of 2019 is unlikely to be reached again in the foreseeable future. In 2024, industry turnover is expected to increase by 0.7% to €505.9 million.The current rise in net monthly household income and growing consumer spending on non-essential goods and services, including visits to bars, are favouring the development of the sector. If the population remains the same, an increase in net household income generally goes hand in hand with sales growth in the bar industry. While declining alcohol consumption poses a risk to industry sales, the market for non-alcoholic alternatives such as non-alcoholic beer and mocktails, which reflect current nutrition and lifestyle trends, offers new growth potential. However, strong competition from supermarkets, restaurants and other entertainment venues continues to pose a threat to demand for the industry's services. < />The ongoing intense competition within and outside the sector is likely to severely restrict the industry's growth in the future. Due to the high competitive pressure, industry players must invest in expanding their range of services and products and implement innovative catering concepts. IBISWorld is forecasting an average annual increase in industry turnover of 3.9% over the next five years, which is expected to reach 613.1 million euros in 2029. The number of companies operating in the sector is also likely to increase slightly.

Trends and Insights

  • The bar industry is only slowly regaining momentum after years of crisis. The sluggish recovery is due to high energy and food costs, falling customer numbers and strong external and internal competition.
  • Bars mainly generate their turnover by serving spirits. They are characterised by their qualified bartenders, who can mix a wide range of drinks, and thus stand out from other catering establishments. Long drinks and cocktails are particularly popular drinks.
  • The industry is highly fragmented. Bars are mostly small, owner-managed businesses with only five or fewer employees and operate locally. As there are no large chains in the beverage-driven catering sector, no single industry player has a market share of more than 5%.

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  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
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  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 10.6 % over the past five years, to reach an estimated €505.9m in 2024.

Trends and Insights

The European Football Championship ensured good capacity utilisation in the bars

  • According to a DEHOGA survey, around 8% of all catering establishments stated that they had benefited greatly from this year's European Championships. Pubs, bars and beer gardens performed best, with around 32% of all pubs reporting a positive result.
  • Additional trends and insights available with purchase
Bars in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The staff shortage is likely to worsen in the future

  • The increasing staff shortage is likely to pose major challenges for bars and pubs over the next five years. For many potential employees, working in bars is unattractive as it often involves overtime, weekend work and low wages. In response, bar owners are likely to further reduce their offerings and opening hours.

Biggest companies in the Bars in Germany

There are no companies that hold a large enough market share in the Bars in Germany industry for IBISWorld to include in this product.

Products & Services Segmentation

Bars in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Serving of spirits and cocktails, Serving beer and Serving of non-alcoholic beverages. Serving of spirits and cocktails is the largest segment of the Bars in Germany.

Trends and Insights

The serving of spirits and cocktails is the core business of the bars

  • The serving of spirits includes the serving of whisky, vodka, rum, gin, brandy, liqueurs, grain and other spirits. Mixed drinks with spirits such as long drinks and cocktails are also included in this segment.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Bars are specialised types of establishment in the hospitality industry that focus on serving drinks. In contrast to pubs and public houses, dancing is also permitted in bars. Loud music and alcoholic drinks are characteristic of bars.

What's included in this industry?

Sale of drinks for consumption on the spot

Companies

Purchase this report to view all major companies in this industry.

Related Terms

CRAFT BEERMOCKTAILOPO-UP-BARS

Industry Code

WZ 2008

WZ 56.30.3 - Bars in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The bar industry is only slowly regaining momentum after years of crisis. The sluggish recovery is due to high energy and food costs, falling customer numbers and strong exte...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Bars mainly generate their turnover by serving spirits. They are characterised by their qualified bartenders, who can mix a wide range of drinks, and thus stand out from othe...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Purchase this report to unlock analyst insights.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry is highly fragmented. Bars are mostly small, owner-managed businesses with only five or fewer employees and operate locally. As there are no large chains in the ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Serving alcohol is heavily regulated. Bar operators need a liquor licence to be allowed to serve alcohol. Bars must also comply with the applicable hygiene and food standards...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Due to the strong focus on service, staff costs exceed material costs. Bar staff play a special role in this. In addition, there is a high proportion of unpaid labour in owne...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Bars industry in Germany in 2024?

The market size of the Bars industry in Germany is €505.9m in 2024.

How many businesses are there in the Bars in Germany industry in 2024?

There are 3,068 businesses in the Bars industry in Germany, which has declined at a CAGR of 3.7 % between 2019 and 2024.

Has the Bars industry in Germany grown or declined over the past 5 years?

The market size of the Bars industry in Germany has been declining at a CAGR of 10.6 % between 2019 and 2024.

What is the forecast growth of the Bars industry in Germany over the next 5 years?

Over the next five years, the Bars industry in Germany is expected to grow.

What does the Bars in Germany include?

Sale of drinks for consumption on the spot and are part of the Bars industry.

How competitive is the Bars industry in Germany?

The level of competition is low and steady in the Bars industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Complementors

  • There are no industries to display.

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.