Scotland’s major cities are leading the charge in late-night venue growth, even as Britain’s traditional nightclub sector faces continued pressure, according to a report from CGA by NIQ and the Night Time Industries Association.
The inaugural Night Time Economy Market Monitor reveals that while Edinburgh and Glasgow have recorded impressive growth of over 4.5 percent in late-night venues during 2024, the broader UK picture shows significant challenges, with total nightclub, late-night bar and casino numbers falling 2.8 percent across Britain compared to 2023. Edinburgh saw growth of 5.5 percent with Glasgow coming in at 4.8 percent.
The report highlights a tale of two sectors, with traditional nightclubs bearing the brunt of closures nationwide, showing a dramatic 33.2 percent decline since pre-COVID levels. However, the wider evening economy has demonstrated remarkable resilience, with the night-time cultural economy (live music, events, entertainment) seeing significant growth over the same period.
As Nightclubs and late-night bars are closing across the UK, cocktail bars, craft beer venues, and themed bars are growing as new concept venues driving much of the growth. Themed bars surging 24.4 percent, cocktail bars were up +17.4 percent, and craft bars increased +14.3 percent across Britain compared to 2023, suggesting, according the report, that late-night drinking is being replaced by immersive, premium experiences.
The data also shows a shifting pattern in trading hours, with 70 percent of NTIA members reporting declining post-1am revenue, while far fewer (47 percent) report a drop in the 6pm-to-8pm period along with a growing demand for experience-led venues. A third (33 percent) of consumers who go out for high-tempo occasions say they are visiting more of these sites than they were a year ago, while only (19 percent) are using them less.
Looking ahead, the sector faces significant headwinds, with only 13 percent of NTIA members expressing optimism about trading conditions in 2025 while 65 percent feel pessimistic. Rising operational costs and new labour regulations announced in the recent Budget are causing particular concern among operators.
Mike Kill, CEO of the Night Time Industries Association, said, “This new report highlights the resilience and challenges of our sector. With consumer spending reaching £223.5 billion in 2024 and the Night-Time Cultural Economy growing by 3.2 percent, the importance of live music, late-night venues, and cultural spaces is clear.
“However, rising operational costs and inflationary pressures are still straining businesses. Employment trends show a vital yet transforming workforce, with significant declines in pub, bar, and licensed club employment, but growth in sporting venues, clubs, and gyms. Targeted support and strategic policy interventions are essential to safeguard the future of this critical pillar of the UK economy.”
Reuben Pullan, CGA by NIQ’s senior insight consultant, said, “The COVID crisis and relentless pressure on costs have created enormous challenges for hospitality businesses in the last five years, and late-night clubs and bars have been hit hardest of all. However, many other segments have been remarkably resilient, and the growth in new types of venues like competitive socialising bars shows the evening economy isn’t disappearing—it’s just changing. With the right support from government, night-time businesses can power not just hospitality but Britain’s economic growth and job creation.”