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Bars & Nightclubs in Canada - Market Research Report (2015-2030)

Valerie Le Valerie Le New York, United States Last Updated: August 2025 NAICS 72241CA

Revenue

$2.9bn

2025

$2.9bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

30,115

Businesses

3,668

Wages

$XXX.Xm

Bars & Nightclubs in Canada industry analysis

Facing shifting social trends and a pandemic, bars and nightclubs in Canada have seen a slump in recent years. Canadians are increasingly choosing to consume alcohol at home, with per capita alcohol intake dropping over the last five years. Additionally, bars faced stiff competition from restaurants and alternate entertainment outlets serving alcohol. To the industry's benefit, revenue has recovered from the pandemic low, albeit expected to remain below the pre-pandemic level. Overall, despite these external factors, industry revenue has expanded an annualized 11.3% to $2.9 billion over the five years to 2025, despite a slight decline of 0.1% in 2025 alone. This revenue improvement also boosted industry profit.

Trends and Insights

  • Building and nurturing strong customer relationships can create a sense of loyalty and advocacy, even during challenging times. Customers who feel connected to a bar or nightclub are more likely to support and recommend the establishment to others.
  • Bars and nightclubs must focus on serving what customers cannot easily replicate at home, like mixed drinks and craft beers. Sales of wine and bottled beverages are far lower by comparison.
  • As a service-based retail industry, Canadian bar and nightclub establishments are dispersed somewhat in line with population and income distribution. Ontario and Quebec have the largest share of bars and nightclubs.
  • With a highly competitive market, bars and nightclubs must differentiate themselves to attract a specific target audience and build a loyal customer base. This can be achieved through unique concepts, innovative offerings, distinctive atmospheres, or specialized themes.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 11.3 % over the past five years, to reach an estimated $2.9bn in 2025.

Trends and Insights

Consumer preferences have shifted

  • Customers seek memorable experiences, innovative cocktails, craft beers and specialty spirits. Bars and nightclubs providing a distinct atmosphere and a diverse range of beverages have gained popularity.
  • Additional trends and insights available with purchase
Bars & Nightclubs in Canada
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

Bars and nightclubs will increasingly offer craft beer and cocktails

  • Canada's growing health and wellness trend is expected to influence bars and nightclubs further by steering them toward healthier drink options. They will likely expand their drink menus to include more low-alcohol or non-alcoholic alternatives, beverages made with organic ingredients and functional beverages designed for health-conscious consumers.

Biggest companies in the Bars & Nightclubs in Canada

Company
Market Share (%)
2025
Revenue
2025
Profit
2025
Profit Margin (%)
2025

There are no companies that hold a market share exceeding 5% in the Bars & Nightclubs in Canada industry.

Products & Services Segmentation

Bars & Nightclubs in Canada
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Distilled spirits sales, Wine sales and Beer, ale and cider sales. Distilled spirits sales is the largest segment of the Bars & Nightclubs in Canada.

Trends and Insights

Sales of liquor, wine and beer generate the lion's share of revenue

  • Alcohol sales at a bar or nightclub are the sale of alcoholic beverages to customers for consumption on the premises. This can include beer, wine, liquor and mixed drinks.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Bars and Nightclubs industry in Canada includes bars, taverns, nightclubs and drinking places that serve alcoholic beverages for immediate consumption. These establishments may also provide limited food services.

What's included in this industry?

Products and services covered in the Bars & Nightclubs industry in Canada include Distilled spirits sales, Wine sales, Beer, ale and cider sales, Food sales, Gambling services and Sale of packaged alcohol, tobacco products and other merchandise .

Companies

Companies covered in the Bars & Nightclubs industry in Canada include .

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

Related Terms

Related terms covered in the Bars & Nightclubs industry in Canada include on-premise consumption, off-premise consumption, ready-to-drink, freehold and leasehold.

Industry Code

NAICS 2007

NAICS 722410 - Bars & Nightclubs in Canada

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

Building and nurturing strong customer relationships can create a sense of loyalty and advocacy, even during challenging times. Customers who feel connected to a bar or night...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

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

Analyst insight

Bars and nightclubs must focus on serving what customers cannot easily replicate at home, like mixed drinks and craft beers. Sales of wine and bottled beverages are far lower...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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

As a service-based retail industry, Canadian bar and nightclub establishments are dispersed somewhat in line with population and income distribution. Ontario and Quebec have ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each province
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each province in 2025
  • Number and share of revenue each province accounts for in 2025
  • Number and share of wages each province accounts for in 2025
  • Number and share of employees in each province in 2025

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • 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

With a highly competitive market, bars and nightclubs must differentiate themselves to attract a specific target audience and build a loyal customer base. This can be achieve...

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 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

There are no companies that hold a market share exceeding 5% in the Bars & Nightclubs in Canada industry.

Analyst insights

The average bar or nightclub is small, so no one business captures a notable share of revenue. The average owner has just one location and employs ten or fewer individuals.

External Environment

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

Analyst insights

Canada's Bars and Nightclubs industry receives no tariff protection or other forms of assistance. In some provinces, restrictions on the number of licences issued per head of...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

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

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

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

Analyst insights

High competition keeps average profit slim. Owners must garner a loyal customer base to weather the ups and downs and better pass along operational cost increases.

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2023)
  • Coverage Ratios (2018-2023)
  • Leverage Ratios  (2018-2023)
  • Operating Ratios (2018-2023)
  • Assets (2018-2023)
  • Liabilities (2018-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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

Top Questions Answered

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

What is the market size of the Bars & Nightclubs industry in Canada in 2025?

The market size of the Bars & Nightclubs industry in Canada is $2.9bn in 2025.

How many businesses are there in the Bars & Nightclubs industry in Canada in 2025?

There are 3,668 businesses in the Bars & Nightclubs industry in Canada, which has declined at a CAGR of 3.4 % between 2020 and 2025.

How may import tariffs affect the Bars & Nightclubs industry in Canada?

The Bars & Nightclubs industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Bars & Nightclubs industry in Canada?

The Bars & Nightclubs industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Bars & Nightclubs industry in Canada grown or declined over the past 5 years?

The market size of the Bars & Nightclubs industry in Canada has been growing at a CAGR of 11.3 % between 2020 and 2025.

What is the forecast growth of the Bars & Nightclubs industry in Canada over the next 5 years?

Over the next five years, the Bars & Nightclubs industry in Canada is expected to grow.

What does the Bars & Nightclubs industry in Canada include?

Distilled spirits sales and Wine sales are part of the Bars & Nightclubs industry in Canada.

How competitive is the Bars & Nightclubs industry in Canada?

The level of competition is high and steady in the Bars & Nightclubs industry in Canada.

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 Canada include:

  • Statistics Canada
  • Industry Canada
  • Canadian Business Patterns

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.

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