The changing make-up of the UK on-trade will continue, the report suggests

The changing make-up of the UK on-trade will continue, the report suggests

The number of UK on-trade outlets will fall by around 6% in the the next five years as the make-up of the sector continues to transform, a new study predicts. 

The current 124,922 outlets - including pubs, bars, restaurants and hotels - will shrink by 7,704 by 2018, research group CGA suggests in a new report. The majority of these closures will come in the next two years, according to predictions. 

"Challenging trading over the next two years will disproportionately affect those outlets which have not adapted to capitalise on emergent consumer trends and consequently find themselves at a competitive disadvantage," CGA said. 

But it added: "Café-wine bars, premium spirits and cask ale are predicted to be tomorrow’s winners."

The report's author, CGA's Alex Eyre said: "The proliferation of new premium brands and products feed and cultivate demand from consumers. It’s the consumer’s thirst for discovery and experience that will drive the on-trade forward sustainably." 

CGA also noted the on-trade still represents 61% of the value of UK alcohol sales and is growing value share, despite volumes dropping faster than in the off-trade. 

Expert analysis

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