Consumer spending rubs off on pubs

Licensees are set to reap the rewards as British drinkers are predicted to increase their spending in pubs by 10 per cent over the next five years.

Independent market analyst Datamonitor says when compared to France and Germany the findings revealed that UK pubs will receive a bigger boost than European counterparts thanks to the rising number of mid-life single people with more time and money.

Spend is expected to rise from £26.7bn in 2003 to £29.1bn in 2008, with the average annual spend in the on-trade per British customer hitting £625.

The report suggests more midweek drinking and the desire to extend the weekend will be the catalysts for the rise including a demand for more soft drinks.

Danielle Rebelo, consumer markets analyst for Datamonitor and author of the report, said: "People are more likely to avoid alcohol due to work commitments and concerns over health issues associated with alcohol consumption will mean a trend towards non-alcoholic drinks."

This trend towards drinking soft drinks has already presented an opportunity to licensees and the increase will make this more important than ever.

Mark Hasting, director of communications for the British Beer and Pub Association, said: "With the historic growth in the sector there is every reason to be bullish about future growth, economic trends and current patterns of consumer spending point to this. The only fly in the ointment might could be the impact of interest rates but most feel that even this is now tightening so we should remain confident."

The report also identifies the massive increase in female drinkers over the last two decades and indicates that this rise is not expected to slow.

Ms Rebelo added: "The feminisation of alcohol has had the single biggest impact in the on-trade in the past fifteen years and has affected male drinking habits."