The survival of the community pub in the current economic climate is "quite remarkable", according to a new report into the future of pubs.
New research by Key Note showed that total pub turnover had fallen 3.4% since 2006 and predicted another year of decline ahead.
It expects the market to drop by 1.9% in 2009, before remaining static in 2010 and gradually increasing in 2012.
It predicts the number of pubs over the five year period will continue to decrease and that the national total of pubs then will be 55,350.
It identifies long-term challenges as:
• The continued existence of too many small, wet-led local pubs.
• An old-fashioned approach to ownership and management, based on beer barrelage.
• Competition for the 'Leisure Pound' out of home from bars and restaurants.
• The price differential between bar prices and those in the highly competitive off-trade.
However, alcohol still accounts for a far greater proportion of consumer spending on leisure activities outside the home than anything else (£28bn). The next highest spend is restaurant meals at £23.5bn.
"Following difficult years for the public houses trade, including bans on smoking, new licensing laws and controversy over binge drinking, 2008 saw the market beset with more negative trends, such as the downturn of the economy into recession and higher taxes on alcohol," the report said.
"Given these problems, the survival of the small community pub is quite remarkable. It is a testament to its role in community social life and its adaptation to new consumer demands."