III. Industry Analysis
The lounge industry has experienced overall growth over the past five years. This growth was largely driven but sustained growth in consumer spending and per capita expenditure on alcohol. The industry will continue to benefit from economic growth, a decrease in the unemployment rate, and increased discretionary spending. Additionally, per capita expenditure on alcohol is expected to increase at a faster rate than in the previous five-year period, particularly on premium beverages.
The rising popularity of lounges and similar establishments has helped sustain the industry, especially post-COVID. According to IBIS World, the Lounge & Nightclub industry has grown by 2.2% in the past five years and this growth is expected to continue. The industry is expected to grow at a compound annual growth rate of 5.9%, showing that the popularity of lounges will continue to rise.