Bars & Nightclubs NAICS 722410

May 20, 2025 - EDM is Booming

• Electronic dance music is booming in nightclubs across the globe, driven by socioeconomic, cultural, and technological changes, The New York Times reports. A diverse and growing crop of DJs provide an economic alternative for music and dance lovers to soaring ticket costs for live acts. NYT notes that evolving DJ hardware and software has flattened the learning curve (and entry) price for novices, while expanding possibilities for seasoned performers. Moreover, digital platforms like Boiler Room are fueling the popularity and extraordinary reach of the genre. The Times notes that local nightlife scenes around the world – captured and shared online – are attracting record views and interest, with Tik Tok’s “electronic music” hashtag drawing 13.4 billion views last year, up 45% from 2023. A growing number of nightclubs are cashing in on the EDM boom, with some following Europe’s lead by banning phone filming on dancefloors.
• Bar and nightclub goers will pay more for cocktails, champagne, and imported beers, while some brands will disappear from drinks menus as a result of President Trump’s tariffs, Reuters reports. Analysts at UBS estimated that large publicly-held spirits makers would have to hike prices by between 2% and 5% to cover the tariffs, or absorb the cost and take a similar hit to operating profit, according to Reuters. With wine and beer consumption already falling among US drinkers, tariff-inflated prices could further erode their share. Moreover, the broader impact of tariffs on household budgets may make consumers less likely to splurge on a pricey cocktail or night out, depressing sales for bars and nightclubs. Rising recessionary fears may also keep consumers at home. In March, Goldman Sachs raised the probability of a US recession to 35% from 20%, amid tariff turmoil and economic uncertainty.

• Tariffs imposed on Canada by the Trump administration could deter Canadians from visiting the US, according to the US Travel Association (USTA). Canada is the top source of international visitors to the US, with 20.4 million visits in 2024, generating $20.5 billion in spending, per USTA figures. A 10% reduction in Canadian travel could mean 2 million fewer visits, resulting in $2.1 billion in lost spending. Canada’s Former Prime Minister Justin Trudeau urged citizens to spend domestically and suggested they spend their summer vacations exploring their home country. The five most visited states by Canadians – Florida, California, Nevada, New York and Texas – could see declines in retail and hospitality revenue, as shopping is the top leisure activity for Canadian visitors. President Trump’s tariffs threats on products from Canada, Mexico and the European Union – including alcoholic beverages – threaten to raise prices or limit supply.
• Employment by bars and nightclubs grew 2.4% in March compared to a year ago, while the average industry wage rose 3.6% over the same period to a new high of $22.98 per hour, according to the latest US Bureau of Labor Statistics data. With wages nearly doubling over the past decade (up 96.6%) and employment also rising, albeit more modestly, payrolls at bars and nightclubs have swollen. The industry’s growing labor costs are supported by rising consumer spending, which rose 2.7% year over year in February and 0.1% versus January, according to the Bureau of Economic Analysis. Looking ahead, sales for the US bars and nightclubs industry are forecast to grow at a 3.56% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to the latest forecast by the Interindustry Economic Research Fund.