Fastest Declining Industries in the UK by Revenue Growth (%) in 2021

1. Festivals in the UK

2019-2020 Revenue Growth: -93.8%

Operators in the Festivals industry organise festivals and live music events in venues throughout the United Kingdom. The events derive revenue primarily from ticketing, but also from a variety of on-site services, such as food and drink sales, which have been an increasing source of industry revenue as operators have expanded their services. The industry also includes the activities of agents, promotors and other production services involved in the organisation of live music events.

Over the five years through 2020-21, industry revenue is forecast to fall at a compound annual rate of 34.9% to £186.2 million. This is primarily due to... Learn More

2. Cinemas in the UK

2019-2020 Revenue Growth: -77.7%

The Cinemas industry includes all operators that show films in designated film-projection facilities. Most of these facilities are indoors, but some are open-air. The majority of industry revenue is generated from box office sales, with blockbuster films contributing the most to this product segment. Food and beverage sales and screen advertising are also important revenue streams for industry operators. The industry is highly concentrated, with the top four industry players expected to account for 85.6% of industry revenue in 2020-21.

High cinema admissions and a strong film slate have supported industry performance over the past five years. According to the UK... Learn More

3. Non-Scheduled Passenger Air Transport in the UK

2019-2020 Revenue Growth: -62.2%

The Non-Scheduled Passenger Air Transport industry comprises businesses transporting passengers by helicopter or aeroplane on a chartered basis. The industry focuses on flights operated by charter airlines with holiday destinations and is dominated by one player, TUI Airways, which is involved in other areas of the travel industry, such as the provision of all-inclusive tours. Although the industry may be perceived as providing tailored travel services for the wealthy, the bulk of revenue is generated by transporting customers to holiday destinations as part of a travel package. Industry demand has fluctuated significantly during the past five-year period, but charter passenger... Learn More

4. Scheduled Passenger Air Transport in the UK

2019-2020 Revenue Growth: -61.3%

The Scheduled Passenger Air Transport industry includes all British companies that transport passengers on domestic or international routes on regular timetables. Passenger air travel is largely considered to be discretionary and industry performance is influenced by consumer and business confidence, the level of disposable income, and airfares. Although passenger numbers tend to remain fairly robust in the face of economic fluctuations, changes in the propensity of consumers to spend on discretionary items has a more profound effect on revenue, as price competition intensifies during times of low consumer confidence.

Industry revenue recovered from a post EU referendum decline to record robust... Learn More

5. Hotels in the UK

2019-2020 Revenue Growth: -60.5%

The Hotels industry performed well at the start of the past five-year period. The weak pound had made the United Kingdom an affordable destination for international tourists, while weak consumer confidence led to a rise in domestic tourism over the period. Families have increasingly forgone overseas holidays, instead favouring staycations, benefiting domestic hotel occupancy rates. However, the COVID-19 (coronavirus) pandemic is expected to significantly disrupt the industry. Overall, industry revenue is expected to fall at a compound annual rate of 16.2% over the five years through 2020-21 to £8 billion.

Falling consumer and business confidence due to the coronavirus outbreak, as... Learn More

6. Sea & Coastal Passenger Water Transport in the UK

2019-2020 Revenue Growth: -58.2%

The Sea and Coastal Passenger Water Transport industry offers a range of services, including cruises, ferry services, and fishing charters. The industry is therefore reliant on domestic and international tourism. Operators fortunes have been mixed over the past five years, with considerable variance between different market segments. Cruise ships have performed robustly over most of the period and have expanded by marketing value, such as all-inclusive holidays. However, demand for international ferry services has wavered as a result of intense competition from air and rail transport. International travel restrictions implemented in response to the COVID-19 (coronavirus) outbreak are expected to... Learn More

7. Conference Centres Letting & Operating in the UK

2019-2020 Revenue Growth: -55.7%

Operators in the Conference Centres Letting and Operating industry rent out and operate purpose-built conference and exhibition centres, either independently or on behalf of a private- or public-sector entity, generating revenue through venue hire, service provisions and registration fees. Industry demand is driven by downstream business activity, which is contingent on the willingness of entities, such as trade associations, government organisations and private-sector corporations, to hold events and spend on ancillary services. Demand is significantly affected by business confidence, which takes into account the current financial position of downstream businesses and operating conditions in the wider economy.

Industry revenue has been... Learn More

8. Urban Passenger Rail Operations in the UK

2019-2020 Revenue Growth: -53.5%

The Urban Passenger Rail Operations industry includes businesses that operate passenger rail networks through urban, suburban or metropolitan areas. London is the largest market for industry services, accounting for more than 90% of passengers. Consequently, Transport for London (TfL) dominates the industry through its ownership of the London Underground, the Docklands Light Railway and the London Overground. Industry performance is largely contingent on the number of passengers using these services, which is determined by several demographic and social factors, including the size of the urban population, the rate of employment and competition from alternative forms of transport.

Industry revenue is expected... Learn More

9. Nightclubs in the UK

2019-2020 Revenue Growth: -50.4%

Many nightclubs have faced difficult operating conditions over the past five years as competition has increased, with nightclubs having lost their competitive advantage because late-night revellers can stay up late in pubs or bars, many of which offer a wider selection of drinks, lower prices and a more relaxed atmosphere. This has contributed significantly to the industry's long-term decline.

A large number of nightclubs have closed in the past decade, as operators have struggled to respond to new challenges from regulation, licensing, planning, business rates and policing. Many consumers purchase cheap alcohol from supermarkets (see IBISWorld report G47.110) to drink before... Learn More

10. Bridal Stores in the UK

2019-2020 Revenue Growth: -47.5%

The Bridal Stores industry specialises in selling wedding dresses and clothes for members of the bridal party, as well as jewellery and accessories, representing just a small part of the UK wedding business. Operators in the industry tend to be fairly protected from economic fluctuations because consumers are willing to spend more on wedding dresses due to the special nature of the occasion. However, the forced closure of all bridal stores during the opening part of 2020-21 and the cancellation and postponement of a huge number of weddings due to COVID-19 (coronavirus) restrictions is expected to cause revenue to fall... Learn More