The U.S. Bars and Nightclubs industry is expected to earn a revenue of $25.4 billion in 2016, according to IBISWorld, an industry and market research firm. Industry revenue is expected to increase 2.9 percent in 2016, as per capita alcohol consumption and disposable income increase, allowing people to spend more at bars and nightclubs. IBISWorld Industry Analyst Andrew Alvarez said, “Bar and nightclub operators have attempted to respond to volatile growth and increased competition by diversifying into a range of new concepts such as wine bars, cocktail lounges and brewpubs.” Over the next five years, the industry still faces competition from in-home alcohol consumption, however the financial performance is forecasted to remain steady.