Just 8% of Britons describe themselves as regular clubbers now, almost three in 10 avoid the dance scene entirely and as many as 27% claim to have never visited a nightclub, analysts Mintel said.
The top three issues most likely to put clubbers off are expensive door entry (46%), expensive drinks (46%), and crowding (43%).
Mintel found that annual admissions for the UK nightclubs industry fell by 34 million in five years to 115 million last year.
Revenue for nightclubs had declined by 21% from £1.49 billion in 2010 to £1.18 billion in 2015, and was set to decline a further 16% to £982 million in 2020.
Meanwhile Mintel forecasted yearly admissions figures would fall a further 14% by 2020 to reach just 99 million.
Less than half of visitors (46%) bought more than one alcoholic drink during their nightclub visit, while 43% of Britons who have been to a nightclub say they prefer to go to bars with dancing areas.
The figures come after a council revoked the licence of London’s Fabric over a “culture of drug use” which staff were “incapable of controlling”.
Mintel research analyst Rebecca McGrath said: “Fabric’s recent closure, alongside other high-profile closures in recent months, highlights the increased regulatory pressure faced by nightclubs, as well as the competition they face from late night bars and pubs.
“High entry fees and drink prices are having a negative impact on people’s clubbing experiences, with many opting to purchase alcoholic drinks in other locations, including at home, before they get to a club.”