Escalating competition and slowed sales have reduced the size of the playing field
Los Angeles, CA (PRWEB) November 23, 2012
The Miniature Golf Courses industry first rose to prominence in America in the early 20th century and, as recently as the early 1990s, enjoyed widespread popularity. Over the past five years, however, the industry has faced a variety of setbacks, stemming from the recession and competition from alternate entertainment options. As a result, over the five years to 2012, industry revenue declined at an average annual rate of 2.5% to an estimated $303.4 million. "Decreased disposable income during the recession caused individuals to trim back their entertainment budgets, resulting in accelerated industry decline in 2008 and 2009," says IBISWorld industry analyst Caitlin Moldvay. "Furthermore, the increasing proliferation of digital and in-home entertainment options has resulted in a long-term trend away from location-based entertainment offerings." Fortunately for the Miniature Golf Courses industry, slow economic recovery over the past two years has caused a modest rebound in consumer spending, which is expected to help push revenue up in 2012.
The Miniature Golf Courses industry is highly fragmented. According to the US Census Bureau, more than 98.0% of companies have just one location and more than half of these year-round operators generate less than $250,000 in revenue. "With escalating competition and lower sales during the recession, the size of the playing field has continued to decrease," says Moldvay, with the number of industry operators declining at an average annual rate of 2.3% to 996 companies. The two prominent industry players Putt-Putt LLC and Monster Entertainment LLC (parent company of Monster Mini Golf) operate locations throughout the United States. Putt-Putt and Monster are planning to continue their penetration of both domestic and international markets. Putt-Putt opened its first international franchises in South Africa, Australia and Japan in the 1960s. Despite the success of these two companies, a number of industry operators are struggling with mounting competition from alternate entertainment options and rising compliance costs. As such, many players have been forced to exit the industry.
A short period of recovery is expected to benefit the industry as declining unemployment paves the way for greater consumer spending on entertainment options. Continued competition from digital entertainment options will likely overwhelm industry growth, though, resulting in a continued decline in revenue through the five-year period. As Americans return to the workforce, they will have less time to spend on amusement and recreational activities. Moreover, the limited free time they do have will increasingly be spent on the digital entertainment options, which include video game consoles, subscription streaming movie and TV services. For more information, visit IBISWorld’s Miniature Golf Courses in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry operate miniature golfing courses which generally feature a series of short constructed obstacle courses. Industry operators may also offer arcade games, food and beverage items and amusement park rides.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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