A steadily falling marriage rate has been hurting demand for wedding services
Los Angeles, CA (PRWEB) May 02, 2012
Economic uncertainty and an increasing acceptance of cohabitation caused a significant proportion of couples to postpone their nuptials over the past five years. Consumer spending dropped in response to high unemployment, which caused people to delay spending on industry services. This resulted in revenue for the Wedding Services industry declining in 2008 and 2009. Also, the falling marriage rate is adversely affecting the industry in the long term. IBISWorld industry analyst Agata Kaczanowska says, “Slowly changing social norms have dragged down the rate over the past several decades, and in the 10 years to 2017, it is expected to decline.” Over the five years to 2012, industry revenue is anticipated to decrease at a 1.6% annualized rate to $49.4 billion, including a 1.3% expected rebound in 2012.
Over the past five years, developments in internet speed and communication have enabled industry operators to reach out to potential clients at a lower cost. Social networking platform developments led to a shift in vendors' marketing strategies toward communicating a unique vision to consumers. “Less expensive and more effective online communication, however, has also lowered the barriers to entry for firms by enabling anyone to market to the same demographics as established businesses,” continues Kaczanowska. Such improved marketing channels are expected to drive enterprise growth at an annualized rate of 1.7% to 475,958 in the five years to 2012. There are no identifiable major players in this industry. The Wedding Services industry is fragmented because it is composed of a wide variety of highly specialized vendors, including florists, venue providers and bridal gown retailers. There are some venues that offer wedding packages with a majority of services included. However, most of these venues have only one location and still outsource to small businesses for these services. Many of these venues are located in Las Vegas, which is known for eloping and spur-of-the-moment ceremonies.
The number of marriages is forecast to continue declining in the five years to 2017; however, it is not expected to dramatically impact industry performance. The amount spent on weddings is estimated to grow over the next five years as the demand for large, costly weddings rises in response to higher disposable income. As the average marriage age and length of engagement further increase, couples will have more time to plan and save money for their ceremonies. A slow but steady increase in consumer spending is also projected to support revenue growth. As a result, industry revenue is projected to rise in the five years to 2017. For more information, visit IBISWorld’s Wedding Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry is composed of day-of wedding service providers, apparel retailers and venues. Wedding coordinators are included because they have many responsibilities on the day of the event. However, the industry excludes pre-wedding and honeymoon spending.
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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