Money and career concerns pushed consumers to psychic services during the recession
Los Angeles, CA (PRWEB) May 24, 2012
A rarity among industries, the Psychic Services industry benefited from the economic downturn. Over the five years to 2012, the Psychic Services industry grew at an average annual rate of 2.0% to an estimated $2.1 billion. With greater pressing financial and career concerns, a rising share of consumers turned to psychic services for guidance during the recession. Consequently, industry revenue grew 3.0% and 3.5% during 2008 and 2009, respectively. In the years since, although growth has slowed, industry revenue growth has remained positive and is expected post gains in 2012. Slow increases in per capita disposable income have fostered greater spending on the industry's discretionary services, says IBISWorld industry analyst Caitlin Moldvay. According to the latest information from Pew Research Center, an estimated 15.0% of Americans have visited a psychic or fortune-teller for advice. This share has held almost constant over the past two decades, translating into a relatively stable client base for the industry. The Psychic Services industry includes an array of operators that offer expertise in palmistry, cartomancy, mediumship, astrology, aura readings and other metaphysical services. There are currently an estimated 79,991 businesses that offer expertise in these mystical practices throughout the United States.
The Psychic Services industry has a low market share concentration. The majority of the 79,991 operators are small nonemployer firms. Market share concentration has fallen over the past five years because the number of enterprises has increased, continues Moldvay. The industry faces a high level of competition. The industry's concentration is expected to remain low. Over the next five years, the trend toward greater citywide licensing regulation is expected to continue, which will drive slow industry consolidation.
Over the five years to 2017, industry revenue is expected to grow at a muted rate. Improving economic conditions are expected to yield opposing effects on industry performance. While rising disposable income will boost average customer spending on psychic services, fewer consumers are expected to turn to psychics and fortune-tellers for financial matters over the next five years due to declining unemployment and rising consumer sentiment. Moreover, heightened competition and increased citywide regulations will likely be introduced during the next five years, which will result in a slight industry consolidation and slow industry growth. For more information, visit IBISWorld’s Psychic Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes establishments that offer psychic and fortune-telling services. Industry operators typically provide services in the areas of astrology, aura reading, mediumship, tarot card reading and palmistry, among other metaphysical services.
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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