Party & Event Planners in the US Industry Market Research Report Now Available from IBISWorld

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The Party and Event Planners industry is highly fragmented, with the majority of party and events planners controlling less than 1% of the market. Since the industry largely provides a discretionary service, it is mainly driven by corporate profit, per capita disposable income and the unemployment rate. The recession hit the industry hard, with many corporations and consumers holding fewer, smaller events. However, the industry can expect to roar back to life with the improving economy in the five years to 2017. For these reasons, industry research firm IBISWorld has added a report on the Party & Event Planners industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The industry is set to benefit from climbing corporate profit and disposable income

The Party and Event Planners industry is highly dependent on the ability of its clients to spend money on discretionary services. Businesses hire event planners to coordinate holiday dinners, fundraisers and client appreciation events. Their demand is determined by the level of corporate profit: the higher a company's earnings, the more money it can dedicate to special events. Likewise, households hire event planners for weddings, birthdays and other similar milestone celebrations, and demand from this market is determined by consumers' per capita disposable income. Over the five years to 2012, these metrics declined as the recession set in, according to IBISWorld industry analyst Nikoleta Panteva. As a result, industry revenue has fallen at an average annual rate of 1.0% to $6.3 billion. As economic conditions have begun to improve, so has industry performance. IBISWorld expects revenue to grow by 2.5% in 2012.

Profit has followed a similar trajectory to revenue. During the recession, budget-conscious corporations and consumers opted for lower-priced event options, reducing the Party and Event Planners industry's profit (earnings before interest and tax) from 16.6% in 2007 to a low of 7.2% in 2009, Panteva says. By the same token, as spending in downstream markets has grown, so have profit margins. IBISWorld estimates that profit will account for 15.7% of revenue in 2012. The outlook is positive for event and party planners. Despite a rising number of industry participants, the industry is set to benefit from climbing corporate profit and per capita disposable income. Over the five years to 2017, revenue is forecast to increase strongly. Similarly, profit will expand as clients choose higher-priced options. However, because weddings represent a large portion of the industry's services, the declining marriage rate is likely to limit industry growth to an extent.

The Party and Event Planners industry has a low level of concentration with the top four industry companies accounting for only a small fraction of total industry revenue. The majority of industry firms operate on a highly localized and niche market basis because diversified and constantly changing consumer tastes force industry operators to constantly adapt their service offerings, which limits their geographic expansion. In addition, low industry barriers to entry allow a large number of firms to operate in the industry. IBISWorld estimates that more than 300,000 companies operate in the industry in 2012, up from 2007 despite the recession contracting industry demand over the same period. A significant number of these companies operate as nonemployers or with a high percentage of part-time staff. There are several industry firms in large geographic markets that have gained national recognition such as Abigail Kirsch, Blue Plate, Along Came Mary and A Joy Wallace due to their high profile events and the clientele they cater to. However, IBISWorld estimates that no industry firm has achieved significant market share. For more information, visit IBISWorld’s Party & Event Planners in the US industry report page.

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IBISWorld industry Report Key Topics

This industry is comprised of companies and individuals that organize social events such as parties, weddings and other social gatherings. This industry does not include companies that organize conventions and trade show events.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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