Economic recovery and returning consumer confidence will negatively affect demand.
Los Angeles, CA (PRWEB) November 08, 2013
Life coaches assist individuals with personal, relationship and business matters. Demand for their services grows when public confidence declines and people's ability to handle the surplus and scope of issues on their own falters. When the housing bubble burst and the US economy fell into a recession, consumer confidence plummeted. Moreover, high unemployment, falling incomes and bleak outlooks caused Americans to seek out the assistance of professional coaches. As such, demand for the Life Coaches industry skyrocketed and revenue grew over the five-year period to 2013. However, as the economy slowly continues to recover and consumer confidence returns, demand for life coaches is expected to wane. Although industry revenue is not anticipated to fall during the year, it is expected to increase at a relatively subdued rate.
The Life Coaches industry is highly fragmented, and most operators have very little market share. Although life coaches perform a large share of their coaching remotely, most serve only their local market, which enables them to perform face-to-face sessions that often complement remote coaching. The market's largest companies (which includes Handel Group, Compass Life and Career Coaching, Inner Power Coaching and Julie Melillo Life Coaching) specialize in remote coaching and traveling workshops, enabling them to reach a national client base. However, such establishments constitute a minor segment of the market and still possess relatively little market share (see IBISWorld report OD4184 for major player market shares).
According to IBISWorld Industry Analyst Nikoleta Panteva, “Given that life coaching is considered a discretionary expenditure, consumers with high incomes (and therefore, high disposable incomes) will continue to seek out this service.” The share of households earning more than $100,000 a year has grown over the past five years, supporting industry growth. Still, despite this viable source of demand, life coaches should be aware of the laws and regulations within their state of operation. The line between coaches and therapists is becoming increasingly indistinct, causing some states to more closely scrutinize the activities of life coaches. “In some cases, coaches may face disciplinary actions if their services are construed as family or relationship counseling,” says Panteva.
Looking ahead, over the five years to 2018, high-income households will continue to serve as the primary vehicle of growth for the Life Coaches industry. However, as consumer confidence continues to recover, consumers will require less professional guidance. The falling divorce rate will also limit individuals and couples' need for relationship and family coaching, further stifling industry performance. Ultimately, the share of high income-earning households is forecast to increase, underpinning industry revenue growth in 2018.
For more information, visit IBISWorld’s Life Coaches in the US industry report page.
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IBISWorld industry Report Key Topics
The Life Coaches industry includes practitioners that primarily help clients set and achieve personal goals. Such goals can pertain to a client's job, personal life or interpersonal relationships. This industry does not include psychologists, mental health counselors or business analysts.
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