Higher incomes and larger savings will allow individuals to spend more on weddings.
Los Angeles, CA (PRWEB) December 11, 2013
Economic uncertainty and an increasing acceptance of cohabitation caused a significant proportion of couples to postpone their nuptials over the past five years, posing a challenge to the Wedding Services industry. The high rate of unemployment caused people to delay spending on industry services. This resulted in a 5.8% revenue decline in 2009. Meanwhile, slowly changing social norms have dragged down the marriage rate over the past several decades; in the five years to 2013, it is estimated to decline at an annualized rate of 0.9%. During this time, Wedding Services industry revenue is anticipated to decrease at an average annual rate of 0.8% to $50.6 billion, including a 0.8% expected rebound in 2013, thanks to rising consumer spending.
According to IBISWorld Industry Analyst Sally Lerman, “Faster internet connections over the past five years have enabled industry operators to reach out to potential clients at a lower cost.” In addition, social networking platform developments have shifted vendors' marketing strategies toward communicating a unique vision to consumers. Less expensive and more effective online communication has also increased competition by enabling new industry entrants to market to the same demographics as established businesses. Such improved marketing channels are expected to drive enterprise growth at an annualized rate of 3.6% to 501,798 firms in the five years to 2013. As a result, industry profit is also estimated to increase from 3.6% of revenue in 2008 to 4.1% in 2013.
“The marriage rate is forecast to continue declining during the five years to 2018, though this is not expected to dramatically impact industry performance,” says Lerman. The amount spent on weddings is estimated to grow during the next five years, as higher disposable income increases the demand for large, costly weddings. In addition, as the average age of marriage and length of engagement further increase, couples will have more time to plan and save money for their ceremonies. As a result, industry revenue is projected to rise at an annualized rate of 2.3% to $56.7 billion in the five years to 2018.
There are no identifiable major players in this industry and the top four players account for less than 10.0% of industry revenue. The Wedding Services industry is extremely 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 or where some couples decide to have a spur of the moment ceremony.
For more information, visit IBISWorld’s Wedding Services industry in the US industry report page.
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IBISWorld industry Report Key Topics
This Wedding Services industry is defined broadly to include day-of wedding service providers, apparel retailers and venues. Wedding coordinators are included because they execute many responsibilities on the day of the event. The industry, however, excludes pre-wedding and honeymoon expenses.
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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