Consumers will spend more on ancestry research as disposable incomes rise
Los Angeles, CA (PRWEB) May 30, 2013
The Ancestry Research Services industry has taken advantage of new online and forensics technologies to expand product offerings and appeal to a wider market. During the five years to 2013, the percentage of industry services conducted online expanded at an annualized rate of 8.9%. "This has increased consumer familiarity with family history research tools, and has allowed consumers to become more comfortable using industry services," IBISWorld industry analyst Agata Kaczanowska says. The industry's core demographic, adults aged 50 and older, has expanded since 2008, which has further stimulated industry demand. During the recession, higher leisure time led people to take on new hobbies like ancestry research, and a popular TV show featuring major company Ancestry.com Inc.'s services also boosted consumer interest in genealogy. Consequently, revenue is expected to expand at an annualized five-year rate of 10.1% to $1.2 billion in 2013. Increasing disposable income will drive estimated revenue growth of 6.4% in 2013, which will enable hobbyists to spend more on industry services.
Consolidation also occurred during the past five years, consisting largely of major companies, like Ancestry.com, acquiring smaller competitors as well as firms that specialize in newer genealogy research technologies. For example, Ancestry.com acquired access to an extensive collection of DNA assets from Sorenson Molecular Genealogy Foundation. Soon thereafter, in May 2012, the company launched AncestryDNA, a DNA test allowing consumers to combine forensic test results with the company's genealogical resources, which includes a global database of DNA samples. "This consolidation has led the industry to have a low level of market share concentration," Kaczanowska says. In 2013, the top three companies, which are Ancestry.com Inc., MyHeritage Ltd. and The Church of Jesus Christ of Latter-day Saints, make up less than one-half of the total market share.
Despite regular acquisitions within the Ancestry Research Services industry, new entrants stimulated significant enterprise growth during the period. In particular, nonemploying businesses entered the industry as demand drove entrepreneurial interest in providing ancestry research services. Consequently, the number of enterprises is estimated to rise during the five years to 2013.
As disposable income rebounds in the five years to 2018, consumers are expected to spend more on industry services. New products and services, like the DNA tests that Ancestry.com has started offering, are expected to further boost consumer spending. Consequently, revenue is forecast to rise in the five years to 2018. This slower growth rate will be a result of the industry's revenue base expanding and the market nearing saturation. For more information, visit IBISWorld’s Ancestry Research Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides genealogy research services. Industry operators typically provide a study of an individual's ancestral roots through access to historical records.
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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