Higher incomes and larger savings will allow individuals to spend more on weddings
Los Angeles, California (PRWEB) August 08, 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. Industry unemployment, which skyrocketed to 60.3% in 2009, caused people to delay spending on industry services. This resulted in a 5.8% revenue decline in 2009. Meanwhile, according to IBISWorld industry analyst Sally Lerman, “slowly changing social norms have dragged down the marriage rate over the past several decades and in the five years to 2013, when it is expected to decline at an annualized 0.9%.” During this time, industry revenue is anticipated to decrease at an average annual 0.8% to $50.6 billion, including a 0.8% expected rebound in 2013 thanks to rising consumer spending.
Faster internet connections over the past five years have enabled Wedding Services 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,” says Lerman. 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.
The marriage rate is forecast to continue declining an average 0.9% per year during the five years to 2018, though this is not expected to dramatically impact industry performance. 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. A slow but steady 2.9% annualized increase in consumer spending is projected to support revenue growth, as unemployment falls about 4.8% per year on average during the next five years. 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 in the five years to 2018.
There are no identifiable major players in this industry. 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.
For more information, visit IBISWorld’s Wedding Services in the US industry report page.
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IBISWorld industry Report Key Topics
This 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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