The industry benefited from corporate spending on employee wellness events.
New York, NY (PRWEB) February 11, 2014
The Athletic Event Organizers industry had to overcome a number of obstacles in the five years to 2014, as it recovered from its recessionary slump. Industry players organize athletic events that do not require facilities, such as marathons, cycling competitions and obstacle courses. “During the recession, declining per capita disposable incomes and falling advertisement expenditures reduced the amount of money that consumers and sponsors could spend on events, thereby causing industry revenue to significantly decline in 2009,” according to IBISWorld Industry Analyst Maksim Soshkin. Moreover, the industry has been suffering from declining athletic participation rates among Americans, which has hindered industry growth over the past decade.
However, the industry benefited from increased corporate spending on employee wellness events such as company-hosted marathons, as corporations attempt to mitigate healthcare costs. Furthermore, events tailored toward sports enthusiasts and large-scale marathons have increased in popularity. “These trends combined with extremely low 2009 revenue levels caused by the recession enabled the industry to slowly recover, once the economy began to recover,” says Soshkin. Nonetheless, revenue growth has stood near stagnant levels and is expected to remain below prerecession levels in 2014. Therefore, in the five years to 2014, IBISWorld expects industry revenue to climb at an annualized rate of only 0.7% to $1.4 billion, with a 0.2% jump in 2014.
However, in the next five years, industry revenue growth is anticipated to increase its pace as demand rises. The combination of increasing health awareness and the popularity of corporate wellness programs are expected to be primary drivers of industry growth. The popularity of marathons is also projected to continue growing, with baby boomers increasingly participating in industry events. Older consumers have more leisure time to partake in events and are gradually striving to improve their health. However, a number of obstacles will remain. Namely, external competition from athletic activities that require facilities (i.e. football, basketball and soccer) is anticipated to intensify. Consequently, as the amount of time spent on leisure and sports by Americans is forecast to decline, organizers will have difficulty attracting time pressed consumers.
For more information, visit IBISWorld’s Athletic Event Organizers in the US industry report page.
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IBISWorld Industry Report Key Topics
This industry provides event management services for sporting events such as marathons and triathlons. Companies in this industry also offer logistical, operational and marketing services.
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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