Rising popularity of craft products among millennials and baby boomers will drive growth.
New York, NY (PRWEB) June 13, 2014
A resurgence in popularity of the products supplied by this industry, especially among millennials and baby boomers, helped drive revenue growth in this industry. After years of consistent declines, revenue growth started picking up after 2009, as overall economic conditions in Canada started improving. A research study carried out by the Craft and Hobby Association (CHA) in 2011 revealed that a huge proportion of Canadian households completed at least one arts and crafts project. This number is expected to grow further over the next few years. Overall, IBISWorld expects industry revenue to increase at an annualized rate over the five years to 2014, with an expected decline in the current year.
Growth in industry revenue and profit margin over this period also encouraged new entrants to set up shop in this industry. After profit declined considerably in 2009, according to IBISWorld Industry Analyst Zeeshan Haider, “a resurgence in demand and purchases of high-margin items helped restore profit margins.” IBISWorld expects profit to account for a significant portion of revenue in 2014. “Growth in profitability encouraged new entrants to commence operations and IBISWorld expects the number of industry enterprises to grow at an annualized rate over the five years to 2014,” says Haider. Growth in the number of businesses also spurred the industry's demand for labour, which is subsequently expected to increase the wages paid out by this industry. While revenue growth over the past five years has restored some confidence in this industry, it still faces tough external competition from online retailers, and that has prevented revenue from growing more rapidly.
The Fabric, Craft & Sewing Supplies Stores industry has a low level of concentration. Over the five years to 2019, revenue growth will be much slower. That is because this is a mature industry, and while it was growing from a low base in 2009, that would not be the case when measuring its growth from 2014. During this period, demand from e-commerce and online auctions is also expected to grow more quickly, which will be a source of tough competition for industry operators. Over this period, IBISWorld expects industry revenue to grow at an annualized rate. The slowdown in revenue growth is also expected to decrease the number of businesses operating in this industry at an annualized rate. The exit of unprofitable industry operators will help remaining operators maintain a sustainable profit margin, which will prove to be beneficial for this industry.
For more information, visit IBISWorld’s Fabric, Craft & Sewing Supplies Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
The Fabric, Craft & Sewing Supplies Stores industry sells sewing and craft supplies, fabrics, patterns, yarns, needlework accessories, seasonal decorations and sewing machines. Stores that sell sewing machines with other household appliances are excluded from this industry.
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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