A rapid increase in per capita income is expected to boost revenue growth
New York, NY (PRWEB) November 10, 2014
Operating laser tag arenas is one of the most profitable ventures in the entertainment industry. Thus, the Laser Tag Arenas industry has expanded at a rapid rate over the past five years. However, revenue growth for the industry has remained relatively subdued, growing at a similar pace as consumer spending and overall GDP growth. Over the five years to 2014, IBISWorld expects revenue to grow at an annualized rate. Uncertain economic conditions, which have only recently started improving, have contributed to slower than expected revenue growth.
According to IBISWorld Industry Analyst Zeeshan Haider, “Unfavorable demographic changes have also contributed to relatively slow growth in the industry.” For example, children aged 19 and below are expected to decrease as a proportion of the total US population between 2010 and 2015. Since these individuals form an overwhelming majority of the customers for laser tag arenas, a decline in their proportion of the population caused a smaller than expected increase in demand, contributing to subdued growth.
“However, rising consumer spending fueled by improving consumer sentiment, which reached a seven-year high in October 2014, has helped offset some of the slow demand growth,” says Haider. Additionally, increasing leisure time over the past five-year period coupled with sustained population growth also helped boost revenue.
The next five years are expected to be more prosperous for operators in this industry. Despite rising competition due to an increase in the number of companies operating laser tag arenas, a rapid increase in per capita income, fueling stronger consumer spending, is expected to boost revenue growth. IBISWorld expects industry revenue to increase at an annualized rate over the five years to 2019. Rising demand is also expected to enable industry operators to increase their prices by a small amount, which is anticipated to boost profit margins. However, the number of core consumers for this industry, individuals aged 10 to 19, are expected to decline over the next five years, which could prove to be a threat for industry operators.
For more information, visit IBISWorld’s Laser Tag Arenas in the US industry report page.
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IBISWorld industry Report Key Topics
This industry operates indoor and outdoor recreational laser tag facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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