Shifting consumer preferences and rising disposable income will benefit the industry
New York, NY (PRWEB) November 24, 2014
Since this report's initial issuance, the Indoor Climbing Walls industry has undergone significant changes, which will be highlighted in this press release update. The industry slipped during the recession but has since lifted itself up, bolstered by rising per capita disposable income and falling unemployment. Companies in the Indoor Climbing Walls industry operate climbing wall centers or indoor rock climbing centers. Since the industry is heavily reliant on consumers, revenue tends to ebb and flow with fluctuations in per capita disposable income and employment levels. Disposable income levels increased and unemployment decreased over the past five years and customers returned to making discretionary expenditures, in place of relatively low-cost recreational activities, such as hiking; therefore, indoor climbing wall establishments have leveraged their growing popularity and increasingly presented high-end offerings. As a result, industry revenue is expected to grow slightly in the five years to 2014.
The Indoor Climbing Walls industry is increasingly becoming a fitness alternative to gyms and other fitness centers. According to IBISWorld Industry Analyst Sally Lerman, “consumers are shifting their preference from yoga, Pilates and various other exercises, to indoor wall climbing.” Additionally, consumers aged 25 and younger are lifting industry revenue higher, as they are more likely to participate in group events, such as birthday parties, climbing lessons and youth group activities. Moreover, this market segment tends to have more available leisure time for sports and other recreational activities.
The Indoor Climbing Wall industry has a low level of market concentration. The industry is highly fragmented and consists mainly of small businesses that cater to a specific geographical niche. Typically, industry operators develop a customer base by word of mouth rather than using brand recognition, which prevents large players from developing a strong market share. As a result, IBISWorld expects that each industry operator accounts for a very small percentage of industry revenue. During the five years to 2014, market share is anticipated to remain low, as operators continue to develop a local market niche by attracting health conscious consumers that want to diversify their gym experience.
Additionally, operators can strengthen their market share by offering rock climbing services in areas that lack external competition. For instance, because outdoor rock climbing is not included in the industry, operators may locate in areas that are not conducive to outdoor rock climbing, such as geographical areas that are flat and lack boulders. Because the industry requires a large facility, typically 3,000 square feet or larger, it is difficult for operators to maintain strong foot traffic, as the Indoor Climbing Wall industry is mainly located in industrial district areas. As a result, strengthening market share is difficult for the Indoor Climbing Wall industry as many operators rely on a local customer base to generate revenue.
Over the five years to 2019, the Indoor Climbing Walls industry is expected to continue benefiting from rising disposable income and falling unemployment. “One of the largest obstacles for the industry was the perceived risk of injury while participating in indoor wall climbing,” says Lerman. To this end, improvements in safety equipment technology, such as automated belays, a device used by climbers and belayers to decrease the likelihood of a serious injury, are expected to propel revenue growth as injury concerns are alleviated, and consumers shift their perception of indoor wall climbing from being an extreme sport to a mainstream activity. As a result, IBISWorld expects industry revenue to grow marginally in the five years to 2019.
For more information, visit IBISWorld’s Indoor Climbing Walls in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry maintain and operate climbing wall centers or indoor rock climbing centers. A climbing wall is an artificially constructed wall with grips for hands and feet, and it is usually used for indoor climbing.
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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