Los Angeles, CA (PRWEB) January 09, 2013
In 2013, the Dance Studios industry is expected to generate $2.1 billion in revenue. This represents average annual revenue growth of 1.2% over the past five years, including expected growth of 2.4% in 2013. The Dance Studios industry has been positively impacted over the past five years by the popularization of dance-inspired television shows, as well as rising interest in dance as an alternate form of exercise and physical fitness. In particular, dance studios offering Latin-inspired, fusion and ballroom dance classes have benefited from rising consumer demand. For instance, there was a 35.0% spike in the number of people taking ballroom lessons and attending ballroom events during the 10-year period ending in 2011, according to USA Dance Inc. “However, the industry has not been without its challenges; during the recession, declining disposable income and heightened unemployment resulted in a greater number of consumers limiting their discretionary spending,” says IBISWorld industry analyst Caitlin Moldvay. Consequently, enrollment in dance classes declined and clients shifted away from private classes to more inexpensive group classes.
The Dance Studios industry is highly fragmented; the vast majority of dance studios operate from a single location catering to the local market. The most prominent companies in the industry include franchises such as Arthur Murray International and Fred Astaire Dance Studios. Fueled by rising consumer interest in dance over the past five years, the number of dance studios is expected to increase at an average annual rate of 1.2% to total an estimated 8,264 studios in 2013. Over the next five years to 2018, the Dance Studios industry is expected to post positive average annual revenue growth. Improving economic conditions will result in greater per capita disposable income growth, fostering greater spending on recreational activities such as dance. Furthermore, rising income will boost demand for more lucrative private classes and high-profit merchandise sales, benefiting revenue growth for dance studio owners. The baby boomer generation is expected to be a source of growth for the industry over the next five years, particularly for ballroom dancing classes.
Market share concentration within the industry is very low, with the top four companies accounting for less than 10.0% of revenue in 2013, despite including at least two well-established, nation-wide franchises. The Dance Studios industry is highly fragmented; 98.9% of companies operate a single location according to the latest Economic Census, which was conducted in 2007. According to Moldvay, industry concentration has increased only slightly during the past five years as tightened credit availability made franchising more attractive for small business owners. Franchises provide training and other business support, such as marketing, to individual owners that operate under a single brand name. Consolidation within the industry, though not statistically significant, has largely occurred through franchise expansion, with new owners opening and operating studios through the company. For more information, visit IBISWorld’s Dance Studios in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes studios that primarily offer instructional classes focused on providing knowledge and skills related to dance, including ballroom dancing, ballet, hip-hop and modern dance, among others. These include dance schools for children, intermediate and professional dancers. However, this industry does not include dance companies.
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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