How much for a wedding? $48 billion you say? Well that’s what the U.S. wedding industry is worth according to industry market research IBISWorld. A collection of new industry research reports show that this industry hasn’t stopped growing yet – by 2016 the wedding industry will have grown to $54.3 billion - a 2.5% annualized increase in earnings. Where does the money go?
Los Angeles, CA (PRWEB) October 17, 2011
Reception: According to IBISWorld Industry Analyst Agata Kaczanowska reception costs account for around 46.4% of the wedding services industry. Catering and other food services are 26% of the typical wedding budget while venue fees will be about 21%. Venues are traditionally hotels, country clubs, restaurants and religious establishments. Meanwhile, food service providers are mostly private caterers. "As the recession bit, spending on the reception decreased. Many couples cut costs through a combination of serving less food, or serving cheaper food, encouraging guests to contribute to food - such as desserts - and booking a smaller venue."
Attire & accessories: The attire and accessories segment includes all clothing items worn by the wedding party, including shoes and jewelry. This segment generates about 16% of industry revenue. This segment remained a constant share of revenue during the recession years. While couples did reign in the bling, savings on other items – such as food and venue were more pronounced. The largest expenditure in the attire segment is the bridal gown. Not only are brides shopping around more between stores, but online bridal networks facilitate information sharing about designers and stores. As a result, brides are better able to find and write reviews about bridal stores based on pricing and customer service. Such information sharing has greatly compromised the traditional information monopolies that certain bridal boutiques maintained, increasing direct competition in the industry.
Details: The details segment comprises photographers, florists and wedding planners. Providers of such services made 22.4% of industry revenue in 2011, or $10.8 billion. According to Kaczanowska "many brides turned toward do it yourself flowers and coordination, or chose less comprehensive packages with these vendors. This trend is projected to reverse quickly in coming years as discretionary spending picks up. The photography segment has grown rapidly from 2006 in large part because photo and video sharing is now much more prevalent thanks to social networking sites such as Facebook. Competitiveness between friends and family, and marketing designed to capitalize on this trend, is driving the cost of services up."
Other services include such things as entertainment, transportation, officiate and beauty services, favors, décor other than flowers, and printed items like place cards, menus, ceremony programs and guest books. The most significant portion of this expenditure is on entertainment, which includes professional musicians, DJs and dancers. This segment is projected to rebound in the next five years as couples save and spend more money on such elements. However, even with economic recovery Do it yourself (DIY) is a significant trend that appeals to brides as it makes their wedding more personal. The trend is strengthened by the low-budget appeal. Additionally, many venues have sound systems that are compatible with mobile music players, like the iPod, and provide an easy way for guests to control wedding playlists. This allows a couple an easy and cheap alternative to live music or even a DJ expenditure.
On the back of renewed growth and the general ease of starting wedding related businesses IBISWorld expects an influx of small businesses over the next five years. Higher spending per consumer, however, will help businesses in the industry operate more profitably by decreasing costs per sale. However, because of new business formation, profit growth is expected to be limited during this time, reaching only 4.1% of revenue in 2016.
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Savannah Haspel
IBISWorld
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