Wedding Industry - IBISWorld

Clearly, all of these categories have a sizable
sensitivity to wedding demand drivers such as
number of engagements, per capita disposable
income, unemployment levels and job security,
and consumer confidence. At the same time, each
of the seven revenue sources has unique risks and
key success factors. The wedding industry cannot
be grouped into a single frame when determining
how much a lender may need to financially support
a business. Rather, each sector must be reviewed
individually and its operators evaluated in terms of
other sources of revenue and the competition from
other industries providing similar services.
Figure 3
64,000,000
63,000,000
62,000,000
61,000,000
60,000,000
59,000,000
58,000,000
Total Population 20-34 and Median Age
at First Marriage
28
27
26
25
24
23
The Reception
The reception is the biggest expense of a wedding,
generating an estimated 38% of total industry revenue
($17.94 billion in 2010). The reception sector
can be broadly classified as the “accommodation
and food services” division. Major costs associated
with the reception include venue rental, food and beverages,
food service and bartender, wedding cake, and hotel for
the bride and groom.
Customers spend a considerable amount of time choosing
the reception location and making it fit their demands.
For this reason, the reception operates with unique risks
compared to other categories. Potential customers can be
deterred from choosing a specific location or company
over minor issues, and that equates to a loss of business
opportunity.
Like all industries, firms in this area must continually
meet and satisfy their key success factors so that they remain
competitive and viable. Table 1 shows six related IBISWorld
industries that have direct influence on the wedding market
and fall into the accommodation and food services sector.
From a wedding perspective, these figures show opportunities
for new businesses. Operators within the
industries low on the list can seek to capitalize on
an improving wedding industry by directing more
of their marketing toward this potential clientele.
Developing good word-of-mouth recommendations,
fostering excellent customer relations, having a welltrained
staff, and implementing appropriate pricing
policies will help moderate the business risks associated
with this highly competitive sector.
Wedding Attire
The wedding attire category incorporates the retail,
rental, and personal services sectors. However, most
of the category is related to the retail sector, where
product and service substitutes abound. Customers
are able to move easily from business to business
in search of outfits and accessories.
57,000,000
56,000,000
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Figure 4
Total Population 20-34 (L)
IBISWorld has identified eight industries with a direct
effect on the wedding attire category (Table 2). Major selling
items include the
bridal dress, groom
and groomsmen attire,
bride and groom accessories,
bridesmaid
outfits and accessories,
and hair and makeup.
This sector is estimated
to account for 12.4% of
total spending, coming
in at $5.85 billion.
Medium Age at First Marriage (R)
Substitution is a huge competitive disadvantage for wedding
firms specializing in the attire market. This factor is
particularly true for formal wear and costume rental, given
The Seven Revenue-Generating Areas
Wedding Size: $47.2 billion—2010
Wedding Planners
2.0%
Flowers
4.5% Photography
8.8%
Other
24.1%
Wedding Rings
10.2%
22
21
Source: IBISWorld estimates
The wedding industry
cannot be grouped
into a single frame
when determining how
much a lender may
need to financially
support a business.
Wedding Attire
12.4%
Reception
38.0%
Source: IBISWorld estimates
The RMA Journal December 2010–January 2011 25