Jun 26 2018
The sun is strong, schools are out and consumers are ready to turn up the heat on summertime fun. This year, IBISWorld expects several industries to reap the benefits of consumer travel and extended leisure time.
With unemployment reaching record lows and the number of working mothers on the rise, more parents will seek creative ways to keep their children outside and entertained this summer season. Supported by a projected 3.9% year-over-year growth in disposable income in 2018, a growing share of families will be able to afford discretionary activities, such as admission to water parks and swimming lessons. As a result, revenue for the Amusement Parks industry and the Swimming Pools industry are projected to rise 1.8% and 1.2%, respectively, in 2018.
The Summer Camps industry will also receive a boost this season, with annual revenue expected to rise 0.8% to $3.4 billion. Sports camps will remain a fan favorite, at about 40.0% of demand, and niche camps centered on a particular sport are set to grow in popularity this year. Wilderness and teambuilding camps will also remain in high consumer favor, with each expected to account for about 20.0% of total summer camp revenue in 2018.
According to personal finance firm Bankrate, nearly one-half of all US consumers will splurge on a vacation this summer, which will provide a boon to a variety of travel-centric industries. Tour operators and sightseeing transportation companies are set to experience high demand as a result of planned summer travel, with each industry expected to achieve annual growth of more than 2.0% for the year.
Additionally, 2.7% expected growth in the number of domestic US trips in 2018 will benefit operators that provide flights and accommodations to summer travelers. The Domestic Airlines industry and the Hotels and Motels industry are each projected to grow more than 3.0% in 2018. Furthermore, the Campgrounds and RV Parks industry, which experiences the majority of its demand in the warm summer months, is anticipated to receive a 2.7% revenue boost this year; the aging and retirement of the baby-boomer population is expected to benefit this popular summer industry, since consumers over the age of 50 account for one of its largest and fastest growing consumer segments.
Warm weather is generally accompanied by picnics, cookouts and brimming restaurant patios, giving foodservice providers with an outdoor space a strong advantage during the summer months. As a result, operators in the Food Trucks industry, which are generally located near picnic tables and green space, will experience strong consumer demand this summer, leading to 3.2% growth in industry revenue. Breweries and wineries, where consumers can often enjoy a refreshing drink in an outdoor tasting area, will also reap summertime rewards; the Wineries industry is slated to grow 1.0% in 2018, while the Breweries industry is expected to grow 2.9% for the year.
In line with high demand for summer-centric eateries and watering holes, consumers are expected to splurge on Fourth of July cookouts this summer. According to the National Retail Federation (NRF), the average American is planning to spend $75.35 on Independence Day goodies, up from $73.42 last year. However, overall spending on the holiday is expected to fall this year, as the number of holiday celebrants declines. According to the NRF, 3.0 million fewer consumers will partake in Fourth of July festivities this year compared to last, causing a 2.8% decrease in total holiday spending.
Edited and designed by Stephanie Conte.