Cultivating culture: As per capita disposable income increases, sector demand will rise

Since the experiences provided by operators in the Arts, Entertainment and Recreation sector are considered nonessential, revenue is highly dependent upon available levels of discretionary spending and leisure time. Over the five years to 2018, the sector was positively affected by strong growth in per capita disposable income, propelling sector revenue to expand. Over the five years to 2023, the Arts, Entertainment and Recreation sector is expected to continue growing, albeit at a slower rate than the previous five-year period. Per capita disposable income is expected to continue increasing, enabling consumers to splurge more on nonessential recreational activities. However, federal funding for the arts is expected to slump, putting downward pressure on sector revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$309bn
Annual Growth 13-18
3.3%
Forecast Growth 18-23
Profit
Employment
3.9m
Businesses
1.6m

Industry Threats & Opportunities

  • Per capita disposable income is expected to increase, enabling consumers to splurge more on recreational activities
  • Deficits have led to reduced funding for parks and sites, causing the closure of some sector establishments
  • The same external drivers that propelled the sector's strong growth, will continue to benefit the industry
  • Industry Report - Starting a New Business Chapter

    Barriers to entry vary significantly from subsector to subsector; however, while some subsectors have low barriers to entry, all subsectors have high barriers to success. For example, the Musical Groups and Artists industry (IBISWorld report 71113) has low barriers to entry, with very few start-up costs and few required tools. Nevertheless, the industry is very competitive, with very few operators making high levels of revenue. As a result, the barriers to success in this industry are considered high.Conversely, some segments in the sector have very high startup costs, leading to high barriers to entry. The...purchase to read more.

    Additional Insights for the Arts, Entertainment and Recreation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Arts, Entertainment and Recreation Industry are

  • Protection of intellectual property/copyrighting of output
  • Ability to quickly adopt new technology
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Inbound trips by non-US residents in the Arts, Entertainment and Recreation industry impact industry performance..

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    What's in this report

    What is the Arts, Entertainment and Recreation Industry?

    The Arts, Entertainment, and Recreation sector includes a range of enterprises and organizations that operate establishments or provide services to satisfy the various recreational, entertainment and cultural interests of consumers. Such subsegments include performing artists, spectator sports, museums, historical sites, amusement parks and gambling industries.

    Industry Products
  • Performing Arts Companies
  • Spectator Sports
  • Promoters of Performing Arts, Sports, and Similar Events
  • Independent Artists, Writers, and Performers
  • Museums, Historical Sites, and Similar Institutions
  • Amusement Parks and Arcades
  • Gambling Industries
  • Industry Activities
  • Performing arts companies
  • Spectator sports
  • Promoters of performing arts, sports and similar events
  • Agents and managers for artists, athletes, entertainers and other public figures
  • Independent artists, writers and performers
  • Museums, historical sites and similar institutions
  • Amusement parks and arcades
  • Gambling industries
  • Other amusement and recreation industries
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Inbound trips by non-US residents
  • Number of adults aged 20 to 64
  • Domestic trips by US residents
  • Federal funding for creative arts
  • Time spent on leisure and sports

  • Current Performance
  • Available leisure and travel time
  • Standout industries
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Over the five years to 2023, IBISWorld expects that demand for the Arts, Entertainment and Recreation sector will continue to trend upward. The same external drivers that propelled the sector’s strong growth over the five years to 2018 will continue to benefit the industry, though growth is expected to be somewhat stifled due to relatively slower gains in domestic travel activity. As a result, total industry revenue is expected to rise at an annualized rate of 1.8% over the five years to 2023, totaling $336.8 billion.
  • Positive external trends
  • Sector structure
  • Table: Arts, Entertainment and Recreation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Arts, Entertainment and Recreation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tourism
  • Consumers

  • Key Selling Industries
  • Construction
  • Manufacturing
  • Wholesale Trade

  • Products & Services
  • Other
  • Spectator Sports
  • Independent Artists, Writers, and Performers
  • Gambling Industries
  • Promoters of Performing Arts, Sports, and Similar Events
  • Performing Arts Companies
  • Amusement Parks and Arcades
  • Museums, Historical Sites, and Similar Institutions
  • Chart: Arts, Entertainment and Recreation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 44
  • Consumers aged 25 to 34
  • Consumers aged 45 to 54
  • Consumers aged under 25
  • Consumers aged 55 to 64
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Arts, Entertainment and Recreation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent, utilities and depreciation
  • Chart: Cost Structure Benchmarking – Sector vs Arts, Entertainment and Recreation

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Arts, Entertainment and Recreation Industry

  • Industry Globalization
    New York State Lottery, The Walt Disney Company, Live Nation Entertainment Inc., National Park Service, Fitness International LLC, Smithsonian Institution,
  • Table: New York State Lottery - financial performance
  • Table: The Walt Disney Company - financial performance
  • Table: Live Nation Entertainment Inc. - financial performance
  • Table: National Park Service - financial performance
  • Table: Fitness International LLC - financial performance
  • Table: Smithsonian Institution - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Arts, Entertainment and Recreation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Arts, Entertainment and Recreation Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Arena
  • A multipurpose indoor facility with average seating capacity between 5,000 and 20,000.
  • Club
  • An indoor venue built primarily for music events, but that may also include comedy clubs. Capacity is generally less than 1,000 seats and often without full fixed seating.
  • Stadium
  • A multipurpose, often open-air facility that has about 30,000 seats or more.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Arts, Entertainment and Recreation contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Arts, Entertainment and Recreation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Arts, Entertainment and Recreation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Arts, Entertainment and Recreation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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