IBIS Report Wedding Services in the US Industry Report

WWW.IBISWORLD.COM� Wedding�Services�in�the�US March 2013 1

IBISWorld Industry Report NN006Wedding Services in the USMarch�2013� Agata�Kaczanowska

Tying the knot: Wedding-related activity will rebound as postponed nuptials are planned

2� About�this�Industry2 Industry Definition

2 Main Activities

2 Similar Industries

3 Additional Resources

4� Industry�at�a�Glance

5� Industry�Performance5 Executive Summary

5 Key External Drivers

7 Current Performance

9 Industry Outlook

12 Industry Life Cycle

14� Products�&�Markets14 Supply Chain

14 Products & Services

16 Demand Determinants

17 Major Markets

18 International Trade

19 Business Locations

21� Competitive�Landscape21 Market Share Concentration

21 Key Success Factors

21 Cost Structure Benchmarks

23 Basis of Competition

24 Barriers to Entry

24 Industry Globalization

25� Major�Companies

27� Operating�Conditions27 Capital Intensity

28 Technology & Systems

28 Revenue Volatility

29 Regulation & Policy

29 Industry Assistance

30� Key�Statistics30 Industry Data

30 Annual Change

30 Key Ratios

31� Jargon�&�Glossary

www.ibisworld.com��|��1-800-330-3772��| ��[email protected]


This industry is composed of day-of wedding service providers, apparel retailers and venues. Wedding coordinators are included because

they have many responsibilities on the day of the event. However, the industry excludes pre-wedding and honeymoon spending.

The�primary�activities�of�this�industry�are

Wedding coordination

Ceremony and reception hosting

Wedding catering

Wedding apparel retailing

Wedding photography

Flower arranging

Jewelry design and retailing

Town car and limousine rental

Live or recorded music performance

Make-up application

56192 Trade�Show�and�Conference�Planning�in�the�USTrade show and event planners organize, promote and manage events, such as business and trade shows, conventions, conferences and meetings.

72232 Caterers�in�the�USThis industry includes companies that provide single-event food services. Banquet halls with catering staff are included in this industry.

81299b Personal�Trainers�&�Wedding�Planners�in�the�USThis industry comprises establishments engaged in providing personal services in areas including wedding and party planning and wedding chapels.

81311 Religious�Organizations�in�the�USThis industry includes churches, temples, mosques, synagogues, monasteries and other houses of worship that are common locations for marriage ceremonies.

Industry�Definition

Main�Activities�

Similar�Industries

About�this�Industry

The�major�products�and�services�in�this�industry�are

Accessories

Attire

Ceremony and reception venues

Coordinators

Flowers

Food and drink services

Photography

Other


About�this�Industry

For�additional�information�on�this�industry

www.cdc.gov�Centers for Disease Control and Prevention

www.nielsen.com�The Nielsen Company

www.theweddingreport.com�The Wedding Report

Additional�Resources

�IBISWorld writes over 700 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com


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Consumer spending

SOURCE: WWW.IBISWORLD.COM

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Revenue Employment

Revenue vs. employment growth

Products and services segmentation (2013)

25.6%Food and drink services

6.4%Accessories

21.3%Ceremony and

reception venues

5.1%Flowers

3.7%Coordinators

15.3%Other

13.5%Photography

9.1%Attire


Key�Statistics�Snapshot

Industry�at�a�GlanceWedding�Services�in�2013

Industry�Structure Life Cycle Stage Mature

Revenue Volatility Low

Capital Intensity Low

Industry Assistance Low

Concentration Level Low

Regulation Level Light

Technology Change Medium

Barriers to Entry Low

Industry Globalization Low

Competition Level High

Revenue

$50.6bnProfit

$2.2bnWages

$23.0bnBusinesses

501,798

Annual�Growth�13-18

2.3%Annual�Growth�08-13

-0.8%

Key�External�DriversConsumer�spendingMarriage�ratePopulationNumber�of�college�studentsNational�unemployment�rate

Market�ShareThere are no Major Players in this industry

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FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 30



Key�External�Drivers Consumer spendingConsumer spending measures the total amount of money Americans spend. An increase in consumer spending indicates that people will spend more on their weddings and, thus, contributes to industry revenue growth. Consumer spending is expected to increase in 2013, representing a potential opportunity for the industry.

Marriage rateWomen’s wages have increased,

decreasing women’s financial dependence on men. Also, the uncertainty in people’s lives has increased because people change their careers and locations more than ever, decreasing their willingness to make a long-term commitment. The marriage rate dipped due to a delay in nuptials that uncertainty and low disposable income caused during the Great Recession and then peaked in 2011. The marriage rate is expected to decrease in 2013, representing a potential threat to the industry.

Executive�Summary

Economic uncertainty and an increasing acceptance of cohabitation caused a significant proportion of couples to postpone their nuptials over the past five years, posing a challenge to the Wedding Services industry. Unemployment skyrocketed 60.3% in 2009, which caused people to delay spending on industry services. This resulted in a 5.8% revenue decline in 2009. Meanwhile, slowly changing social norms have dragged down the marriage rate over the past several decades, and in the five years

to 2013, it is expected to decline at an annualized rate of 0.9%. During this time, industry revenue is anticipated to decrease at a 0.8% annualized rate to $50.6 billion, including a 0.8% expected rebound in 2013 thanks to rising consumer spending.

Faster internet connections have enabled industry operators to reach out to potential clients at a lower cost in the past five years. In addition, social networking platform developments have led to a shift in vendors’ marketing strategies toward communicating a

unique vision to consumers. Less expensive and more effective online communication, however, has also increased competition by enabling new entrants to market to the same demographics as established businesses. Such improved marketing channels are expected to drive enterprise growth at an annualized rate of 3.6% to 501,798 firms in the five years to 2013.

The marriage rate is forecast to continue declining 0.9% annually on average during the five years to 2018. This, however, is not expected to dramatically impact industry performance. The amount spent on weddings is estimated to grow during the next five years as the demand for large, costly weddings rises in response to higher disposable income. A slow but steady 3.0% annualized increase in consumer spending is projected to support revenue growth, as unemployment falls about 5.0% annually on average during the next five years. In addition, as the average marriage age and length of engagement further increase, couples will have more time to plan and save money for their ceremonies. As a result, industry revenue is projected to rise 2.3% annually on average to $56.7 billion in the five years to 2018.

Industry�PerformanceExecutive�Summary�� |�� Key�External�Drivers�� |�� Current�PerformanceIndustry�Outlook�� |�� Life�Cycle�Stage

� Higher incomes and larger savings will allow individuals to spend more on weddings


Industry�Performance

Key�External�Driverscontinued

PopulationThe expanding population contributes to a relatively stable number of marriages in the United States by partly offsetting the rapidly declining marriage rate. However, population growth has eased over the long term because family sizes have shrunk. A considerable portion of population growth has occurred via immigration. This also benefits the industry because immigrants are more likely to marry, slowing the decrease in the marriage rate. This driver is expected to increase in 2013.

Number of college studentsThe number of college students represents the total enrollment (part-time and full-time, undergraduate and graduate) of both public and private universities. Although many people delay marriage while in college, the

college-educated have the highest marriage rates, according to Nielsen, an audience research firm. As a result, a higher number of college graduates is forecast to boost the number of marriages in future years. This driver is expected to rise in 2013.

National unemployment ratePeople who are unemployed are much less likely to get married or spend a considerable amount of money on a wedding. The unemployment rate measures the proportion of Americans older than 16 years who are currently unemployed and looking for work. This measure does not account for individuals who have given up on searching due to a lack of opportunities; however, such people are expected to reenter the job market as job creation takes off. This driver is expected to decline in 2013.

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Population


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Technology�ups�competition,�specialization

Increasing participation in social networks and online wedding service websites are causing several changes within the industry’s fundamental structure. Online social networks, such as Facebook, enable vendors to place affordable ads in front of a targeted demographic, such as engaged women of a certain age. The relative ease and lowered cost of targeted marketing have attracted new businesses to this industry, despite a few consecutive years of declining revenue. In the past five years, the number of enterprises has increased an estimated 3.6% annually on average to 501,798 in 2013. Therefore, service

providers face increasing price competition in an industry where it is difficult for consumers to distinguish differences among services.

In response to increased competition, vendors are transitioning their promotional tactics toward niche markets where customized and unique services warrant higher prices. Also, social media facilitates communication between service providers and consumers, enhancing the understanding and information among all parties on a more personal level. This increases consumers’ propensity to spend while also allowing vendors to offer discounted services.

Current�Performance

High unemployment due to the Great Recession led many couples to delay their nuptials for financial reasons. The bleak financial outlook caused a simultaneous decline in consumer spending and an influx of people returning to school, creating a temporary dip in demand for wedding services; the marriage rate declined 4.2% in 2009. As a result, industry revenue is expected to decline at a five-year annualized 0.8% rate to $50.6 billion in 2013. Although the marriage rate has returned to a slow decline after peaking in 2011, consumer spending on weddings has been rising as weddings

have become increasingly lavish. A reversal in consumer spending and unemployment are expected to support growth in 2013, helping to push up revenue 0.8%.

Industry profit is estimated to total 4.1% of revenue in 2013 due to a rebound in demand and a rise in the average amount spent on weddings. This margin is up from 2008, when low demand caused many businesses in the industry to cut back on marketing and wage expenditures. Price competition, however, has limited profit growth as a result of consumers bargain hunting during the past five years.

Marriage�statistics*

YearMarriage�rate�

(Units per capita)Population�

(Million people)No.�of�marriages�

(Millions) (% change)

2008 0.0071 304.1 2.16 -1.82009 0.0068 307.0 2.09 -3.22010 0.0069 309.6 2.17 3.82011 0.0071 312.3 2.21 1.82012 0.0070 314.9 2.20 -0.52013 0.0068 317.6 2.16 -1.8

*Estimates�based�on�data�from�the�National�Center�for�Health�StatisticsSOURCE: IBISWORLD



Cutting�back The commercialization trend did temporarily reverse during the Great Recession when consumer spending dropped 1.9% in 2009 because of high unemployment and consumer uncertainty. This decrease was more pronounced for the primary demographics of the Wedding Services industry because consumers between the ages of 20 and 29 had relatively lower incomes and higher unemployment. Although many couples decided to postpone their nuptials, others worked with their lower incomes by limiting their budgets and asking their parents to pay for more of the wedding.

The easiest way for couples to cut back spending was to trim their guest list, according to statistics from the Knot. The Knot’s 2011 Real Weddings Survey found that the average guest count was 141, while the average number of guests was 153 in 2007 (latest data available). Other ways that couples reduced costs included getting married in the off-season or on a weekday, because many vendors offer discounted pricing during these times due to the lower demand for their services.

One way for couples to reduce the guest list and save money was by having a destination wedding. Such marriages

occur at least 200 miles from the bride and groom’s primary residence, and more than 80.0% of guests require overnight accommodations. Many guests choose not to attend such events because of the higher cost of attendance, thus greatly reducing the budget. Additionally, couples can choose to get married in a cheaper location than they reside in or even in a foreign country where the exchange rate stretches their budget. A 2005 industry survey by Fairchild, a magazine publishing company, found that the average destination wedding reception was 41.0% of the cost of an average reception. Based on the Knot’s survey statistics and IBISWorld estimates, about one-fourth of all marriages in 2013 will be destination weddings, compared with just 9.0% in 2007. The smaller guest lists and greater number of destination weddings reduced the demand for industry services over the past five years.

A�big�commitment Shifting social norms are decreasing people’s willingness to commit to marriage, particularly at a young age. Women are becoming more financially independent, the need for some to get married. Similarly, it is increasingly acceptable for young people to stay single longer, switch jobs and move. This shift in perspective is leading couples to think twice about commitment, prolong their engagements or try cohabitation first to make sure that they want to get married.

Also, over the past several decades, weddings have become increasingly

commercialized. According to US Census surveys, as people become less traditional and less religious, they have begun placing more emphasis on the extravagance of the event. Bridal blogs and magazines often emphasize the physical aspects of weddings instead of the emotional meaning behind them. According to the latest survey from industry affiliate the Knot, the cost of an average wedding skyrocketed from less than $5,000 in 1980 to more than $27,000 in 2011 (latest data available), creating another disincentive to tie the knot.

� During the recession, couples reduced guest lists and planned destination weddings to cut costs



Industry�Outlook

During the Great Recession couples found ways to spend less to weather the storm, and they are anticipated to continue their thriftier habits through the next five years. Longer engagements and lower living expenses through cohabitation will enable couples to continue spending less day to day, even as employment recovers. With these larger savings and a 3.0% five-year annualized growth in consumer spending, couples are expected to demand more industry services through 2018. As a result, IBISWorld projects a 2.3% annualized increase in revenue to $56.7 billion over the five years to 2018.

An influx of small businesses is expected over the next five years because of lowered barriers to entry and positive business sentiment. Because of such new business formation, profit growth is expected to be limited during this time. Higher

spending per consumer, however, will help industry firms operate more profitably by decreasing costs per sale. Combined with savings from declining wages and decreasing marketing costs, profit is expected to expand to 4.3% of revenue in 2018.

Do-it-yourself� Do-it-yourself (DIY) weddings are a trend that also helped sweep spending away from the Wedding Services industry. In 2008, DIY became popular because it enabled couples to add a personal touch to their nuptials while saving money. While most couples plan their own weddings, about one-third hire professional planners. And many even hire professionals to plan some of the smallest of details, such as ambient decor. Yet, according to the Knot’s 2008 Real Weddings Survey, 55.0% of couples crafted their favors and ceremony programs (latest data available), and many also made their own decorations. This trend not only

helped many couples cut spending on certain services, but also created external competition for vendors in the industry.

DIY also became popular as part of a green movement to conserve resources by using what was already available. This included buying local and used goods and using vendors that have environmentally friendly business practices. Similarly, many couples chose to highlight such businesses as preferred outlets in their registries or even chose to donate to charities in place of receiving gifts or favors. All of these efforts helped consumers to curb their wedding spending.

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Time�is�money Consumers will benefit from the economic recovery by gaining higher-paying employment. They are also expected to be increasingly involved in their careers, making the average couple more time poor than in the past five years. Consequently, the wedding coordinators segment is forecast to flourish. Also, because many people delayed their weddings during the Great Recession, couples’ parents are older on average and likely less able to help out physically. Demand for other professional services that were easier for couples to substitute or forego

because they were not perceived as essential, such as live musicians, is also expected to rebound.

The do-it-yourself trend will also grow, though it will extend into more expensive and personalized professional services. For example, couples are already

An�aging�tradition Structural unemployment is projected to linger for the next few years, particularly among the industry’s main demographic: consumers ages 16 to 25. Additionally, unemployment will continue to boost college enrollment rates because people tend to return to school when job prospects are limited. In addition, people are less likely to get married while still in school. Continually growing social acceptance of cohabitation will also lead many young individuals to choose to delay their wedding. These trends are forecast to cause a more rapid decline in the number of marriages to a five-year annualized rate of 1.5%. As a result, just 2.1 million couples are estimated to say their vows in 2018, compared with 2.2 million in 2013.

For decades people have delayed vows to pursue their careers, yet this trend is expected to help the industry in the next five years. Countering the declining number of marriages, consumers are anticipated to save for longer than ever prior to tying the knot. Although not all savings will go toward their nuptials, this move gives couples more time to build a wedding fund. According to data from the Knot, a prominent wedding resource,

the rate of cohabitation before marriage is forecast to continue increasing at an annualized rate of 1.7% over the next five years, with about 75.0% of couples already cohabiting before marriage in 2011 (latest data available). Couples are better able to save for the big day by consolidating rent payments and food expenses through cohabitation. Consequently, people ages 25 to 34 will continue to grow as a share of industry consumers, while younger couples will be less likely to tie the knot. Consumers ages 25 to 34 will contribute greatly to spending on wedding services and help generate a 1.3% increase in industry revenue growth in 2014.

Although parents historically contributed more to weddings involving couples from the youngest age group, they are anticipated to shift to spending more on older couples because getting married later in life (older than 25) is increasingly perceived as the norm. Parents that pay for all or part of a wedding are also more likely to invite some of their friends to the event, which further increases spending on food and related services. As a result, the industry will receive a boost from spending by the previous generation.

� The wedding coordinators segment is expected to flourish as more people return to work



Time�is�moneycontinued

providing an array of desserts for their guests. The trend will evolve from a money-saving strategy to a creative outlet as couples desire more elaborate, customized desserts. Such increasing

discretionary spending on weddings will attract new businesses. Consequently, the number of enterprises is projected to grow at a five-year annualized rate of 5.1% to 643,911 companies in 2018.


Industry�PerformanceThe primary consumer base is contracting, but expenditure per wedding is expected to rise

Adaptation to technology is expected to facilitate enterprise growth and steeper competition

Industry participants are refining their products to appeal to consumers and generate higher spending per customer

Life�Cycle�Stage


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Quality�GrowthHigh growth in economic importance; weaker companies close down; developed technology and markets

MaturityCompany consolidation;level of economic importance stable

Quantity�GrowthMany new companies; minor growth in economic importance; substantial technology change

DeclineShrinking economicimportance

Key�Features�of�a�Mature�Industry

Revenue grows at same pace as economyCompany numbers stabilize; M&A stageEstablished technology & processesTotal market acceptance of product & brandRationalization of low margin products & brands

Trade�Show�and�Conference�PlanningJewelry�&�Watch�Wholesaling

Caterers

Soft�Drink,�Baked�Goods�&�Other�Grocery�Wholesaling

Wine�&�Spirits�Wholesaling

Wedding�Services



Industry�Life�Cycle The Wedding Services industry is mature because marriage will remain a significant tradition in many Americans’ lives. The average amount of money spent per wedding is forecast to increase during the 10 years to 2018 to exceed a previous high of $27,882 in 2007, despite a steep drop in spending during the recession.

The industry’s contribution to the economy, measured as industry value added (IVA), is forecast to decline in the 10 years to 2018. IVA is projected to fall as a result of decreased consumer spending that coincided with a rise in industry enterprises after the financial meltdown. Gradual IVA growth from 2013 through 2018 will fail to make up for the earlier drop. As IVA declines at an annualized rate of 1.3% during the 10

years to 2018, GDP is forecast to grow 2.1% annually on average.

Barriers to entry are decreasing in this industry because the effectiveness of online technology has enabled anyone to market to the same demographics as established businesses. Additionally, businesses are not regulated, and initial investment costs for many wedding service providers are low. Because of falling barriers to entry, enterprise numbers are forecast to increase at a 5.1% annualized rate to 643,911 businesses during the 10 years to 2018. The increasing proportion of smaller businesses, which tend to make less revenue due to poor pricing and marketing strategies, is also keeping IVA low.

�This industry is Mature


Products�&�Services

�Products�&�MarketsSupply�Chain�� |�� Products�&�Services�� |�� Demand�DeterminantsMajor�Markets�� |�� International�Trade�� |�� Business�Locations

KEY�BUYING�INDUSTRIES

81299b� Personal�Trainers�&�Wedding�Planners�in�the�US�Wedding planners make arrangements on behalf of the bride and groom.

9901� Consumers�in�the�US�Couples are the key drivers of demand for this industry’s services.

KEY�SELLING�INDUSTRIES

42394� Jewelry�&�Watch�Wholesaling�in�the�US�This industry distributes jewelry to retailers who the bride or groom purchases it from.

42449� Soft�Drink,�Baked�Goods�&�Other�Grocery�Wholesaling�in�the�US�Wedding caterers purchase a majority of the food and non-alcoholic beverages they serve from this industry.

42482� Wine�&�Spirits�Wholesaling�in�the�US�Wedding caterers purchase most alcoholic beverages from wine and spirits distributors.

42493� Flower�&�Nursery�Stock�Wholesaling�in�the�US�This industry supplies florists with flowers.

44313� Camera�Stores�in�the�US�This industry sells camera and film to wedding photographers.

44612� Beauty,�Cosmetics�&�Fragrance�Stores�in�the�US�Brides or make-up artists purchase many products from this industry to use on the day of the wedding.

45291� Warehouse�Clubs�&�Supercenters�in�the�US�Many wedding vendors purchase miscellaneous items from such stores.

53211� Car�Rental�in�the�US�Some out of town vendors and wedding guests rent a car on the day of the wedding.

53212� Truck�Rental�in�the�US�Caterers and florists often rent or lease trucks to transport their products.

Supply�Chain

Products and services segmentation (2013)

Total $50.6bn

25.6%Food and drink services

6.4%Accessories

21.3%Ceremony and

reception venues

5.1%Flowers

3.7%Coordinators

15.3%Other

13.5%Photography

9.1%Attire



Products�&�Markets

Products�&�Servicescontinued

ReceptionThe reception segment is expected to make up 46.9% of wedding services spending in 2013. Catering and other food services are expected to be 25.6% of the typical wedding budget while venue fees will be about 21.3%. The line between food services and venue is blurred in some instances, contributing a heavier weight toward the venue segment because some venues, such as restaurants, also provide food services. The venue segment primarily includes hotels, country clubs, restaurants and religious establishments. Meanwhile, food service providers are mostly caterers.

Due to high unemployment and uncertainty, spending decreased over the past five years. Many couples cut costs through a combination of serving less food or serving lower-quality food and booking a smaller or less-expensive venue. As a result, these segments declined as a share of industry revenue during this time. In 2011, however, the trend reversed and spending on venues began to gradually rebound. This recovery is anticipated to continue into 2013 as disposable income increases, yet it is not expected to balance out declines from prior years.

Attire and accessoriesThe attire and accessories segment includes all clothing items worn by the wedding party, including shoes and jewelry, but excludes make-up, hair and nail services, which are counted in the “other” segment. The attire and accessories segment will generate about 15.5% of industry revenue in 2013. This segment remained a consistent share of revenue in the five years to 2013 because, though spending on attire and accessories declined, couples cut down even more on other services.

The largest expenditure in the attire segment is the bridal gown. Not only are

brides looking for deals in brick-and-mortar stores, but also use online networks to facilitate information sharing about designers and stores. As a result, brides are better able to easily find and write reviews about bridal boutiques based on pricing and customer service. Such information sharing has greatly compromised the traditional monopolies that certain bridal boutiques maintained, increasing direct competition in the industry. According to the Knot, the average expenditure on a wedding gown dipped from $1,317 in 2007 to $1,121 in 2011 (latest data available).

DetailsThe details segment is made up of photographers, florists and coordinators, and totals about 22.3% of industry revenue in 2013. Over the past five years, this segment has declined; many brides turned to do-it-yourself flowers and coordination or chose less comprehensive packages with these vendors. This trend is projected to reverse in the next five years as discretionary spending picks up.

The photography segment has also declined since 2008. This segment, which includes videography, decreased because photo and video sharing is now much more prevalent thanks to social networking sites, such as Facebook. Consequently, photos and videos from friends and family can fill in gaps that photographers or videographers miss, decreasing the importance of professional services to commemorate the event. Prior to the recession, however, the amount spent on photography per wedding increased markedly as consumers demanded more professional coverage of their event. According to the Knot’s Real Weddings Survey the average couple spent $2,299 on photography and videography services in 2011 compared with $2,651 in 2007.



DemandDeterminants

The demand for the services supplied by this industry is determined by the marriage rate and by couples’ budgets, which are a portion of consumer spending. High consumer spending increases the likelihood of people setting higher budgets for elements such as entertainment like live musical performances. According to the Knot’s 2010 Real Weddings Survey (most recent data available), the money spent per guest remained steady at $194 and the average number of guests was 141 in 2010 compared with 149 in 2009 and 2008 when more survey respondents admitted that they had trimmed their budget for economic reasons. Couples often decreased their budget by inviting fewer guests to their wedding. This tactic automatically drops per-person costs such as food, furniture rental, menus and favors. Prior to the Great Recession, the Knot’s 2007 Survey found that the average number of guests was 153. In conclusion of these findings, the trend toward smaller weddings could be to create a more intimate feel for guests as well as a cost-cutting measure.

Another factor that influences wedding budgets is demographics. The

marriage rate is gradually decreasing, and dipped further in 2009 when people pushed weddings back due to uncertain economic conditions including high unemployment. Additionally, the average age for getting married is steadily increasing, as is the number of couples living together prior to matrimony. As a result, the average couple now has higher disposable income and has the means to pay more for services than the average couple five years ago. However, many people delay marriage because of other priorities, such as careers, and do not want to spend as much on a wedding.

Other factors can also determine demand for wedding services, such as brand recognition, changes in fashion trends and seasonal weather conditions. Many couples’ purchasing patterns are guided by their perception of certain brands. As such, demand for highly ranked brands is greater among consumers with higher incomes and more discretionary spending power. Style trends also guide purchase patterns. For example, there has been a trend toward elaborate, multicultural ceremonies, which has contributed to

Products�&�Servicescontinued

OtherThe other segment consists of a variety of services, which will generate about 15.4% of industry revenue in 2013. Services include entertainment, transportation, beauty services, favors and decor (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 expand in the next five years as couples save and spend more money on such elements.

However, spending on entertainment and other services declined over the past five years. Many brides asked friends to fill in or did it themselves. Do-it-yourself is a significant trend that appeals to brides because it makes weddings more personalized and was strengthened by its low-budget appeal when consumer spending dropped off in 2009. 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 couples an easy and cheap alternative to live music or a DJ.



DemandDeterminantscontinued

increasing revenue for certain vendors. On the other hand certain services vary according to seasonal and weather

conditions. To this point, space heater and tent rentals will likely rise during unusually cold or wet months.

Major�Markets

Consumers between the ages of 25 and 29 are the largest market for the Wedding Services industry, accounting for 33.2% of total revenue. Many members of this age group have met the right person and decide that they are ready to make the commitment. The second-largest market consists of people ages of 20 and 24, which represents about 24.2% of revenue. These two age groups are the highest spenders in the industry because they are most likely to have parents pitch in and pay for all or part of their wedding. However, the average age for couples getting married has increased over the past five years and, therefore, the segmentation for this industry is also shifting toward older consumers.

Consumers between the ages of 30 and 34 are estimated to account for 22.4% of the market. This demographic group accounts for a lower share of the market as they often have different priorities than marriage, and a higher proportion of this demographic is already married. However, this figure is

forecast to increase over the next five years because consumers 25 to 29 years old may have delayed their vows due to unemployment or uncertainty during the recession or simply other priorities and, therefore, entered this category. Consumers over 34 are also much less likely to get married or have a big wedding due to different priorities and other responsibilities (such as children) that often prevent high spending.

According to The Knot’s 2010 Real Weddings Survey, a business heavily involved in the industry, the average bride’s age is 29 and the average groom’s age is 31. The study also found that the average length of an engagement is 14 months, giving couples time to organize their big day. Also, 74.0% of couples surveyed lived together before their nuptials, compared with 70.0% of couples in 2008 (latest data available). This may be to save money for the wedding, but relaxing societal norms with regards to cohabitation also play a role in the increase.

Major market segmentation (2013)

Total $50.6bn

33.2%Consumers aged

25 to 29

2.3%Consumers

aged 15 to 19

24.1%Consumers aged

20 to 24

22.4%Consumers

aged 30 to 34

9.7%Consumers

aged over 39

8.3%Consumers

aged 35 to 39




International�Trade Although some wedding services vendors may travel to provide their services abroad, this is not a significant segment of the industry.


�Products�&�Markets

Business�Locations�2013

MO1.9

West

West

West

Rocky Mountains Plains

Southwest

Southeast

New England

VT0.3

MA1.5

RI0.3

NJ2.1

DE0.2

NH0.4

CT1.0

MD1.6

DC0.1

1

5

3

7

2

6

4

8 9

Additional�States�(as marked on map)

AZ1.6

CA10.4

NV5.3

OR1.2

WA1.9

MT0.3

NE0.6

MN1.3

IA1.0

OH3.2 VA

2.7

FL6.7

KS0.9

CO1.6

UT1.1

ID0.7

TX8.6

OK1.2

NC3.0

AK0.3

WY0.2

TN2.5

KY1.6

GA3.0

IL3.4

ME0.5

ND0.2

WI1.4 MI

2.5 PA3.2

WV0.6

SD0.3

NM0.5

AR1.5

MS0.7

AL1.9

SC1.6

LA1.5

HI1.2

IN2.4

NY5.9 5

67

8

321

4

9


Mid- Atlantic

Percentage�of�Marriages�(%)�

� Less�than�3%� 3%�to�less�than�10%� 10%�to�less�than�20%� 20%�or�more

Great Lakes


�Products�&�Markets

Business�Locations Most weddings, with the exception of destination weddings, occur close to home for the bride or groom. Consequently, establishments in this industry are spread similarly to the US population. There are also a few underlying trends that affect the marriage rate in each state. For instance, states with a higher population in the primary demographic for matrimony are host to the most weddings per capita. On the other hand, people in urban centers are less traditional and more mobile, resulting in fewer marriages per capita in high-density areas.

IBISWorld estimates that about one in four couples will have a destination wedding in 2013. This represents an increase from 2008, driven by a decline in consumer spending. Destination weddings are usually smaller and, therefore, cheaper despite the associated travel costs. Indeed, Las Vegas is the top spot for people to elope, and Nevada has the highest proportion of marriages in relation to the population. Nevada hosts 5.3% of all nuptials in the United States, while its population is only 0.9% of the US total population. The top US states

for destination weddings are Nevada, Florida and California, followed by New York and Hawaii. As a result, the Southeast and West regions have the greatest proportion of marriages to their respective populations. This category is expected to decline slightly in popularity this year as consumer spending increases.

%

30

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MarriagesPopulation

Marriages vs. population



Cost�Structure�Benchmarks

This industry is composed of a variety of service providers. As a result, individual cost structures vary from this aggregated analysis.

ProfitIndustry profit (i.e. earnings before interest and taxes) is expected to increase in 2013 to 4.3% of revenue, compared with a low of 3.6% in 2008. The profit increase will stem from a higher number of weddings occurring this year as

postrecession disposable incomes recover. Profit is expected to continue to rebound in the next five years as industry operators diversify and customize their services to appeal to niche markets.

The industry segment that has had the highest average profit from weddings is venues. Venues have fixed maintenance costs regardless of whether or not their space is fully used. Also, they kept more of their profit because real-estate values declined, which led to lower property

Key�Success�Factors Provide services to high income individualsWedding services providers with an exclusive, high-quality image are best able to attract high-income individuals that spend more on weddings.

Having a good reputationMany wedding services providers rely on word-of-mouth references to generate their business.

Ability to vary services to suit different needsWedding services providers must be flexible to accommodate a variety of client requests. They must also be

able to meet different expectations for each client.

Having a good technical knowledge of the productWedding services providers must be able to explain and deliver their services to potential clients in a variety of situations.

Willingness to outsource when appropriateThe most successful wedding vendors recognize the limitations of their business and outsource if necessary, ensuring that they provide a certain level of services to every client.

Market�Share�Concentration

There are no identifiable major players in this industry and the top four players account for less than 10.0% of industry revenue. The Wedding Services industry is so fragmented because it is composed of a wide variety of highly specialized vendors, including florists, venue providers and bridal gown retailers.

There are some venues that offer wedding packages with a majority of services included. However, most of these venues have only one location and still outsource to small businesses for these services. Many of these venues are

located in Las Vegas, which is known for eloping or where some couples decide to have a spur of the moment ceremony. For instance, Mandalay Bay offers several all inclusive vows and reception packages and they need just 24 hours notice. Other venues offer marriage ceremonies quicker than this, such as The Little White Wedding Chapel that even offers drive through ceremonies, because there is no waiting period in Nevada after receiving a marriage license. This law is unique to the state, making the business model impossible to replicate elsewhere.

Competitive�LandscapeMarket�Share�Concentration�� |�� Key�Success�Factors�� |�� Cost�Structure�BenchmarksBasis�of�Competition�� |�� Barriers�to�Entry�� |�� Industry�Globalization

Level��Concentration in this industry is Low

�IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:


Competitive�Landscape

Cost�Structure�Benchmarkscontinued

taxes. Meanwhile, florists and photographers have some of the lowest profit because their work involves high expenditures in terms of purchases and time spent performing services.

WagesWages are a significant, though declining segment of revenue. They are anticipated to absorb 45.4% of revenue in 2013. Because many companies have let go of employees since 2008, many were just beginning to rehire workers in 2012. Also, some workers created their own businesses when they were let go and had to pay themselves less as a result. Labor-intensive industry segments, including food services and coordinators, pay the highest proportion of wages.

PurchasesIndustry purchases are expected to total 32.8% of 2013 revenue. Vendors must

purchase items such as food, beverages, flowers or gowns as part of their basic services. Many of these costs fluctuated in the past five years, variously impacting different service providers. For example, changing weather patterns inflated flower prices and increased the proportion of purchases for florists. On the other hand, new venues were cheaper to buy or refurbish after the mortgage crisis due to an oversupply of developed property and construction workers. Because of the diversity of expenses within this industry purchases are estimated to stay a steady share of industry revenue.

OtherOther expenses have also fluctuated over the past five years. These include rent, utilities, depreciation, and marketing and administrative expenses. In general, rent declined as a share of revenue as a

Sector�vs.�Industry�Costs

■�Profi�t■�Wages■�Purchases■�Depreciation■�Marketing■�Rent�&�Utilities■�Other

Average�Costs�of�all�Industries�in�sector�(2013)�

Industry�Costs�(2013)�

0

20

40

60

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80

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32.8

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Basis�of�Competition The Wedding Services industry has traditionally been made up of many small players that provide specific goods or services, such as a couple of designers’ dresses or flower arranging for a local community.

Internal competitionWedding service providers are competing with each other in terms of quality, price, customer service and marketing. Because services make up the majority of industry revenue, the primary basis of competition is customer service. No matter how couples find a business, it is imperative for the representatives to be friendly and informative in order to book that wedding. Yet customer service only goes so far because the price and (perceived) quality of vendors’ goods and services determines their appeal to brides. Many vendors choose to provide a wide range of quality and pricing options in order to expand their consumer base.

Technology has drastically increased the competition between businesses in the industry over the past five years. Social media, blogs, online directories and search engines have facilitated couples’ research about wedding vendors. It also allows word of mouth to travel further and faster than it used to. Easier communication between vendors and potential clients has also facilitated the availability of information. In response to this market opening up,

many new operators are starting businesses in the industry. As the number of vendors rises, competition intensifies. The fast-growing destination weddings segment is also relying on these technologies as couples increasingly book services from online information. The large amount of information about vendors allows couples to better judge the quality and price of many services, and to choose one to their liking. As a result of these new technologies, wedding service providers are increasingly competing based on marketing.

External competitionBecause most operators in this industry generate a majority of revenue outside of the industry, external competition is limited. However, the Great Recession’s negative financial impact caused many couples to reconsider their spending. Many concluded that they could provide themselves with services or products for their own wedding, and many also asked friends and family to pitch in and help out. This do-it-yourself (DIY) trend took off and became a popular way for couples to save, but also to personalize their weddings. As consumer spending revives, the influence of consumer competition on the industry is projected to decline; however, the DIY segment will continue as a way for people to customize their weddings.

Cost�Structure�Benchmarkscontinued

result of lower property values after the mortgage crisis. On the other hand utility costs increased as a result of higher

energy prices. Marketing costs contracted thanks to increasingly effective targeting.

Level�&�Trend��Competition in this industry is High and the trend is Increasing



Industry�Globalization

This industry has a low level of foreign ownership and no trade. Wedding services providers typically operate on a local level, rarely even travelling within a region or nationwide. The internet has enabled some couples to seek out foreign products for their wedding, such as offshoring custom gown production or

purchasing jewelry from foreign e-tailers. However, this remains a minimal component of the industry. Besides the geographical barrier, there are also cultural barriers to globalization for this industry. Many cultures have diverse wedding traditions that are best addressed by local professionals.

Barriers�to�Entry Barriers to entry have declined drastically in the past five years with the advent of cheap targeted marketing options online like Facebook. While vendors used to rely on expensive advertising local and nationwide magazines in order to attract clients, they now have a plethora of cheaper options to use. The decreased cost of reaching the consumer has allowed many small businesses to enter into the industry.

Existing vendors still benefit from reviews and word-of-mouth recommendations. However the wide variety of services and markets makes it possible for new operators to start out, albeit with a much smaller consumer base. The effectiveness of online communications has lowered barriers to entry by enabling anyone to market to the same demographics as established businesses.

Start-up costs have also decreased in the past five years for many businesses. The mortgage crisis resulted in lower rates for real estate, making it cheaper to buy or lease a venue or office. Meanwhile, technological advances and lower consumer spending led to decreased prices of equipment such as computers and digital cameras. Another factor that decreased start-up costs was a high unemployment rate. This decreased the opportunity cost for many new

vendors who started out in the industry when they became unemployed, as opposed to foregoing a steady income to create their wedding services business.

In some instances, larger vendors benefit from economies of size and scope. For example, David’s Bridal teams up with designers such as Vera Wang but mass produces dresses to sell in its over 300 locations nationwide. Many smaller dress shops cannot compete with the scope and pricing of David’s products. However, David’s lacks the quality and customer service aspect of the wedding business and, therefore, appeals mainly to brides with a low budget. As a result, many smaller bridal gown vendors project an exclusive image to avoid direct competition with David’s. Many small operators in the industry benefit not only from their ability to offer a wider range of goods but also from their personalized customer service.

Level�&�Trend��Barriers to Entry in this industry are Low and Decreasing

Barriers�to�Entry�checklist� LevelCompetition HighConcentration LowLife Cycle Stage MatureCapital Intensity LowTechnology Change MediumRegulation & Policy LightIndustry Assistance Low


Level�&�Trend��Globalization in this industry is Low and the trend is Decreasing


Other�Companies The Walt Disney CompanyEstimated market share: 1.4%The Walt Disney Company is an international conglomerate best known for its early cartoon characters, movies and amusement parks. The company was founded in 1923, and IBISWorld estimates that US operations generate about 92.0% of total company revenue. Disney’s main revenue stems from a few segments, including media networks, parks and resorts, studio entertainment, consumer products and interactive media. These various segments work in conjunction with each other; for example, its parks, resorts and consumer products all contribute to Disney’s weddings services.

The company stated in 2010 that over 1,000 couples married each year at Walt Disney World Resort, Disneyland Resort and aboard Disney Cruise Line. However, Disney claims to have hosted about 40,000 weddings since September 1991, which totals to about 2,000 weddings each year on average through 2011. This discrepancy between the figures indicates that the number of Disney weddings declined in recent years, most likely as a result of the decrease in disposable income and a lower marriage rate. Nonetheless, IBISWorld expects over 1,000 Disney weddings in 2013 as disposable income improves and wedding expenditures rise.

As a venue, Disney earns $20,000 for the average wedding it hosts for 50 people. Most of the ceremonies held at Disney are considered destination weddings. However, the company does not segment out wedding-specific revenue.

David’s BridalEstimated market share: 1.0%Known as the Walmart of weddings, David’s Bridal is the largest national retailer specializing in bridal gowns. With

more than 300 stores nationwide, the company also sells costume jewelry, bridesmaid dresses, communion dresses, flower girl dresses, prom dresses, wedding gifts, wedding books, gloves, handbags, headpieces, shoes and undergarments. It also operated 19 higher-end stores under the Priscilla of Boston brand name before discontinuing it in late 2011.

David’s distinguishes itself from other bridal shops by offering low-priced gowns and bridesmaid dresses in many styles and locations throughout the country. To this point, the retailer’s average dress costs about $550, while the national average cost for wedding gowns amounts to $1,075, according to Conde Nast Bridal Group’s Brides magazine. Manufacturing dresses in-house has enabled the low costs; the company produces its own dresses in Asia, where it can take advantage of low labor and overhead costs.

Formerly a division of Federated Department Stores (now Macy’s Inc.), David’s Bridal was sold in late 2006 to private equity firm Leonard Green & Partners. Since this buyout, the company does not disclose its financial information to the public. In 2013, IBISWorld estimates David’s Bridal will generate about $506.3 million through its retail sales, accounting for about 1.0% of the industry’s revenue.

The Pros Entertainment Service Inc.Estimated market share: Less than 1.0%Headquartered in Clearwater, FL, the Pros Entertainment Service Inc. is a large and diverse business. It offers DJ, video and photography services in 40 of the largest US markets. Over half of its estimated $3.0 million in revenue is expected to contribute to the Wedding Services industry. However, Pros has operated for over 30 years as a family business. As a

�Major�CompaniesThere�are�no�Major�Players�in�this�industry�� |�� Other�Companies


Major�Companies

Other�Companiescontinued

result, there is little publicly available information about the company.

In the past five years, the company has developed a bridal website and hired higher-quality professionals. The

company operates proprietary design and video studios and a photography lab. This in-house strategy has contributed to the company’s success by enhancing production flexibility and creativity.


Capital�Intensity The Wedding Services industry depends on labor to accommodate consumers. Labor expenditures are high because businesses in this industry compete primarily on the basis of customer service. As a result, vendors spend an average of only $0.06 on capital for every dollar they spend on labor.

Most capital costs are related to equipment or buildings that have an extended useful life. Also, many industry operators have minimal capital costs because of the nature of their services. For example, officiants incur little to no capital expenses.

�Operating�ConditionsCapital�Intensity�� |�� Technology�&�Systems�� |�� Revenue�VolatilityRegulation�&�Policy�� |�� Industry�Assistance

Tools�of�the�Trade:�Growth�Strategies�for�Success


Labo

r�Int

ensi

veCapital�Intensive

Change�in�Share�of�the�Economy

New�Age�Economy

Recreation,�Personal�Services,�Health�and�Education. Firms benefi t from personal wealth so stable macroeconomic conditions are imperative. Brand awareness and niche labor skills are key to product differentiation.

Traditional�Service�Economy

Wholesale�and�Retail. Reliant on labor rather than capital to sell goods. Functions cannot be outsourced therefore fi rms must use new technology or improve staff training to increase revenue growth.

Old�Economy

Agriculture�and�Manufacturing.�Traded goods can be produced using cheap labor abroad. To expand fi rms must merge or acquire others to exploit economies of scale, or specialize in niche, high-value products.

Investment�Economy

Information,�Communications,�Mining,�Finance�and�Real�Estate.�To increase revenue fi rms need superior debt management, a stable macroeconomic environment and a sound investment plan.

Trade�Show�and�Conference�PlanningJewelry�&�Watch�Wholesaling

Caterers

Soft�Drink,�Baked�Goods�&�Other�Grocery�Wholesaling

Wine�&�Spirits�WholesalingWedding�

Services

Capital intensity

0.5

0.0

0.1

0.2

0.3

0.4

SOURCE: WWW.IBISWORLD.COMDotted line shows a high level of capital intensity

Capital units per labor unit

Wedding Services

Other Services (except Public

Administration)

Economy

Level��The level of capital intensity is Low


Operating�Conditions

Revenue�Volatility Historically, volatility was lower as revenue gradually grew. However, the commercialization of weddings increased the industry’s dependence on consumer spending. This industry’s revenue volatility increased modestly in the past

five years due to the high unemployment and economic uncertainty that led couples to spend less on or postpone their nuptials. For instance, revenue rebounded 1.0% in 2012 yet dropped 5.8% in 2009. The gradual economic

Technology&�Systems

The software, machinery, equipment and intellectual property of most wedding services professionals have not changed greatly during the past few decades. Venues and clothing retailers are much the same, as is the job of caterers, florists, entertainers, hair, nails and make-up artists, and coordinators.

However, an abundance of online resources for consumers has boosted the competition between vendors. Likewise, the internet has facilitated price hunting and customization. Online services such as The Knot or Wedcharm share information from and about wedding vendors, making it easier for consumers to learn about the variety of options available to them. More intense competition, in turn encourages vendors to set themselves apart by catering to a niche audience, or offering discounts or unique services. As a result, many vendors are transitioning their marketing strategies toward communicating a unique vision to clients through social networking, blogging and wedding websites. Effective online communications have also lowered the barriers to entry for wedding services providers by enabling anyone to market to the same demographics as established businesses.

One segment of the industry that has benefited greatly from technological change is the Photography segment. Digital photography has revolutionized wedding photography businesses. Digital technology also allows photographers to

easily edit and touch up images without the need for studio technology or manual airbrushing. Programs such as Adobe Photoshop make these editing capabilities commercially available. Such advancements and other features, such as online album design, have enabled photographers to provide more add-on services. As a result, photographers now deliver more personalized, unique products to clients, increasing their revenue per wedding and their share of the industry. This change has also benefited other vendors because photographers often provide the pictures or videos they then use for marketing.

As technologies are adapted by an increasing segment of the population, they are expected to further change the landscape of the Wedding Services industry. For instance, mobile applications have the potential to alter how couples approach wedding planning. Another example of technological change is that some people choose to hook up an iPhone to their venue’s sound system and have a friend control the music instead of a professional DJ. Yet prior to iPhones, other media like MP3 players, CDs or tapes could be utilized. Therefore, if not driven by high-quality and easily accessible music selections today, the trend may be driven by couples minimizing expenses in the aftermath of the Great Recession. Nonetheless, easy-to-use and newly emerging technology is influencing the industry’s performance.

Level��The level of Technology Change is Medium

Level��The level of Volatility is Low


Operating�Conditions

Industry�Assistance Although there are online services and bridal fairs that help vendors to advertise, there is no organization that supports operators across the scope of the industry.

Regulation�&�Policy Government regulationAlthough each state regulates marriage, there are no other regulations that apply specifically to wedding service providers. Most state laws dictate that officiants must be registered in the state, or have state approval by holding a recognized position in the community like that of a judge, priest or rabbi, in order to perform a legal ceremony.

The county or court clerk issues a marriage license for a nominal fee in the state that the ceremony is performed in. Some states have a

specified waiting period, usually of a few days, before the license is issued. This hampers the establishment of quick-wedding establishments in these states. A ceremony performed elsewhere, even abroad, is usually valid in any state as long as the marriage was legal in the jurisdiction where it occurred. Also, most states require that both bride and groom are 18 or older. In most states minors are permitted to marry with parental approval, and court approval is increasingly required as well.

Revenue�Volatilitycontinued

recovery has smoothed industry volatility as industry revenue returned to slow growth starting in 2011. The current dip

is projected to result in growth during the next few years while spending returns to pre-recessionary levels.

Level�&�Trend��The level of Regulation is Light and the trend is Steady

Level�&�Trend��The level of Industry Assistance is Low and the trend is Steady


Volatility�vs�Growth

Reve

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vola

tility

*�(%

)�

1000

100

10

1

0.1

Five�year�annualized�revenue�growth�(%)�–30 –10 10 30 50 70

Hazardous

Stagnant

Rollercoaster

Blue�Chip

* Axis is in logarithmic scale

Wedding�Services

A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the time frame for capital investment.

When a fi rm makes poor investment decisions it may face underutilized capacity if demand suddenly falls, or capacity constraints if it rises quickly.


�Key�StatisticsRevenue�

($m)

Industry�Value�Added�

($m)Establish-

ments Enterprises Employment Exports ImportsWages�($m)

Domestic�Demand

Number�of�Marriages�

(Thousands)2004 52,579.8 34,143.7 415,391 400,672 758,549 -- -- 30,622.4 N/A 2,287.72005 53,269.7 33,389.3 428,598 414,342 763,611 -- -- 29,810.3 N/A 2,248.82006 53,786.6 32,874.8 439,442 425,199 772,951 -- -- 29,331.6 N/A 2,181.22007 54,573.8 32,631.3 450,692 436,720 779,173 -- -- 28,879.3 N/A 2,201.72008 52,655.1 30,454.6 432,910 420,134 731,293 -- -- 27,163.7 N/A 2,159.12009 49,588.3 28,062.8 422,790 410,942 697,842 -- -- 24,938.7 N/A 2,087.62010 49,285.0 26,824.6 436,503 424,923 703,979 -- -- 24,163.2 N/A 2,167.22011 49,710.7 26,891.2 461,768 450,207 727,672 -- -- 23,759.4 N/A 2,217.32012 50,219.8 26,651.3 487,431 475,958 750,523 -- -- 23,399.5 N/A 2,204.32013 50,633.5 26,417.1 513,107 501,798 771,966 -- -- 22,999.3 N/A 2,159.72014 51,310.5 26,210.2 533,811 522,847 784,724 -- -- 22,721.1 N/A 2,145.32015 53,240.6 26,523.8 568,637 557,814 816,778 -- -- 22,983.3 N/A 2,131.12016 54,280.7 26,548.1 595,181 584,749 835,329 -- -- 22,843.4 N/A 2,116.62017 55,582.1 26,603.7 625,676 615,653 858,020 -- -- 22,803.2 N/A 2,097.02018 56,709.3 26,660.3 653,537 643,911 877,951 -- -- 22,696.5 N/A 2,080.8Sector�Rank 4/56 2/56 3/56 3/56 4/56 N/A N/A 3/56 N/A N/AEconomy�Rank 169/1210 102/1210 16/1209 17/1209 51/1210 N/A N/A 69/1210 N/A N/A

IVA/Revenue�(%)

Imports/Demand�

(%)Exports/Revenue�

(%)

Revenue�per�Employee�

($’000)Wages/Revenue�

(%)Employees�

per�Est.Average�Wage�

($)

Share�of�the�Economy�

(%)2004 64.94 N/A N/A 69.32 58.24 1.83 40,369.71 0.282005 62.68 N/A N/A 69.76 55.96 1.78 39,038.59 0.262006 61.12 N/A N/A 69.59 54.53 1.76 37,947.55 0.252007 59.79 N/A N/A 70.04 52.92 1.73 37,064.04 0.252008 57.84 N/A N/A 72.00 51.59 1.69 37,144.76 0.232009 56.59 N/A N/A 71.06 50.29 1.65 35,736.89 0.222010 54.43 N/A N/A 70.01 49.03 1.61 34,323.75 0.212011 54.10 N/A N/A 68.31 47.80 1.58 32,651.25 0.202012 53.07 N/A N/A 66.91 46.59 1.54 31,177.59 0.202013 52.17 N/A N/A 65.59 45.42 1.50 29,793.15 0.192014 51.08 N/A N/A 65.39 44.28 1.47 28,954.26 0.192015 49.82 N/A N/A 65.18 43.17 1.44 28,138.98 0.182016 48.91 N/A N/A 64.98 42.08 1.40 27,346.59 0.172017 47.86 N/A N/A 64.78 41.03 1.37 26,576.54 0.172018 47.01 N/A N/A 64.59 40.02 1.34 25,851.67 0.16Sector�Rank 18/56 N/A N/A 31/56 12/56 44/56 23/56 2/56Economy�Rank 234/1210 N/A N/A 1104/1210 101/1210 1151/1209 945/1210 102/1210

Figures are inflation-adjusted 2013 dollars. Rank refers to 2013 data.

Revenue�(%)

Industry�Value�Added�

(%)

Establish-ments�

(%)Enterprises�

(%)Employment�

(%)Exports�

(%)Imports�

(%)Wages�

(%)

Domestic�Demand�

(%)

Number�of�Marriages�

(%)2005 1.3 -2.2 3.2 3.4 0.7 N/A N/A -2.7 N/A -1.72006 1.0 -1.5 2.5 2.6 1.2 N/A N/A -1.6 N/A -3.02007 1.5 -0.7 2.6 2.7 0.8 N/A N/A -1.5 N/A 0.92008 -3.5 -6.7 -3.9 -3.8 -6.1 N/A N/A -5.9 N/A -1.92009 -5.8 -7.9 -2.3 -2.2 -4.6 N/A N/A -8.2 N/A -3.32010 -0.6 -4.4 3.2 3.4 0.9 N/A N/A -3.1 N/A 3.82011 0.9 0.2 5.8 6.0 3.4 N/A N/A -1.7 N/A 2.32012 1.0 -0.9 5.6 5.7 3.1 N/A N/A -1.5 N/A -0.62013 0.8 -0.9 5.3 5.4 2.9 N/A N/A -1.7 N/A -2.02014 1.3 -0.8 4.0 4.2 1.7 N/A N/A -1.2 N/A -0.72015 3.8 1.2 6.5 6.7 4.1 N/A N/A 1.2 N/A -0.72016 2.0 0.1 4.7 4.8 2.3 N/A N/A -0.6 N/A -0.72017 2.4 0.2 5.1 5.3 2.7 N/A N/A -0.2 N/A -0.92018 2.0 0.2 4.5 4.6 2.3 N/A N/A -0.5 N/A -0.8Sector�Rank 45/56 54/56 4/56 4/56 13/56 N/A N/A 54/56 N/A N/AEconomy�Rank 1026/1210 1088/1210 87/1209 88/1209 316/1210 N/A N/A 1104/1210 N/A N/A

Annual�Change

Key�Ratios

Industry�Data



Jargon�&�Glossary

BARRIERS�TO�ENTRY High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL�INTENSITY Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

CONSTANT�PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the “real” growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC�DEMAND Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control.

ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single physical location where business is conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise.

EXPORTS Total value of industry goods and services sold by US companies to customers abroad.

IMPORTS Total value of industry goods and services brought in from foreign countries to be sold in the United States.

INDUSTRY�CONCENTRATION An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%.

INDUSTRY�REVENUE The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.

INDUSTRY�VALUE�ADDED�(IVA)� The market value of goods and services produced by the industry minus the cost of goods and services used in production. IVA is also described as the industry’s contribution to GDP, or profit plus wages and depreciation.

INTERNATIONAL�TRADE The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%, and high is more than 35%.

LIFE�CYCLE All industries go through periods of growth, maturity and decline. IBISWorld determines an industry’s life cycle by considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments; the amount of change the industry’s products are undergoing; the rate of technological change; and the level of customer acceptance of industry products and services.

NONEMPLOYING�ESTABLISHMENT Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-employed individuals.

PROFIT IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding interest and tax.

VOLATILITY The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.

WAGES The gross total wages and salaries of all employees in the industry. The cost of benefits is also included in this figure.

Industry�Jargon

IBISWorld�Glossary

DESTINATION�WEDDING A marriage ceremony or reception 200 or more miles away from where the couple lives and at least 80.0% of guests require overnight accommodations.

DO-IT-YOURSELF�(DIY)� A category of customers who complete tasks and projects on their own that would generally be outsourced to a business or service provider.

OFFICIANT An officiating priest or minister.

WEDDING�VENDOR A company that provides services on the day of the marriage ceremony or reception.

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IBIS Report Wedding Services in the US Industry Report

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