Increasing acceptance of cohabitation has caused a significant proportion of couples to postpone their nuptials over the past five years, posing a challenge to the Wedding Services industry.
The strengthening economy has boosted wedding budgets, and IBISWorld estimates that consumers with deeper pockets will help drive industry demand. Over the five years to 2016, IBISWorld estimates that industry revenue has increased at an annualized rate of 3.2% to $72.1 billion, in line with a 1.6% annualized increase in per capita disposable income during the same period. In 2016, however, revenue is projected to decline 0.5%, facilitated by a 2.9% drop in the marriage rate.
The marriage rate is forecast to continue declining at an annualized rate of 1.9% over the five years to 2021. However, according to IBISWorld Industry Analyst Anya Cohen, “the amount spent on weddings is estimated to grow during the period, as higher disposable income increases demand for large, costly weddings.” In addition to rising disposable income, as the average age of marriage and length of engagement further increase, couples will have more time to plan and save money for their ceremonies. As a result, revenue is forecast to grow at a modest annualized rate over the five years to 2021.