Arts Entertainment and Recreation
Business for Sale Industry Economics
2002 - 2021
2021 - 2027
The Arts Entertainment and Recreation sector comprises nine different subsectors of the US economy, from performing arts companies to gambling industries.
The enterprises and organizations within this sector operate establishments or provide services to satisfy the diverse recreational, cultural and entertainment needs of US consumers and foreign visitors.
Since the experiences provided by operators in this sector are considered discretionary, sector revenue is highly dependent upon available levels of household incomes, discretionary spending and leisure time.
Prior to the COVID-19 (coronavirus) pandemic, the sector benefited from growth in per capita disposable income and consumer spending.
However, sector revenue is expected to take a hard hit by the outbreak, causing sector revenue to decline 33.0% in 2020 alone.
Ultimately, Research expects sector revenue to fall an annualized 6.1% to $215.3 billion over the five years to 2020.
The Arts Entertainment and Recreation sector comprises establishments that provide services and experiences that fulfill the creative, cultural and leisure desires of US consumers and foreign visitors.
Some of the largest subsegments of this sector include spectator sports; independent artists, writers and performers; promoters of performing arts, sports and similar events; gambling industries and amusement parks and arcades.
Consumer participation in sector activities is generally considered discretionary, leaving participating establishments sensitive to fluctuations in the macroeconomic climate.
Prior to the COVID-19 (coronavirus) pandemic, the sector benefited from gains in per capita disposable income, enabling more consumers to splurge at sector establishments.
However, in 2020, sector revenue is estimated to be negatively pressured by the closure of nonessential businesses and shelter-in-place orders imposed by state governments at the start of the pandemic.
As a result, sector revenue has decreased an annualized 6.1% to $215.3 billion over the five years to 2020, including a decline of 33.0% in 2020 alone.
Over the five years to 2025, Research expects that demand for the Arts Entertainment and Recreation sector will rebound strongly as external drivers that dampened revenue growth over the five years to 2020 will recover.
As a result, sector revenue is expected to rise at an annualized rate of 9.9% to $345.3 billion over the five years to 2025.
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.