Athletic Event Organizers
Business for Sale Industry Economics
$1,583,000,000
Revenue
-5.43%
Projected CAGR
2001 - 2020
Historical
2020 - 2026
Projection
-0.19%
CAGR
$30,000,000
Profit
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Summary
Operators in the Athletic Event Organizers industry organize athletic events that do not require facilities, such as marathons, cycling competitions and obstacle courses.
The industry benefited from increased corporate spending on employee wellness events, such as company-hosted marathons, over the five years to 2020.
Furthermore, events tailored toward sports enthusiasts and large-scale marathons increased in popularity during the period.
Combined with positive conditions in the US economy that encourage spending on events, such as rising consumer spending and advertising expenditure, these trends enabled the industry to expand.
In 2020, however, the industry has been drastically impacted by the COVID-19 (coronavirus) pandemic, which has caused the cancelations of public gatherings, such as those organized by industry operators.
Over the five years to 2020, Research expects industry revenue to decline at an annualized rate of 3.8% to $1.6 billion, due entirely to an expected 38.7% drop in 2020 alone, the first year of decline since 2011.
The average industry profit margin (measured as income before interest and taxation) is also expected to plummet as a result of the coronavirus pandemic.
Performance
Despite revenue expansion through 2019, the Athletic Event Organizers industry has contracted significantly as a result of the coronavirus pandemic in 2020.
Industry operators organize athletic events, such as marathons and cycling competitions, without the use of fixed facilities. Events can range from small local races to large marathons and obstacle courses that are followed by a vast audience.
Greater corporate spending on employee wellness events, backed by rising corporate profit and the growing popularity of events tailored toward sports enthusiasts, helped boost demand for industry services over the past five years.
Moreover, steady economic growth through 2019 led to increased advertisement expenditure on industry events with more sponsorships and advertising.
However, increased competition from other forms of athletic activity and leisure tempered growth over the five years to 2020. And in 2020 in particular, the coronavirus slashed demand.
Outlook
The Athletic Event Organizers industry is expected to return to growth over the five years to 2025, with revenue forecast to rise at an annualized rate of 7.5% to about $2.3 billion over the five years to 2025. A rebounding economy following the pandemic and higher awareness of health issues are expected to drive demand for athletic events.
Additionally, the growing popularity of corporate wellness events and increasing emphasis on creating a more social atmosphere at athletic events will also fuel renewed industry demand. However, athletic participation is expected to remain lackluster over the next five years.
Furthermore, climbing external competition from gyms and team sports is projected to temper revenue growth. More specifically, the rising fees associated with athletic event participation are likely to deter participation among individual consumers.
Industry
Event management services that need facilities such as marathons and triathlons, as well as many other activities, are provided by this business. In addition to selling these products, other companies in this area provide other services like logistics, operational, and marketing. The Athletic Event Organizers industry is mature and, thus, described as being in the early stages of its life cycle. According to research, the Industry forecast (2015-2025), is expected to drop by an annualized 0.4 percent between 2015 and 2025.
Also, a 37.9% decrease in IVA is projected in 2020 alone, albeit as a consequence of the COVID-19 (coronavirus) pandemic, this will lead to an overall IVA loss of 37.9%. This sector has suffered a considerable loss as a result of the epidemic, resulting in widespread event cancellations. As a consequence, increase in the number of individuals filing for individual bankruptcy is lower than the predicted GDP growth of 1.9% during the same 10-year period.
IVA growth that is lower than GDP is usually a sign of a deteriorating sector. However, this instance is accompanied with a slower development rate in the business, which is due to the fear of the coronavirus pandemic of 2020. While the country as a whole is in a state of slow recovery, industrial activity continues to be lackluster.
Many parts of the sector rely on broad and slow-moving variables, such as the amount of free time people have, general interest in physical fitness, financial market circumstances, and demographic shifts. For instance, in America, people’s time spent on leisure and sports each day is projected to stay same over the next decade, which means that our leisure and sports activities will only increase by an hour during that time period.
The remaining industry demand drivers such as per capita disposable income and advertising expenditures are all manifestations of economic circumstances, which implies that industry success is highly connected to economic growth.
There have been minimal changes in the kind of events that are planned by this business during the previous decade. Due to the rising popularity of obstacle course races such as the Tough Mudder and Spartan Race, the opportunity to compete in one of these races has become more common. Nonetheless, the vast majority of activities stay the same and are broadly tolerated by consumers.
Internet services use has not changed much in the previous decade, with the exception of a little growth in technical innovation. When planning events, businesses or individuals may often make use of their own websites in order to present prospective participants with information pertaining to such topics as cost, transportation, prior participants’ experiences, and the location of the event.
Social media networks are being increasingly used for promoting events, while at the same time making it possible for participants to share their experiences with others, driving participation. By doing this, we have greatly lowered the amount of money organizers need to put into publicizing their event, while also increasing the number of people who are able to be reached.