US Spending on Recreation Services to Increase 3.5% Annually in Nominal Terms to 2023

4/18/2019

Cleveland, OH, April 18, 2019 — US personal consumption expenditures (PCE) on recreation services is forecast to increase 3.5% yearly in nominal terms through 2023, according to Recreation: United States, a report recently released by Freedonia Focus Reports. Advances will stem from increases in disposable personal income (DPI), which will support consumer travel to recreation destinations and spending during their stay. Recreation providers also stand to benefit from a consumer trend that favors spending on experiences over products. Furthermore, providers who mind the graying of the US population and adjust their offerings accordingly stand to benefit at the expense of those that do not. Competition from other types of entertainment such as streaming media and video games is expected to intensify, particularly amid the increasing sophistication of home entertainment systems (e.g., virtual reality).

Gains in personal spending on gambling, the largest segment, will stem from increases in DPI and the continued proliferation of casinos and other gambling establishments, which will make gambling more accessible to consumers. At the same time, record-high jackpots will continue to spur consumer participation and spending on lottery games. However, restrictions on various types of gambling – particularly online gambling – will persist in many areas, limiting further segment advances.

These and other key insights are featured in Recreation: United States. This report forecasts to 2023 US PCE on recreation in nominal and real (inflation-adjusted) US dollars. Total PCE is segmented by type in terms of:

  • gambling
  • amusement parks and related services
  • clubs and participant sports
  • live entertainment
  • spectator sports
  • movie theaters
  • museums and libraries

To illustrate historical trends, total PCE and the various segments are provided in annual series from 2008 to 2018.

Expenditures include services financed by third parties (e.g., business group visits) as well as services provided without a financial intermediary. Spending on other services – such as accommodation, dining, and shopping – offered by a recreation service provider is excluded from the scope of this report.

More information about the report is available at:

https://www.freedoniafocusreports.com/Recreation-United-States-FF95062/?progid=91541